Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-07-05-Speech-2-185"
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"en.20050705.26.2-185"2
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"Mr President, I too should like to extend my sincere thanks to all the authors of the reports under discussion. This debate on the future of the cohesion policy is an important test of the practical application of one of the fundamental values the EU professes to hold, namely solidarity with a view to achieving equal opportunities.
I would remind the House that the aim of the cohesion policy is to support the restructuring and modernisation of those countries that need assistance in order to have any chance of rapidly catching up to the average level of economic development in the European Union. At present this relates above all to the new Member States. From their point of view, the application of the n+2 rule and the classing of VAT as an eligible expense should without a doubt be considered the most important of all the issues we are discussing today.
The nature of projects financed under the Cohesion Fund means that preparation alone takes longer than two years. They are often enormous investment projects, which go beyond the normal time frame of projects financed under the Structural Funds. Extending the application of the n+2 rule would doubtless mean a drop in the level of funding granted.
As far as VAT is concerned, the experiences of the new Member States are incontrovertible proof that the main barrier to the use of the Structural Funds is the relatively high cost of launching projects. This cost is covered out of the beneficiaries’ own resources. Excluding VAT from the list of eligible expenses would result in many entities, including local authorities, being unable to afford the enormous costs associated with implementing projects.
For example, preliminary estimates indicate that the Member States may have to contribute almost 63% of the sum contributed by the EU for the implementation of projects under the European Regional Development Fund. This would put the new Member States in a position that is considerably worse than that of the Member States that previously benefited from the Structural Funds.
I would remind the Members from the old Member States that we should seize this opportunity for solidarity, and give Europe a chance to develop. This would also be in the interests of the old Member States."@en1
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