14 Implementation by the accession states
of regional policy
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11578/03
COM(03) 433
+ADD 1
| Commission Communication on the European Parliament and the Council on the implementation of commitments undertaken by the acceding countries in the context of accession negotiations on chapter 21 — Regional Policy and Coordination of Structural Instruments.
Commission Staff Working Paper.
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| Legal base | — |
| Document originated | 16 July 2003
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| Deposited in Parliament | 24 July 2003
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| Department | Trade and Industry
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| Basis of consideration | EM of 13 August 2003
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| Previous Committee Report | None
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| To be discussed in Council | No date set
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
14.1 At the Brussels European Council in October 2002, the Commission
made a commitment, under Chapter 21 of the accession negotiations,
to produce a report in July 2003 on progress made by the accession
states in their preparations for implementing regional policy
and coordinating the Structural Instruments. The new Member States
will be eligible for €22 billion from the Structural and
Cohesion Funds (SCF) for the period 2004-2006, but the Commission
says that it will not be able to approve Community funding until
all the conditions set out in the Structural and Cohesion Funds
Regulations are satisfied. The accession states have committed
themselves to put in place the necessary administrative structures,
as well as the monitoring and control procedures which, the Commission
points out, are indispensable to the sound implementation of the
funds, before the end of 2003.
The Commission Communication
14.2 The main points made include:
- The legislative framework
Public procurement legislation still does not fully comply with
EC legislation. Further work is also required on budgetary management
legislation. However, progress has been made on competition and
state aid legislation and significant progress has been made in
all the accession states on environmental protection. However,
there is still work to be done on environmental impact assessments,
nature protection and waste management.
- The institutional framework
Although overall progress has been made on inter-ministerial coordination
the Commission remains concerned about this issue. The accession
states appear to be aware of financial control requirements and
the Commission judges that the internal audit arrangements should
be adequate, but the question of the independence of the Paying
Authorities, in their role of certifying the regularity of co-financed
expenditure, needs to be rapidly resolved.
The Commission feels that particular attention should be paid
to reinforcing the administrative capacity of regional and local
administrations. Also, the public administrations of the accession
states are experiencing difficulties in attracting and retaining
suitable staff.
Despite some delays in the submission of the programming documents,
the accession states have made significant progress, but the documents
often appear to lack a coherent strategic framework due to difficulties
in achieving effective inter-ministerial co-ordination.
14.3 The Commission says that these issues must be given urgent
attention. It undertakes to be a constructive partner in ensuring
that the accession states establish "the best possible implementation
conditions", which it is confident that they will do.
The Staff Working Paper
14.4 This document provides detailed information on the assessment
of management and control systems in each of the acceding countries.
The data is based principally on information provided by these
countries following detailed questionnaires sent out by the Commission.
Account is also taken of information relating to the commitments
made in the framework of Chapter 21, the implementation of pre-accession
instruments, the programming exercise and missions to the relevant
countries.
14.5 The Commission recalls that it also undertook,
at the 2002 Brussels European Council, to produce a comprehensive
monitoring report in November this year on the implementation
of all the commitments made in the negotiations by the accession
states.
The Government's view
14.6 The Parliamentary Under-Secretary of State
for Small Business and Enterprise at the Department of Trade and
Industry (Mr Nigel Griffiths) says that, while no direct policy
implications arise from this report, the reform of the Structural
and Cohesion Funds for the post 2006-period is likely to affect
the UK's contribution to the EC budget. The financial implications
of this eventual reform will be considered as a part of the negotiations
on the next Financial Perspective.
14.7 The Minister outlines briefly the UK's involvement
in a number of current Structural Fund Twinning projects under
the PHARE programme, which allow experts from the Member States
to provide administrative and technical expertise to the accession
states to help prepare them for using the Funds.
Conclusion
14.8 Although the Commission expresses its confidence
that the accession states will establish "the best possible
implementation conditions", this report does not give grounds
for optimism that the necessary preparations will have been completed
by the end of this year. We note the Commission's assurance that
Community funding will not be approved in the absence of compliance
with all the conditions set out in the Structural and Cohesion
Fund Regulations and ask the Minister to ensure that we are informed
in a timely fashion of any intention by the Council to authorise
the Commission to ease these conditions.
14.9 We also ask the Minister to ensure that we
are given ample opportunity to scrutinise the additional comprehensive
monitoring report which the Commission intends to issue in November
2003.
14.10 We now clear this document.
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