# CE2004084EN.01051101.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/511 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/511

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(2004/C 84 E/0589)

WRITTEN QUESTION P-3930/03

by Alexandros Alavanos (GUE/NGL) to the Commission

(16 December 2003)

Subject:   Retention of privileges by the Agricultural Bank of Greece

Subject:

Under Article 26(4) of N 1914/1990, ‘all the special arrangements which apply to the Agricultural Bank of Greece, with particular reference to its substantive and procedural privileges, to its immunities in respect of tax and other matters, to its debt instruments, to the guaranteeing of its debts and in general to its legal personality as an entity possessing rights and subject to obligations’ remain in force and are applied unchanged even following the conversion of the Agricultural Bank of Greece (ATE) into a limited liability company. On the basis of this provision the ATE, in its transactions with its customers, makes use of the privileges granted to it by Articles 8-15 and 34(8) of N 4332/1929, under which the legal, procedural and substantive guarantees for those dealing with the ATE, and in particular its debtors, are set aside. The Commission has also received a complaint on this subject from the firm Tipopiitiria Thivas A.E. (reply from the Agriculture Directorate-General No 31427/24.11.2003).

Since the retention and application by the ATE of the above-mentioned privileges, which is contrary to Community law, is onerous for those doing business with it and deprives them of all rights of defence, what does the Commission intend to do to put a stop to the violation of the rights of those dealing with the ATE and to eliminate the distortion of competition conditions with respect to other credit institutions?

Supplementary answer given by Mr Bolkestein on behalf of the Commission

(7 April 2004)

(7 April 2004)

In 1997 and in 2001, the Commission received two complaints concerning the legislative privileges benefiting the Agricultural Bank of Greece. The complainants criticized these privileges considering that they amount to the grant of illegal State aids.

According to a constant case-law, ‘only advantages granted directly or indirectly through State resources are aids within the meaning of the Treaty’ (see case C-379/98, Preussenelektra, ECR (2001) p. I-2099, §58). To the extent that the legislative privileges benefiting to the Agricultural Bank of Greece do not affect public resources, the Commission considered that they are not State aids within the meaning of the EC treaty. Nevertheless, the Commission considered that Article 87 §1 of the EC Treaty could apply to fiscal advantages in favour of the Bank. Accordingly, it opened an enquiry which revealed several tax advantages.

The discussions between the Commission and the Greek authorities lead to the abolition of these advantages, as confirmed by letter dated 24 February 2004, referring to the adoption of the requested amendments (Greek Official Journal of the 10th February 2004, Law 3229 - FEK 38/A/10.2.2004).

The information provided by the Honourable Member and received through the complaint of 2003 refers to further privileges, but does not point to a clear infringement of the banking Directive (Directive 2000/12/EC of the Parliament and of the Council of 20 March 2000, on the taking up and pursuit of the activity of credit institutions (1)) or of the EC Treaty.

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However, the Commission services instructing the file will ask for clarifications from the Greek authorities on the national provisions stipulating privileges of the Agricultural Bank of Greece.

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(1)  OJ L 126, 26.5.2000.

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