The Cohesion Fund was brought in under the last round of financial reforms. The purpose was to help the EU's poorer economies prepare for membership of the single currency over the 1994 to 1999 period.
The criterion for eligibility is a GNP of less than 90 per cent of the EU average. Greece, Spain, Ireland and Portugal qualified, and shared an Ecu 16 billion EU budget specifically directed towards improving the environment and transport facilities. The new proposal is to continue the Fund for the years 2000-2006 and to increase the budget of Ecu 20.8 billion. Ireland, which will qualify for at least some years, would have a share of around Ecu 2 billion. This time there are proposals to link payments to an obligation not to run up excessive public deficits.
