WRITTEN QUESTION E-2985/01 by Markus Ferber (PPE-DE) to the Commission. Funding of correspondence courses from PHARE appropriations.
Date: 2001-10-29
Institutions: European Parliament, Provisional data
Subjects: EU financing, EU programme, accession to the European Union, distance learning, education policy, project evaluation

18.7.2002

EN

Official Journal of the European Communities

C 172 E/21

The primary objective of the SME finance facility is not to provide interest subsidies, which could distort
the market, but to increase the supply of, and facilitate access to, credit for small companies by inducing
financial
intermediaries in the candidate countries to expand their financing operations for SMEs and
maintain them over the long term. For this reason, the specific loans to SMEs are offered by the local
banks at market conditions.

All local participating banks receive various incentives in order to develop successful, sustainable credit
operations with SMEs clients.
local banks selected by the European Bank for
Reconstruction and Development (EBRD) under the facility receive the incentive of technical assistance
financed from PHARE resources to strengthen their administrative, credit and management capacities so
that they can more effectively address the SME sector’s needs.

In particular, all

As regards subsidising bad debts, one of the incentives the Commission’s support may cover is a partial
guarantee of up to 40 % of the loss incurred on the SME loan portfolio of the local banks participating in
the facility. However, all the incentives that are funded are the result of individual negotiations between the
IFIs who are partners in this programme and the local participating banks.

The objective of the incentives, including the partial guarantee, is to ensure that the necessary conditions
for successfully developing business with SME clients are met. As a result, SMEs in the candidate countries
will enjoy easier access to credit through undistorted, more competitive and efficient financing circuits.

(2002/C 172 E/022)

WRITTEN QUESTION E-2985/01

by Markus Ferber (PPE-DE) to the Commission

(29 October 2001)

Subject: Funding of correspondence courses from PHARE appropriations

In the late 1990s the Commission, acting via the European Training Foundation (ETF) in Turin, used
PHARE appropriations to pay, in two instalments of EUR 20 m, the cost of setting up vocational training
correspondence courses in the applicant countries. According to assessment reports, the majority of the
appropriations were used to purchase PCs, some of which are still being stored, in their original packaging,
in the cellars of the universities which received them.

Can the Commission state how many and which correspondence courses are now running?

How many students have registered for these courses and can be shown to be taking part in them?

How many participants have thus far completed the courses by passing public or university examinations?

How much has a completed training course thus far cost the European taxpayer?

What action, in terms of its operations and staff, does the Commission plan to take in response to this
squandering of appropriations?

What role does the ETF still play in the current pre-accession strategy?

When can the Foundation be closed down?

Answer given by Mr Verheugen on behalf of the Commission

(14 December 2001)

The Commission assumes that the Honourable Member refers to two Multi-country Programmes for
Distance Education in the candidate countries of Central and Eastern Europe and Albania, as well as a
programme extension for Bosnia & Herzegovina and the former Yugoslav Republic of Macedonia. The

C 172 E/22

Official Journal of the European Communities

EN

18.7.2002

budget of all programmes, which were implemented by the European Training Foundation (ETF),
amounted to a total of € 11 million during the years 1995-1997. The main purpose of the programmes
was to promote awareness and application of modern open and distance learning methods.

The majority of appropriations were not used to purchase PCs. In the context of the creation of study
centres, for 1995-1996 approximately 18 % (14,5 % for 1997) of the total budget has been spent on basic
equipment (computers, networks, multi-media production facilities). This represents a lower proportion
than is usual
in PHARE projects on the development of vocational training. Problems raised in the
programme assessment, carried out in July 1999, relating to the late delivery or installation of equipment
provided were solved before the end of the programme in September 1999. Only in one case equipment
was installed after the end of the programme.

The results of the programmes included enhanced institutional co-ordination for distance education in 11
countries and the establishment of 45 regional distance education study centres. In addition, 31 multi-
country distance courses were developed. The average cost for these courses amounts to € 80 000 C
€ 100 000, from the course design to the final delivery. Over 1 000 participants took part. Moreover, the
study centres themselves developed more than 200 distance learning courses. Overall,
the 1999
programme assessment concluded that the programme was successfully implemented and contributed to
the development of the countries’ educational systems by improving modern, media supported teaching
and learning. A further evaluation carried out in April 2001 confirmed these findings.

ETF undertook a survey on the sustainability of the programme’s results (http://www.etf.eu.int/etfweb.nsf/
pages/pharedown/$file/sustainability.doc) in September 2000, one year after the programme activities had
been finalised. It shows that most of the study centres were continuing the delivery of courses. The
number of courses is estimated at about 130. The programme requested the development of pilot courses
for which no specific examination was required. However, some of the courses have been adopted as part
of the national education and training systems and most of them have developed plans for future
accreditation. Further updated information would require a more detailed survey. The Commission will ask
the ETF to conduct this survey in September 2002.

Given the above information the Commission does not consider
that appropriations have been
squandered. Within the regular audit activities in PHARE, a closing audit of the programme will be
conducted in 2002.

In the context of the pre-accession strategy, the Foundation’s role and activities comprise their involvement
in current policy developments of the Union and the contribution to their preparation for full participation
at the time of accession. In this framework, the national observatories produce information and analysis
concerning training and labour market developments and the ETF co-operates with the European Centre
for the Development of Vocational Training (CEDEFOP). The ETF focuses on those countries that face
particular problems with the modernisation of their training systems, namely Bulgaria, Romania and
Turkey.

Decisions concerning Community Agencies are taken by the Council.
the
Foundation’s role in candidate countries will cease upon the date of accession. However, the ETF will
continue to support (through policy guidance and project management) the reform of vocational education
and management training in over 30 partner countries in the Mediterranean region, the Western Balkans,
the New Independent States and Mongolia.

is understood that

It

(2002/C 172 E/023)

WRITTEN QUESTION E-3028/01

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Commission

Subject: Enlargement and the cattle sector

(30 October 2001)

What is the current situation of the negotiations with the various candidate countries with regard to both
the milk and beef cattle sectors, and what progress has been made? With regard to the milk sector, chapter
I, what reference quantities are being used for the various countries, and what are the deadlines being
worked on?