By Chris Jones - 3rd July 2006
Europe’s poorest regions will contunue to benefit from EU funding from 2007 after MEPs backed new proposals from the European commission.
The European parliament voted in favour of a new €308bn package of so-called ‘structural funds’ – money set aside from the EU budget to help development in the least well-off regions.
But MEPs stressed that the failure of EU leaders to agree to an increase in the overall EU budget last December would leave a major shortfall in the money available to the poorest regions.
And they urged national governments to think again after they rejected a proposal to keep unused funds for regional development; at present, money that is not spent within two years of being allocated is returned to national budgets.
Several proposals put forward by MEPs were adopted, however, including a greater focus on sustainable development, a specific mention that money should be used to help people with disabilities and that NGOs and industry bodies should be included in the discussions over how the money is spent.
A request that money should also be targeted at Europe’s urban areas, many of which are in crisis, was also given the backing of MEPs.
Konstantinos Hatzadakis, parliament’s rapporteur on the main structural funds report, said that the negotiations with the commission and member states had been “a marathon” – talks first began in 2001 – but that he was satisfied with the outcome.
“It means there have been no cuts in the cohesion budget and it means that European tax-payers money will be spent more effectively and efficiently,” he said.
The structural funds ‘package’ includes four other elements – the European regional development fund (ERDF), a cohesion fund, a social fund and a territorial cooperation package - and all were backed by MEPs.
Claudio Fava, rapporteur on the ERDF, welcomed the decision to focus on the quality of the projects eligible for EU funding rather than simply trying to allocate as much of the money as possible.
“In the past, we have had a kind of ‘shopping list’ of easy expenditure – projects that could easily qualify for structural funds - but now we need to concentrate on the quality of the expenditure.”
“Sicily, for example, has probably received enough money to bring it up to the standard of the rest of Italy, but this is not the case because the money has not been well-spent.”
He also stressed that MEPs had pushed for the EU’s Lisbon strategy to boost growth and jobs to be at the heart of future structural fund expenditure.
“Lisbon is about issues such as training, increasing knowledge, generating innovation and boosting scientific research. Structural funds should be used to encourage these elements – and not just used for improving infrastructure. We need to focus on projects that bring real added value.”
EU regional policy chief Danuta Hübner welcomed parliament’s decision, which she said had staved off the threat of a two-tier Europe.
“We have one policy, with one set of rules, a policy that will be able to respond to the challenges of globalisation, the Lisbon strategy and disparities between regions.”
EU leaders at the December budget summit had suggested different spending rules for rich and poor countries, a suggestion that was met with consternation at the time.
But, Hübner added, the shortfall in the budget would mean a need to look for alternative sources, such as the European investment bank.
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