WRITTEN QUESTION P-1889/99

by Luis Berenguer Fuster (PSE) to the Commission

(14 October 1999)

Subject: Possible conflict of interests in proceedings in relation to state aid

Spanish press coverage of the proceedings in relation to the state aid granted to Spanish electricity companies to cover the costs of transition to competition have highlighted the fact that the services working for Commissioners Monti and de Palacio are collaborating on setting the amount of these costs. It has even been reported that the Spanish Commissioner's position on the granting the subsidies to alleviate costs arising from liberalisation is favourable.

The fact that Mrs de Palacio was a member of the government which approved the state aid in question (which put up Spanish consumers' electricity bills by 4,5 %) does not appear to constitute any obstacle to her passing judgement, in her new role, on decisions which she took in her former role.

Does the Commission believe that Commissioner de Palacio should refrain from involvement in proceedings investigating the compatibility with the Treaty of state aid which she had been involved in granting?

Joint answer to Written Questions E-1761/99 and P-1889/99 given by Mr Monti on behalf of the Commission

(17 November 1999)

Regarding price developments in the electricity sector in Spain, the data sent to the Commission by Spain's national electricity commission show that the amount billed to Spanish consumers of electricity fell, in terms of the real percentage paid by households, by 3,1 % in 1996, 2,9 % in 1997 and 4,4 % in 1998, and is set to fall by 5,6 % in 1999.

As far as the state aid aspects are concerned, CTCs (costs of transition to competition) are a matter for the Member of the Commission in charge of competition policy.

Nevertheless, the staff of that Member of the Commission obviously cooperate closely on such cases with the Directorate-General for Energy, which is under the responsibility of the Vice-President, Mrs de Palacio.

Furthermore, any decision on the case will be taken in accordance with the principle of collective responsibility.

As for Mrs de Palacio's involvement in reaching this future collective decision by the Commission on state aid granted to Spanish electricity companies, the Honourable Member's attention is drawn to Article 213(2) (formerly Article 157(2)) of the EC Treaty, which provides that the Members of the Commission shall, in the general interest of the Community, be completely independent in the performance of their duties. In the performance of these duties, they shall neither seek nor take instructions from any government or from any other body. They shall refrain from any action incompatible with their duties. Each Member State undertakes to respect this principle and not to seek to influence the Members of the Commission in the performance of their tasks.

Several Members of the Commission have held government posts in the past. However, the fact that she has been a member of a government should not prevent Mrs de Palacio from taking part in the Commission's decision-making process. If this were the case, it would be equivalent to nullifying the Commission's obligation to act independently. Following the appointment of the Commission, its Members gave a solemn undertaking to the Court of Justice that they would meet their obligations as Commissioners and in particular those referred to above. Given these circumstances, the Commission does not agree with the Honourable Member that Mrs de Palacio should refrain from involvement in taking the decision in question.