20. Calls on the Commission to introduce a league table similar to that for the internal market, to
pinpoint the Member States with the highest and the lowest levels of State aid;
21. Urges that the Commission should publish an annual document analysing the impact of State aid
on competitiveness, price levels and the mobilityof the factors of production;
22. Reiterates its approval of State aids which are considered as being in the common interest, for
example in the areas of R&D, SMEs, education, energysaving and environmental protection, but believesit to be important for the Commission to produce uniform criteria and conditions for this type of Stateaid;
23. Calls on the Member States to grant more aid in the fields of energysaving and environmental
protection in order to achieve the objectives of the Kyoto Protocol, since these areas account for only3% of all aid granted;
24. Calls on the Commission to place greater emphasis than in the past on examining fiscal measures as
well as State aid for their effect in distorting competition;
25. Calls on the Commission to report to Parliament regularlyon the progress made in introducing
competition policyin the countries which have applied for accession to the EU;
26. Takes the view that the current legal framework for EU competition law must be taken over com-
pletelybythe applicant states; however, the rules on competition in individual cases should be appliedflexiblyduring a transitional phase; urges the Commission to offer the applicant countries adequate assist-ance in adapting their rules on competition;
27. Calls on the Commission to submit to Parliament a report outlining its ideas on the future shape of
the international dimension of competition policy;
28. Advocates a larger role for the World Trade Organisation (WTO) in international competition pol-
icy; therefore calls on the Council to instruct the Commission to conduct negotiations aimed at concludingmultilateral agreements on international competition law in the context of the WTO; at the same time,urges the Commission to incorporate uniform minimum competition standards and the establishment ofindependent competition authorities in all WTO member countries in the guidelines for combating prac-tices detrimental to competition, which interfere with trade and investment;
29. Instructs its President to forward this resolution to the Commission and the Council.
11. State aid for manufacturing (1995-1997)
A5-0087/1999
European Parliament resolution on the seventh survey on state aid in the European Union in the
manufacturing and certain other sectors (COM(1999) 148 Ndash C5-0107/1999 Ndash 1999/2110(COS))
The European Parliament,
-dash having regard to the Commission’s survey(COM(1999) 148 -dash C5-0107/1999),-dash having regard to the Commission’s XXVIIIth Report on Competition Policy1998 (SEC(1999) 743 -dash
C5-0121/1999),
-dash having regard to Articles 2, 6, 87, 88 and 127(2) of the EC Treaty,-dash having regard to its resolution of 19 November 1997(
1) on the Commission’s first triennal report on
economic and social cohesion (COM(1996) 542),
(1) OJ C 371, 8.12.1997, p 89.C 304/72 EN 24.10.2000 Official Journal of the European Communities
Tuesday 18 January 2000
-dash having regard to its resolution of 13 November 1996(1) on industrial restructuring and relocation in
the European Union,
-dash having regard to Rule 160 of its Rules of Procedure,
-dash having regard to the report of the Committee on Economic and MonetaryAffairs (A5-0087/1999),
A. whereas the application of clear rules of competition policyis essential for the proper functioning of
the internal market,
B. whereas, under the EC Treaty, the assessment of compatibility of aid with the common market essen-
tiallyrests with the Commission,
C. whereas the provisions in Article 87(2) and (3) on the compatibilityof certain State aid should help,
inter alia, to promote economic and social development, important projects of common Europeaninterest, the development of certain industries and culture, the preservation of the cultural heritageand the qualityof the environment,
D. whereas the overall amount of annual aid spent byMember States of the Union to the sectors con-
cerned is €95 billion on average during the period from 1995 to 1997, and whereas aid to the
manufacturing sector constitutes an approximate share of 40% of this sum,
E. whereas annual aid spent bythe Member States both in terms of overall aid and in terms of aid to the
manufacturing sector has decreased considerablyin relation to the previous period 1993-1995(down 13% for overall aid and from 3,8% to 2,6% as a percentage of value added in the manufactur-ing sector),
F. whereas, however, the noted decrease in aid is mainlydue to a fall in aid to the new Bundesländer in
Germany,
G. whereas State aid per capita shows considerable, although lessening, disparities between Member
States and whereas these disparities are at least partlydue to different economic cy cles and structures,
H. whereas State aid per capita in the manufacturing sector is highest in Italy, the new Bundesländer
(because the needs for adjustment have not yet been completely fulfilled) and Ireland, but whereasIreland is clearlyin the lead when national and Communityaid are taken together,
I. whereas Articles 7 and 28 respectivelyof Council Regulations (EC) No 994/98 on the application of
Articles 92 and 93 of the EC Treatyto certain forms of horizontal aid measures(
2) and No 659/1999
establishing more specific provisions concerning the application of Article 93 of the EC Treaty(3)
establish an ‘AdvisoryCommittee on State aid’, consisting of representatives from the Member Statesand chaired bythe Commission, but excluding representatives from the European Parliament,
J. whereas the Commission has been empowered, byabovementioned Council Directive (EC) No 994/98,
to define the rules for block exemptions within the meaning of Articles 1 and 2 of the same Directive,
K. whereas State aid comes in manydifferent forms, not all of which are covered bythe Commission’s
Survey,
General comments on State aid
1. Considers that an efficient competition policyis a precondition for the proper functioning of the
internal market and Economic and MonetaryUnion; recognises that state aid monitoring is an importantdimension of competition policyand therefore supports the work performed in this field bythe Commi-ssion, which has considerablyimproved monitoring instruments;
(1) OJ C 362, 2.12.1996, p. 147.
(2) OJ L 142, 14.5.1998, p. 1.
(3) OJ L 83, 27.3.1999, p. 1.24.10.2000 EN C 304/73 Official Journal of the European Communities
Tuesday 18 January 2000
2. Underlines, however, the fact that Articles 87(2) and (3) of the EC Treatydeem State aid to be
compatible with the internal market under certain conditions; Article 87(3)(e) also provides that the Coun-cil mayspecifybydecision, on a proposal from the Commission, other categories of aid which can becompatible with the internal market; urges the Council to involve Parliament more closelyin all decisionsin the legislative procedure and proposes the next Intergovernmental Conference applythe codecisionprocedure to this Article, under which decisions in the Council are taken byqualified majority ;
3. Emphasises that state aid measures will remain necessaryin order to support the overall aims of the
EC Treatyincluding those laid down in Article 6 (sustainable development), Article 16 (services of generalinterest) and Article 158 (economic and social cohesion);
4. Warns in particular against the potentiallyharmful role of state aid when it comes to inciting the
relocation of companies from one Member State to another, which maylead to subsidyshopping byenterprises without anyvalue added for the common goals of the EU;
5. Calls for the adjustments to monitoring of State aid which were initiated byabovementioned Council
Regulation (EC) 994/98 to be taken as an opportunityto bring future state aid rules and procedures intoline to a greater extent with the requirements of efficiency;
6. Asks to be kept fullyinformed about the process of adoption of regulations exempting categories of
aid from the obligation to notifyas provided for in Article 88(3) of the EC Treaty(‘block exemptions’);insists, in the same spirit, on being regularlyinformed about the opinions delivered bythe AdvisoryCom-mittee on State Aid and anydeviating positions of Member States;
7. Considers that it will be necessaryin future to establish arrangements to ensure that aid is used for
the specific purposes for which it has been authorised;
8. Calls for the elimination of illegal state aid given across the EU and regrets the high level of illegal
state aid given in some Member States; such illegal aid gives an unfair advantage to the businesses which
receive it and distorts competition, leading to an inefficient and wasteful allocation of scarce resources;
9. Is aware of the staffing problems which hamper the Directorate-General for Competition as regards
the fulfilment of its present and future tasks; deems it necessarythat fallow resources should be activated,staff structure scrutinised and resources redirected within the Commission in order to ensure optimumfunctioning of the Directorate-General for Competition;
General remarks on the Seventh Survey
10. Welcomes the Seventh Surveyon state aid in the EU, as well as the fact that it is now published
annually; appreciates the fact that the Directorate-General for Competition provides on its web-site generaland case-related information for the public; hopes, however, that the scope and qualityof the informationmade available free of charge to the public over the Internet will be further improved;
11. Regrets that data on state aid are mostlygiven onlyin an extremelygeneralised form and do not
reveal sufficientlydetailed information on either the purposes of aid granted, the sectors concerned or thecompanies that receive aid; this information is necessaryin order for a satisfactorypolitical assessment tobe undertaken;
12. Notes that the figures presented do not reveal all state aid, in particular concerning R&D contracts
intended for militarypurposes and the aid for R&D in the nuclear energysector, which is a crucial short-coming from a political point of view and should be corrected as soon as possible;
13. Asks the Commission therefore, in view of the different shortcomings concerning data available in
the present Survey, to monitor in close cooperation with the Member States the possibilities for improving
data qualityin time for the Ninth Survey ; asks the Member States to deliver all data requested on time andto keep full records of state aid granted;
14. Welcomes the fact that the Survey, for the first time, considers special tax regimes as constituting
state aid and encourages the Commission to scrutinise further Member States’ tax regimes in this respect;C 304/74 EN 24.10.2000 Official Journal of the European Communities
Tuesday 18 January 2000
15. Welcomes the fact that, the Commission, also for the first time, has presented a provisional over-
view of EU-wide State aid devoted to support for Foreign Direct Investment; shares the Commission’s viewthat such aid might encourage relocation and thus counteract efforts to generate employment in theUnion; wishes the forthcoming Surveyon State aid to include an evaluation of the effects of such aid onEU business and employment, as well as on the industrial and craft sector in the recipient countries;
16. Calls on the Commission to favour aid instruments of types C and D, which require recipients to
make repayments or take other active measures;
17. Considers it regrettable that in certain Member States the volume of case-related aid granted to
individual businesses has grown sharply, as such aid may have undesirable effects on the operation ofthe internal market, distorting competition;
18. Highlights the need for the Surveyto include in its main part (and not onlyin the Annex as is now
the case) the figures concerning aid given through Communityprogrammes and instruments, in order todisclose the total amount of public moneyinvolved in subsidising enterprises;
19. Reiterates its demand that the Commission should come forward in the near future with a proposal
for a register of public aid covering all kinds of public aid given to companies and to set out, at least, thesize and the names of companies having received the bulk of aid; this register should be updated regularly-dash at least once a year -dash and made public;
20. Calls on the Commission to include in the register of state aid a ‘scoreboard’ similar to the single
market scoreboard which would indicate which Member States have the highest and lowest levels of stateaid;
21. Asks the Commission to make strenuous efforts to draw public attention to the register of state aids
and the state aid scoreboard, in order to name and shame those Member States which are illegallysub-sidising their domestic industries to the detriment of business and consumers across Europe; asks theCommission to make the register readilyavailable to European citizens and businesses via the internet;
22. Asks the Commission to take a more ‘evaluative’ approach to the question of State aid and to
undertake, and include in the Survey, an assessment of Member States’ state aid practices in the light of
the overall aims of the Union as set out in Articles 2 and 6 of the EC Treaty;
23. Asks furthermore, the Commission, to include in its annual Surveyeverysecond y ear an in-depth
assessment of the economic as well as social and environmental impact of state aid practices
(‘cross-disciplinaryassessment’); highlights in this context the need for different services within the Com-mission to cooperate more closelyin the evaluation concerning the economic and other effects linked tostate aid;
24. Asks the Commission to expand upon its conclusion (paragraph 82) that the ‘candidate countries’
compliance with the State aid acquis well in advance of accession is indispensable, since specific regulationbefore accession and transitional periods afterwards might be necessaryto allow for the creation of adiversified, competitive and environmentallysustainable economic structure in these countries;
25. Calls on the Commission, in connection with repayment of unlawful State aid, to institute effective
arrangements to harmonise the rules on repayments;
On particular sectors
26. Is concerned about the amount of state aid given to the motor vehicle sector which, against the
overall trend of state aid, rose by24% in comparison with the previous period; questions, in the light ofgrowing overcapacities in this sector and the environmental implications of the growing carfleet, whetherthese aids are to be considered compatible with Article 6 of the EC Treaty;24.10.2000 EN C 304/75 Official Journal of the European Communities
Tuesday 18 January 2000
27. Is concerned that in certain individual cases aid to maritime transport has been mixed with aid to
shipbuilding, which forms part of manufacturing industryand the limits on which have been laid down ina separate directive;
*
**
28. Instructs its President to forward this resolution to the Commission, the Council, the Committee of
the Regions and the Economic and Social Committee.
12. Report on state aid to the steel industry (1998)
A5-0073/1999
European Parliament resolution on the Commission Report on the implementation in 1998 of
Commission Decision No 2496/96/ECSC of 18 December 1996 establishing Community rules forState aid to the steel industry (Steel Aid Code) (COM(1999) 94 Ndash C5-0104/1999 Ndash 1999/
2107(COS))
The European Parliament,
-dash having regard to the Commission Report (COM(1999) 94 -dash C5-0104/1999)),
-dash having regard to Article 8 of Decision No 2496/96/ECSC of 18 December 1996(
1),
-dash having regard to the Treatyestablishing the European Coal and Steel Community , which expires in
2002,
-dash having regard to the report of the Committee on Economic and MonetaryAffairs (A5-0073/1999),
A. whereas the Commission Report relates to the second year of the sixth Steel Aid Code,
B. whereas efforts should continue to be made in future to eliminate obstacles to competition and serious
distortions of the market balance,
C. whereas under Article 4(c) of the ECSC Treaty, subsidies or aids granted by States to the iron and steel
industryor special charges imposed byStates, in anyform whatsoever, are prohibited,
D. whereas the rules allow the granting of aid to the steel industryin certain clearlydefined cases as an
emergencymeasure,
1. Welcomes the Commission’s report on the implementation of the Steel Aid Code in 1998; notes,
however, that not all aspects of steel aid are treated;
2. Stresses that restricting state aid to research and development, environmental protection, plant clo-
sures and special aids for Greece represents a sensible framework for the prevention of distortions ofcompetition;
3. Supports the Commission’s decision of 9 December 1998 pursuant to Article 88 of the ECSC Treaty
to initiate a procedure on the basis of Decision No 2496/96/ECSC;
4. Calls on the Member States to complywith their reporting requirement more promptlyin future;
5. Criticises the Commission because, in spite of the clear wording of the Steel Aid Code, which applies
to all types of aid, it has on several occasions authorised aid for steel undertakings which do not fall withinthe categories set out in the Code;
6. Calls for a thorough assessment of this unequal treatment, inter alia in the light of the judgments of
the European Court of Justice;
(1) OJ L 338, 28.12.1996, p. 42.C 304/76 EN 24.10.2000 Official Journal of the European Communities
Tuesday 18 January 2000