Communication on the results of the eligibility mid-term review in accordance with Article 2 of the Council Regulation (EC) No 1164/1994 establishing a Cohesion Fund

Summary:

Article 2 of the amended Council Regulation (EC) No 1164/94 establishing a Cohesion Fund requires an eligibility mid-term review. The regulation stipulates that any Member State whose gross national product (GNP) per capita, measured in purchasing power parities, exceeds 90% of the Community average shall lose its entitlement to assistance from the Fund for new projects. The review shall be carried out before the end of 2003 based on per capita GNP as shown by Community data for the period 2000-2002.

Article 4 of the amended Council Regulation (EC) No 1164/94 stipulates that, in the event of a Member State becoming ineligible, resources for the Cohesion Fund will be reduced accordingly.

Since Article 4 of the Regulation is clear on the consequences of a Member State becoming ineligible in the mid-term eligibility review, the Commission considers modification of the Regulation itself is unnecessary. Consequently, the Commission decided to adopt a Communication to the Council and the European Parliament outlining the result of the mid-term eligibility review and laying down its financial implications. These financial implications will be implemented by the Commission in the context of the annual budgetary forecast.