EU Structural Funds: European Parliament wants stronger rules and more transparency

The European Parliament today demanded stronger rules and more transparency for EU structural funds in the next financing period 2013 to 2020. National authorities in charge of paying out the money should be subject to a certification procedure, the European Parliament said in a Report tabled by the Vice-Chairman of the Regional Development Committee, Markus Pieper MEP.

EU money should only be paid out if the Member State has properly implemented EU legislation, for example concerning public procurement or price regulation. In order to combat fraud, the European Parliament demands "a procedure for the systematic interruption and suspension of payments" as soon as evidence suggests a misuse of EU funds. Funding pledges should be offset against improperly received funds not yet paid back. In addition, the EU Commission should publish an annual "failure scoreboard", the Parliament said. Markus Pieper said: "The European Commission must take a closer look at where and how its billions of Euros in structural funds are being used. Controls must be concentrated in those areas that had the biggest problems in the past".

In addition, the EU structural funds should provide bigger support for border regions. The European Parliament today proposed to raise their share in the structural funds from 2.5% today to 7% in the future. Assuming the overall budget for structural funds would remain stable, this would amount to a rise from €7.8 billion today to €18 billion in the next financing period. "We need more cross-border motorway connections, railway lines, and shipping possibilities in order to generate economic growth", Mr Pieper said.

The European Parliament was divided over the question of introducing a new funding category for relatively well-off regions with a GDP between 75% and 90% of the EU average. The Socialists and Greens continue to push for the introduction of such a new fund, which would cost up to €20 billion in the next financing period. "Establishing a new fund on a permanent basis would remove all incentives for these regions to use EU money efficiently in order to provide structural improvements. It's easy to lie back and to nothing", Mr Pieper concluded.