# CE2004070EN.01013801.xml

| 20.3.2004 | EN | Official Journal of the European Union | CE 70/138 |
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20.3.2004

EN

Official Journal of the European Union

CE 70/138

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(2004/C 70 E/141)

WRITTEN QUESTION E-2768/03

by Alexandros Alavanos (GUE/NGL) to the Commission

(16 September 2003)

Subject:   Orders placed by Greek Railways (OSE) with Hellenic Shipyards

Subject:

According to Greek press reports and official statements, Hellenic Shipyards has announced that it is unable to honour its contractual obligations within the agreed time limit to supply rolling stock (suburban carriages, sleeping cars and passenger carriages, etc.) commissioned by Greek Railways on the basis of programmatic agreements. These agreements which were signed at the end of 1997 and were worth some GRD 180 billion contained penalty clauses and provided for compensation in case Hellenic Shipyards failed to meet its obligations.

| 1. | Would a failure of the Greek Railways to invoke the clauses and claim the compensation due from Hellenic Shipyards in the event of a failure to honour the contracts placed with it on the basis of the programmatic agreements cause legal problems in the field of competition or state aid? |
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1.

Would a failure of the Greek Railways to invoke the clauses and claim the compensation due from Hellenic Shipyards in the event of a failure to honour the contracts placed with it on the basis of the programmatic agreements cause legal problems in the field of competition or state aid?

| 2. | Despite the fact that the placing of orders under the programmatic agreements between Greek Railways and Hellenic Shipyards was intended to support domestic industry and production and to support employment, Hellenic Shipyards subsequently placed a large proportion of such orders (worth some GRD 103 billion) with foreign companies. Does the Commission consider that the placing of orders with third parties was in line with the terms of acceptance of the programmatic agreement? |
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2.

Despite the fact that the placing of orders under the programmatic agreements between Greek Railways and Hellenic Shipyards was intended to support domestic industry and production and to support employment, Hellenic Shipyards subsequently placed a large proportion of such orders (worth some GRD 103 billion) with foreign companies. Does the Commission consider that the placing of orders with third parties was in line with the terms of acceptance of the programmatic agreement?

Answer given by Mr. Monti on behalf of the Commission

(4 November 2003)

(4 November 2003)

| 1. | Whether a failure of a public undertaking, such as the Greek Railways Organisation (OSE), to claim compensation for breach of contractual obligations might constitute a measure which amounts to State aid under Article 87 of the EC Treaty would depend on a number of factors such as the exact terms of the agreement; regarding inter alia the deadline for delivery of the rolling stock, the penalty clauses for late delivery or for non-delivery etc. The Commission does not, at this stage, have sufficient information on these elements to answer the Honourable Member's question.
  Furthermore, it should be underlined that measures taken by public undertakings which result in the granting of a financial advantage, must be imputable to the State to be considered as State aid. The fact that OSE is an undertaking under State control is not, by itself, sufficient for measures taken by that undertaking to be imputed to the State.
  While the information provided by the Honourable Member is not sufficient to conclude on the State aid relevance of his question, the Commission takes note of the concerns raised therein. |
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1.

Whether a failure of a public undertaking, such as the Greek Railways Organisation (OSE), to claim compensation for breach of contractual obligations might constitute a measure which amounts to State aid under Article 87 of the EC Treaty would depend on a number of factors such as the exact terms of the agreement; regarding inter alia the deadline for delivery of the rolling stock, the penalty clauses for late delivery or for non-delivery etc. The Commission does not, at this stage, have sufficient information on these elements to answer the Honourable Member's question.

Furthermore, it should be underlined that measures taken by public undertakings which result in the granting of a financial advantage, must be imputable to the State to be considered as State aid. The fact that OSE is an undertaking under State control is not, by itself, sufficient for measures taken by that undertaking to be imputed to the State.

While the information provided by the Honourable Member is not sufficient to conclude on the State aid relevance of his question, the Commission takes note of the concerns raised therein.

| 2. | The second question of the Honourable Member does not seem to raise any issue of compatibility with Community law. By contrast, a clause which excludes the possibility of Hellenic Shipyards to place orders with foreign companies, might be deemed contrary to Community law. |
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2.

The second question of the Honourable Member does not seem to raise any issue of compatibility with Community law. By contrast, a clause which excludes the possibility of Hellenic Shipyards to place orders with foreign companies, might be deemed contrary to Community law.

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