WRITTEN QUESTION E-2551/02

by Erik Meijer (GUE/NGL) to the Commission

(12 September 2002)

Subject: Growing problems arising from inequality of opportunity on the market for owner-occupied properties in the border areas around the Netherlands due to differences in housing costs

1. Is the Commission aware that, within a short period of time, nearly all the plots in the new Pieper-Werning 1 housing estate in Bad Bentheim (Lower Saxony, Germany) have been sold to purchasers from the area around

the towns of Enschede and Hengelo in the nearby Netherlands, rapidly increasing the number of Dutch residents from 350 to 1 000, and that similar developments are taking place to the south of Bad Bentheim, for example in Kleve, Emmerich and Kranenburg near the Dutch towns of Arnhem and Nijmegen, and in the north near Uelsen and Bunde?

2. Is the Commission furthermore aware that one of the main reasons for this is that since 1 January 2001 the mortgage tax relief arrangements provided for by the Dutch tax system have been extended to Dutch nationals who live outside the Netherlands but work and pay tax in the Netherlands, with the result that they can buy land and houses considerably more cheaply than their neighbours and moreover take advantage of the fact that land and house prices have risen far less there than in the Netherlands because residents who are nationals of the Member State concerned cannot offset mortgage interest against tax (prices are 30 % to 40 % lower in Germany)?

3. Does the Commission recognise the danger that the 12 000 Dutch tax immigrants who within a short period of time have moved to Germany for financial reasons may encounter resentment there: indeed, residents of Bad Bentheim who have unexpectedly found that they were unable to buy a building plot in the new estate are already referring to it as Little Amsterdam. Is it desirable that tensions should be allowed to arise between residents at the internal borders of the EU because of what the victims feel to be unfair competition on the housing market?

4. Does the Commission still maintain the position which it adopted in response to my question E-0237/01(1) of 23 January 2001 concerning similar problems in the parts of Belgium adjoining the Netherlands, to the effect that the European Union has no responsibility whatsoever for helping to solve such cross-border problems between residents of Member States because freedom of establishment overrides all other concerns, or is the Commission now preparing measures with a view to finding a solution in consultation with the Member States concerned which will take the grievances of local residents seriously and at least guarantee equal opportunities on the market for owner-occupied dwellings?

Source: De Volkskrant, 3 August 2002.

(1) OJ C 187 E, 3.7.2001, p. 204.

Answer given by Mr Bolkestein on behalf of the Commission

(15 October 2002)

The Commission is not aware that the majority of plots in the new Pieper-Werning 1 housing estate in Bad Bentheim have been bought by Dutch nationals, nor is it aware of similar developments in the regions of Kleve, Emmerich and Kranenburg.

The Commission is aware of the change in Dutch tax legislation which extended tax advantages on mortgage repayments applying only to dwellings in the Netherlands until 1 January 2001 to those in other Member States, provided the owner-occupier works in the Netherlands and pays income tax there.

As the Commission has previously indicated in its answer to the Honourable Member's question E-0237/01, it understands that Dutch nationals take the new provision into consideration when deciding to purchase a dwelling in a neighbouring country. It further understands that the increased demand for houses in border regions resulting from the increased interest shown by potential buyers from the Netherlands tends to push up house prices there.

The Commission considers that the new tax provision adopted by the Netherlands is in accordance with Community legislation, which specifically prevents Member States from restricting tax concessions like the exemption concerned to dwellings on national territory. At a more general level, Member States should not impose tax or other restrictions on their citizens' freedom of movement and freedom of establishment outside their own country.

The Commission accordingly still does not consider that any specific Community measure is necessary to deal with the issue raised in this question.