WRITTEN QUESTION E-3550/00

by Johannes Blokland (EDD) to the Commission

(15 November 2000)

Subject: Netherlands levy on land-surface materials

The Netherlands Government intends to introduce a levy on land-surface materials. Sea sand from the Netherlands area of the continental shelf and imports of finished products from abroad are exempt from this levy. The Ministry of Transport and Communications has had an economic and environmental impact study carried out. Another study, by the Netherlands Economic Institute in Rotterdam, has shown that this action will, in particular, destroy job opportunities in border regions as a consequence of lost exports?

Can the Commission answer the following:

1. Does it consider that the action taken disrupts the operation of the internal market?

2. Is the action taken, viz. exempting sea sand and imports of finished products from abroad, compatible in the Commission's opinion with WTO rules on international trade?

3. Is the expected environmental impact of the measures taken so great that it justifies disruption of the internal market to the extent expected?

4. Does the Commission consider that the Member States should only be authorised to introduce measures that can lead to disruption of the internal market after sufficient consultations?

5. Does the Commission intend to bring its position to the attention of the Netherlands Government?

Joint answer to Written Questions E-3549/00 and E-3550/00 given by Mr Bolkestein on behalf of the Commission

(19 January 2001)

According to the information available to the Commission, the Dutch Government is apparently considering introducing a levy on all raw materials extracted from the upper soil, except those from the seabed. Therefore, to limit these extractions, the Dutch Government would try to encourage the use of recyclable materials, renewable raw materials and sea sand. The purpose of such a levy and consequently, the funds it would provide for Dutch operators in the relevant sector would be to reduce the possible damage of extraction to countryside and nature.

In the current stage of harmonisation, Community law does not generally oppose a Member State introducing this kind of levy, provided that it is in line with principles set out in the EC Treaty and secondary legislation. However, according to the information available to the Commission, the Dutch Government's intention has not yet led to legislation, or even a legislative proposal. Therefore, the Commission is not in a position to make a definitive statement on the compatibility of this possible Dutch levy with Community law, nor to make its position known to the Dutch Government.

A Member State wishing to put in place fiscal measures which have an impact on the internal market is not obliged to consult with the other Member States, unless such measures amount to technical regulations within the meaning of Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations(1). In a similar case, the draft technical specifications or other requirements linked to fiscal measures which affect product consumption by encouraging the observance of technical specifications or other requirements must be notified to the Commission. However, Article 8(1) of this Directive specifies that the detailed comments or opinions of the Commission or the Member States may concern only aspects which potentially hinder trade, and not the fiscal aspect of the measure. In any case, on the basis of the EC Treaty, it is the Commission's responsibility to ensure that legislation in a Member State is in line with Community law and therefore not harmful to the functioning of the internal market.

At this stage, the Commission does not have sufficient information on the measure under consideration to make a decision on compatibility with the World Trade Organisation (WTO) rules. However, since the measure or levy in question does not seem to treat domestic products more favourably than imported products, the measure does not appear a priori to present any specific problem in this respect.

As regards the possible environmental aspects of such levy, it is appropriate to bear in mind the Strategy on the integration of environment and sustainable development into the transport policy which has been agreed by the Transport Council of 6 October 1999 in the frame of the Cardiff Process and submitted to the European Council of Helsinki (10/11 December 1999). This strategy is being taken as a basis for the formulation of transport policies by the Commission. A first review on the strategy and its implementation is under preparation for the Transport Council under the Swedish Presidency in the first half of 2001.

The core of sustainability is a balance consideration of economic, social and environmental aspects, given the three aspects an equal importance. An important step forward on the way from the overall quest for sustainability towards an operational formulation is the expanded definition proposed in a report of a joint transport and environment expert group constituted of experts from the respective Member States ministries submitted to the Commission on 26 September 2000.

Thereafter a sustainable transport system: allows the basic access needs and development of individuals, companies and societies to be met safely and in a manner consistent with human and ecosystem health, and promotes equity within and between generations; is affordable, operates efficiently, offers choice of transport mode, and supports a vibrant economy and regional development; limits emissions and waste within the planet's ability to absorb them, uses renewable resources at or below their rates of generation, and, uses non renewable resources at or below the rates of development of renewable substitutes and minimises the use of land and the generation of noise.

(1) OJ L 204, 21.7.1998.