Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-03-13-Speech-1-113"

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"Mr President, Commissioner, ladies and gentlemen, as we know, the European Communities Treaty established free movement of persons, goods and capital within the EU, and so it would hardly be possible to call for the free choice of location to be banned outright, since that would harm European businesses by making them immobile. What is needed, though, is the introduction of something to accompany the principles of free circulation, which must remain within the cohesion policy framework, and the reforms of the structural funds and of the law on subsidies present themselves as opportunities for doing this. What that means is that it is urgently necessary that the Commission should, in awarding subsidies and also funding from the Structural Funds, ensure that the granting of such aid should be conditional upon medium-term guarantees of permanence and employment. That is indeed something that Europe must deal with. What Mr Hutchinson’s report – albeit not without its being the subject of lively debate in the Committee – makes clear is that the companies receiving the aid are obliged to implement the policy of economic, social and territorial cohesion. Put in plain terms, that means that the consistent way to put the proposal made by the Commission with reference to the Structural Funds is to specify that companies that fail to comply with the conditions attached to public aid, should be required to repay it, without, however, being allowed under any circumstances to receive public subsidy for the new locations and to be barred from support from structural funds or in the form of State aid for a period of at least five years – although seven would be better – from the date of relocation. This report is intended to stress the need for every necessary step to be taken to prevent the offering, under European regional policy, of incentives for business relocations that result in job losses. Mr Hutchinson’s report, in its present form, is an even-handed one and deserves to be endorsed."@en1

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