WRITTEN QUESTION E-3379/02

by Bart Staes (Verts/ALE) to the Commission

(27 November 2002)

Subject: Occupation of the Berlaymont building cost and timing

There have been various reports in the press to the effect that the Belgian state and the EU have reached agreement on the reoccupation of the Berlaymont building. The EU is to pay the sum of euro 545 million to Belgium, and the Commission according to the Belgian Minister Daems should be able to move into the building at the end of 2003. Since the Commission has additional requirements regarding adjustments to allow for multimedia use, this date will certainly not be met. In the event of further delay the Belgian state will have to pay a penalty of at least EUR 15 million. This, together with all the other expenditure, including the cost of asbestos removal and rents for other buildings, would amount to a total of euro 1,4 billion. However, the press reports are extremely vague.

Could the Commission, therefore, give a complete and accurate account of the agreement that has been reached and say when the Commission's move to the Berlaymont is planned to take place?

Answer given by Mr Kinnock on behalf of the Commission

(12 December 2002)

As the Honourable Member will know, in the time since he tabled his question, the Member of the Commission in charge of the Administrative reform has presented the Communication from the Commission to Parliament on the future of the Berlaymont building to a joint session of the Committee on Budgets (COBU) and of the Committee on Budget Control (COCOBU) on 21 October 2002. At that meeting, the Member of the Commission in charge of the Administrative reform was able to give Honourable Members the outline of the contractual agreement between the Commission and the Belgian Government, and much of the detail of the conditions relating to the acquisition of the Berlaymont. He also presented the agreement publicly at a joint press conference with the Minister of Public Works, Rik Daems, on 23 October 2002.

As the Communication specifies, the agreement between Belgium, Berlaymont 2000 and the Commission includes:

- A fixed price of EUR 552 879 207 which is composed of EUR 503 318 502 for the Commission's share in the renovation cost and EUR 49 578 705 for the value of the building before renovation (a figure which was set in 1997 at BEF 2 billion). The interest rate applicable is 5,37 %. The first annual payment will therefore be EUR 31 891 235, which will be stepped up by 2 % for consecutive annual payments over the subsequent years of purchase.

- A fixed delivery date of 31 December 2003 for the basic building and of 31 March 2004 and 30 June 2004 for the Commission's meeting room and the multimedia equipment, respectively.

- Specific penalties for each of the three deadlines if they are not met: the Commission will cease payment for the rent of the Berlaymont building (EUR 15,4 million) if it is not ready for occupation on 1 January 2004. If the deadline of 31 March 2004 is not met the annual instalment will be reduced pro rata for the months of delay from the first day of delay (this reduction would amount to EUR 221 000 per month). The same arrangement applies for the deadline of 30 June 2004. These penalties would be cumulative.

- Guarantees by both the Belgian State and Berlaymont 2000 as to the execution of the works and burden-sharing in case of unforeseen events and in the event of proven fraud by third parties.

The signing of the Convention with the Belgian government took place on 23 October 2002. The Commission is currently establishing a programme of progressive occupation of the building from early 2004.