WRITTEN QUESTION E-1993/99 by Paul Rübig (PPE-DE) to the Commission. Development of the European wholesale industry in the light of the Internet and the Euro.
Date: 1999-11-09
Institutions: European Parliament, Provisional data
Subjects: Internet, distributive trades, economic concentration, electronic commerce, euro, merger control, small and medium-sized enterprises, wholesale trade

C 219 E/62

Official Journal of the European Communities

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1.8.2000

importers of equipment from outside the Community over registered
Potential advantages for parallel
importers or producers constitute problems with regard to the application of the producer responsibility
principle and other product related legislation. This issue is one of the points which is currently being
discussed within the Commission in the context of the WEEE initiative.

One of the problems of European waste management policy is the lack of precise data on quantities of
waste generated, recovered and disposed of. These figures are not only crucial
in drafting but also in
implementing legislation. Clearly, data on these elements have to be delivered by those who are in charge
of the respective operations. To what extent producers will have to contribute to these tasks remains to be
discussed.

(2000/C 219 E/073)

WRITTEN QUESTION E-1993/99

by Paul R(cid:252)big (PPE-DE) to the Commission

(9 November 1999)

Subject: Development of the European wholesale industry in the light of the Internet and the Euro

The Internet and the Euro facilitate the tightening of the distribution chain. Manufacturers have easier
industry, particularly the major chains, and the consumers themselves.The
direct access to the retail
wholesale industry, after losing on the internal market the customs processing function and, through the
Euro, the cash management function is now being deprived by the Internet even of its advance in
information expertise over the retail industry. There is therefore a danger that in the next few years the
wholesale industry will come under still more pressure between the major manufacturers and the retail
industry dominant on the market on account of ever greater concentration.

Does the Commission have plans for measures to prevent a further concentration in the industry, what
measures are planned in the light of the threat from Internet and the Euro to eliminate small and medium-
sized wholesale industry, and how does it view the chances of a sustainable future for such wholesale
traders?

Answer given by Mr Liikanen on behalf of the Commission

(20 December 1999)

The Commission is aware of the changes affecting the wholesale industry and outlined the situation in the
White Paper on commerce (1). In the action plan annexed to the White Paper the Commission provided for
studies in this field which will be carried out in collaboration with experts in the Member States (2).

The Internet facilitates commercial transactions at many levels and for many economic operators,
in
particular small and medium-sized entreprises (SMEs). This goes for both the small retailer and the
wholesaler, who can enter the market and have direct access to producers, suppliers and buyers all over
the world, and to the consumer, more easily and more cheaply via electronic networks (Internet, Extranet,
Intranet). It is for this reason that the Commission encourages SMEs to participate in the information
society and electronic commerce through its policies and activities in this field with respect to both
legislation (e.g. the proposal for a directive on certain legal aspects of electronic commerce) and research,
training and the dissemination of knowledge and better practice. With access to an international electronic
market and the use of new technologies which combine information, commerce and distribution any
trader can increase his outlets all over the world, extend his range of offers or target specialised markets.

The introduction of the euro simplifies financial management at all points of the distribution chain. The
exchange risk and uncertainty linked with monetary fluctuations are eliminated, so businesses make
substantial savings.

The Commission is keeping a very close eye on the development of commerce in Europe. The application
of Community rules governing merger control is a way of limiting the excessive concentration to which
the Honourable Member refers. Moreover, competition policy has a positive approach with respect to
SMEs and the Commission(cid:146)s notice on agreements of minor importance (3) and the draft exemption
regulation relating to vertical agreements (4) take account of their specific nature and requirements.

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The Committee on Commerce and Distribution set up by the Commission, which consists of 65 entrepre-
neurs from all branches and sectors of trade (cid:129) including representatives from the wholesale industry (cid:129)
advises the Commission on matters relating to commerce. The Committee has discussed electronic
commerce, competition and the consequences of the introduction of the euro several times during the
last few months and provided the Commission with important information.

The Commission has launched various initiatives to support SMEs in particular, such as SLIM (simpler
legislation for the internal market) (5) and BEST (Business Environment Simplification Task Force) which
aim to create an optimal administrative environment for their activities. This should help businesses,
especially SMEs, to operate more efficiently with fewer costs.

See the conclusions of the Council meeting (industry) of 29.4.1999.

(1) COM(1999) 6 final.
(2)
(3) OJ C 372, 9.12.1997.
(4) Draft under discussion. OJ C 270, 24.9.1999.
(5) COM(97) 618 final, 21.11.1997.

(2000/C 219 E/074)

WRITTEN QUESTION E-1996/99

by Michl Ebner (PPE-DE) to the Commission

(9 November 1999)

Subject: Abolition of tax privileges for diplomats

In the course of the Commission(cid:146)s renewal it was decided last month that in future new Commissioners
would no longer enjoy the tax privileges so long accorded to them. Following this notable and
praiseworthy reform, could the Comission indicate whether in the near future this arrangement will be
extended to the entire diplomatic corps within the European Union?

Answer given by Mr Bolkestein on behalf of the Commission

(22 December 1999)

Tax and duty free privileges for diplomats are based on long-standing reciprocal traditions that have been
codified in general terms in the Vienna Convention from 1961. They are also explicitly provided in
Community legislation (as to VAT, the exemptions are laid down in Article 15(10) of Sixth Council
Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to
turnover taxes (1), while similar exemptions from excise duties are provided by Article 23(1) of Council
Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty
and on the holding, movement and monitoring of such products (2)). They are subject to the conditions
and limitations fixed by the Member States.

At its meeting on 29 September 1999, the Commission decided that all of its members would voluntarily
renounce several of the special privileges traditionally granted to them by the Belgian authorities in their
application of the 1961 Vienna Convention on diplomatic relations. When it comes to expenditures of a
private nature, members of
to claim
exemption from VAT and excise duties on wine and spirits, cigarettes and petrol or to purchase, free of
VAT, a wide variety of items for personal use.

therefore no longer exercise their right

the Commission will

In general, one could argue that in an internal market, privileges of that kind for diplomats of one Member
State posted in another Member State are no longer justified and should be abolished. This would however
require an amendment of current Community legislation and, at this juncture, a unanimous vote of the
Council on a proposal from the Commission. This is a matter that needs careful examination as it
interferes with Member States(cid:146) application of the Vienna Convention. As a consequence, the Commission
has no intention to submit any proposals on this issue in the near future.

(1) OJ L 145, 13.6.1977.
(2) OJ L 76, 23.3.1992.