WRITTEN QUESTION No. 3672/98 by Gerhard HAGER to the Council. Financing agreements with the Czech Republic
Date: 1998-12-04
Institutions: European Parliament, HAGER
Subjects: Austria, Czechia, Germany, agreement (EU), cross-border cooperation, external border of the EU, financial agreement, frontier region, illegal migration

21.7.1999

EN

Official Journal of the European Communities

C 207/107

Is the Commission aware of the difficulties being encountered by art dealers, and does it envisage proposing
the amendment of Directive 92/77/EEC supplementing the common system of value added tax and amending
Directive 77/388/EEC with a view to the inclusion of works of art in Annex H to this directive (List of supplies
of goods and services which may be subject to reduced rates of VAT) to ensure fair competition among the
European Union’s art dealers as part of the Community policy of supporting the cultural sector?

Answer given by Mr Monti on behalf of the Commission

(2 February 1999)

The 7th VAT Directive of 14 February 1994 (94/5/EC) (1) provides special arrangements applicable to second-
hand goods, works of art, collectors’ items and antiques. This allows taxpayers to account for VAT on their
profit margin on the sales of works of art, which is the case in Belgium, rather than having to account for VAT
on the full sale price, which is applied in Germany. Furthermore, Member States have the option to apply the
reduced rate to imports of works of art, and when they do so, they then have the option of applying the
reduced rate to first supplies of works of art effected by the creator or his successors in title, thus putting visual
artists in the same situation as performing artists. However, the decision to apply the reduced rate either to first
supplies by visual artists or services supplied by performing artists is a matter for each Member State.

The Commission is conscious of the distortions due to the derogations granted to two Member States at the
time of adoption of the 7th VAT Directive, but is confident that these distortions will disappear with the
expiration of these derogations on 30 June 1999.

(1) OJ L 60, 3.3.1994.

(1999/C 207/145)

WRITTEN QUESTION E-3672/98

by Gerhard Hager (NI) to the Council

(4 December 1998)

Subject: Financing agreements with the Czech Republic

On the occasion of his visit to the Czech Republic in early October Commissioner van den Broek signed three
financing agreements with the Czech Finance Minister, Mr Svoboda, involving payments of ECU 36,9 million
to the Czech Republic from PHARE funds. ECU 4,8 million is to be spent on strengthening the external
frontiers of the EU.

Can the Council amswer the following questions:

1. What specific projects will be covered by the ECU 4,8 million?

2. Will the sum also be used to build reception camps on Germany’s and Austria’s current external frontiers?

3. Are the payments linked to tangible progress in the fight against the evil of trafficking in illegal

immigrants?

4. What is the substance of the other agreements concerning cross-border cooperation between the Czech

Republic and Germany (ECU 7 million) and Austria (ECU 2,9 million)?

5. Why did the Commission sign these two agreements?

Reply

(9 March 1999)

The Council is unable to reply to the Honourable Member’s questions, which are a matter for the Commission
in the context of the implementation of the PHARE programme.