# CE2004078EN.01020401.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/204 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/204

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(2004/C 78 E/0208)

WRITTEN QUESTION E-2980/03

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(9 October 2003)

Subject:   Suspension of funding for public works studies in Greece from the Community budget

Subject:

According to reports which have appeared in the Greek press, Community funding for advance studies for all projects covered by the Structural Funds has been suspended owing to a breach of Community law.

More specifically, the Commission Director-General for the internal market stated in a letter sent to the other directors-general on 31 July 2003 that he had detected infringements of Community directives, notably Directive 92/50/EEC (1) on public contracts. As a result, the press reports state that it was decided to suspend the financing of studies.

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| 1. | What is the Commission's official position on this matter? |
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1.

What is the Commission's official position on this matter?

| 2. | If the Commission has already made cuts, to what extent will the reduction in funding for studies affect the budget? |
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2.

If the Commission has already made cuts, to what extent will the reduction in funding for studies affect the budget?

| 3. | How will these studies be financed? |
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3.

How will these studies be financed?

| 4. | If studies are financed from national funds despite the Commission's objections in relation to compatibility with Community law, is it possible that the projects themselves could still be financed through the Structural Funds and the Cohesion Fund? |
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4.

If studies are financed from national funds despite the Commission's objections in relation to compatibility with Community law, is it possible that the projects themselves could still be financed through the Structural Funds and the Cohesion Fund?

Answer given by Mr Bolkestein on behalf of the Commission

(7 January 2004)

(7 January 2004)

| 1. | In the course of a regularly scheduled on-the-spot control mission concerning the Egnatia project, the studies of which are partly co-financed through the Trans-European Transport Network (TEN-T) budget line, some issues were identified, which showed that Egnatia's practices for the award of study contracts may not be compatible with public procurement rules and thus required further clarification. Egnatia seems to award the contracts on the basis of the quality of the enterprise itself and not the quality of the services which selected enterprises can provide, which would be contrary to Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of public service contracts.
  The Commission is in close contact with the Greek authorities, in order to collect all necessary information which would allow it to assess the issues raised. |
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1.

In the course of a regularly scheduled on-the-spot control mission concerning the Egnatia project, the studies of which are partly co-financed through the Trans-European Transport Network (TEN-T) budget line, some issues were identified, which showed that Egnatia's practices for the award of study contracts may not be compatible with public procurement rules and thus required further clarification. Egnatia seems to award the contracts on the basis of the quality of the enterprise itself and not the quality of the services which selected enterprises can provide, which would be contrary to Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of public service contracts.

The Commission is in close contact with the Greek authorities, in order to collect all necessary information which would allow it to assess the issues raised.

| 2. | Whilst awaiting the outcome of the compatibility assessment under the public procurement rules, a part of the payments, namely those linked to the Ten-T budget line, has been suspended by the Commission (the suspended payments concern 38 decisions — studies — which amount to EUR 82 million of the total planned support). |
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2.

Whilst awaiting the outcome of the compatibility assessment under the public procurement rules, a part of the payments, namely those linked to the Ten-T budget line, has been suspended by the Commission (the suspended payments concern 38 decisions — studies — which amount to EUR 82 million of the total planned support).

| 3. and 4. | Should the Commission reach the conclusion that an infringement of Community law is at stake, it may initiate the procedure foreseen under article 226 EC. In such a case, all Community payments (i.e. including those concerning the European Regional Development Fund and the Cohesion Fund) related to the subject-matter of the possible infringement proceeding will have to be suspended. The Commission would like to stress that a cooperative dialogue is currently taking place between the Greek authorities and the competent Commission services with a view to clarify the current situation and bring the possible infringement to an end. |
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3. and 4.

Should the Commission reach the conclusion that an infringement of Community law is at stake, it may initiate the procedure foreseen under article 226 EC. In such a case, all Community payments (i.e. including those concerning the European Regional Development Fund and the Cohesion Fund) related to the subject-matter of the possible infringement proceeding will have to be suspended. The Commission would like to stress that a cooperative dialogue is currently taking place between the Greek authorities and the competent Commission services with a view to clarify the current situation and bring the possible infringement to an end.

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(1)  OJ L 209, 24.7.1992, p. 1.

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