4-5 September European Parliament

Date: 12/09/1996

STRUCTURAL funding for regional and social programmes in the EU is far too complex and must be simplified, MEPs declared. Although the Parliament approved the Union's decision to spend 141 billion ecu between 1994 and 1999 on such schemes, it attacked the EU's Structural Funds for being too complex, poorly targeted and seriously underspent. MEPs were especially critical of the Commission's inability to keep track of the money once it had been sent to the member states. They also criticised the lack of parliamentary involvement in deciding how the funds should be allocated between the Union's various regions, despite the fact that MEPs share budgetary powers with EU governments.

LOCAL employment initiatives could create 400,000 new jobs in the Union each year, German Christian Democrat MEP Christa Klass told her colleagues. Her Green compatriot Elisabeth Schroedter was even more optimistic, claiming that local job creation schemes could halve the Union's unemployment rate by 2000. This optimism reflected the European Commission's view that 25 million ecu of social expenditure should be used to promote local initiatives. The Commission has identified 17 key areas for such initiatives ranging from child care and domestic assistance to housing and tourism. MEPs backed the Commission's strategy and also called for more publicity to be given to job success stories.

DRIVERS who lose their licences in one member state should be banned from driving anywhere in the Union, according to MEPs. The get-tough approach emerged when the Parliament considered changes to legislation adopted in 1991 on an EU-wide driving licence. MEPs agreed with the Commission's idea for a standard system for codifying the data appearing on driving licences on the grounds that it would increase road safety and make it easier for documents to be checked. But they went further by asking the Commission to table a proposal by the end of March for a European penalty points system. MEPs also argue that a decision to suspend or withdraw a licence in one member state should have legal effect throughout the Union. At present, motorists who commit offences in one EU country may drive legally in the other 14.

COMMISSION plans to set a maximum Value Added Tax (VAT) rate of 25&percent; throughout the Union for the next two years were narrowly rejected by MEPs. With a minimum 15&percent; level already in force, the proposal is designed to prevent VAT rates in the EU from drifting even further apart. But MEPs rejected the upper limit, arguing it would reduce member states' ability to raise taxes as they struggle to get their economies into shape in preparation for the single currency. National VAT rates currently vary from 15&percent; in Germany to 25&percent; in Scandinavia. Most MEPs believe that complete harmonisation is unlikely before the end of the century.

HARMONISED European rules to improve safety standards on passenger ships operating on domestic EU routes were approved by MEPs. They are designed to replace the widely-differing national norms which now apply to such vessels. Unlike those on international routes, domestic ships are not covered by International Maritime Organisation safety requirements.