The Commission is proposing to maintain present levels of regional and social spending. These, at Ecu 33 billion, comprise, after agriculture, the largest slice of the EU's budget. Including the spending for the new member states at 1999 levels, they account for 0.46 per cent of the Union's GNP. The total allocation for the period 2000-2006 would be Ecu 275 billion at constant 1997 prices.
Of this amount, Ecu 210 billion would be allocated to the existing 15 member states but: - about two-thirds would be allocated for priority objective 1 regions, including transitional schemes for phasing out aid to regions whose incomes are above the 75 per cent average of GDP per inhabitant. This would mean many regions, including Ireland and parts of the UK, would no longer be entitled to priority treatment. It will certainly be the subject of intense discussions, - the remainder, for measures under other objectives, would slightly decrease over the period.
Funds would be concentrated on a smaller target population, and this would be done without prejudice to the new rural development accompanying measures which are now included in the agricultural guideline.
The Commission's intention is that joint public/private ventures will help regions where EU aid is to be appreciably reduced. The new member states would receive a total allocation of some Ecu 45 billion, to be phased in over the period and accounting for about 30 per cent of the total allocation for regional spending by the end of the period.
Pre-accession aid, to be drawn from the Ecu 45 billion allocation for the new member states, would be made available from the year 2000. This assistance, to be granted at a constant rate of Ecu 1 billion per year, would initially be granted to all the applicant countries and would subsequently be focused on countries due to join the Union at a later stage. It is primarily intended to help bring the applicant countries' infrastructures up to EU standards, particularly in the transport and environment fields, along the lines of existing operations.
The Cohesion Fund will be retained, at Ecu 20 billion. A review of whether countries continue to be eligible, with per capita GNP lower than 90 per cent of the EU average, will be carried out.