WRITTEN QUESTION No. 1925/97 by Anita POLLACK to the Commission. Sugar subsidies granted to pharmaceutical companies
Date: 1997-06-04
Institutions: European Parliament, POLLACK
Subjects: chemical industry, common organisation of markets, competitiveness, pharmaceutical product, production refund, sugar, sugar industry, third country

25. 2. 98

EN

Official Journal of the European Communities

C 60/67

(98/C 60/100)

WRITTEN QUESTION E-1925/97

by Anita Pollack (PSE) to the Commission

(4 June 1997)

Subject: Sugar subsidies granted to pharmaceutical companies

Why does the EU grant subsidies to pharmaceutical companies for the use of sugar in their products?

Answer given by Mr Fischler on behalf of the Commission

(23 June 1997)

The arrangements introduced by Council Regulation (EEC) No 1010/86 of 25 March 1986, laying down general
rules  for  the  production  refund  on  certain  sugar  products  used  in  the  chemical  industry (1),  reinforced  the
production refund rules which have applied in the Community in various forms throughout the period since the
common organisation of the markets in the sugar sector was set up in 1968.

Among the various  improvements introduced  by this Regulation was one to extend the scope of the rules to
include all of the pharmaceutical products covered by Chapter 30 of the combined nomenclature. In doing so, the
Council recognized the important outlet that the pharmaceutical industry represents for the Community(cid:146)s sugar
markets which, as the Honourable Member is aware, are in surplus. For the latest 1995/1996 marketing year, for
example, this outlet was responsible for 52 873 tonnes out of the total of 246 382 tonnes of sugar sector products
on which production refunds were granted.

The production refunds enable, in particular, the pharmaceutical undertakings concerned to remain competitive
with  their  counterparts  located  outside  the  Community.  It  should  furthermore  be  borne  in  mind  that  sugar,
because of its purity and other special properties, remains virtually the only possible raw material for use in the
majority of pharmaceutical industry applications.

The Commission would also like to emphasize that the expenditure on the production refunds is borne by the beet
growers  and  the  manufacturers  of  sugar,  isoglucose  and  inulin  syrup,  through  the  twice-yearly  payment  of
production levies which are collected in accordance with the self-financing rules applicable in the sugar sector.

(1)  OJ L 94, 9.4.1986.

(98/C 60/101)

WRITTEN QUESTION E-1929/97

by Salvador Garriga Polledo (PPE) to the Commission

(4 June 1997)

Subject: Enlargement of the European Union

Is  it  consistent  with  the  Treaty  on  European  Union  signed  by  the  15  Member  States  to  put  the  objective  of
enlargement of the European Union ahead of the goal of achieving economic and social cohesion in the European
Union?

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

(3 July 1997)

The strengthening of economic and social cohesion appears among the objectives that the Community under
Article 2 of the EC Treaty and the title XIV of this same treaty in its Articles 130 A with E pursues.

In addition, the Treaty on European Union in its Article O stipulates that (cid:145)Any European state can ask to become
member of the Union ... . The conditions of the admission and adaptations that this admission involves with
regard to the treaties on which the Union is based are the subject of an agreement between the Member States and
the applicant state ...(cid:146).