Geld uit structuurfonds 'niet verloren', verzekert Hübner Commissie voor regionale ontwikkeling (en)

A "projected error rate of 12%" - i.e. €4 billion, in the use of EU structural fund money in 2006 "does not mean that there has been, or will be, a real loss to the Community budget", Regional Policy Commissioner Danuta Hübner i assured the Regional Development Committee on Tuesday, in reply to MEPs' questions on a Court of Auditors' statement that these funds had been "reimbursed incorrectly".

The process of detecting and correcting spending irregularities may take up to two years, but the system is nonetheless "working effectively to prevent errors", she said, citing the examples of Portugal, where an audit of spending in 2005 led to measures to remedy weaknesses in the national control system, and the April 2007 suspension (since lifted) of payments to 12 regional policy programmes in the UK. The Commission services are monitoring the action plans of 10 "at risk" Member States, and this process will eventually provide an assurance that spending irregularities have been cleared up, she added.

EU funding used for corporate relocation?

Was the 30,000-strong demonstration against Nokia's move from Bochum to Romania, for which it allegedly used EU funding, an "anti-EU demonstration"? asked Markus Pieper (EPP-EU, DE), who reiterated the Court of Auditors' recommendation that staff managing funding in the Member States should be better  trained. Safeguards against the threat of relocation include a requirement that the recipient retains the operation in place for 5 years, (failing which the money returns to the EU budget), and the Commission is indeed training managers to understand the EU control system, replied Mrs Hübner.

Time it right

"A 12% error rate, even if it just irregularities, seems very high", commented Lidia Joanna Geringer de Oedenberg (PES, PL), stressing that current rules allow little time to put together some large infrastructure projects, and suggesting that discussion of programmes should start earlier, so that funds could be available at the right time.

"The time frame for policy depends on the negotiation of programmes" replied Mrs Hübner, noting that some programmes for 2007-2013 had begun very swiftly, because they had been negotiated in parallel with the structural funds regulation and and budget. However, "it would not be feasible to start negotiations for the next financial programme now, as payments depend on Member States' certified descriptions of projects", she stressed.

Public contracts and contracts of confidence

Some errors arise from the use of public contracts - and the Commission works to remedy these almost in parallel with the Court of Auditors. The error rate here is "quite high", and could be reduced by checks under "contracts of confidence" that the Commission has just signed with Portugal, has already signed with Austria, Wales and Denmark, and is about to sign with Estonia and Slovenia, said the Commissioner.

Another hearing required

Another hearing, in the EP Budgetary Control Committee, will be needed before any decision can be taken on the 2006 budget discharge for the Commission. Budgetary Control Committee members regard the replies they have been given on the management of the structural funds as unsatisfactory at this stage. This hearing is scheduled for 25 February.

22/01/2008

Committee on Regional Development

Gerardo Galeote (EPP-ED, ES)