WRITTEN QUESTION E-0818/01

by Bart Staes (Verts/ALE) to the Commission

(19 March 2001)

Subject: Distortion of competition due to disparities in national and regional BSE measures

Two days after the failed Agriculture Council of Monday, 26 February, the French Government decided to make 8,5 billion francs available for assistance to cattle farmers affected by the BSE crisis. The Commission has

to be informed of the measure in advance, stating detailed reasons. It can enter into force only once the Commission has given the go-ahead. The French Minister of Agriculture, Glavany, already considers that his proposal complies perfectly with the criteria stated by the Commission.

As long ago as the January 2001 plenary, the Commission and Council were explicitly warned against distortion of competition arising from the very disparate support measures. Despite this, the fifteen agriculture ministers and the Commission still have not succeeded in working out a common European framework for the financial consequences of the BSE crisis.

While there is huge uncertainty about compensation for the damage which has been suffered, Agriculture Commissioner Franz Fischler and the Council are passing the parcel to and fro between themselves. On the evening of Wednesday, 17 January, the Council announced that it was aware of the risks of distortion of competition arising from the systems of compensation for the collection and disposal of risk material and the embargo of December 2000 on animal meal (H-0002/01(1)). In reply to question H-0003/01(2) concerning a coordinated approach, Agriculture Commissioner Fischler laconically referred to the common organisation of the market in beef and the requirement to notify fiscal and parafiscal measures.

1. What view does the Commission take of the French Government's measure to provide financial assistance to cattle farmers affected by the BSE crisis? Does this measure comply perfectly with the criteria adopted by the Commission?

2. Which EU Member States have so far notified the Commission that they intend to adopt national support measures? Do these measures accord with the criteria adopted by the Commission?

(1) Written answer of 17.1.2001.

(2) Written answer of 16.1.2001.

Answer given by Mr Fischler on behalf of the Commission

(23 April 2001)

The Commission has indeed been notified by the French authorities of a scheme to compensate stock farmers affected by the bovine spongiform encephalopathy (BSE) crisis. In close cooperation with those authorities, it is currently examining the draft aid scheme in the light of Article 87 (formerly Article 92) of the EC Treaty. The Commission is not yet therefore in a position to deliver an opinion on the decision that it will adopt concerning the aid's compatibility with the Community competition rules.

To date, Italy, Ireland and Spain at the level of the autonomous communities and Germany at the level of the Länder have also notified similar measures directed at stock farmers affected by the BSE crisis. All these measures are under examination by the Commission and, consequently, it is not yet possible to come to a conclusion about the compatibility of the notified aid schemes.