AnswergivenbyMrsDiamantopoulouonbehalfoftheCommission
(4February2003)
AstheconditionswhichjournalistsmustfulfilinordertotakeupsalariedemploymentinItalyarenot
clear,theCommissionwillcontacttheItalianauthoritiestoverifytheconditionsofapplicationofthislegislationandwillinformtheHonourableMemberoftheoutcome.
(2004/C58E/010) WRITTENQUESTIONE-3749/02
byGlenysKinnock(PSE)totheCommission
(20December2002)
Subject:Financingfordevelopment
WouldtheCommissionoutlinehowmuchprogresshasbeenmadeineffortstoensurethatMemberStates
meetthefundingfordevelopmenttargetsagreedattheBarcelonaSummitinMarch?
IstheCommissionsatisfiedwiththeprogresssofar,andwouldtheCommissionconfirmthatthemandate
tomonitortheprocessisbeingfulfilled?
AnswergivenbyMrNielsononbehalfoftheCommission
(13February2003)
SincetheMonterreyConference(18to22March2002),severalMemberStatesincludingBelgium,Ireland,
Luxembourg,theNetherlands,FinlandandSwedenreaffirmedtheircommitmenttomeetorexceedtheUnitedNationsOfficialDevelopmentAssistance(UNODA)targetof0,7%.OthershavesetintermediatetargetshigherthantheCommunitybenchmark.TheUnitedKingdomannouncedanincreaseofaroundUSD2,2billioninitsannualODAbudgetby2005,raisingthegrossnationalproduct(GNP)ratiofrom0,32%to0,4%.FrancehascommitteditselftoreachtheUnitedNationstargetby2012whichmeansthatitscontributionin2006willbeabovethesetUnionaverage.TheCommissionconsidersthatfirststepshavebeentaken.
On 19November 2002, the Council stressed the importance of adequate monitoring of the
implementationofthosecommitments.Inthisrespect,itwelcomedtheintentionoftheCommissiontoensurethemonitoring,inparticularconcerningthefinancialcommitments.
TheCommissionwillcontinuetheworkdoneinpreparationoftheMonterreyConferencethrougha
factualreportingonthestateofplayatEuropeanleveltobepresentedtotheCouncilinMay2003.AquestionnairewassenttotheMemberStatesinDecember2002andbilateralcontactswillcontinueonalloftheeightcommitmentsmadeduringtheBarcelonaEuropeanCouncil(15/16March2002).
(2004/C58E/011) WRITTENQUESTIONP-0028/03
byBartStaes(Verts/ALE)totheCommission
(14January2003)
Subject:CompatibilityofUScross-borderlease(CBL)systemswithCommunitycompetitionlawandpublic
procurementlegislation
Forsometime,AmericaninvestorshavebeenproposingtoFlemishcommunesthattheyshouldleasetheir
sewerage networks (or parts of them) for a period of 99 years. The American investor immediatelysubleases them back to the commune for a shorter period, 25 years. At the end of this period thecommunehasarightofpurchaseorcalloptionpertainingtotheremaining99minus25years.ThisC58E/10 EN6.3.2004 OfficialJournaloftheEuropeanUnion
financialarrangementiscalled‘leasehold’or‘leaseandleaseback’.Theaimistobringaboutawin-win
situation,inthatthecommunesgenerateextraincomewhiletheprivateinvestor,inaccordancewiththetaxregime whichappliestohim,gainsataxadvantagefromtheagreement byplacingtheseweragesystemonhisbalancesheetandthenwritingitoff.ThetransactionsinFlandersareofferedbyaparticularfirmwhichcooperateswithabankwhichenjoysaprivilegedrelationshipwithcommunesandtownsinFlanders.
IstheCommissionawareofthesefacts,anddoesitconsiderthesearrangementsethical?Aretheynotat
variancewithanethicallycorrectapproachtotaxation,underwhichtheauthoritiesmaybeexpectednottotakeadvantageofarrangementswhichareenteredintowiththesoleaimofsharinginataxadvantageviabanksinMemberStatesorthirdcountries?
Are these transactions subject to European competition law? Doesthe methoddescribed here violate
Europeancompetitionlaw?ArethosewhoperformsuchtransactionsliabletoVATand/ortoanadvancelevyofthekindapplicabletoincomederivedfromsecurities?
DoesEuropeanpublicprocurementlegislationapplytothesetransactionsanddothecurrentpracticesin
Flandersviolateitordotheynot?
AnswergivenbyMrBolkesteinonbehalfoftheCommission
(6February2003)
TheconstructionofleaseandleasebackisknowntotheCommission.However,theCommissionwould
liketopointoutthat,asfarasdirecttaxes(suchasthe‘précompteimmobilier’)areconcerned,theystillfall to a large extent under the Member States competence, unless it is proved that they breach
fundamentalrulesoftheECTreatyorrelevantCommunitysecondarylegislation.Therefore,asfarasdirect
taxationisconcerned,itisinprinciplefortheMemberStateconcerned(i.e.inthiscaseBelgium)tointernallydecidehowtoregulatesituationssuchastheonedescribedbytheHonourableMember.
However,asfarastheareaofindirecttaxationisconcerned,theCommissionhasexaminedthiscasein
thelightoftheapplicableCommunitylegislation,i.e.theSixthVATDirective(
1).Indeed,onthebasisof
thefactsgiven,itappearsthat,forVATpurposesthetransactioninquestionshouldbeconsideredtobetheleasingofimmovableproperty,forwhichnormalVATrulesforleasingapply.SincetheapplicablelegislationleavestheMemberStatefreetochoosebetweentwooptions,itappearsthesupplywilleitherbeexemptunderArticle13(B)(b)oftheSixthVATDirectiveortaxableifandinsofartheMemberStateconcernedusestheoptiontotaxtheleasingofimmovablepropertyunderArticle13(C)(a).
The facts, as stated by the Honourable Member, would not appear to disclose any infringement of
Communitycompetitionlaw.
ThefieldofapplicationofCouncilDirective92/50/EECof18June1992relatingtothecoordinationof
proceduresfortheawardofpublicservicecontracts(
2)excludescontractsfortheacquisitionorrental,by
whateverfinancialmeans,ofland,existingbuildings,orotherimmovablepropertyorconcerningrightsthereon.Nevertheless,financialservicecontractsconcludedatthesametimeas,beforeorafterthecontractofacquisitionorrental,inwhateverform,aresubjecttotheDirective.Sincethecommunesconcernedarecallingonathirdpartytoprovidefinancialservicesinrelationtotheleasesinquestion,compliancewiththe provisions ofDirective 92/50/EEC is therefore required. Without concrete detailsofany financialservicecontractsconcludedbythecommunesconcernedinthisconnection,theCommissionisunabletocommentontheirconformitywithCommunitypublicprocurementlegislation.
(1) SixthCouncilDirective77/388/EEof17May1977ontheharmonisationofthelawsoftheMemberStatesrelating
toturnovertaxes/dashCommonsystemofvalueaddedtax:uniformbasisofassessment,OJL145,13.6.1977.
(2) OJL209,24.7.1992.6.3.2004EN C58E/11 OfficialJournaloftheEuropeanUnion