Information campaigns face cash crisis

Date: 10/10/1996

By Mark Turner

THE European Commission's support mechanisms for the applicant countries of central and eastern Europe are on the verge of sinking into obscurity.

A lack of funds is set to scupper the information campaigns of both the Phare programme, which provides development aid to the CEECs, and Tacis, which gives support to the Newly Independent States (NIS) of the former USSR.

The dissemination of key documents, including contract and programme information, could soon grind to a halt, with Internet services at risk of being forced offline within two weeks.

Since 1993, Phare has conducted its own publicity strategy, using both the Commission's Directorate-General for information (DGX) and outside contractors to get its message across. But the regulation which set up the unit did not anticipate the sum needed to pay for these services (around 10 million ecu for 1996) and thus did not include the necessary budgetary provisions.

Phare's information unit has only been able to finance its work through a concession granted by the European Parliament which, until recently, allowed it to use operational funds for publicity purposes.

The looming funding shortfall results from a decision by the Parliament in July to delete that concession retroactively from the 1996 budget.

Because of the way the Commission's accounting year runs, the information unit is still running on 1995 money. But once that is exhausted - which sources suggest is likely to happen very soon - its work will all but cease unless another way can be found to use 1996 funds for publicity activities.

There are also fears that similar constraints will be included in the 1997 budget. Dutch liberal MEP Laurens Brinkhorst, who is preparing the Parliament's position on the 1997 budget, is calling for a full-scale reform of the Commission's information strategy.

A long-term black-out could have grave consequences for Phare-funded projects, amid fears that fewer applicants would make it harder to allocate aid to the most worthy recipients.

There is particular concern that details of how organisations can get themselves on a new 'prequalification' list for large contracts might not be adequately publicised. Only those on the list will, in future, be considered for contracts worth over 300,000 ecu. The move is intended to increase efficiency, but there is concern that without a proactive campaign, it could result in restricted access to EU funding.

Negotiations between the Commission and Parliament are now under way to try to get agreement on the best way forward.

But Brinkhorst dismisses suggestions that his demands will compromise Phare's information work. “We want to review DGX's work in conjunction with other directorate-generals, “ he said, adding: “At the moment, the left hand does not know what the right hand is doing.”