# CE2004065EN.01011101.xml

| 13.3.2004 | EN | Official Journal of the European Union | CE 65/111 |
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13.3.2004

EN

Official Journal of the European Union

CE 65/111

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(2004/C 65 E/124)

WRITTEN QUESTION E-2097/03

by Paul Lannoye (Verts/ALE) to the Commission

(25 June 2003)

Subject:   Kingdom of Belgium — federated bodies — Region of Wallonia — debudgetisation practices

Subject:

In a press release of 3 April 2003 the Government of Wallonia announced that it had adopted a new financial plan for the development of the Wallonian airports. The Government of Wallonia thus agreed to the twofold financial plan presented at the board meeting of 20 March 2003 of the Société wallonne des aéroports (Sowaer, s.a.), a public-interest company responsible for the development of Wallonian airport infrastructure and the implementation and financing of environmental accompanying measures for the benefit of those living near the airports (purchase of buildings and sound-proofing). The twofold financial plan shows that the overall cost of Wallonia's airport policy will amount to EUR 754,7 million by 2024 and that this sum will not be financed from the Region of Wallonia's budget, but through loans, most of which will be repaid as of 2009 or 2015. This is evidence of a worrying debudgetisation phenomenon affecting more than EUR 750 million.

| 1. | Is the Commission aware of this debudgetisation practice? |
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1.

Is the Commission aware of this debudgetisation practice?

| 2. | Is the practice not likely to distort the method of calculating the Belgian national debt? |
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2.

Is the practice not likely to distort the method of calculating the Belgian national debt?

| 3. | Is the practice in keeping with the letter and the spirit of the stability pact enshrined in the European Council resolution of 17 June 1997 (1), Regulation (EC) 1466/97 (2) and Regulation (EC) 1467/97? (3) |
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3.

Is the practice in keeping with the letter and the spirit of the stability pact enshrined in the European Council resolution of 17 June 1997 (1), Regulation (EC) 1466/97 (2) and Regulation (EC) 1467/97? (3)

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| 4. | Does it not call into question the Council opinion of 18 February 2003 on the updated stability programme for Belgium of 2003-2005? |
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4.

Does it not call into question the Council opinion of 18 February 2003 on the updated stability programme for Belgium of 2003-2005?

Answer given by Mr Solbes Mira on behalf of the Commission

(4 August 2003)

(4 August 2003)

The government deficit and debt that are relevant for the purpose of the Stability and Growth Pact are defined in the Protocol on the Excessive Deficit Procedure and in Council Regulation (EC) No 3605/93 of 22 November 1993 (4), as amended (5), through cross-references to the European System of National and Regional Accounts (ESA95). According to the Protocol, the relevant sector is ‘general government, that is central government, regional or local government and social security funds, to the exclusion of commercial operations’.

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General government is defined on an institutional basis, and not on a functional basis. Thus, only units of which the principal function is the production of non-market services or the redistribution of resources are included. Accordingly, the government-owned units dealing with commercial operations, such as public enterprises, are excluded from general government and classified as financial or non-financial corporations.

In the Belgian national accounts, compiled according to the ESA95 rules, the Société wallonne des aéroports (Sowaer, SA) is classified in the sector of non-financial corporations, and not as general government. Therefore, investment spending by Sowaer does not have any direct impact on the Belgian general government deficit, and the Sowaer financial liabilities are not government debt. However, subsidies, capital transfers and other grants by the Belgian Government to Sowaer, if any, are recorded as government expenditure, thus increasing the government deficit and debt.

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(1)  OJ C 236, 2.8.1997, p. 1.

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(2)  OJ L 209, 2.8.1997, p. 1.

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(3)  OJ L 209, 2.8.1997, p. 6.

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(4)  OJ L 332, 31.12.1993.

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(5)  Council Regulation (EC) No 475/2000 of 28 February 2000 amending Regulation (EC) No 3605/93 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community, OJ L 58, 3.3.2000.

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