EC unhappy with Estonian funds

TALLINN - The European Commission is unhappy with the methods Estonian officials are using to absorb European support funds.

According to a report by daily Eesti Post, it appears that the fund distribution Commission's representative expert made comments which clearly revealed his dissatisfaction with the situation.

At the June 12 meeting when the last instalments of the funds granted under the European Union's previous financial perspective for 2004-2006 were distributed, two cases were issues were mulled over at length.

One concerned the transfer of 19 million kroons (EUR 1.21 mln) meant for boosting export capability, supporting emerging enterprises and funding programs to promote Estonia as a travel destination.

The other involved the transfer of 6.8 million kroons of labor market funding measures to administrative capability improvement. The plan is to spend the money on the training of top law enforcement and prison officials.

The head of the European Commission delegation, Alain Rogger, requested that his dissenting opinion be recorded.

Rogger told Estonian officials that just spending the money cannot be the sole objective. He was also unhappy with Estonia's regional fund distributing principles, finding that investment in the northeastern Ida-Virumaa region is not sufficient.

At the June 12 meeting officials openly admitted that they are under strong political pressure to spend the European funds regardless of the area of focus.