EC unhappy with Estonian funds

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

According to a report by dailyEesti Post, it appears that the fund distribution Commission'srepresentative expert made comments which clearly revealed his dissatisfactionwith the situation.

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

One concerned the transfer of 19 million kroons (EUR 1.21 mln) meant forboosting export capability, supporting emerging enterprises and funding programsto promote Estonia as a traveldestination.

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

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

Rogger told Estonianofficials that just spending the money cannot be the sole objective. He wasalso unhappy with Estonia's regional funddistributing principles, finding that investment in the northeasternIda-Virumaa region is not sufficient.

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