WRITTEN QUESTION No. 4146/97 by Marco CELLAI to the Commission. Restructuring and mergers in the Italian financial insurance sector
Date: 1998-01-21
Institutions: CELLAI, European Parliament
Subjects: Italy, bank, competition law, control of restrictive practices, euro, financial policy, insurance company, monopoly, socioeconomic conditions

22. 6. 98

EN

Official Journal of the European Communities

C 196/87

Answer given by Mr Monti on behalf of the Commission

(16 February 1998)

France  and  Belgium  are  the  only  Member  States  not  yet  to  have  transposed  into  national  law  Council
Directive 94/80/EC of 19 December 1994 laying down detailed arrangements for the exercise of the right to vote
and to stand as a candidate in municipal elections by citizens of the Union residing in a Member State of which
they are not nationals (1).

(1)  OJ L 368, 21.12.1994.

(98/C 196/122)

WRITTEN QUESTION E-4146/97

by Marco Cellai (NI) to the Commission

(21 January 1998)

Subject: Restructuring and mergers in the Italian financial insurance sector

In Italy, as in most European countries, the entire insurance sector is being restructured: acquisitions and mergers
to  strengthen  insurance  companies  in  preparation  for  the  introduction  of  the  Euro  and  globalization  of  the
economy which will merely be accelerated by the Euro. These measures are both legitimate and necessary.

Unfortunately, it is the case specifically in the car insurance sector that some companies seem to be adopting
restructuring measures to establish a monopoly or a guaranteed earnings scheme by obliging their agents to draw
up policies with the company they represent even though they are aware of better conditions on the market.

This type of operation has been encouraged by for instance the Gruppo Fondiaria through the merger of two of its
insurance companies, La Previdente and La Milano Assicurazione; the Fondiaria is part of the financial galaxy
linked to Mediobanca, which is the focal point of the whole Italian economic and financial system.

Do the recent mergers and accompanying measures, particularly those of the Previdente and Milano insurance
companies not conflict with European directives on competition? Does the Commission not consider it necessary
to examine the social implications for employees of mergers and acquisitions in the Italian banking and insurance
sector › given the quasi monopoly of Mediobanca?

Answer given by Mr Van Miert on behalf of the Commission

(10 March 1998)

On the basis of the information available to it at present, the Commission takes the view that neither the social
and  economic  consequences  of  the  restructuring  of  the  Gruppo  Fondiaria  nor  the  conditions  under  which
restructuring has taken place are such as to indicate any distortions of competition between European investors
which infringe Articles 85 to 94 of the EC Treaty.

As regards mergers and acquisitions, in particular, the Commission is competent only to examine concentrations
with a Community dimension within the meaning of Article 1 of Regulation (EEC) No 4064/89 as amended by
Regulation  (EC)  No  1310/97  on  the  control  of  concentrations  between  undertakings (1).  Moreover,  when
conducting an inquiry on the basis of this Regulation, the Commission may verify whether the merger operation
is likely to have consequences for the position of the employees in the undertakings in question, such as to affect
the level or conditions of employment in the Community or a substantial part of it (judgments of the Court of
First Instance of 27 April 1995, Case T-96/92 (paragraph 28) and Case T-12/93 (paragraph 38), ECR II-1216 and
II-1250). At all events, the criterion for deciding whether a merger is incompatible with the common market is
whether  it  creates  or  strengthens  a  dominant  position  as  a  result  of  which  effective  competition  would  be
significantly  impeded  in  the  common  market  or  in  a  substantial  part  of  it  (Article  2(2)  of  Regulation  (EEC)
No 4064/89).

As regards the role of Mediobanca, the Commission would refer the Honourable Member to the conclusions of
the inquiry conducted by the Autorita‘ garante della concorrenza e del mercato (Italian competition authority),
published in its weekly bulletin No 39 of 13 October 1997.

(1)  OJ L 180, 9.7.1997.