9 TRANS-EUROPEAN NETWORKS
(25873)
11740/04
COM(04) 475
| Draft Regulation determining the general rules for the granting of Community financial aid in the field of the Trans-European Transport and Energy Networks and amending Council Regulation (EC) No 2236/95
|
| Legal base | Article 156 EC; co-decision; QMV
|
| Department | Trade and Industry
|
| Basis of consideration |
Minister's letter of 30 January 2006 |
| Previous Committee Report |
HC 42-xxxi (2003-04), para 6 (15 September 2004)
|
| To be discussed in Council
| Not known |
| Committee's assessment | Politically important
|
| Committee's decision | Not cleared, further information awaited
|
Background
9.1 Trans-European Networks (TENs) comprise three sectors: energy
(TEN-E), telecommunications (eTEN) and transport (TEN-T). Development
of the TENs is promoted as a key element for the creation of the
single market, reinforcement of economic and social cohesion and
promoting the Lisbon Strategy. Such development includes the interconnection
and interoperability of national networks as well as access to
such networks. Funding from the TENs budget is intended to be
catalytic, with maximum levels for support and the greater part
of the funding coming from either the public authorities of the
Member States or, especially in the fields of telecommunications
and energy, from the private sector.
9.2 The draft Regulation would:
- increase the maximum rates of support for TEN-T activities
with effect from 1 January 2007. The following table shows the
current rates and the Commission's proposals for post-2006:
| |
| Current | Post-2006
| Proposed change |
| TEN-T | Studies | 50%
| 50% | —
|
| | Priority projects
| 20% | 30%
| +10% points |
| | Cross-border sections of priority projects
| 20% | 50%
| +30% points |
| | Projects including: interoperability or security and safety
| 10% | 50%
| +40% points |
| | All other projects
| 10% | 15%
| +5% points |
| TEN-E | Studies | 50%
| 50% | —
|
| | Priority projects
| 20% | 20%
| — |
| | All other projects
| 10% | 10%
| — |
| eTEN | Studies | 50%
| 50% | —
|
| | Projects |
10% | 10%
| — |
- establish a budget of €20.35 billion (£13.75 billion)
for TEN-T and €0.34 billion (£0.23 billion) for TEN-E
in the period 2007-2013. (For the period 2000-06, the funding
totals for TEN-T and TEN-E are €4.17 billion euros (£2.82
billion) and €0.41 billion (£0.28 billion) respectively);
and
- widen the forms of support available to include loan guarantees
to cover risk after the construction phase.
9.3 When the previous Committee considered this proposal in September
2004 it noted approvingly the Government's caution about the suggested
changes to the framework of support for TENs and its refusal to
consider the 2007-13 financial envelope for TENs until the 2007-13
Financial Perspective was agreed. It did not clear the document
saying it would wish to consider the matter further as the Financial
Perspective prospects became clearer.[15]
The Minister's letter
9.4 The Minister of State for Industry and the Regions, Department
of Trade and Industry (Alun Michael) tells us now where matters
stand in the light of the European Council's agreement of the
Financial Perspective for 2007-13. He says that a total budget
of €72.12 billion (£49.4 billion) was allocated for
the budgetary sub-heading which includes TENs — considerably
less than the Commission proposal of €122 billion (£83.6
billion), but still representing year-on-year real growth of 7.5%
compared to 2006. Although there is no specific figure for TENs
or other components of the sub-heading, the settlement does call
for particular priority to be given to enhancing the Community's
research effort and for due account to be taken of some priority
projects within the TENs.
9.5 The Minister says the Commission intends to propose a breakdown
of all the sub-headings, in February 2006. This overall proposal,
including funding for TENs, will then form part of the negotiation
between the Council and the European Parliament of the new Inter-Institutional
Agreement (IIA) on budgetary matters, including the Financial
Perspective. The Government expects the IIA to be agreed at some
point between March and May 2006. Once the IIA and programme amounts
have been agreed with the European Parliament the latter will
be slotted into the relevant Regulations, which would then be
agreed between the Council and the European Parliament, probably
in the second half of 2006.
Conclusion
9.6 We are grateful to the Minister for this information. We
note that at some stage later this year he will be able to return
to us with definite information as to the financial aspect of
the draft Regulation so that we may continue scrutiny of the proposal.
9.7 Meanwhile the document remains uncleared.
15
See headnote. Back
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