WRITTEN QUESTION E-3163/03 by Bill Miller (PSE) to the Commission. Regional policy in Hungary.
Date: 2003-10-24
Institutions: European Parliament, Provisional data
Subjects: EU financing, Hungary, accession to the European Union, pre-accession aid, regional aid, regional policy, rural development, use of aid

C 88 E/134

Official Journal of the European Union

EN

8.4.2004

Should the Honourable Member or any other person dispose of documentary evidence which indicates
that particular legal provisions for removal goods of Council Regulation (EEC) No 918/83 or Council
Directive 83/181/EEC have been infringed by these authorities he/she may either lodge a formal complaint
on the issue to the Commission or use the normal
legal procedures foreseen in the Member States’
legislation for such cases in order to defend this person’s interests.

(1) Council Regulation (EEC) No 918/83 of 28 March 1983 setting up a Community system of reliefs from customs

duty.

(2) Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States
relating to turnover taxes (cid:1) Common system of value added tax: uniform basis of assessment, OJ L 145,
13.6.1977.

(3) Council Directive 83/181/EEC of 28 March 1983 determining the scope of Article 14(1)(d) of Directive 77/388/EEC
as regards exemption from value added tax on the final importation of certain goods, OJ L 105, 23.4.1983.

(4) OJ C 301 E, 5.12.2002.

(2004/C 88 E/0141)

WRITTEN QUESTION E-3163/03

by Bill Miller (PSE) to the Commission

(24 October 2003)

Subject: Regional policy in Hungary

What regional policies have been implemented in Hungary? How have pre-accession programmes/subsidies
been used/distributed in Hungary (i.e. number/type (cid:1) private, state, corporate (cid:1) of applicants/recipients
for each programme; distribution through counties; major projects’ success/cost/location; ISPA/PHARE/
Sapard fund usage;
integration of EU projects into Hungarian Government’s own rural development
programmes; long-term EU goals for Hungarian regional policy after accession)?

Answer given by Mr Verheugen on behalf of the Commission

(19 November 2003)

In Hungary, the importance attributed to regional development is reflected in the 1996 Act on Regional
Development and Physical Planning. As a result of the Act, Regional Development Councils have been set
up and currently operate. Regional development strategies have been identified respectively in the
preliminary National Development Plan (2000-2002) and subsequently in the National Development Plan
(2003-2006).

The European Commission has supported Hungary’s efforts to prepare for its future participation in the
Union’s Regional Policy and thus for the future management and utilisation of the Structural and Cohesion
Funds, through pre-accession funds (PHARE, ISPA and Sapard).

Under PHARE, comprehensive Institution building support (EUR 12,5 million over different budget years)
has been provided since 1998 in order to establish and strengthen institutional structures, to provide in
future for a sound and efficient management of Union Structural and Cohesion Funds and in order to
support the programming process. Support is also being provided to assist Hungary in the creation of an
adequate projects pipeline (EUR 15 million). PHARE funded activities will continue into 2004 to assist
Hungary in the first phase of Structural Funds operations.

PHARE funds have also provided support with investment actions.
‘sub-
programme’ has been designed for the period 2002-2003 chiefly aimed at providing assistance more in
line with the Objective 1 approach to the Structural Funds. This programme, based on the preliminary
National Development Plan (pNDP), and co-financed by PHARE and the Hungarian Government
(EUR 84 million and EUR 66,23 million respectively), focuses on three measures aimed at supporting
labour market re-integration of the long term unemployed (and in particular the Roma), the introduction
of information technology in primary schools and the promotion of local development.

In this respect, a special

8.4.2004

EN

Official Journal of the European Union

C 88 E/135

Overall, PHARE has greatly contributed to the preparation of Hungary for accession, both in general and
specifically in relation to the implementation of Structural Funds. Institutions have been strengthened, staff
trained, pilot actions launched and,
through the 2002-2003 Economic and Social Cohesion sub-
programme, the whole country was involved for the first time in a joint programming and implementation
exercise.

For more information on the 1998-2003 PHARE Programmes, details on specific allocation for sub-
programmes are available on the following web-site:
(http://europa.eu.int/comm/enlargement/finan-
cial_assistance.htm).

As regards ISPA (Instrument for structural policies for pre-accession), Hungary also received from ISPA
EUR 88,3 million in 2000, EUR 90,8 million in 2001, EUR 94,2 million in 2002 and will receive
EUR 94,5 million in 2003. The support was roughly divided equally for environment and transport
projects. During the first three years of its operation, 100 % of the ISPA allocation has been committed.
The Hungarian Government has also elaborated Strategy Papers for Transport and Environment.

Details on specific ISPA projects are available on the following web-site (http://europa.eu.int/comm/
regional_policy/funds/ispa/ispa_fr.htm).

Concerning the Hungarian Sapard programme (Special Accession Programme for Agricultural and Rural
Development), it was adopted by the Commission in October 2000. It foresees the improvement of the
competitiveness of the agricultural sector and processing industry focusing on environmental protection
and seeks to enhance the adaptation capabilities of rural areas. The average annual public expenditure will
amount to EUR 50,5 million during the period 2000-2003, of which EUR 38,7 million will be the
Community contribution. At the end of September 2003, 541 Sapard projects will have been approved for
a total commitment of about EUR 40 million.

(2004/C 88 E/0142)

WRITTEN QUESTION E-3185/03

by Geoffrey Van Orden (PPE-DE) to the Commission

Subject: Duty free allowances in the Canary Islands

(27 October 2003)

Why can the Canary Islands impose tighter limits on EU citizens importing and exporting duty free items
than other parts of the EU?

If this activity is based on a derogation to normal EU rules, when is the derogation scheduled to end?

Answer given by Mr Bolkestein on behalf of the Commission

(17 December 2003)

Certain territories, including the Canary Islands, are excluded from the fiscal territory of the Community (1),
mainly for historical or geographical reasons. Being outside the fiscal territory, the Canary Islands may
impose restrictions on the import and export of goods by travellers coming from the Union which are at
variance with those otherwise applied within the Community.

The special status granted to the Canary Islands is not limited in time. It may however be brought to an
end, either at the initiative of the Commission (2), presenting the necessary proposals, or, as far as excise
duty is concerned, by notice submitted by Spain (3).

(1) See Article 3(3) of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of
the member States relating to turnover taxes (cid:1) Common system of value added tax: uniform basis of assessment,
OJ L 145, 13.6.1977 and Article 2 of Council Directive 92/12/EEC of 25 February 1992 on the general
arrangements for products subject to excise duty and on the holding, movement and monitoring of such products,
OJ L 76, 23.3.1992.

(2) See Article 3(5) of the Sixth VAT Directive.
(3) See Article 2(2) of Directive 92/12/EEC.