Austin Deasy
Ceist:31 Mr. Deasy asked the Minister for Foreign Affairs if he will outline the level of EC aid being given to (a) that part of Germany formerly known as East Germany (b) Czechoslovakia (c) Hungary (d) Romania and (e) Poland in 1991.
Written Answers. - EC Aid to Former Eastern Bloc Countries.
The European Community and its member states are the major contributors to the international effort to support economic and political transformation in the countries of Central and Eastern Europe. EC assistance to these countries comes in a variety of forms geared to the particular needs of each country and its level of development. The categories include emergency aid, project aid, balance of payments assistance and loans for development projects.
This year the Community has continued to finance humanitarian aid to Romania. In March 1991, 100 million ECU was provided for emergency food and medical aid for Romania and Bulgaria and the Commission decided to grant further humanitarian aid of 10 million ECU for the supply of basic medicine in May 1991.
Technical assistance is given under the Community's PHARE programme for projects related to economic reform and structural adjustment. This has a total budget in 1991 of 785 million ECU. Czechoslovakia, Hungary and Romania are each expected to take up approximately 150 million ECU while Poland's allocation is expected to be approximately 200 million ECU.
The European Council in Rome in December 1990 recognised the need for exceptional balance of payments assistance, additional to that supplied by the IMF and the World Bank, and some Central and Eastern European countries. The amounts supplied by the EC in this way are to be matched by contributions from non-Community members of the Group of 24. The Community decided earlier this year on loans of 375 million ECU each to Czechoslovakia and Romania and a loan of 180 million ECU to Hungary. These are for a maximum of seven years and the first amounts are being paid this year.
The Central and Eastern European countries are also eligible for loans from the European Investment Bank (EIB). In February 1990 the Council agreed that up to one billion ECU over three years would be available from the EIB for projects in Poland and Hungary. In February 1991 a provision of up to 700 million ECU over two years was made for loans to initiate projects in Czechoslovakia, Romania and Bulgaria. These amounts will be availed of as suitable projects are presented for financing. By 1 September 1991 loans of 240 million ECU to Poland, 120 million ECU to Hungary and 25 million ECU to Romania had been approved.
The European Bank for Reconstruction and Development (EBRD) which was inaugurated in April 1991 has a capital of 10 billion ECU of which the EC together with its member states holds 51 per cent. The bank's objective is to promote private and entrepreneurial activity in the Central and Eastern European countries committed to democracy. Czechoslovakia, Hungary, Poland and Romania are founder members of the bank and designated recipient countries. They are therefore eligible to receive funding for projects during 1991.
All of these measures are supplemented by EC trade concessions designed to improve market access and further the integration of these countries into the open international economic system.
As an integral part of the European Community, that part of Germany formerly known as the German Democratic Republic is in a different position to the countries of Central and Eastern Europe and accordingly does not benefit from assistance from PHARE or co-ordinated G24 assistance. It does, however, benefit from aid from the Community budget. The Commission has estimated that in 1991 the Community will commit approximately 900 million ECU in structural funds, 100 million ECU from other areas of the Community budget and approximately 1.3 billion ECU in FEOGA guarantees.