WRITTEN QUESTION No. 2822/98 by Umberto BOSSI to the Council. Measures to tackle the crisis in Russia
Date: 1998-09-18
Institutions: BOSSI, European Parliament
Subjects: EU Member State, Italy, Russia, commercial bank, economic recession, financial institution, international finance, loan, monetary crisis, venture capital

14.5.1999

EN

Official Journal of the European Communities

C 135/125

(1999/C 135/149)

WRITTEN QUESTION E-2822/98

by Umberto Bossi (NI) to the Council

(18 September 1998)

Subject: Measures to tackle the crisis in Russia

Among the victims of the recent economic crisis in Russia are the Italian banks.

According to the latest surveys carried out by the Bank for International Settlements, Italian banks have
exposures in Russia amounting to $4,3 billion, the equivalent of over LIT 8 000 billion. The SACE in
particular has exposures totalling LIT 10 600 billion.

Any deterioration in the crisis in Russia could give rise to the so-called ‘contagion effect’ which would
worsen the general crisis in market confidence.

Can the Council say what the actual exposure of European and, in particular, Italian banks to the rouble
crisis is?

Can the Council clarify whether measures will be taken in relation to the introduction of the single
currency to protect the economies of European countries against financial crises in third countries, in
which the Community’s own programmes have encouraged investment?

Reply

(16 November 1998)

According to the Bank for International Settlements’ available data, EU commercial banks account for
about 70 % of foreign bank exposures to Russia. As for Italian banks, their lending to Russia represents
about 9 % of the European commercial banks exposure to this country.

Moreover, the Council considered the means by which the EU can help Russia to overcome the present
crisis and concluded during the General Affairs Council meeting of 5 October 1998 that its response
should depend on a credible and sustainable Russian economic programme, to be developed in close co-
operation with the international financial institutions. At the EU-Russia Summit which took place in
Vienna on 27 October 1998, the EU and Russia recognized that a credible and sustainable economic policy
programme is essential to address pressing social needs, meet existing financial obligations and restore
confidence in the markets and stability of the currency while stimulating investment, including foreign
investment.

The Council is of the opinion that the decision on the introduction of the euro at the preannounced
exchange rates, as from 1 January 1999, has shown to be a safeguard against monetary instability between
the currencies of Member States following the Asian and Russian financial crises.

(1999/C 135/150)

WRITTEN QUESTION E-2828/98

by Alexandros Alavanos (GUE/NGL) to the Commission

(28 September 1998)

Subject: Deposits of caesium-137 exceeding 40 Kbq/m2 in areas of Greece following the Chernobyl

disaster

According to the map showing caesium deposits in Europe in the aftermath of the Chernobyl disaster
published by the Commission in cooperation with scientific institutes and bodies in Russia, Belarus, the
Ukraine and certain Member States, an increased accumulation of caesium-137 (exceeding 40 Kbq/m2)
can be observed in a number of European countries (apart from countries in the immediate vicinity of
Chernobyl), including Greece, Austria, Italy and Germany. In Greece, deposits of this radioactive
substance can be observed in certain areas in particular.