EC divvies up aid to poor regions, escalating a spat with Ireland

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BRUSSELS, Belgium, Oct. 21, 1993 (UPI) -- The European Community Thursday dealt out $108.4 billion (93.8 billion European Currency Units) in aid to the poorest EC regions for the period between 1994 and 1999, but the portion allotted to Ireland fell short The Commission, the EC's executive arm, divided up two funds on a region-by-region basis and country-by-country basis that ensure certain minimum amounts to each nation according to the instructions of ministers from the 12 member states.

The money is intended to bring backward regions up to the economic levels in other areas by improving transport, energy, telecommunications and other facilities.

Bruce Millan, EC commissioner for regional politics, said the deal was an impartial one that provides for a mid-term review of progress which could transfer previously allotted money from one country to another. ''Every government at the end of the day would like more,'' he said, ''but this is a very fair division.''

The four poorest nations of the EC -- Greece, Ireland, Spain and Portugal -- will receive $69.2 billion (59.88 billion ECU), or about 64 percent of the total figure, over the six years between 1994 and 1999.

Under the plan, Ireland will receive $6.5 billion (5.62 billion ECU) during the period, significantly less than the sum the country was banking on.

The disparity escalated to a war of words Wednesday between Brussels and Dublin.

An angry Prime Minister Albert Reynolds said Jacques Delors, president of the EC Commission, had ''clearly reneged on the (previous) deal,'' but Delors insisted he had ''fulfilled any promise'' made to the Irish government and denied that he had ''let Ireland down.''

Delors made pledges to Dublin at marathon negotiations in Brussels in July after Ireland threatened to veto the EC's entire $180.5 billion (156.2 billion ECU) regional aid program.

Milan said Thursday, ''These are extremely good figures for Ireland.''

Irish officials have made veiled threats to mar an EC summit meeting Oct. 29, intended to celebrate the ratification of the Maastricht Treaty on European Union, by raising the dispute.

The figures for individual countries are as follows:

--Belgium $844 million (730 million ECU)

--Britain $2.73 billion (2.36 billion ECU)

--France $2.53 billion (2.19 billion ECU)

--Germany $15.76 billion (13.64 billion ECU)

--Greece $16.16 billion (13.98 billion ECU)

--Ireland $6.50 billion (5.62 billion ECU)

--Italy $17.17 billion (14.86 billion ECU)

--Netherlands $173 million (150 million ECU)

--Portugal $16.16 billion (13.98 billion ECU)

-- Spain $30.39 billion (26.3 billion ECU)

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