WRITTEN QUESTION E-0879/01

by Ioannis Marínos (PPE-DE) to the Commission

(27 March 2001)

Subject: Nationalisation of the property of Community nationals in Ethiopia and EU economic aid

In 1974-1975 the property of foreigners living in Ethiopia was nationalised without any compensation or undertaking to provide such compensation being given by the State. This property included real estate (such as factories, shops, houses and land) and moveable property (bank accounts, etc.) belonging to Community nationals. Those whose property was illegally seized by the Communist regime of Mengistu Haile Mariam included many Greek, Dutch, French and Italian nationals.

Today the European Union is providing economic assistance for the reforms in Ethiopia and is encouraging this country in its policy of economic openness and privatisation. However, it is reported that these planned privatisations include factories and other property which used to belong to Community nationals but which were summarily confiscated after 1974-1975 by the regime then in power.

Will the Commission give the total amount of EU aid allocated to Ethiopia? What is its position on the confiscated property of Community citizens? Was account taken of the nationalisation of property in the negotiations for granting Communty aid after 1991-1992 when Mengistu left the country? Does the new Ethiopian Government intend to pay compensation to the EU citizens whose property was nationalised or to return it to them? What does the Commission intend to do in order genuinely to satisfy the demands of Community citizens whose property was confiscated by the previous Ethiopian regime?

Answer given by Mr Nielson on behalf of the Commission

(14 June 2001)

Under the 8th European Development Fund (EDF) the allocation for Ethiopia amounted to 294 million. In October 2000, the Commission decided to reduce the NIP amount to 250 million over five years. During the last three years, EDF disbursements were as follows: 1998: 76 million, 1999: 55,2 million and 2000: 30,1 million

However, after the peace with Eritrea in March 2001, the Commission notified the Ethiopian government of an increase in the indicative resources allocated under the 9th EDF, amounting to 384 million for envelope A and 154 million for envelope B.

The Community is aware of the problem of property confiscated without compensation by the previous Ethiopian Government. From a legal point of view the Commission has no mandate to represent Community citizens' cases vis-à-vis the Ethiopian authorities. The Commission cannot but advise affected citizens to contact their relevant national diplomatic representation in Ethiopia which will follow up on these claims.

Notwithstanding, in discussions with the Ethiopian Government the Commission has, on various occasions, expressed the need to create an environment that is conducive to private sector development and domestic as well as foreign direct investment. For obvious reasons such a favourable environment requires, amongst other things, an appropriate solution to cases in which private property was nationalised without compensation by the previous regime.

The Commission in its contacts with the Ethiopian authorities will continue to raise this problem.