WRITTEN QUESTION P-3869/98

by Petrus Cornelissen (PPE) to the Commission

(9 December 1998)

Subject: Duty-free and tax-free sales

On 3 April 1998 the European Parliament adopted a resolution calling on the Commission to carry out an independent study on the social, economic, regional and fiscal consequences of abolishing duty-free and tax-free sales in the EU, and to publish the results of this study no later than 30 September 1998(1).

1. Can we expect the results of the requested study to be published in the near future?

2. If not, will the Commission explain how this refusal to implement a European Parliament resolution can be reconciled with the Commission President's repeated commitment to good cooperation with Parliament?

3. Does the Commission also consider that the abolition of tax-free sales, without first carrying out a reliable study of the consequences of such abolition, does not help the positive image of the European institutions?

4. In view of the above, is the Commission prepared to sound out the Council on its willingness to postpone the abolition of duty-free sales for a time, not least because a growing number of Member States including Germany, the UK, France, Greece and Ireland wish to do this? (see "The Times" of 2 December 1998).

Answer given by Mr Monti on behalf of the Commission

(23 March 1999)

The Commission has not accepted the request of the resolution, adopted by the Parliament on 3 April 1998, to carry out a study on the social, economic, regional and fiscal consequences of abolishing intra-Community duty-free and tax-free sales.

The Commission had already been asked several times whether it intended to carry out a study on the implications of the abolition of tax-free sales. The first time was back in 1991. As the following discussions in the Council had brought an agreement on the introduction of a derogatory regime of more than seven years, the need for a study had already been largely overcome by the adoption of a specific regime, as reflected in the "whereas" clauses of Council directives 91/680/EEC of 16 December 1991 and 92/12/EEC of 25 February 1992.

The Commission today remains convinced that this specific regime was an appropriate and concrete answer to the concern expressed at the time and again more recently by the Parliament, as it has explained on various occasions; on 29 October 1997 at the public hearing of the Parliament; on 2 April 1998 in the reply with debate to the oral questions from Mr Cornelissen and other Honourable Members (B4-0279/98-0-0073/98); in several meetings with of the committee on economic and monetary affairs and industrial policy in 1998 and of the committee for transport on 20 January 1999.

Furthermore, the end of the transitional period on 30 June 1999 is the legal effect of the adoption by the Council of the above mentioned directives, rather than a question of image. On the contrary, any attempt to reopen this debate could lead operators to further delay the process of adjustment to the abolition of duty-free sales and have detrimental consequences.

The Commission has been invited by the Vienna European Council in December 1998 to examine by March 1999 the problems that could arise with regard to employment following the abolition of intra-Community duty-free sales. The results of this examination are featured in the communication adopted by the Commission on 17 February 1999(2). The Commission's analysis shows that the impact on employment is likely to be limited and specific in terms of localities and sectors affected. It should however be noted that, in the medium term, short term negative effects on employment could be turned into a net creation of jobs.

The Commission will be sending the communication not only to the Council but also to the Parliament. The Council discussed this issue at its meeting on 15 March 1999.

(1) OJ C 138, 4.5.1998, p. 217.

(2) COM(99) 65.