MEPs call for explanation of unspent regional funds

Date: 04/04/1996

THE European Parliament is demanding a full explanation from the Commission for its failure to spend almost 4 billion ecu of funds specifically earmarked for the Union's poorer regions and deprived areas over the past two years.

Euro MPs fear the non-utilisation of the money has reached “alarming levels” and want both the Commission and national authorities to complete a thorough investigation into the underspend by 1 September.

The move is one of the 1997 budgetary priorities adopted by the Parliament at its mini-session in Brussels last week and reflects the increased political attention now being devoted to annual Union expenditure.

In particular, MEPs are, for the first time, demanding a meeting with EU government officials and the Commission to discuss their respective policy priorities before the annual budgetary procedure gets under way.

Laurens Brinkhorst, the Dutch Liberal MEP responsible for drafting the Parliament's approach to 1997 spending, acknowledges the novelty of a political dialogue at such an early stage in the budget process.

“Usually the Parliament only gets involved later in the procedure. By that time, it is harder to change the sums involved. We want to develop a political dialogue setting out our own priorities. This is a deliberate political approach,” he explains.

The Parliament has endorsed a number of major priorities for 1997 EU expenditure. These are aimed at strengthening the Union's ability to create employment and promote economic and social cohesion, improve the management of its external policies, and ensure environmental imperatives are applied in policy areas such as agriculture and transport.

One new element being introduced into the budgetary procedure is the specific request from Euro MPs that refugee policy be included in EU expenditure.

The initiative is required, insisted Brinkhorst, “because of the total failure of national and bilateral policies”.

At the same time, MEPs have warned that foot-dragging by the Netherlands threatens to leave the Union with a cash shortfall of around 2.4 billion ecu next year.

The Netherlands is the only member state not to have ratified the agreement on increases in the EU budget struck over three years ago.

The delay is largely due to domestic opposition prompted by the recent turn around in the country's status from being a net beneficiary to becoming the second largest per capita net contributor to EU funds.

Failure by the Netherlands to complete the ratification process in mid-April would prevent the Union from fulfilling a whole range of internal and external spending commitments.