WRITTEN QUESTION No. 3799/98 by Ernesto CACCAVALE Suspected irregularities in the use of European funds
Date: 1998-12-22
Institutions: CACCAVALE, European Parliament
Subjects: Campania, EU control, European Regional Development Fund, aid recipient, fraud, terms for aid, town planning, use of aid

C 289/92

Official Journal of the European Communities

EN

11.10.1999

(1999/C 289/121)

WRITTEN QUESTION E-3798/98

by Giuseppe Rauti (NI) to the Commission

(22 December 1998)

Subject: Outright rejection of the Multilateral Agreement on Investment

Would the Commission say whether or not it is following the heated arguments which are raging throughout
Europe (and also in Canada and the USA) with regard to the Multilateral Agreement on Investment (MAI),
which is due to be signed by the EU Member States in the very near future.

The purpose of the MAI is to liberalise and protect international investment but in practice it is presented as
(and indeed is) a manifesto for a new form of capitalism * the fiercest and most unrestrained type of free
capitalism since it bestows full rights on financiers and multinationals and deprives governments of all
sovereignty and ability to act. We need only consider that the section which is explicitly entitled ‘Rights of
Investors’ proclaims the freedom to invest funds and to acquire natural resources, mines, telecommunications
services and even ‘cultural structures’ without any hindrance or restriction, whilst all that governments are
required to do is to ensure that the full benefits of investment can be enjoyed.

In view of the above, will the Commission not express immediate and vehement opposition to the ‘Treaty’,
which has been adopted by the OCSE in great secrecy and which has only recently come to light as a result of
the efforts by a number of journalists, and condemn it for what it is: the violation of every government and
social right in the name of the ‘religion’ of profit and the free market?

Answer given by Sir Leon Brittan on behalf of the Commission

(2 February 1999)

On 20 October 1998, the responsible member of the Commission, made a statement in Plenary on the issue to
which the Honourable Member refers. This statement remains an accurate statement of the Commission’s
position on the negotiations on a Multilateral agreement on investment (MAI) in the framework of the
Organisation for economic cooperation and development (OECD). In the meantime negotiations on the MAI
are no longer taking place.

(1999/C 289/122)

WRITTEN QUESTION E-3799/98

by Ernesto Caccavale (UPE) to the Commission

(22 December 1998)

Subject: Suspected irregularities in the use of European funds

The Commission has authorised ERDF co-financing for an operational urban development programme in the
Quartiere di Pianura (Naples) as a sub-CCA for structural operations in Objective 1 areas (Campania region) for
the 1996-99 period.

Recent press reports refer to agreements concluded between the Naples city authorities (the beneficiaries of the
Community contribution) and the Ministry of Finance for the purpose of combining projects submitted by a
private entity * the Fondazione Idis di Bagnoli (Naples) * with those to be undertaken in the Quartiere di
Pianura, so that the first instalment of Community funding can be used for projects submitted by the above
foundation which are ready for implementation, with subsequent funding to be allocated to the financing of
projects directly relating to the Quartiere di Pianura.

Would the Commission therefore:

1.

2.

3.

disclose the total amount of the above financing;

verify the legitimacy of the transfer of funds effected by the Naples city authorities and the Ministry of
Finance for the benefit of the Idis foundation;

clarify whether or not it is possible to divert European funds obtained for one particular programme (that
relating to the Quartiere di Pianura) to other projects which are logically and geographically unrelated to
that programme and which have never had any links with it;