TheCommissionintendstoremainparticularlyvigilantonthispoint,andhasthustakenFranceand
IrelandtotheCourtofJusticeforfailuretoattainthe25%inspectionthreshold.
TheCommissionconsidersthat,inthelightofrecentevents,thereisalegitimateargumentforcreatinga
European CoastguardService asameansofeffectively countering therisksofpollutionandensuringmaritimesafety.
ThefirsttaskoftheEuropeanMaritimeSafetyAgency,createdunderRegulation(EC)No1406/2002(
5)of
theEuropeanParliamentandoftheCouncilof27June2002andduetobecomeoperationalinthenext
fewmonths,willbetechnicalcoordinationoftheenforcementofCommunitylaw.Theaimisforthe
Agency’smandategraduallytobeextended.
Inparticular,theorganisationwillhaveamajorroletoplayinsteppingupcooperationbetweenthe
Member States’ coastguard authorities with regard to maritime safety and prevention of pollution.ThequestionofwhetheranextstageshouldbethecreationofaEuropeancoastguardfleetwillneedtobeexaminedinthelightoftheexperiencegainedbytheAgency,andconsideredbyallthepartiesconcerned.
(1) COM(2003)105final.
(2) OJC192E,14.8.2003,p.127.
(3) COM(2002)681final.
(4) CouncilDirective95/21/ECof19June1995concerningtheenforcement,inrespectofshippingusingCommunity
portsandsailinginthewatersunderthejurisdictionoftheMemberStates,ofinternationalstandardsforship
safety,pollutionpreventionandshipboardlivingandworkingconditions(portStatecontrol),OJL157,7.7.1995.
(5) OJL208,5.8.2002.
(2004/C58E/032) WRITTENQUESTIONE-0788/03
byYvonneSandberg-Fries(PSE)totheCommission
(14March2003)
Subject:Investmentaidcreatesunemployment
In February 1996 the EU approved Spanish state aid of close on SEK57 million (approximately
EUR6million)for‘OutokumpuKopper’whichwasintendedfor‘restructuringofthecompany’.Theaidwasconditionalonareductioninproductioncapacityandthecreationof60newjobsinSpain.
Theresultofthisstateaidbeingapprovedwasthatthecompanychosetoshutdownitsoperationsatthe
GraneforsworksatBlekingeinsouthernSwedenin1998withthelossof145jobs.
Thisisyetanotherexampleofhowfarpublicsubsidiescanfallwideofthemark.Anearlierexampleofa
company in Sweden being forced to shut down operations on account of state aid being approvedelsewhereintheEUistheGermantyremanufacturerContinental’sfactoryinGislaved.
EUregionalaidseekstoevenoutsocialinequalitiesbetweenMemberStates.Regionalaiddoesnotallow
taxsubsidiestoindividualcompaniesinordertoattractmanufacturingactivityfromanothercountryand,yet,thisiswhatishappening.
DoestheCommissionbelieveitisrighttouseEUstructuralaidinthisway?Whatisitdoingtoensure
thatthereisnorepetitionofstateaidbeinggrantedthatresultsincompanyrelocationswiththeaboveconsequences?C58E/28 EN6.3.2004 OfficialJournaloftheEuropeanUnion
AnswergivenbyMrMontionbehalfoftheCommission
(6May2003)
TheCommissionunderstandsthatthequestionoftheHonourableMemberreferstotheconsistencyof
stateaidpolicywhentherearerelocationsofproductionfacilitieswithintheUnion.
TheCommissionisawarethatCommunitypolicies,includingstateaid,maylead,interalia,topotential
relocationproblemsanditistheCommission’sconcerntoensurethattheseproblemsarereducedasmuchaspossible,whilerespectingthefundamentalprinciplesofthecommonmarket.Toillustratethisconcern,whentheCommissionadoptedforexampleitsGuidelinesonnationalregionalaidin1998(
1),it
reducedthelevelofaidauthorisedacrosstheboardinordertominimisetherisksofregionsattemptingtooutbidoneanotherandtolimitaidtowhatisstrictlynecessary.Atthesametime,thegrantingofregionalaidwastiedmorestrictlytoconditionsofdurationintermsofthecontinuationofinvestmentandjobcreationintheregionconcerned.
Ingeneral,asfarasrelocationsareconcerned,theCommissionwouldliketounderlinethatthesearefirst
andforemosttheresultofchoicesmadebytheenterpriseinordertoimproveitscompetitiveness,eitherbyreducingitsoverheads(wagecosts,transport,rawmaterials,tax)orbyrationalisingitsproductiontools.Anumberoffactors,notonlyorprincipallythepossibilityofobtainingfinancialsupportfromthepublicpurse,maythusinfluencedecisionsconcerningthelocationofanewinvestment.Therefore,thereisnotalwaysadirectlinkbetweenthegrantingofastateaidinacertainregionandtheclosingdownofanestablishmentinanother.
The enterprises which have decided to relocate should take also into account the financial cost for
compensatingthesocialcostsoftheirdecision.Thesesocialcostshavebeenimposedbysocialregulations
in Member States and on Community level. In particular Council Directive 98/59/CE(
2) relative to
collective redundancies which includes provisions on the information and the consultation with therepresentatives of the workers in the cases where the employer is contemplating such redundancies.Generally, the Commissison recommends to enterprises, when they are planning their relocation, toconsidertheconsequencesoftheirdecisiontoemployees.ThishasbeenstressedintheCommunicationoftheCommissionconcerningtheCorporateSocialResponsibility.Abussinesscontributioninsustainabledevelopment(
3).
Moreover, the Commission has invited the European social partners to participate in a dialogue, on
anticipating change with a view of adopting a dynamic approach towards the social aspects ofrestructuring.Thesocialpartnersacceptedtoincorporatethisimportantaspectintheirmultiannualworkprogramwhichhasbeenadoptedrecently.
Whenexaminingthecompatibilityofanaidwiththecommonmarket,theCommissionshouldnotonly
ensurethatthereisnodistortionofcompetitiontoanextentcontrarytothecommoninterestbutalsothatthefundamentalprinciplesofthecommonmarketarerespected.Thecompletionofthecommonmarketimpliesthepossibilityforfirmstoestablishandcarryonaneconomicactivity inanyofthe
MemberStates.Freedomofestablishmentwithinthecommonmarket,enshrinedinArticle43oftheEC
Treaty,embodiesoneofthefundamentalprinciplesoftheCommunity(
4).
AstothecasementionedbytheHonourableMember,theSpanishStateaidto‘OutokumpuCopper’,the
CommissionwouldliketorefertheHonourableMembertoitsanswertoWrittenQuestionE-0847/03byMrAndersson(
5).ConcerningthesecondexampleprovidedbytheHonourableMember,thisisstateaidto
‘Continental’, the Commission would like to refer to the answers given by the Commission to OralQuestions H-0009/02, H-0031/02 and H-0040/02 by Mr Sjöstedt, Mr Gahrton and Mr SchmidtrespectivelyattheQuestionTimeofthefirstFebruary2002(
6)sessionofParliament.
(1) Guidelinesonnationalregionalaid;
http://europa.eu.int/eur-lex/pri/en/oj/dat/1998/c_074/c_07419980310en00090031.pdf.TheseGuidelinesareappli-cablefromtheirdateofpublicationintheOfficialJournaloftheEuropeanUniononwards,OJC74,10.3.1998.
4.10. Aid for initial investment must be made conditional, through its method of payment or through the
conditionsassociatedwithitsacquisition,onthemaintenanceoftheinvestmentinquestionforaminimumperiodoffiveyears.
(
2) CouncilDirective98/59/CEof20July1998ontheapproximationofthelawsoftheMemberStatesrelatingto
collectiveredundancies,OJL225,12.8.1998.
(3) COM(2002)347final.
(4) CaseC-270/83CommissionversusFrance[1986]ECR273,paragraph13.
(5) Seepage30.
(6) Writtenanswerof5February2002.6.3.2004EN C58E/29 OfficialJournaloftheEuropeanUnion