Krapper budget zet Europees regionaal beleid op het spel (en)

EUOBSERVER / BRUSSELS - The EU will enter in hard negotiations for the funding, after 2006, of the structural and regional policy funds aimed to help the poorer regions of the Union.

In a press conference held today (18 December) by the EU Commissioner for Regional Policy Michel Barnier, the requirement to cope with future inequalities in the EU became all the more clear.

The EU budget has a spending ceiling set at 1.27 percent of the EU GDP, which means that the next negotiations after enlargement - with 25 countries - for the period 2006 onwards will inevitably divide Europe into rich and poor.

The ten new member states that will join the EU on 1 May 2004 will bring in one third of the current population of the EU and one third of the territory, but only 6 percent of wealth.

The shape of regional and cohesion policy after enlargement is actually an on-going debate, which was started in February 2001 by Michel Barnier who invited all member state governments and local authorities to reform their contribution.

Under the current EU rules, the least favoured or under-developed EU regions that have a GDP per capita below 75 percent of the average of EU 15 qualify for priority regional funding.

After enlargement, the figures will change but the EU 25 GDP per capita will drop by 13%. The EU will be larger but statistically poorer.

Therefore, by applying the old calculation for a larger Union, a number of regions in Spain, Portugal and Greece will become artificially richer and they will be disqualified from receiving regional aid from the Union.

Barnier struggles

Mr Barnier told the press on Thursday that for the European Commission, the economic growth of the EU goes along with the involvement of all regions and their potential.

He explained that the regional policy, which should not be harmed in the next budget, "is an useful instrument for sustainable growth" and this should not leave behind part of tomorrow's Europe.

Mr Barnier actually seemed worried about the future of this policy and the fact that it could be sacrificed in the future if ever budget cuts are needed.

Also, the letter of the six net contributors to the EU's budget, proposing to cap future EU spending, will make it harder to fund aid to poorer regions.

Michel Barnier said that he doesn't believe that the priority of the regional policy funding will go along with the other five priorities mentioned in the letter if the expenditure does not exceed 1 per cent of the EU's gross national income, as the six proposed.

14.12 billions for the newcomers

Michel Barnier announced also the signatures of ten letters allowing the new member states to receive a total of 14.12 billion euros for their regional policy needs, for the period 2004-2006.

Although these countries will not be full members until 1 May 2004, the funds are will begin from January next year.

The Commissioner said that he is "quietly confident" in their ability to cope with all legislation reforms needed by that date in order to make use of the money.