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25 october 2002
center for environmental public advocacy
cee bankwatch network
friends of the earth slovakia
foe slovakia and cee bankwatch network
call on eu members to prevent unnecessary
misuse of eu funds
Fearing that EU funds may be used for
questionable projects, the Center for
Environmental Public Advocacy/CEE Bankwatch
Network and Friends of the Earth Slovakia
(NGOs) have appealed to EU member countries
to consider their concerns before approving
the provisional closure of the Competition
chapter in pre-accession negotiations with
Slovakia.
In a letter to the permanent
representatives to the EU, the NGOs ask the
representatives to consider suggestions
included in the NGOs’ "Position Paper on the
Chapter Competition Policy " (1), and point
out that although their position paper was
sent to both the European Commission and
Slovak government representatives, neither
side’s response touched on the merits of the
paper’s suggestions.
"We called on the European Commission to
ensure that the Slovak Government immediately
cancels legislative provisions which sharply
contradict current EU rules on competition
and which seriously distort the business
environment in Slovakia" stated FoE-Slovakia
project coordinator Roman Havlicek, adding
that the EC should "ensure transparent state
aid complying with the public interest".
The NGOs emphasised that foreign investors
in Slovakia (Volkswagen Slovakia is one
example) receive more incentives than just
tax relief. Other bonuses include the right
to land expropriation, direct financial
subsidies for the construction of roads and
water and sewage systems, electricity supply
and the expansion of railway stations – all
of which is not classified as state aid.
According to the NGOs, these subsidies should
be subject to the State Aid Act since they
represent a significant amount of public
funds. If the EC ignores these facts, they
add, such forms of state aid will only
continue.
Another problem with pre-accession aid
which the NGOs ask the EU representatives to
consider is that many subsidised projects are
concentrated in the most developed regions,
while the rest of the country, which
continues to suffer from high unemployment,
is neglected. Ignoring these regions will
reduce the amount of public funds available
to aid the most needy and might generate
pressure on increased assistance from the
EU’s pre-accession funds and, after
accession, structural funds. Havlicek: "If
the Commission continues to tolerate the
current practices circumventing state aid
rules, it may well end up paying the bill
with EU taxpayers’ money.” For this reason,
“conforming state aid in Slovakia with EU
standards is not only a matter of public
interest in Slovakia, but for the EU member
countries as well," he concluded.
Contact person:
Roman Havlicek, FoE-Slovakia project
coordinator
tel.: +421 48 419 3324
E-mail:
havlicek@changenet.sk
(1) “Position Paper on the Chapter
Competition Policy”: to download it go to:
openletter.rtf
or
www.foeeurope.org/press/CEE_25_10_02_EU_funds.htm
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