WRITTEN QUESTION E-1285/00

by Hiltrud Breyer (Verts/ALE) to the Commission

(19 April 2000)

Subject: Subsidies to coal and nuclear sectors

Substantial amounts in direct and indirect subsidies are granted in the Community at both EU and national level to the nuclear and coal sectors. A question put to the Commission in that connection on 13 December 1999 was answered wholly inadequately. The Commission moreover severely damages its own credibility when it asserts that the claim that state subsidies have been granted to the nuclear energy sector in the Community has not hitherto been substantiated.

1. Must it consequently be assumed that the Commission or departments of the Commission are insufficiently aware of EU and national assistance programmes and subsidies? Must it consequently be assumed in tabling questions that the Commission may well be unaware of the circumstances to which they relate?

2. An indirect subsidy to nuclear energy exists for example in the form of:

- EU support payments for nuclear fusion research and for reactor safety and radiation protection;

- national support payments for nuclear fusion research and for reactor safety and radiation protection;

A direct subsidy to nuclear energy exists for example in the form of:

- the limitations on liability applicable in the Community to nuclear plant operators, with ceilings on the cover required;

- the expenditure in connection with safety checks on nuclear power stations, as required by Euratom;

- the options available to nuclear power station operators in the Federal Republic of Germany of constituting reserves (a separate question will be tabled shortly).

What action has the Commission taken against these and other direct and indirect subsidies and what further action will it take?

If no action has been taken, can the Commission state how soon practical steps will be taken?

Answer given by Mrs de Palacio on behalf of the Commission

(15 June 2000)

1. The Commission would confirm, with regard to subsidising nuclear power, that when allegations have been made concerning the granting of state support for nuclear-electricity generation within the Community, the plaintiffs have never been able to substantiate their claims. In addition certain provisions of the EC Treaty allow support to be granted or measures having an equivalent impact to be adopted. Where there is a complaint it is necessary, in each instance, to carry out a close examination in order to determine the compatibility of the aid.

2. The examples given by the Honourable Member meet the Commission's criteria when providing a framework for research assistance, and more particularly state assistance.

The rules applying, at international level, to nuclear civil liability were laid down in the Paris, Brussels and Vienna Conventions on nuclear civil liability. Not all of the Member States have signed these. There can thus not be any of the limitations within them that apply within the Community.

The Commission is unable to identify which safety tests will be funded under the Euratom Treaty.

The obligation on nuclear power plant operators to build up financial reserves in order subsequently to fund operations downstream of the fuel cycle and the decommissioning of facilities represents a method widely used to internalise the external costs of nuclear power. These are sums set aside for future spending requirements which, in principle, do not constitute subsidies. However, the Commission is in the process of investigating a complaint in this area. Moreover, the internal market would benefit from harmonisation here.

In view of the information in its possession the Commission does not see what specific action could be taken on nuclear power other than applying the Community law deriving from the Treaties.

The Commission can only reaffirm the fact that the direct and indirect assistance to the coal industry has been investigated under Commission Decision No 3632/93/ECSC of 28 December 1993 establishing Community rules for state aid to the coal industry(1), a decision based on principles of transparency. It should also be borne in mind that regional assistance aimed at redeploying coalmining areas affected by restructuring is not analysed in this context, but in that of Article 87 (formerly 92) (a) and (c) of the EC Treaty.

(1) OJ L 329, 30.12.1993.