WRITTEN QUESTION E-2516/00 by Glenys Kinnock (PSE) to the Commission. Structural Funds.
Date: 2000-08-02
Institutions: European Parliament, Provisional data
Subjects: Structural Funds, competition law, terms for aid, venture capital

18.4.2001

EN

Official Journal of the European Communities

C 113 E/113

by the UN have succeeded in partly dismantling the Iraqi arsenal of weapons of mass destruction (WMD),
the Iraqi Government has not cooperated with the UN and its subsidiary bodies. It has not been possible to
carry out any inspections since 1998 to verify Iraqi compliance with the relevant Resolutions on weapons
programmes.

The Council welcomes the setting up of a United Nations working group to put forward general
2.
recommendations on how to make UN sanctions more effective, in particular by targeting them better, and
how to avoid unnecessary human suffering.

Resolution 1284/99 of the United Nations Security Council of 17 December 1999 offers Baghdad
3.
the possibility of having sanctions suspended if the Iraqi Government cooperates fully with disarmament
inspectors. Sanctions can be lifted only after Iraq has fulfilled the obligations laid down in the Security
Council resolutions. Until then, the declared embargo will continue to apply. The EU fully implements all
Security Council Resolutions.

4.
Cooperation by the Iraqi Government and compliance with UN Resolutions are necessary if the
situation is to be improved. All EU action will be taken within the framework of these Resolutions, in
particular Resolution 1284.

5.
The Council has noted that in its Resolution 1302 of 8 June 2000, the United Nations Security
Council has called on the UN Secretary-General to appoint independent experts to prepare a detailed
report containing an analysis of the humanitarian situation in Iraq, and of humanitarian needs arising from
that situation, and recommendations on how to address those needs.

6. Within the framework of the existing Resolutions, over the coming months the Council will be
receiving concrete proposals concerning EU/Iraqi cooperation in the humanitarian and cultural fields.

(2001/C 113 E/114)

WRITTEN QUESTION E-2516/00

by Glenys Kinnock (PSE) to the Commission

(2 August 2000)

Subject: Structural Funds

Could the Commission indicate whether any competition issues are involved in the use of Structural Funds
to create venture capital? Is it true that such an initiative could be declared illegal?

Answer given by Mr Barnier on behalf of the Commission

(29 September 2000)

The Commission in its guidelines for the structural funds 2000-2006 encourages the use of financial
engineering instruments instead of grants for productive investment. Measures in the form of venture
capital are one such type of instrument. At the same time Council Regulation (EC) No 1260/1999 of
21 June 1999 laying down general provisions on the structural funds (1), provides that operations financed
by the funds shall be in conformity with the provisions of the EC Treaty, with instruments adopted under
it and with Community policies and actions,
in
particular, the state aid rules.

including the rules on competition. This includes,

In planning the programmes of the European regional development fund (ERDF), the Commission, in
collaboration with the national authorities, implements the structural funds guidelines for developing risk
or venture capital funds with particular regard to innovative and high tech small and medium-sized
enterprises (SMEs).

Any measure which distorts or threatens to distort competition by affecting trade between Member States
is liable to fall within the definition of state aid in Article 87(1) (ex Article 92) of the EC Treaty, unless it
falls under one of the exemptions in Article 87(2) and 87(3). State aid which is put into effect without
prior notification to and authorisation by the Commission is illegal because it breaches the obligation in
Article 88(3) (ex Article 93) of the Treaty.

C 113 E/114

Official Journal of the European Communities

EN

18.4.2001

Thus, there may be public or state aid connected with the creation of venture capital funds employing
structural funds. Whether state aid is present, and if so whether it is compatible with the common market,
depends on the nature and structure of the fund.

(1) OJ L 161, 26.6.1999.

(2001/C 113 E/115)

WRITTEN QUESTION E-2519/00

by Konstantinos Hatzidakis (PPE-DE) to the Commission

Subject: Incorporation of plans for projects in Third CSF

(2 August 2000)

In March 2000, a few days before the general election in Greece, Secretaries-General of the Region
instructed their respective regional authorities to invite tenders for projects to be funded under the Third
Community Support Framework. Document 4091 of 21 March 2000 written by the Secretary-General of
the Ionian Islands Region reveals that, in the prefecture of Lefkada alone, tenders were invited for eleven
projects with an overall budget of GDR 3,16 billion.

1.
Is the Commission aware of any similar circumstances in which invitations to tender have been
issued for projects under the Third CSF and on the basis of which specific decisions were those invitations
issued?

2. What are those projects, in which region of the country are they located and what is the budget for
each project?

How were instructions issued to invite tenders for these projects (cid:129) particularly in the run-up to an

3.
election (cid:129) given that Greece and the European Union have not yet signed the Third CSF?

4. Will these projects continue to be implemented using funds from the Third CSF?

Answer given by Mr Barnier on behalf of the Commission

(9 October 2000)

The preparation and publication of calls to tender for projects part-financed by the Structural Funds is,
under the principle of decentralised management of the Funds, the exclusive responsibility of Member
States.

Part-financing of projects or activities under the operational programmes (OP) of the Greek Community
support framework (CSF) for 2000-2006 will be decided on by the programme managing authority in line
with the criteria and procedures set in the CSF, now in process of approval, and in the OPs, at present
under negotiation.

Tender calls for projects part-financed under OPs are normally made after the decision to include them in
the programme but under Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general
provisions on the Structural Funds (1) expenditure incurred by Member States from 1 January can be
eligible even if it predates approval of the programme.

In such cases the decision to part-finance a particular project or activity under the programme in question
must subsequently be taken by the managing authority in line with the abovementioned criteria and
procedures. If a project now under realisation turns out not to satisfy the criteria for its inclusion in a
programme it will have to be financed from national resources only.

(1) OJ L 161, 26.6.1999.