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Europe Daily Bulletin No. 8778
Contents Publication in full By article 28 / 33
GENERAL NEWS / (eu) ep/regions

Jacques Barrot says it is Commissioner Monti's job to look at connection between state aid and Structural Funds

Brussels, 03/09/2004 (Agence Europe) - After hearing the Dutch Presidency explain its regional policy priorities (see Europe of 1 September, p.6 on the debate with Karen van Gennip), the European Parliament's Development Committee was addressed by Commissioner Jacques Barrot on the new Cohesion Policy for 2007-2013. Outlining the cohesion package adopted by the College of Commissioners on 14 July (see Europe of 16 July, p 7-8) to the Committee chaired by Partido Popular MEP Gerardo Galeote Quecedo, Jacques Barrot emphasised the strategic dimensions of the package and called for efforts to be made in this area to ensure the EU did not fall behind with regard to the objectives set at the Gothenburg and Lisbon Summits for competitiveness, employment and sustainable development.

Jacques Barrot highlighted the Commission's desire to focus on less developed regions and countries, describing this as a political imperative. After all, he explained, if we want citizens to endorse the draft European Constitution, they have to feel they belong to the same Europe, rather than a several-tiered Europe. More than 78% of the resources foreseen for the Cohesion Policy will be earmarked to this priority, particularly to the new Member States, which will receive 48.3% of the full package, and 62% of resources under the Convergence Objective despite only accounting for 21% of the population of the EU, explained the Commissioner. Barrot said that to boost the EU's competitiveness, the new regional policy would have to cover all the EU and would take greater account of cities, rural and other zones relying on fishing, ultra-peripheral regions and regions with natural handicaps (islands, mountains and scarcely populated areas and enlargement border zones), paying particular attention to the situation of Malta and Cyprus. The Commissioner said that the new regulations covering the Structural Funds would be simpler and, in line with subsidiarity, the new policy would be more decentralised.

On company relocation, Commissioner Barrot said that at a press conference on 15 July (see Europe of 16 July, p.7) he had said that when companies get subsidies, they should not relocate in the seven years following receipt of the subsidies in such a fashion as to cause job losses. Otherwise, they should repay the subsidies they have received.

Greek Nea Demokratia MEP Konstantinos Hatzidakis said that the Commission's third Cohesion Report was like an EP report since the opinions of the MEPs had been taken into account. Hatzidakis said that in the view of the EPP-ED group, the Member States which will fall victim to the statistical effect (when the rule rules exclude them from EU aid) should be able to make use of state aid. Barrot responded by saying that state aid was a real problem and the ball was now in Mario Monti's court. It was for Commissioner Monti to decide how state aid might mesh with the Structural Funds.

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