# CE2004084EN.01051001.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/510 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/510

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(2004/C 84 E/0588)

WRITTEN QUESTION E-3884/03

by Roberta Angelilli (UEN) to the Commission

(16 December 2003)

Subject:   Alcatel Italia: suspected infringement of rules on funding granted by the EU

Subject:

It emerged from a meeting held with the trade union delegations from Alcatel Italia S.p.A. in Brussels in November 2003 that the company has benefited in the past from favourable terms for funding production activities in depressed areas of Italy, in accordance with the terms of Italian Law No 488/92, by means of EU co-financing.

This law obliges the beneficiary company to respect, ‘inter alia’, certain parameters in terms of both increasing jobs, on the basis of the funding received, and abiding by a multiannual investment plan.

Furthermore, it would seem that Alcatel Italia has carried out an outsourcing plan, without adequately informing the workers, and contravening the ban on altering the kinds of contracts already in force.

In view of all this, can the Commission say:

| 1. | what kinds of EU funding in particular Alcatel Italia has received? |
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1.

what kinds of EU funding in particular Alcatel Italia has received?

| 2. | what kind of investment plan Alcatel drew up to step up productivity and increase employment, in accordance with the provisions of Law No 488/92? |
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2.

what kind of investment plan Alcatel drew up to step up productivity and increase employment, in accordance with the provisions of Law No 488/92?

| 3. | whether it considers that the granting of funding to businesses can be made subject to an ethical and social clause? |
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3.

whether it considers that the granting of funding to businesses can be made subject to an ethical and social clause?

Supplementary answer given by Mr Liikanen on behalf of the Commission

(22 April 2004)

(22 April 2004)

Community funding received by A. Italia is related to:

| — | Direct funding (Fifth Framework Programme):






  — | Moicane project EUR 2 663 000, |
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Direct funding (Fifth Framework Programme):

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Moicane project EUR 2 663 000,

| — | Smacks project EUR 204 000; |
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Smacks project EUR 204 000;

| — | Indirect funding (through L488, production activities in depressed area of Italy). |
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Indirect funding (through L488, production activities in depressed area of Italy).

As regards the European Regional Development Fund (ERDF), cofunding for Alcatel was limited to aid intended for modernising Battipaglia. This aid amounts to EUR 3 034 million for the 1994-1999 programming period and to EUR 1 835 million for the period 2000-2006. Aid for the Maddaloni, Frosinone and Reti plants was not cofinanced by the ERDF.

The Commission is not in a position to provide information concerning the Alcatel investment plan to step up productivity and increase employment according to Law 488.

According to information from Alcatel, A. Italia has withdrawn the last two L488 applications, decreed in 2001:

| — | 51437/11 (Maddaloni extension); |
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51437/11 (Maddaloni extension);

| — | 19328/11 (Battipaglia extension). |
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19328/11 (Battipaglia extension).

The investment foreseen in the applications has been carried out, but due to adverse market conditions, it was not possible to fulfil the planned increase in employment. For this reason the two applications have been withdrawn and no funding has been granted to Alcatel Italia.

The four Structural Funds allow the European Union to grant financial assistance to resolve structural, economic and social problems. As a general rule, the Structural Funds (ERDF, ESF) finance development programmes which have been allocated an individual budget. These programmes are the product of joint negotiations between the national, regional and local authorities (they establish a list of eligible areas), the economic and social partners and other relevant bodies. The managing authorities appointed by the Member States will select the projects to be financed and supervise their implementation.

The website of the Directorate-General for Regional Policy (Regio) contains summaries of most of the programmes that have been officially adopted by the Commission (1).

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(1)  http://europa.eu.int/comm/regional_policy/country/prordn/index_en.cfm?gv_pay=IT&gv_reg=ALL&gv_obj=l&gv_the=ALL

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