Brussels, 25/11/2002 (Agence Europe) - The Danish EU Presidency presented to the Ambassadors of the Fifteen (Coreper) on Monday morning its compromise proposals for "final packages" that it suggests offering to the chief negotiators of the ten first wave candidate countries who will be in Brussels in November for individual meetings with the Presidency and representatives of the European Commission. Diplomats said they were confident that the debate at Coreper, which continued on Monday evening as we were going to press, should not fundamentally change the new offers that the EU was to submit to candidates, the main elements of which are:
Direct aid to the farmers of the new members. The Danish Presidency left unchanged the offer which had been formulated by the Fifteen leaders at the Summit in Brussels last October, whereby the new members will only gradually have access to direct aid, over a transitional period of ten years (2004-2013), with a departure level of 25% in 2004, 30% in 2005 and 35% in 2006. Nonetheless, according to the Presidency's proposal, the candidate countries will be authorised to complete these Community direct payments by national "topping up" payments which may take direct aid up to 40% of the level of aid granted to the current Member States. To this end, the candidates may use up to 20% of the funds earmarked for rural development, the total amount of which would be increased by an additional EUR 90 million compared to the last EU offer.
Quotas of agricultural production. All candidates see their production quotas reviewed upward, but the size of these increases varies from one country to the next, as it varies from one product to the next.
The overall amount allocated for Structural Funds and the Cohesion Fund remains unchanged compared to what had been decided by the Fifteen at the Brussels Summit. Thus, the budget will rise to EUR 23 billion (instead of the 25.5 billion initially proposed by the Commission) in all ten countries for the years 2004-2006.
The level of "advances" that the EU had suggested providing candidates in 2004 under the Structural Funds is reviewed downward to take into account real circumstances and the limited absorptive capacity of new members. Instead of the 16% proposed (the normal level of advance during the first year is 7%), it would be assumed that the new members will be able to absorb at least 10% of the funds in 2004 with the remaining 6% being deferred to 2005.
The EU offer concerning own resources remains unchanged. The new member countries should pay their contributions at 100% from the first day of accession, even if "return" financial flows are incomplete or delayed over the first few years. On the other hand, compensatory payments ("lump sums") would be paid to all new members whose net financial situation is expected to be less favourable over the first three years of membership (2004-2006) than it was during the year preceding accession (2003.
Candidate countries benefit from the positive financial impact resulting from the new date of membership, on 1 May 2004. They will only pay their budgetary contributions from 1 May 2004 (i.e. a 1/3 reduction compared to their normal annual contribution), while enjoying all funds programmed for the whole of 2004 (example: Structural Funds), except, however, for market measures also reduced by one third.
The new members will be paid back, in 2004, in the form of "lump sums", for the part of their contributions to the 2004 budget that is intended to finance direct aid to farmers of the Fifteen for the financial year 2003 (direct payments come one year later).
A "Special Schengen Fund", with 90 million euro over three years (2004-2006) to help new embers comply with the accession criteria to the Schengen area. Some 1/3 of this sum would be distributed equally between the ten candidates, whereas the remaining 2/3 will be allocated to the ten countries in relation o the length of their future external borders.
EU aid for the closure of the nuclear power plant of Ignalina in Lithuania has been upwardly revised.
Specific concessions have been made to all candidates in so-called "minor" technical issues but of "great national sensitivity".