WRITTEN QUESTION No. 3441/96 by Werner LANGEN to the Commission. Subsidies for the French textile and clothing industry
Date: 1996-12-09
Institutions: European Parliament, LANGEN
Subjects: France, State aid, arrangement of working time, clothing industry, control of State aid, employment policy, investment cost, restriction on competition, tax relief, textile industry













EUR-Lex - 91996E3441 - EN






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91996E3441

WRITTEN QUESTION No. 3441/96 by Werner LANGEN to the Commission. Subsidies for the French textile and clothing industry  


Official Journal C 105 , 03/04/1997 P. 0074 





WRITTEN QUESTION E-3441/96 by Werner Langen (PPE) to the Commission (9 December 1996)Subject: Subsidies for the French textile and clothing industryThe French Government plans to exempt the country's textile and clothing industry from payment of social contributions amounting to around DM 600 million per annum. For the French textile sector, this amounts to a considerable cost and competitive advantage over producers from other Member States.1. Is the Commission aware of the French Government's subsidy plans?2. If so, does the Commission consider that such massive subsidies are compatible with the principle of the harmonization of competitive conditions in the EU?3. What action does the Commission intend to take against the planned relief for the French textile industry?Answer given by Mr Van Miert on behalf of the Commission (13 January 1997)1. The Commission is aware of the experimental measures to reduce the burden of social security contributions on the textile, clothing and shoe-leather industries. The French authorities notified it of the measures on 27 March 1996 in accordance with Article 93(3) of the EC Treaty.The Commission takes the view that the measures include aid caught by Article 92(1) of the Treaty. On 15 May it therefore decided to institute proceedings under Article 93(2) in respect of the measures because of their sectoral nature and because no reasons were given as to why it was necessary to accord these industries more favourable treatment than the other sectors of industry.On 2 October the Commission decided to amend the grounds on which the proceedings had been instituted so as to take account of the change in the nature of the aid granted by the French authorities. While initially ranking as aid for job creation, the measures are now described as being designed to offset all or some of the additional costs that the firms will face as a result of the reorganization of working time to which they have agreed.2. The Commission's position regarding sectoral employment aid is set out in the guidelines on aid to employment ((OJ C 334, 12.12.1995. )), to which the Honourable Member's attention is drawn. On the basis of those guidelines, the Commission had adopted on 30 April 1996 a negative final decision on the experimental measures for reducing the burden of social security contributions that the Italian Government had been planning for the footwear industry, on the grounds that such aid was incompatible with the single market.3. The matter at issue is being closely examined, and the Commission will publish its findings at the earliest possible opportunity.