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Europe Daily Bulletin No. 8652
Contents Publication in full By article 33 / 53
GENERAL NEWS / (eu) eu/cohesion

Regional and local bodies support Commission proposals but want more funding for Objective 2 - issues about state aid coherency

Brussels, 24/02/2004 (Agence Europe) - European regional and local bodies strongly support the proposals of the European Commission on the future of cohesion policy but want more funding (EUROPE 19 February p 7). Meeting on Monday in Brussels on the initiative of four different bodies, they were unstinting in their support. These organisations support, above all, the proposal to not confine aid to regions in the new Member States, even if they receive most of it. The Association of Border Regions, the Conference of the Peripheral Maritime Regions, the Council European Municipalities and Regions of Europe and Eurocities are committed to defending these proposals which provide a "sustainable framework for active participation of regional and local bodies in European competition and territorial cohesion of the Union".

These associations would, nevertheless, like a more substantial envelope, especially for the future Objective 2, which will be for regions of the 15 and "competitiveness". Commissioner for regional policy, Michel Barnier understands that "one can say that there is not enough money for Objective 2" but insisted on that fact that this objective almost did not exist" (within the Commission, its continuation not being even close to obtaining unanimity). Barnier, however, recognised, that "more beneficiaries" would be able to share this aid in the future. he would have preferred that a quarter of structural funds be destined to this objective but finally proposed 18% to make a step in this direction of states like the United Kingdom, which want it getting rid of.

Asked several times about state aid, Barnier said that his counterpart for competition, Mario Monti, had prepared a proposal that would be presented in the next few weeks. Aid for Objective 1 could continue to benefit from exemptions (Article 87.3a of the treaty). Remote regions and those subject to the statistical effect would gradually move from the system in Article 87.3 a to that of the less favourable Article 87.3.c "with a degressive intensity". For the others, he explained that "there will not be any zoning" but work on the "coherency with interventions made in the name of cohesion policy. Answering the numerous question on tripartite contracts - Commisson-States-regions - Barnier answered that Member States were not keen on the idea. He nonetheless brought it up in the report so that "it remains in the debate". Finally, he announced a forthcoming proposal for the status of "European territorial community".

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