92001E2743

WRITTEN QUESTION E-2743/01

by Anneli Hulthén (PSE) to the Commission

(5 October 2001)

Subject: Objective 3 development programme

The EU Objective 3 development programme in Sweden includes support which may be applied for by various undertakings, organisations and public institutions to help them develop their activities. When EU Objective 3 funds have been approved, receipts entered in the accounts have to be presented before any funds may be paid out. However, small undertakings may find it impossible to hand over large sums of money before they receive the support. The latter can be a crucial factor for small companies' development and livelihood.

The figures show that in Sweden between 80 and 90 % of this support is applied for by large companies. The failure of small and medium-sized undertakings to apply is a clear result of the rule described above.

Enquiries into the procedures for paying support from the EU growth programme in other Member States have revealed that only in Sweden do receipts have to be presented before the support can be paid. In the other Member States an advance of one third of the support is granted to facilitate the start up of the activities in question. The reason for this might be that other Member States have other interpretations of how the EU contributions are to be paid.

Do the rules governing Objective 3 make such demands, or is this an interpretation on the part of the Swedish authorities?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(15 November 2001)

The issue of paying advances to facilitate the start up of activities, financed under the Swedish Objective 3 programme, is a national matter. These national advances are allowed under Community regulations, although they cannot be submitted for reimbursement given that they do not correspond to expenditure actually incurred and paid out.

National advances were not allowed in Sweden in the previous programming period, although they were, in practice, in most other Member States. Instead promoters in Sweden could submit monthly claims. During the present programming period, the Swedish Government is allowing, under certain conditions, an advance payment of 10 % of the funds granted (maximum SEK 10 000) for small local projects by non-governmental organisations or by social economy in order to facilitate their start-up of projects. The Swedish European Social Fund (ESF) Council has proposed to the Swedish government to extend the advance payments to small small and medium-sized enterprises (SMEs) with staff under ten persons.