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Europe Daily Bulletin No. 9896
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GENERAL NEWS / (eu) ep/recovery plan

EP endorses €5bn envelope

Brussels, 06/05/2009 (Agence Europe) - On Wednesday 6 May 2009 in Strasbourg, the European Parliament approved different acts that will facilitate implementation of the recovery plan for the European economy and a €5bn package for 2009-10 to this end. Only the Greens/EFA protested against the contents of this programme, because in its opinion, “projects maintained for carbon capture and gas and electricity infrastructures did not, for the most part, due to the lack of necessary authorisations, have any chance of being completed in the next two years and have only a negligible job creation potential”. The EP rejected the amendments submitted by the Greens/EFA, which aimed to fund (thanks to the recovery plan), building renovation, the modernisation of public transport and eco-technologies.

During the debate, Andris Piebalgs, the commissioner for energy speaking on behalf of the European Commission, welcomed the fact that after “bitter” discussions, an agreement had been found. He thanked the EP for its “sense of compromise” and said that these fruitful discussions had demonstrated that, “the Community is capable of responding quickly when the situation demands it”. The €3.98bn for the energy projects will help to achieve the following objectives: demonstrate solidarity between member states, meet the current challenges and help the economy to recover. Piebalgs recognised that some MEPs wanted more money to go to renewable energies and energy efficiency but he thought it a good compromise. He said that the Commission would review the situation in 2010 and explained funding that is not used could be transferred to renewable energies and energy efficiency. The Commission will launch a call for tenders this month and hopes that everything will be in place by the end of the year, concluded Piebalgs.

Energy. In a first reading (co-decision) MEPs backed a first-reading vote on a co-decision report drafted by Eugenijus MALDEIKIS (UEN, Lithuania) on energy projects. The EP adopted a compromise amendment from the EPP-ED, PES, ALDE and UEN which will provide €3.98 billion to energy projects in the following fields: gas and electricity infrastructure (€2,365 million); offshore wind energy (€565 million); carbon capture and storage (€1,050 million). The Commission has declared its intention to propose, if appropriate, when reporting in 2010 on the implementation of this Regulation, measures allowing for the financing of projects consistent with the Recovery Plan, such as projects in the area of energy efficiency and energy from renewable sources, in case it would not be possible to commit all funds by the end of 2010.

A list of priority projects has been drawn up for gas: €200 million for Nabucco gas pipeline and €200 million for transporting natural gas from the Caspian Sea to the EU; €150 million for the Baltic interconnection; €80 million for completing reversing gas flows in the event of temporary gas supply cuts; €200 million for consolidating the French gas network based in Africa-Spain-France (Mediterranean) and €120 million for GALSI (Algeria-Italy pipeline). Electricity: €225 million for the France-Spain interconnection (Baixas-Sta Logaia), €110 million for the new underwater 380 kV alternative current between Sicily and mainland Italy (Sorgente-Rizziconi) or €110 million for the Ireland-Wales 500 MW connection (Meath-Deeside). Wind turbines: Germany: €200 million for a new generation of turbines (Borkum West II-bard I Nordsee Ost Global Tech I). Carbon capture: an industrial carbon capture project in Florange in France.

Rural development. The proposal amending the regulation on European Agricultural Funds for Rural Development was adopted with 526 votes in favour, 64 against and 14 abstentions to take into account the recovery plan. €1.020bn is planned to develop broadband in rural areas and strengthen action to meet new agricultural challenges (climate change, renewable energies, water, biodiversity and milk restructuring). Member states will be able to divide funding between two headings (internet or new challenges). By adopting the report of Petya Stavreva (EPP-ED, Bulgaria) on this dossier, the EP has introduced the following changes to the initial proposal: €250 million more than originally planned in 2009 to fund climate change activities (the EP is asking that this funding is added to the relaunch plan but the Commission does not agree); give member states an additional €600 million for rural development in the 2009 budget; phase 2 (€2.4bn): funding from the remaining amount is €2.4bn and will be facilitated through a “compensation mechanism” during conciliation on 2010-11 budget procedures by using all means foreseen in its legal framework and without prejudice to the financial envelopes of the co-decided programmes and the annual budgetary procedures. (L.C./transl.rh)

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