Select Committee on European Communities Eleventh Report


PART 3  WITNESSES' EVIDENCE AND OPINION OF THE COMMITTEE (Continued)

COHESION: A JOINT COMMUNITY AND MEMBER STATE RESPONSIBILITY

  32.    None of our witnesses argued that the EU should not seek to develop and implement policies for greater economic and social cohesion. We accept that policies for these purposes were included in the original Treaty of Rome and have been reiterated and elaborated ever since. The President of the Board of Trade, Mr Lang, when asked whether the Structural and Cohesion Funds should be abolished replied, "They are written into the Treaty. They absorb a third of the Community's Budget. I think they are going to continue in some shape or form and our purpose is to make sure they continue in the way most effective for achieving their purpose" (Q 550).

  33.    The Funds are seen by different potential beneficiaries as capable of being used for a range of their own purposes. There is a feeling among governments that if money is available they should get as big a share of it as they can. Mr Lang put the point when he said, "as Secretary of State for Scotland I tried to make it my business to make sure that Scotland got as big a slice of the cake as could legitimately be achieved" (Q 556). Lower tiers of government are equally eager to obtain what they see as their fair share. Asked whether it was legitimate, for example, for the funds to be used by sub-national level organisations as an opportunity to pursue their own alternative policies rather than national policies Sr Arias Cañete, Chairman of the Regional Policy Committee of the European Parliament, replied, "In politics every motive is justified or most of them!" He added, more seriously, that "the main objective of the Funds should be to reduce regional disparities" and that they should not attempt to substitute for the policies of the Member States (Q 538).

Opinion: responsibility for cohesion

  34.    We see it as proper for the EC Institutions-and, indeed, a treaty obligation on them-to pursue cohesion policies. It follows that we also see it as a duty on the Community Institutions and the national governments to fund these policies in a manner proportionate to their importance in relation to the rest of the Budget.

  35.    The Member States themselves and the Commission are in full agreement that "Member State policies are the Union's primary instruments for achieving cohesion."[7] The serious questions which we consider later in this Report are not whether Community policies by themselves are achieving economic and social cohesion but whether they are operated so that they add value to and complement national cohesion policies so as to achieve results which would not otherwise be obtained. We do not wish to see the Funds as a vehicle for replacing the policies of the Member States; nor in practice, do we think this is a serious danger since the CSFs or the SPDs have to be agreed[8] between the Commission and the Member State concerned.

  36.    We recognise that a good relationship between Member States and the Commission is crucial to maximising the added value from the use of the Structural Funds and the Cohesion Fund.


7   First Report on Economic and Social Cohesion 1996, European Commission 1996, p.6. Back

8   See the second sentence of paragraph 24 above. Back


 
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