WRITTEN QUESTION E-2675/03 by Concepció Ferrer (PPE-DE) to the Commission. EU subsidies for transeuropean networks.
Date: 2003-09-10
Institutions: European Parliament, Provisional data
Subjects: Community of Madrid, Community of Valencia, Spain, distribution of EU funding, eligibility criteria, trans-European network

C 65 E/188

Official Journal of the European Union

EN

13.3.2004

Given the current economic woes, and especially the rise in the Union’s average unemployment rate, there
are strong reasons to make the experiment an established practice. Competition among Member States has,
moreover, hardly been distorted, because the type of services in question, which are essentially of a local
nature, are difficult to relocate.

Can the Commission say whether, as seems desirable, it will submit a proposal at the end of the year
whereby Member States would be authorised on a permanent basis to charge the lower VAT rate for
building repairs?

Answer given by Mr Bolkestein on behalf of the Commission

(25 September 2003)

The Commission adopted a proposal for a Directive on reduced VAT rates (1) on 23 July this year
proposing that Member States be allowed to apply a reduced rate to the supply, construction, conversion,
renovation, repair, maintenance or cleaning of private dwellings. Consequently, a reduced rate can
continue to be applied to the repair of old buildings provided they are used as private dwellings.

The optional nature of these reduced rates has never been called into question and Member States are free
to decide on the sectors to which they wish to apply these rates.

After Parliament has given its opinion the Council will have to decide by unanimity on the future scope of
reduced VAT rates.

(1) COM(2003) 397 final.

(2004/C 65 E/205)

WRITTEN QUESTION E-2675/03

by Concepció Ferrer (PPE-DE) to the Commission

(10 September 2003)

Subject: EU subsidies for transeuropean networks

In the last 20 years, the Commission has been allocating part of its budgetary resources to what it calls
‘developing transeuropean networks’.

A recent university analysis of where these funds have gone within Spain reveals that 43 % of these
investments have directly benefited the Madrid Autonomous Community.
If we add to this all the
investment from which the Madrid Autonomous Community has emerged as a beneficiary, whether
directly or indirectly, within the last 20 years, Madrid’s percentage rises to 80,2 % (EUR 138,67 million).

Over the same period the so-called Mediterranean axis (cid:1) Spanish frontier/France-Barcelona-Valencia-
Murcia (cid:1) has received 13,4 % of the subsidies (EUR 215,18 million). And while the last time Barcelona
benefited from Community transeuropean network subsidies was in 2000 (installing a voice control system
in Prat airport) and Valencia in 2001 (improving access to the city’s port), Madrid has continued to
received subsidies of this kind every single year.

Can the Commission state what criteria have been used and are used for allocating these subsidies?

Could the Commission explain the massive imbalance in the allocation of these funds?

How does the Commission actually view the so-called ‘Mediterranean Axis’ (France-Barcelona-Valencia-
Murcia)?

13.3.2004

EN

Official Journal of the European Union

C 65 E/189

Answer given by Mr Barnier on behalf of the Commission

(30 October 2003)

The Community is able to provide support for the development of transport TransEuropean Networks
(TEN) from the Structural Funds, the Cohesion Fund and the Indicative Multiannual Programme (MIP). The
Cohesion Fund budget
for Spain for the period 1993-1999 equated to EUR 9,251 million and to
EUR 11,160 million for the period 2000-2006 (1999 prices). Half of these funds are devoted to transport
projects included in the TENs.

The Structural Funds are allocated between Member States for the period 2000-2006 on the basis of
criteria set out in the Regulations. The effort in financial terms is concentrated on the least developed
regions eligible under Objective 1. The region of Madrid does not meet the eligibility criteria for support
under Objective 1.

The Cohesion Fund is allocated annually on the basis of the criteria established in the relevant Regulation
and in an overall framework for transport and the environment development drawn up by the Spanish
authorities. On the transport side, the effort has been concentrated over recent years on the Madrid-
Barcelona-French border and the Madrid-Valladolid high speed railway corridors integrated in the Essen
Priority Project (cid:1) High-Speed Train South.

Concerning the financial instrument, specifically devoted to TENs, the criteria relating to the eligibility and
selection of projects are set out in the Community’s ‘Guidelines for the development of the TEN (1)’, 1996,
which established the scope, including detailed maps of the network, objectives, priorities and definitions
of projects of common interest. The funding of individual TEN projects is decided on the basis of regular
requests from the Member States which are examined under the provisions of Regulation (EC) No 1655/
1999 (2).

The selection of projects to be financed under the Cohesion and Structural Funds is a competence of the
national authorities.

In respect of the financing of the sections France-Barcelona-Valencia-Murcia (the so-called ‘Mediterranean
corridor’), funds have been provided since the beginning of the 1990s to improve,
in particular, the
railway line between Barcelona and Valencia. More recently, under the TEN framework, there are projects
relevant for the Mediterranean corridor being financed in 2002 and 2003 affecting Barcelona and Valencia
(in particular the HST Madrid-Castilla-La Mancha Comunidad Valenciana-Murcia (several studies) and the
Studies for HST line Zaragoza-Barcelona). In addition to the two projects mentioned above, support has
also been provided in 1999 for the restructuring and adaptation for HST of the railway network in the
area of Valencia.

The Honourable Member may wish to note that from 1986 to-date the Union has allocated a total of
EUR 498 million to the improvement and up-grading works on the Mediterranean rail corridor (France-
Barcelona-Valencia-Murcia).

(1) Decision No 1692/96/EC of the Parliament and of the Council of 23 July 1996 on Community guidelines for the

development of the trans-European transport network, OJ L 228, 9.9.1996.

(2) Regulation (EC) No 1655/1999 of the Parliament and of the Council of 19 July 1999 amending Regulation (EC)
No 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European
networks, OJ L 197, 29.7.1999.

(2004/C 65 E/206)

WRITTEN QUESTION E-2679/03

by Jacques Poos (PSE) to the Commission

(10 September 2003)

Subject: Customs union between Turkey and the pseudo-state, the TRNC

Can the Commission indicate whether the framework customs union agreement signed by Turkey and the
pseudo-state of the Turkish Republic of Northern Cyprus (TRNC) is compatible with the Customs Union
Agreement in force since 1996 between the European Union and Turkey?