WRITTEN QUESTION E-3129/98

by Brigitte Langenhagen (PPE) to the Commission

(16 October 1998)

Subject: Distortions of competition in relation to the purchase of horsemeat

In northern Germany there are, apparently, substantial differences in the price structure applied to the purchase of horsemeat by German purchasers on the one hand and French, Belgian and Italian purchasers on the other.

Can the Commission confirm the existence of these distortions of competition between Member States in relation to the purchase of horsemeat? Does this situation arise as a result of EU subsidies?

Are such distortions of competition in line with the CAP?

Are national subsidies permissible in this area?

What possible means exist of restricting the transport of live animals to a minimum, in line with EU policy?

Would a young businessman investing in slaughtering, butchering and processing activities be regarded as eligible to receive EU assistance?

Answer given by Mr Fischler on behalf of the Commission

(23 November 1998)

Horsemeat for human consumption is not covered by a common organisation of the market at Community level. By virtue of Council Regulation 26, of 4 April 1962(1), only the provisions of Article 93(1) of the EC Treaty and of the first sentence of Article 93(3) are applicable to state aids granted for the production and marketing of agricultural products falling within the scope of Annex II of the Treaty which are not covered by a common organisation of the market. This means that although Member States are required to notify draft aid measures to the Commission, the powers of the Commission are limited to formulating observations on the aid measures concerned. The Commission does not have the power to launch a formal investigation into the aid measures concerned in accordance with Article 93(2), nor can it adopt a decision finding the aids to be incompatible with the common market because they give rise to distortions of competition.

There is no Community welfare legislation requiring the reduction to a minimum of the transport of live animals. The Community legislation on the protection of animals during transport only states under which conditions animals may be transported.

These conditions might however result in practice in a reduction of the number of animals that are transported over distances of more than eight hours within the Community.

Council Regulation (EC) 951/97 of 20 May 1997, on improving the processing and marketing conditions for agricultural products(2) provides Community assistance to those carrying out investments relating to the processing and marketing of agricultural products. The investments must comply with the objectives set out in the regulation and shall, in principle, concern the products listed in Annex II to the EC Treaty. Furthermore, they must guarantee the producers of the basic products an adequate and lasting share in the resulting economic benefits. As horses and horse meat are included in this Annex, the slaughter, cutting and processing of horses and horse meat is eligible for support under this scheme. The measure is implemented via programmes submitted by Member States and approved by the Commission at the beginning of the programming period 1994-1999. The execution of the programmes and in particular the selection of investments is the responsibility of Member States.

(1) OJ 30, 20.4.1962.

(2) OJ L 142, 2.6.1997.