WRITTEN QUESTION P-3315/98

by Konstantinos Hatzidakis (PPE) to the Commission

(27 October 1998)

Subject: Operational programme on telecommunications in Greece

The operational programme on telecommunications included under the second CSF for Greece, which is receiving Community funding of ECU 203,743 million for the period 1994 to 1999, seems to be experiencing certain problems which have led the Commission to raise the matter with the Greek Government. It would seem that the problems mainly concern the fact that: (a) the Greek Government has not harmonized domestic legislation with Community directives; (b) the OTE (Greek telecommunications organization) has failed to carry out internal restructuring or draw up a pricing system; (c) the OTE is failing to make available to other mobile telephone companies the frequencies under the DCS-1800 system held by Cosmote, a subsidiary of the OTE.

1. Is the operational programme on telecommunications being implemented in the manner agreed between the Commission and the Greek Government and, if it is true that the normal implementation of the programme has been interrupted, why has this happended and what are the implications for Greece as regards use of the funds concerned?

2. What undertakings has the Greek Government given as regards the proper implementation of the programme and has it complied with them?

3. Is this whole question linked with the programme agreements concluded between the OTE and private companies in December 1997 and, if so, in what way?

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(30 November 1998)

1. and 2. Article 4 of the Commission Decision of 18 December 1995 granting financial assistance from the Structural Funds to the Telecommunications Operational Programme (OP) stipulates that the timetable proposed by the Greek authorities in subprogramme 1 for harmonising the relevant Greek rules and regulations must be complied with, failing which Community funds will be suspended.

Following various extensions running to two years beyond the time limit laid down in the timetable, and because the relevant Community directives had not been correctly transposed in Greece, the Commission informed the Greek authorities, by letter dated 12 August 1998, that it had decided to suspend the payments for the programme in question.

Current progress on transposing the Community telecommunications directives is as follows: eleven infringements have been recorded (among which the case of the DCS-1800 service and the failure of the Greek telecommunications service, OTE, to introduce a system governing the cost of leased lines). The result has been several warnings, a reasoned opinion and a conviction before the Court of Justice.

Since its adoption, the OP has used up ECU 141 million (70 % of the funding earmarked for it). The suspension of payments relates only to the balance. The suspension will be lifted when the Greek authorities actually apply the Community legislation.

However, it is worth noting that the OP is continuing to run on the ground. Meetings are being prepared to consider the other areas that are behind schedule, in particular the implementation of measure 3.7 on financial assistance for the private sector for advanced telecommunications applications.

3. There is no link between the framework agreements concluded by OTE and the suspension of the payments.