Brussels, 24/01/2003 (Agence Europe) - In the report that it is to publish next Thursday on the future of cohesion policy, the European Commission is to suggest that Member States provide specific aid to the regions of the current Member States that will no longer be eligible to Objective 1 aid after enlargement. Such transitional or phasing-out aid already exists for regions which received Obejctive 1 aid during the period 1994-1999 but which went over the eligibility threshold for the 2000-2006 package. According to the latest available figures (1998-2000), 18 regions of the current Member States would be affected by this "statistical effect", i.e. only one more than that announced in the previous report published just one year ago by the Commission (EUROPE of 30 January 2002). The situation could still develop slightly since Member States will take into account the latest figures available at the time when the next regional package is adopted.
Objective 1 is intended to support the less developed regions (GDP per capita below 75% of the Community average). On the whole Member States are in favour of continuing this programme which, after 2007, will mainly be intended for the regions of the ten new member countries. Disparities within the European Union will double with enlargement, and the GDP average will fall. The hardest task for the Commission will be to convince all Member States that the new regional policy should also support projects in the current Member States (see yesterday's EUROPE, p.10). This would amount to continuing Objective 2, in a simplified form, which supports conversion areas as well as initiatives to promote interregional cooperation.
The Scandinavian countries, the Netherlands and Germany are in principle opposed, and even France (although it is the first beneficiary of Objective 2) did not seem to want to defend the policy, preferring to keep a good level of Common Agricultural Policy. The Netherlands had last year clearly stated its opposition to continuing Objective 2, and, for now, it is not expected that this stance will change. On the other hand, Germany, which is soon to take its official position, now seems more willing to accept the Commission's suggestions. Until recently, the Länder in the eastern part of the country, affected by the statistical effect of enlargement, were the only ones to call for this policy to be continued outside Objective 1, whereas the government was opposed to it. However, during a meeting on 19 December between the Chancellor and the leaders of all Länder, all said they agreed, in principle, with keeping aid outside Objective 1. Nonetheless, Germany continues to insist on limiting the budget from structural funds. The French position has also changed. In a first official stance, France announced its support for "renewal of a Community policy for the other regions" and well as for "support for cooperation and integration", insisting that these policies should be simplified and decentralised.
As opposed to Danish and Spanish Presidencies, the Greek Presidency is going to take up the issue of theis debate. An informal Council will be organised on 16 May. In addressingthe Regional and Transport Committee of the European Parliament, the Deputy Minister of the Economy and Fiance in Greece announced that the Presidency intended to open the debate on certain specific thematic priorities, such as the specificities of the islands, cross-border co-operation, development of the rurual regions, simplification of procedures. Greece, Spain and Portugal are particualry concerned and want the issue of regional polciy to still be addressed by everyone. The Greek Minister, Christos Pahtas, insisted on his point. It is necessary for cohesions policy both responds to regionsal needs in Member States, which have not reached the end of their development trajectories, as well as the need of the new regions which are less prosperous than the Member States, he declared. "The idea of a re-nationalisation of EU policies - i.e., the CAP an cohesion policy - cannot go hand in hand with the European construction process", he added. Greece insists on "special provisions being established for the regions of the 15 that will have exceeded the eligibility ceiling for Objective 1" through the statistical effect of enlargement, as the Commission has to suggest in its interim report on Thursday. Greece calls for a continued regional policy in addition to Objective 1, especially for regions that have geographical handicaps - islands outlying regions, mountainous regions, sparsely populated regions.
The interim report that is to be published on 30 January will be followed in November or December by a new report in which the European Commission will formulate its proposals in a concrete manner for the next regional policy.