Brussels, 07/01/2003 (Agence Europe) - French Interior Minister Nicolas Sarkozy was relatively pleased, on Tuesday, with his meeting with the European Commission President, mainly on the subject of the status of Corsica. Romano Prodi insisted on the fact that European rules "have not been changed" but that, within such limits, "concrete" solutions have been found, Mr Sarkozy told the press. This is only "a first step", he added.
Nicolas Sarkozy pointed out that Romano Prodi had first of all agreed to a certain number of French demands to: increase the tax credit to 20% for some sectors such as hotels and catering; extend the duty free zone by 5 years with a sliding rate; keep tobacco taxation in the island at its current level by increasing it to 44% in 2008 than bringing it into line in 2010 with the regime in the new Member States; and pursue aid to modernisation of the fisheries sector until end 2004. The Interior Minister will, at the Commission, take up the matter of dispensation on maritime and air connections as well as the question of investment aid. The Commission President pointed out that the aid ceiling of 30% could not be exceeded, but that the Commission was flexible up to this threshold. "All in all, the tax situation in Corsica must become the same as in continental France", Frits Bolkestein, the Commissioner responsible for taxation and the internal market, had declared a little earlier during his lecture on ten years of internal market.
The French Minister, and the large Corsican delegation that accompanied him, did not gain satisfaction on one of their main demands, namely the recognition of "specific island status" for Corsica, which is not eligible for Objective 1 aid (its GDP per capita is greater than 75% of the Community average, and it does not have the status of isolated or depopulated area as some northern regions have). Mr Prodi linked this question to reform of cohesion policy after 2006. Mr Sarkozy nonetheless said he was pleased that the Commissioner for regional policy, Michel Barnier, had told him that "insularity will clearly be part of the Commission's proposals".