WRITTEN QUESTION No. 3096/98 by Umberto BOSSI to the Council. The monopoly enjoyed in Italy by CONI - football clubs and free competition
Date: 1998-10-19
Institutions: BOSSI, European Parliament
Subjects: Italy, dominant position, free competition, free movement of programmes, monopoly, professional sport, sport, sporting event, sports body, television

29.4.1999

EN

Official Journal of the European Communities

C 118/179

(1999/C 118/229)

WRITTEN QUESTION E-3095/98

by AndrØ Sainjon (ARE) to the Commission

(16 October 1998)

Subject: Aid granted by the IMF to South Korea and its repercussions for shipyards

In his letter of 3 March 1998, Sir Leon Brittan stated that the Commission would exercise vigilance and
verify that the aid granted by the International Monetary Fund to South Korea was not used to save
bankrupt shipyards.

Could the Commission inform me of its progress with this verification and its initial findings?

Answer given by Sir Leon Brittan on behalf of the Commission

(5 November 1998)

The Commission is keeping a close watch on developments in the financial crisis in South Korea and its
impact on the European shipbuilding industry.

At the meeting between Asia and Europe (ASEM II) in April 1998, the shipbuilding issue was raised with
the Minister for Foreign Affairs and Trade. He acknowledged that overcapacity in the sector was the result
of inappropriate allocation of funding and that his Government(cid:146)s policy was to apply market principles
more stringently and hence not to support bankrupt firms in the sector. Consequently no aid from the IMF
should be used for shipyards in difficulties.

The IMF(cid:146)s plan, which South Korea accepted, is intended only to stabilise the financial and banking
system and in no way to fund industrial sectors.

Although the Commission does not sit on the IMF, it is carefully monitoring the situation. It has repeatedly
raised a series of questions with the South Korean authorities on the utilisation of IMF funding. These
questions have been discussed at bilateral talks, such as the May 1998 high-level consultations between
the Commission and the South Korean authorities. A number of assurances have been given. None the
less, the Commission has asked for further clarifications on the restructuring of the sector, the support
given by Korea Eximbank for exporting vessels and for clarifications about allegations of local subsidies
to shipyard sub-contractors.

The Commission continues to monitor developments closely. To date, however, it has received no
information indicating that South Korea has failed to comply with its international obligations in this field.

(1999/C 118/230)

WRITTEN QUESTION E-3096/98

by Umberto Bossi (NI) to the Council

(19 October 1998)

Subject: The monopoly enjoyed in Italy by CONI › football clubs and free competition

The monopoly enjoyed in Italy by CONI [Italian National Olympic Committee] in professional and
amateur competitive sporting activities, organised under law No 426 of 16 February 1942, is no longer
tenable, not least in view of the substantial hand-outs the Italian state gives to CONI each year. The
regulatory authority responsible for competition and markets, which has frequently been the subject of
questions in the Italian Parliament calling for it to act, has never taken any action to assert the principle that
the legislator should foster competition and break up monopolies. In particular, the action taken by the
regulatory authority in respect of clubs in divisions A and B of the Italian Football League to tackle the
perennial contractual issue of pay-per-view television rights has been ineffective, since it is directed at a
body that belongs to the Italian Football Federation (Article 6(II) of the Statute) which effectively enjoys a
monopoly in the game of soccer (Articles 1 and 2 of the Statute). The action taken by the regulatory
authority fails to assert the principle of free competition, thereby benefitting a small number of groups
operating in the sports industry.