WRITTEN QUESTION P-2219/99 by Charles Tannock (PPE-DE) to the Council. Tax discussions.
Date: 1999-11-23
Institutions: European Parliament, Provisional data
Subjects: deduction at source, proposal (EU), public conduct of debates, tax on investment income

1.8.2000

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Official Journal of the European Communities

C 219 E/125

I should therefore like to know if the Commission is prepared to provide the European Parliament with
regular, detailed information regarding the progress of the discussion concerning PPPs which, according to
the Commission(cid:146)s reply, was launched at the meeting of the Statistical Programme Committee on 25 May
1999.

(1) OJ C 27 E, 29.1.2000, p. 134.
(2) OJ L 161, 26.6.1999, p. 1.
(3) OJ L 161, 26.6.1999, p. 73.
(4) OJ L 310, 30.11.1996, p. 1.

Answer given by Mr Solbes Mira on behalf of the Commission

(21 December 1999)

Purchasing power parities (PPPs) are not referred to in any abusive manner in legal Community texts. The
two new legal instruments on regional measures (1) refer to the use of PPPs as conversion factors to be
used instead of market exchange rates, which is completely correct and reflects the current practice.

The use of PPPs is based on these texts but what is lacking is a legal basis for the production of PPPs
themselves. The Commission considers it advisable to establish one. This is quite a different thing.

The Commission is not aware of any rejection of PPPs by the Portuguese statistical office. The Instituto
nacional de EstatÆtistica (INE) itself provides all the Portuguese statistical input to the calculations, and all
the participating Member States, including Portugal, have always given their approval to the annual results.
Neither has there been any serious recent criticism of the scientific of methodological basis used by the
Commission. The methodological framework applied for the time being is agreed between the Commission
and the Organisation for economic cooperation and development (OECD), and is the same as applied in
the International comparison programme coordinated by the United Nations and supported by the World
Bank.

The Commission coordinates the PPP related work of different national statistical authorities through a
working party of national experts and by issuing appropriate guidelines. The Commission is convinced that
this approach has secured sufficient coordination even though the contracts are concluded individually.

The Commission cannot adhere to the notion that the last results were (cid:145)absurd(cid:146). It is worth underlining
again that all the results are approved by the experts representing the national statistical authorities taking
part in the working group before they are finalized and published.

The Commission takes this opportunity to reiterate that the lack of a specific legal text on PPPs has not
created any major problems but that the follow-up of commonly agreed principles would be further
strengthened by adoption of a specific legal act. The Commission is ready to keep the Parliament informed
of progress concerning PPPs.

(1) Council Regulations (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural funds
and Council Regulation (EC) No 1267/1999 of 21 June 1999 establishing on Instrument for structural policies for
pre-accession.

(2000/C 219 E/156)

WRITTEN QUESTION P-2219/99

by Charles Tannock (PPE-DE) to the Council

(23 November 1999)

Subject: Tax discussions

1. What meetings have been held in the last month to discuss elements of what is known as the Monti
tax package, and what meetings are scheduled for the same purpose in the next two months?

Specifically, what tax matters have been discussed at the meetings held during the last month, and

2.
what matters are due to be discussed at upcoming meetings?

C 219 E/126

Official Journal of the European Communities

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1.8.2000

In the interests of transparency, will the Council provide Parliament with summary reports of these

3.
meetings and with any documents on which discussions have been based?

4. With regard to the proposed directive on the taxation on savings income ((cid:145)withholding tax(cid:146)), press
reports have recently indicated that Commissioner Bolkestein appears to be softening his approach be
permitting exemptions for eurobond trading from the withholding tax. What is the prospect of such an
exemption being agreed? What are the most likely terms of such an exemption?

5. Will the Final Report of the Working Group on the Code of Conduct for Business Taxation be
completed on time? Will this report be made public? What measures, and in which Member States, are
included in the report?

Reply

(14 February 2000)

One of the main priorities of the Presidency in the last months was to bring to a conclusion the three
elements of the so-called Tax package before the Helsinki European Council. With that aim, intensive
discussions concerning both technical questions and basic features have taken place within the Council
itself and its competent bodies (at technical and high level). The Council will continue to inform Parliament
in the usual way on these developments.

With regard to the proposal for a Directive on the taxation of savings, it emerged from the discussions
held so far, that the views of Member States still not have converged on some of the key issues.

The Code of Conduct Group on business taxation brought its discussions on the assessment of potentially
harmful measures to a conclusion. A report on its work has been forwarded to the Ecofin Council of
29 November 1999. According to paragraph H of the Code of Conduct, the reports of the Code of
Conduct Group will be published, if the Council so decides.

(2000/C 219 E/157)

WRITTEN QUESTION E-2221/99

by Christopher Huhne (ELDR) to the Commission

(1 December 1999)

Subject: Promotions in the Commission and in the Member States

Would the Commission please indicate the proportion of employees of the Commission who have been
promoted by one grade, two grades and three grades in the last five-year period and provide comparisons
for the civil services of the five largest Member States?

Answer given by Mr Kinnock on behalf of the Commission

(9 December 1999)

A table with the details of the total number and proportion of Commission employees who have been
promoted by one grade, two grades and three grades in the five year period from 1994-1998 is being sent
directly to the Honourable Member and to Parliament(cid:146)s Secretariat.

The Commission does not have comparable figures for the civil services of Member States or the legal
authority to require provision of such statistics.