Opinion of the European Economic and Social Committee on the "Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European networks" (COM(2003) 220 final — 2003/0086 (COD))
Date: 2003-07-16
Institutions: European Economic and Social Committee
Subjects: EU programme, balance of payments assistance, telecommunications, trans-European network

30.9.2003

EN

Official Journal of the European Union

C 234/23

5.2. Article 4 (2)

The possibility given to the Commission to object to the
conclusion of the agreement seems to go significantly beyond

Brussels, 16 July 2003.

its legitimate prerogatives as regards information, notification
and transparency. The EESC feels it is preferable to replace this
with a provision whereby the Commission has the option of
alerting a Member State if it appears that negotiations by that
state are likely to jeopardise the Community’s objectives.

The President

of the European Economic and Social Committee

Roger BRIESCH

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of
the European Parliament and of the Council amending Council Regulation (EC) No 2236/95 laying
down general rules for the granting of Community financial aid in the field of trans-European
networks’

(COM(2003) 220 final — 2003/0086 (COD))

(2003/C 234/07)

On 20 May 2003 the Council decided to consult the European Economic and Social Committee, under
Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 26 June 2003. The rapporteur
was Mr Simons.

At its 401st Plenary Session on 16 and 17 July 2003 (meeting of 16 July), the Committee adopted the
following opinion unanimously.

1.

Introduction

eTEN is at the heart of the eEurope 2005 Action Plan, which
in turn is a key element of the Lisbon Strategy to make the
European Union the most competitive and dynamic economy
in the world by 2010. eTEN has been adapted to become a key
implementing tool for eEurope 2005: its main focus will be
the practical implementation of eEurope services in the general
interest. The reorientation in terms of actual programme
content must now be complemented by an overhaul of the
financing structure. The current ceiling on Community aid is
10 % of the total
investment cost, while 50 % funding of
the total cost of project studies is possible. However, the
Commission’s experience shows that this funding percentage
is clearly insufficient to stimulate the deployment of services

and to provide a real incentive to continue. The Commission
therefore proposes that the funding ceiling for projects be
raised from 10 % to 30 %. This increase is only to apply to
projects for the deployment of services and applications. The
revision does not affect the overall financial framework for
eTEN.

2. General comments

the Commission announced that

In the chapter of the eEurope Action Plan 2005 (1) on
2.1.
it would be
financing,
presenting a proposal on raising the funding ceiling for the
implementation phase of eTEN projects from 10 % to 30 %
without prejudice to the other TEN programmes.

(1) The EESC has also drawn up an opinion on the eEurope 2002

Final Report.

C 234/24

EN

Official Journal of the European Union

30.9.2003

The Committee has been asked to give its opinion on

2.2.
this proposal, which contains just one substantive article.

2.3.
The Committee has no objections to the amendment
to Article 5(3) (adding the sentence ‘In the case of projects of
common interest identified in Annex I to Decision No 1336/
97/EC, the total amount of Community aid granted under this
regulation may reach 30 % of the total investment cost’), since
it can readily understand the following arguments.

The new orientation of eTEN places the focus of the
2.3.1.
eEurope Action Plan 2005 on the practical implementation of
eEurope services of general interest.

However, experience to date with the project port-
2.3.2.
folio has shown that with the current funding rules services
are hardly implemented on the market.

2.3.3.
Because the study phase for a new telecommuni-
cations service is expensive and the corresponding ceiling on
funding is normally set at 50 % of study costs, there is very
little funding left for the deployment phase.

The Commission gives a ratio between study, or
2.3.4.
market validation, projects and market deployment projects of
95 % vs 5 %. It wants to at least achieve a ratio of 50/50.
Comparison with the experience of IST (1) in the 5th Frame-
work Programme indicates that a funding ceiling of 30-40 %
is required in practice for the deployment of services.

( 1) IST — Information Society Technologies of the 5th and 6th EU
framework programmes for research and technological develop-
ment (2002-2006). Decision No 1513/2002/EC, OJ L 232 of
29.8.2002, p. 1.

Brussels, 16 July 2003.

2.3.5.
In order to ensure that the funding made available
also actually helps to achieve the objective of eEurope 2005,
the number of projects is to be reduced, but with the likelihood
of them being implemented and having a tangible and visible
impact on the market.

2.4.
The Committee notes that the ceiling of 30 % diverges
from the corresponding new 20 % ceilings set for the TEN
transport and energy projects (2). The reason for this is given
in point 2.3.4 above, which the Committee considers an
adequate explanation.

The Committee also thinks that this measure, and the
2.5.
TEN transport and energy projects, should be evaluated before
too long, so that if they are found not to be sufficiently
effective, major new policy decisions can be considered for all
the TENs. This would mean discontinuing the present TEN
funding system and adopting a more radical updated approach
that safeguards the future.

3. Conclusion

The Committee supports the options for increasing the total
support for Community telecommunications projects, which
make a substantial contribution to the objectives of the trans-
European networks, from 10 % to 30 % of total investment
costs and hopes that this will make it possible to achieve the
objectives sooner. If this turns out not to be the case, then
more radical updated funding measures that safeguard the
future should be considered.

(2) TEN energy networks/guidelines of 18.7.2002, OJ C 241 of
7.10.2002; Guidelines for trans-European telecommunications
networks of 29.5.2002, OJ C 221 of 17.9.2002; General rules for
Community aid/TENs of 20.3.2002, OJ C 125 of 21.3.2002;
Community guidelines for the development of a trans-European
transport network of 21.3.2002, OJ C 125 of 27.5.2002.

The President

of the European Economic and Social Committee

Roger BRIESCH