WRITTEN QUESTION E-1656/02 by Ioannis Souladakis (PSE) to the Commission. Funding of CARDS infrastructure programmes.
Date: 2002-06-11
Institutions: European Parliament, Provisional data
Subjects: EU programme, Western Balkans, economic infrastructure, economic reconstruction, energy policy, environmental policy, financial institution, financing, regional policy, transport policy

14.8.2003

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Official Journal of the European Union

C 192 E/9

The Commission agrees that countries recording sound cyclically-adjusted budget balances (i.e. close-to-in
balance or in surplus) are in a better position to face the budgetary impact of economic downturns than
countries posting cyclically-adjusted deficits, even if the latter post nominal surpluses during upturns.
Independently of the cyclical position, however, greatest attention has to be paid in the surveillance to the
risk of nominal deficits exceeding the 3 % of gross domestic product (GDP) reference value.

In the Pact, Member States are committed to adhere to the medium-term objective for the budgetary
position of close-to-balance or in surplus. The reference to the medium term in the Pact is interpreted in
the Code of Conduct (2) as a reference to the business cycle. The Commission, therefore, uses cyclically-
adjusted balances, in addition to nominal balances, as a tool when assessing the budgetary position.

When making its assessment, the Commission also takes into account the overall level of debt built-up by
a particular Member State. Adherence to the close-to-balance or in surplus objective for the budget deficit
is considered sufficient to ensure a continuous reduction of the overall debt level especially in highly-
indebted countries. Measures such as privatisations are welcome in this sense, but are not required to
ensure the full compliance.

(1) OJ L 209, 2.8.1997.
(2) Opinion of the Economic and Financial Committee on the content and format of the stability and convergence
programmes, endorsed by the July 2001 Ecofin Council. The Code of Conduct has been adopted to facilitates the
evaluation of the programmes by the Commission and Council.

(2003/C 192 E/009)

WRITTEN QUESTION E-1656/02

by Ioannis Souladakis (PSE) to the Commission

Subject: Funding of CARDS infrastructure programmes

(11 June 2002)

The five-year strategic programme, CARDS, does not provide for funding for major infrastructure projects
owing to a shortage of appropriations. Consequently, funding to strengthen and improve infrastructure,
which is essential
is excluded from the
Community framework, raising questions as to how it can be financed.

for the long-term development of south-eastern Europe,

1. What methods of funding major infrastructure projects has the Commission provided for south-
eastern Europe?

2. Which European Union services and financial organisations does it intend to involve in the funding
of infrastructure projects?

3.
In what context will the Commission participate and become involved in funding and building the
infrastructure, as provided under the five-year CARDS programme which the Commission itself drew up?

Answer given by Mr Patten on behalf of the Commission

(22 July 2002)

1.

Cards programming and infrastructure development in the Western Balkans

One of the key objectives of the CARDS regional strategy for 2002-2006 (cid:1) which was presented on
5 October 2001 in the CARDS committee and approved on 22 October 2001 by the Commission (cid:1) is ‘to
assist the countries in developing coherent strategies for infrastructure with an international dimension in
transport, energy and environment’.

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Official Journal of the European Union

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14.8.2003

When presenting this strategy, the Community made clear that, in the programming of CARDS, it should
indeed pay consideration to the need to ensure a greater focus of resources in a few priority areas where
the Community has a clear comparative advantage so as to ensure impact (cid:1) a requirement of the overall
Commission reform of Community assistance. An additional factor specific to the Western Balkans which
affects CARDS programming is the evolving needs of the region as the reconstruction stage is being
completed and the long term challenges, such as those of the stabilisation and association process take
more prominence.

Support in these areas continues but in a manner that reflects the Commission’s above constraints and the
comparative advantage of other players, in particular International Financial Institutions (IFIs), to address
the region’s needs:

(cid:1) the focus of support is to develop strategies and preparatory studies, as well as catalytic investments
with a view to reconnect the region’s transport, energy and environmental infrastructure into the Pan
European Networks. While CARDS will support primarily the development of regional strategies and
catalyst investments, IFIs are best placed to address the financing requirements of the infrastructure. It
must be noted that the EIB, which is the Investment Bank of the Union, now covers the entire region
since it expanded its operations in 2001 to Croatia and the former Republic of Yugoslavia (FYROM),
infrastructure
and has announced that it will continue to give a particular emphasis to regional
development.

(cid:1) The CARDS programme, by concentrating significantly on institution building (cid:1) development of
administrative capacities, regulatory framework reform (cid:1) will also address in an effective manner the
concerns of the EIB about the ability of the countries to cope with and fulfil necessary obligations/
commitments (cid:1) a shared concern of IFIs and major donors. One major initiative promoted by the
Community in the region, the Regional Electricity market, illustrates that an overall strategy in the
electricity sector should not only be based on physical investments but also on market and regulatory
framework reforms.

(cid:1) Infrastructure investments will still continue substantively in the case of FYROM and Kosovo to
complete reconstruction work already begun. Elsewhere in the region, CARDS resources may be used
to help catalyse key infrastructure investments in certain priority cases. Limited infrastructure needs
may also be funded under Integrated Border management programmes.

The Community’s contribution to initiatives undertaken to develop strategies and fund major

2.
infrastructure projects in South-East Europe.

Coordination with IFIs and other donor activity

The Infrastructure Steering Group (ISG) was set up in 2001 (SP WT II meeting in Tirana, May 2001).
The ISG is currently under the chairmanship of the Commission and consists of experts of the EIB, the
Commission, the European Bank for Reconstruction and Development (EBRD), the World Bank (WB),
the Council of Europe Development Bank, and the Office of the Special Coordinator of the Stability Pact.
The Community (EC)/WB Joint Office provides secretariat of ISG.

The Infrastructure Steering Group is to vet projects that contribute and are part of a strategic approach to
develop infrastructure networks of regional importance and comply with agreed criteria. It will, where
appropriate, consult with other multilateral or bilateral agencies. It will help put together a financing
package using its experience to bring in the private sector as often as possible. It will also verify that
appropriate institutional, regulatory and sectoral frameworks, that will accelerate the creation of regional
markets, are being developed.

Strategic framework

October 2001 Commission paper ‘Transport and Energy Infrastructure for South Eastern Europe’: this
basic blue-print is already being developed through the various study projects financed by CARDS and
other donors in 2001 that cover energy (i.e. on electricity, gas and oil) and transport, notably the
Transport Infrastructure Regional Study. Its II phase is due to start in July 2002.

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Official Journal of the European Union

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‘Water Strategy (cid:1) Regional Approach for South Eastern Europe’ prepared by the EBRD. A basic regional
approach for the development of environment infrastructure is also being developed with CARDS support
through the Regional Environmental Reconstruction Programme.

‘Air Traffic Regional Infrastructure Study for South East’ prepared by the EIB

Outcome: the regional infrastructure programme in South-East Europe

The co-ordinated efforts by the Community and IFIs, in the wake of the Regional Funding Conference of
March 2002 and since then within the ISG, are listed under the Regional infrastructure programme for
South-East Europe, which implementation is regularly monitored by the EC/WB Joint office.

The current list of ongoing regional projects (cid:1) all international donors cofounded (cid:1) amounts to 41
projects with a total cost of EUR 3,32 billion. Transport (particularly road infrastructure) represents 66 %
of the overall cost, equivalent to some EUR 2,2 billion, and spread between 33 different projects. The
energy sector comes second, with a cost of EUR 0,82 billion (25 %) for five electricity projects, and the
water and environment sector comes last with three projects and a total cost of EUR 0,29 billion (9 %). An
updated list was presented on 21 June 2002 at SP WT II meeting in Sofia.

(2003/C 192 E/010)

WRITTEN QUESTION P-1664/02

by Daniel Hannan (PPE-DE) to the Commission

Subject: Participants in the European Conventions

(4 June 2002)

Could the Commission please detail which of the organisations and networks of organisations taking part
in the Forum of the European Convention are funded or part-funded, directly or indirectly, by the
Commission or other European Union institution?

Supplementary answer
given by Mrs Schreyer on behalf of the Commission

(22 November 2002)

Further to the preliminary answer sent to the Honourable Member, the Commission is sending direct to
him and to Parliament’s Secretariat a detailed analysis of the Union’s accounts for each of the 1998, 1999,
2000, 2001 and 2002 financial years, which provides the requested information for each of
the
organisations concerned. This analysis was conducted using the Sincom2 accounting system.

The Commission has registered 1 575 payments,
throughout the Union.

totalling EUR 154,5 million,

to 139 organisations

(2003/C 192 E/011)

WRITTEN QUESTION E-1720/02

by Christopher Heaton-Harris (PPE-DE) to the Commission

(13 June 2002)

Subject: European Public Prosecutor

What are the latest developments in the creation of the office of the European Public Prosecutor?

Have any Member States sent an opinion on the Green Paper to the Commission?