CEECs gear up for regional funding

Date: 05/11/1998

By Chris Johnstone

COUNTRIES bidding for early membership of the Union are undertaking a wholesale shake-up of their local government structures to position themselves for future hand-outs of EU regional aid.

The Czech Republic, stung by recent European Commission warnings that its regional administration was weak and that this could damage its eligibility for future funding, last week announced a shake-up of its structures.

Poland will take the lead early next year with the most radical overhaul of its government structure since the war, with 16 provinces created to tap into future EU funding. These provinces will replace 49 existing districts regarded as too small to compete effectively for future Union structural funds.

Hungary also put forward plans this year for a seven-way separation of the country to improve its ability to absorb EU aid. Budapest is looking for Union approval of its reform at the end of the month. "Informally, we have had a positive response," said one diplomat.

The latest plan from Prague would divide the country into eight new administrative districts. Deputy Prime Minister Pavel Rychetsky has warned that unless the new set-up is put in place soon, the Czech Republic could lose out on around 2 billion ecu a year. A previous proposal which sliced the country into 14 districts has been ditched because they were viewed as being too small for EU purposes.