WRITTEN QUESTION P-1836/00

by Francesco Musotto (PPE-DE) to the Commission

(31 May 2000)

Subject: Dionysos project put forward by the Innova association for inclusion in the Euromed Heritage programme

The Commission recently informed the Innova non-profit-making association that it was terminating the contract it had concluded with the association, covering the implementation of the Dionysos project under the Euromed Heritage programme. Not content with simply terminating the contract for what was acknowledged to be one of the most interesting projects put forward for inclusion in the Euromed Heritage programme, the Commission also asked the association to return all of the Commission funds it had already received.

This extremely heavy penalty places a question mark over Innova's future viability. As a non-profit-making association, Innova has very little in the way of own resources. Therefore, were the Commission to put its decision into effect, Innova's directors might well be forced to put up their own money in order to be able to reimburse the Commission, since under Italian law the directors of non-profit-making associations have joint and unlimited liability for any debts incurred by their associations.

Can this approach be the right one? How can one expect the general public in Europe to view the Commission's activities in a positive light if that body takes unilateral decisions that place Community citizens in an extremely difficult financial position, without allowing those concerned to put their own case? Would the Commission not agree that the action taken by its staff is, to say the least, disproportionate?

Answer given by Mr Patten on behalf of the Commission

(28 June 2000)

The Dionysos Project was selected under the Euromed Heritage Programme and was to be implemented and managed by the Innova Association.

The Commission had noted on numerous occasions that Innova was failing to meet its contractual obligations and had warned the association to this effect. Despite this no measure was taken to comply with these obligations.

An audit undertaken at the Commission's request confirmed that a large amount of expenditure undertaken was not eligible and that the contract had not been respected (keeping of separate accounts, reports, interests, etc.).

The Commission terminated the contract and explained the reasons for its decision in a letter of 23 March 2000. The Commission has issued a recovery order for all the sum paid to the Innova Association in order to safeguard the Community's financial interests.