Communication from the Commission to the Council and the European Parliament on the results of the eligibility mid-term review in accordance with Article 2 of the Council Regulation (EC) N° 1164/1994 establishing a cohesion fund
Date: 2004-03-24
Institutions: European Commission
Subjects: Cohesion Fund, eligibility criteria, eligible region, terms for aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.3.2004 
COM(2004) 191 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON THE RESULTS OF THE ELIGIBILITY MID-TERM REVIEW IN 
ACCORDANCE WITH ARTICLE 2 OF THE COUNCIL REGULATION (EC) 
N° 1164/1994 ESTABLISHING A COHESION FUND 

EN 

   EN 

 
 
 
  
  
  
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

ON THE RESULTS OF THE ELIGIBILITY MID-TERM REVIEW IN 
ACCORDANCE WITH ARTICLE 2 OF THE COUNCIL REGULATION (EC) 
N° 1164/1994 ESTABLISHING A COHESION FUND 

1. 

INTRODUCTION 

Article  2  of  the  amended  Council  Regulation  (EC)  No  1164/94  establishing  a 
Cohesion Fund requires an eligibility mid-term review. The regulation stipulates that 
any  Member  State  whose  gross  national  product  (GNP)  per  capita,  measured  in 
purchasing  power  parities,  exceeds  90%  of  the  Community  average  shall  lose  its 
entitlement to assistance from the Fund for new projects. The review shall be carried 
out before the end of 2003 based on per capita GNP as shown by Community data 
for the period 2000-2002. 

Article 4 of the amended Council Regulation (EC) No 1164/94 stipulates that, in the 
event of a Member State becoming ineligible, resources for the Cohesion Fund will 
be reduced accordingly. 

Since  Article  4  of  the  Regulation  is  clear  on  the  consequences  of  a  Member  State 
becoming  ineligible  in  the  mid-term  eligibility  review,  the  Commission  considers 
modification of the Regulation itself is unnecessary. Consequently, the Commission 
decided  to  adopt  a  Communication  to  the  Council  and  the  European  Parliament 
outlining the  result  of  the mid-term eligibility review and laying down its financial 
implications.  These  financial  implications  will  be  implemented  by  the  Commission 
in the context of the annual budgetary forecast. 

2. 

RESULT OF THE MID-TERM ELIGIBILITY REVIEW 

Four  Member  States  were  eligible  under  the  Fund  from  1  January  2000:  Spain, 
Greece,  Portugal  and  Ireland.  For  the  reference  period  2000-2002,  the  Community 
data as of 1 November 2003 for these beneficiary Member States are as follows:  

GNP/capita in purchasing power parities (index: EU15=100) 

The Community data reveal that GNP per capita of Spain, Greece and Portugal does 
not exceed the eligibility threshold of 90% of the Community average. Consequently, 
the three Member States will continue to benefit from the Cohesion Fund until 2006. 
Ireland’s  GNP  per  capita,  on  the  other  hand,  stands  at  100.5%  of  the  Community 

2 

 
 
  
 
 
average  for  the  reference  period  2000-2002,  exceeding  90%  of  the  Community 
average. Consequently, Ireland is ineligible under the Cohesion Fund as of 1 January 
2004. 

3. 

FINANCIAL IMPLICATIONS 

Ireland’s ineligibility under the Cohesion Fund as of 1 January 2004 means that total 
resources for commitments in the period 2004 to 2006 will be reduced by EUR 164 
million (1999 prices), corresponding to the amount foreseen by the Commission for 
Ireland for the said period. 

Consequently,  total  resources to  be  made  available  for  commitments  for  the  period 
2004 to 2006 shall be EUR 7.376 billion at 1999 prices. 

Commitment appropriations for each year shall be: 

– 

– 

– 

2004: EUR 2.460 billion, 

2005: EUR 2.460 billion, 

2006: EUR 2.460 billion. 

3