WRITTEN QUESTION No. 1441/98 by José GARCÍA-MARGALLO Y MARFIL to the Commission. Euro 1999
Date: 1998-05-11
Institutions: European Parliament, Provisional data
Subjects: Economic and Monetary Union, European Monetary System, economic convergence, euro, price stability, third stage of EMU

11.12.98

EN

Official Journal of the European Communities

C 386/129

The Commission is sending the Honourable Member and Parliament(cid:146)s General Secretariat a list of all fisheries
cooperation projects financed in West Africa, broken down by country, and a list of economic indicators,
including data on the fisheries sector, for all ACP countries.

(98/C 386/179)

WRITTEN QUESTION E-1441/98

by JosØ Garc(cid:237)a-Margallo y Marfil (PPE) to the Commission

(11 May 1998)

Subject: Euro 1999

The Commission Report on progress towards convergence and recommendation with a view to the transition to
the third stage of economic and monetary union (COM(98) 1999 final, 25.3.1998, p. 78) points out that:

(cid:145)In the course of the second stage of EMU, all Member States, with the exception of Greece, have succeeded in
achieving and/or maintaining low and convergent inflation rates. While cyclical factors such as the prolonged
period of sluggish economic activity certainly contributed to easing price and cost pressures, a number of
structural changes played a key role in the impressive performance on the inflation front.(cid:146)

Will the Commission say what other cyclical factors were involved?

Answer given by Mr de Silguy on behalf of the Commission

(3 July 1998)

The quotation by the Hounorable Member from the convergence report is extracted from the section on the
sustainability of price performance in the Community (section 3.5). In this section, the Commission stressed that
the achievement of a high degree of price stability and the sustainability of the price performance were primarily
due to structural factors.

The convergence report also indicated that some cyclical factors had played a role in the disinflation process in
the Community during stage II of economic and monetary union (EMU). The report mentioned (cid:145)sluggish
economic activity(cid:146), which exerted a downward pressure on price inflation through different channels. First, the
weakness of demand exacerbated competition between suppliers. Secondly the rise and the high level of
unemployment resulting from the low level of activity curbed wage growth, which is one of the key factors
shaping price inflation.

Two other cyclical factors may be mentioned. First, the increase in international commodity prices was very
moderate during most of stage II of EMU. Secondly, the dollar was rather weak during the same period. These
two factors contributed to the subdued growth of import prices in most Member States.

(98/C 386/180)

WRITTEN QUESTION E-1447/98

by JosØ Barros Moura (PSE) to the Commission

(11 May 1998)

Subject: Community funding of hydraulic projects in Spain

In reply to my Question E-0457/98 (1), Mrs Wulf-Mathies stated that:

1. As far as the European Regional Development Fund (ERDF) is concerned, there is no project in Spain which
in terms of its size and nature is equivalent or comparable to the Alqueva project. Similarly, no project of this
scale and type has been financed under the Cohesion Fund.