WRITTEN QUESTION No. 161/99 by Antonios TRAKATELLIS Illegal practices of the Agricultural Bank of Greece
Date: 1999-02-11
Institutions: European Parliament, TRAKATELLIS
Subjects: Greece, State aid, agricultural bank, cessation of farming, control of State aid, dominant position, equal treatment, farmer, loan, restriction on competition

29.11.1999

EN

Official Journal of the European Communities

C 341/59

Answer given by Mrs Bjerregaard on behalf of the Commission

(16 March 1999)

As pesticide used to protect plants and plant products, the active substance warfarin is currently under
evaluation as an active substance used in rodenticides in the framework of Council Directive 91/414/EEC of
15 July 1991 concerning the placing on the market of plant protection products (1).

One of the uses for which warfarin is authorised is to control the grey squirrel population in order to protect
trees. This use aspect has been taken into account during the evaluation and decision making on warfarin. A
final decision is expected before summer 1999.

(1) OJ L 230, 19.8.1991.

(1999/C 341/083)

WRITTEN QUESTION E-0161/99

by Antonios Trakatellis (PPE) to the Commission

(11 February 1999)

Subject: Illegal practices of the Agricultural Bank of Greece

The Agricultural Bank of Greece (ATE) whose sole shareholder is the Greek state lends money to farmers at
exorbitant interest rates of 16-17 %. As a result they become overindebted and are forced to abandon farming.
It should also be pointed out that the ATE does not operate according to the principles of a private investor in a
market economy, since its decisions are influenced by the policy of the Greek Government which even
appoints its Board of Directors.

1. What view does the Commission take of the policy of exorbitant interest rates practised today by the
ATE in the agricultural sector which practically prevents investments which are so important for the necessary
restructuring of the Greek agricultural sector?

2.
Are the operating methods of the ATE legal under the competition law and the secondary banking law
practised in the Community, and what measures does the Commission intend to take if this law is being
violated?

3. What view does the Commission take of the discriminatory behaviour of the ATE towards farmers in
Greece, as mentioned in the communication (1), and what measures does it intend to take to put an end to the
violation of the rules on equality of treatment?

(1) OJ C 376, 4.12.1998, p. 2.

Answer given by Mr Van Miert on behalf of the Commission

(24 March 1999)

1.
Excessive pricing 7 including high interest rates charged by a bank 7 can be an infringement of Article
86 of the EC Treaty, if the undertaking which practises such prices holds a dominant position on a particular
market, and the excessive prices represent an abuse of that dominant position.

However, the Honourable Member does not give the necessary information for the Commission to form an
opinion as to whether the Agricultural Bank of Greece holds a dominant position on any market or whether
the interest rates in question represent an abuse of any possible dominant position.

The Commission does not have the information necessary to determine whether these operating

2.
practices represent an abuse of a dominant position, or violate any other Community legislation.

3.
The Honourable Member refers to a communication concerning a Commission decision to start an
Article 93(2) EC Treaty procedure in respect of certain state aids granted by the Greek state in the agricultural
sector. However, the Commission was unable to identify any violation of equality of treatment on the part of
the Agricultural Bank of Greece in the granting of state aids which is the subject of the communication.