# CE2004065EN.01002101.xml

| 13.3.2004 | EN | Official Journal of the European Union | CE 65/21 |
| --- | --- | --- | --- |

13.3.2004

EN

Official Journal of the European Union

CE 65/21

---

(2004/C 65 E/022)

WRITTEN QUESTION E-0204/03

by Bert Doorn (PPE-DE) to the Commission

(3 February 2003)

Subject:   State aid for the banking sector in the Czech Republic

Subject:

I have studied the European Commission report entitled ‘State Aid Scoreboard — autumn 2002 update — Special edition on the candidate countries’ — with great interest. In that connection, I welcome the European Commission's initiative in drawing up a report on state aid in the future EU Member States. It represents a necessary step along the road to complete transparency, one which is of great significance as regards accession.

However, the European Commission report makes in clear in various instances that the information which it possesses consists solely of data supplied by the applicant countries themselves and is not, therefore, the result of research carried out by the European Commission itself.

I should therefore be grateful if the Commission would supply me with additional information about the following issues:

| 1. | Does the Commission intend to verify the accuracy of the information supplied to it? If so, how will this be done? For example, it came to my attention that the figures given in the ‘State Aid Scoreboard’ relating to the aid granted to Czech banks in 2000 (EUR 144 million) were considerably lower than those given in publicly available sources in Prague. Such sources allege that state aid amounting to several hundred million euros was granted to a small number of banks in 2000. |
| --- | --- |

1.

Does the Commission intend to verify the accuracy of the information supplied to it? If so, how will this be done? For example, it came to my attention that the figures given in the ‘State Aid Scoreboard’ relating to the aid granted to Czech banks in 2000 (EUR 144 million) were considerably lower than those given in publicly available sources in Prague. Such sources allege that state aid amounting to several hundred million euros was granted to a small number of banks in 2000.

| 2. | The Commission has not indicated whether, in its view, that aid was granted in compliance with the EU legislation governing the granting of state aid currently in force. Is it, nevertheless, possible for the state aid granted after 10 December 1994 to be deemed to constitute existing aid and to be included in a list attached to the Accession Treaty (‘State Aid Scoreboard’, Section 1.2.5)? |
| --- | --- |

2.

The Commission has not indicated whether, in its view, that aid was granted in compliance with the EU legislation governing the granting of state aid currently in force. Is it, nevertheless, possible for the state aid granted after 10 December 1994 to be deemed to constitute existing aid and to be included in a list attached to the Accession Treaty (‘State Aid Scoreboard’, Section 1.2.5)?

| 3. | What conclusions will the Commission draw if it is proved that the figures set out in the ‘State Aid Scoreboard’ relating to the state aid granted to Czech banks are fundamentally inaccurate? |
| --- | --- |

3.

What conclusions will the Commission draw if it is proved that the figures set out in the ‘State Aid Scoreboard’ relating to the state aid granted to Czech banks are fundamentally inaccurate?

Answer given by Mr Monti on behalf of the Commission

(19 March 2003)

(19 March 2003)

State Aid Scoreboard

| 1. | The Commission compiled the State Aid Scoreboard data on the basis of the figures provided by the Czech authorities. It does not verify this information, as it does not verify the information from the current Member States either. As far as possible the Commission tried to apply the same methodology as that used for the existing Member States. However, as this was the first exercise of its kind, there were naturally difficulties in obtaining all the necessary information to do this in a strictly comparable way for all countries. As a result, there may be some areas where the level of State aid was under-valued. |
| --- | --- |

1.

The Commission compiled the State Aid Scoreboard data on the basis of the figures provided by the Czech authorities. It does not verify this information, as it does not verify the information from the current Member States either. As far as possible the Commission tried to apply the same methodology as that used for the existing Member States. However, as this was the first exercise of its kind, there were naturally difficulties in obtaining all the necessary information to do this in a strictly comparable way for all countries. As a result, there may be some areas where the level of State aid was under-valued.

Existing Aid List

| 2. | No Czech State aid measure with regard to banking was included in the list attached to the Accession Treaty. The inclusion of aid measures granted by the Czech authorities to the existing aid list consists of two phases: The first phase consisted of the establishment of a list of aid measures to be attached to the Accession Treaty. A few banking measures had been notified for this list, however they did not qualify and were therefore not included. The second phase covers measures submitted to the Commission between 1 January 2003 and the actual date of accession (the so-called ‘interim procedure’). This procedure covers aid measures which, prior to the date of accession, have been assessed by the State aid monitoring authority of the new Member State and found to be compatible with the acquis, and to which the Commission does not raise an objection on the ground of serious doubts as to the compatibility of the measure with the common market. Several aid measures to banking are currently under scrutiny of the Czech competition authorities (OPEC). Once the OPEC will have assessed the measures, and if it raises no objections, the Czech authorities may notify the granted aid to the Commission for inclusion in the existing aid list. The Commission will consequently assess the aid, and only if the Commission does not object to it on the grounds of serious doubts as to its compatibility with the common market, it will be regarded as existing aid.
  The existing aid list exercise should be distinguished from the State Aid Scoreboard. The State Aid Scoreboard is not intended as an assessment of compatibility with the acquis, but an information tool. |
| --- | --- |

2.

No Czech State aid measure with regard to banking was included in the list attached to the Accession Treaty. The inclusion of aid measures granted by the Czech authorities to the existing aid list consists of two phases: The first phase consisted of the establishment of a list of aid measures to be attached to the Accession Treaty. A few banking measures had been notified for this list, however they did not qualify and were therefore not included. The second phase covers measures submitted to the Commission between 1 January 2003 and the actual date of accession (the so-called ‘interim procedure’). This procedure covers aid measures which, prior to the date of accession, have been assessed by the State aid monitoring authority of the new Member State and found to be compatible with the acquis, and to which the Commission does not raise an objection on the ground of serious doubts as to the compatibility of the measure with the common market. Several aid measures to banking are currently under scrutiny of the Czech competition authorities (OPEC). Once the OPEC will have assessed the measures, and if it raises no objections, the Czech authorities may notify the granted aid to the Commission for inclusion in the existing aid list. The Commission will consequently assess the aid, and only if the Commission does not object to it on the grounds of serious doubts as to its compatibility with the common market, it will be regarded as existing aid.

The existing aid list exercise should be distinguished from the State Aid Scoreboard. The State Aid Scoreboard is not intended as an assessment of compatibility with the acquis, but an information tool.

| 3. | Currently, the Commission cannot draw the conclusion that the figures are fundamentally inaccurate, since certain measures are still under scrutiny by the OPEC. However, in case figures prove to be inaccurate, they will need to be updated in the next score board. |
| --- | --- |

3.

Currently, the Commission cannot draw the conclusion that the figures are fundamentally inaccurate, since certain measures are still under scrutiny by the OPEC. However, in case figures prove to be inaccurate, they will need to be updated in the next score board.

---