WRITTEN QUESTION E-2218/99 by Paulo Casaca (PSE) to the Commission. Misuse of PPP in Community legal texts.
Date: 1999-11-29
Institutions: European Parliament, Provisional data
Subjects: European accounting system, Eurostat, Portugal, economic indicator, legal basis, purchasing power parity, statistics

C 219 E/124

Official Journal of the European Communities

EN

1.8.2000

(d)

this conduct is not, moreover, incompatible with the RAI(cid:146)s public service duties, as the company, in
fulfilling such duties, benefits from State aid (the (cid:145)canone(cid:146), or TV licence) which is currently under the
scrutiny of the Commission itself?

Furthermore, does the Commission not consider it advisable and indeed necessary to launch specific
2.
Community initiatives to prevent radio and TV programmes, and services targeted to overseas users in
general, from being blacked out, denying consumers the possibility of gaining regular and easy access to
such services? This would hopefully put an end to this undeniable discrimination, which is seriously
undermining the completion of the single market and EU citizens(cid:146) perception of a true area without
borders.

Answer given by Mr Bolkestein on behalf of the Commission

(19 January 2000)

The Commission acknowledges the relevance of the honourable Member(cid:146)s question with reference to the
operation of the internal market, and also (cid:129) in the light of the many letters of complaint that have been
received on the matter (cid:129) its importance for citizens(cid:146) perception of an area without borders.

However, the Commission does not at the moment have all the facts that are needed to provide a
satisfactory reply to the honourable Member(cid:146)s questions.

The Commission will accordingly shortly submit a request for information to the Italian authorities.

In the light of the facts that it will then have at its disposal, the Commission will be in a better position to
assess the need for any measures in this area.

(2000/C 219 E/155)

WRITTEN QUESTION E-2218/99

by Paulo Casaca (PSE) to the Commission

(29 November 1999)

Subject: Misuse of PPP in Community legal texts

On 29 October in Brussels and on 30 October at my home in Ponta Delgada, I received the Commission(cid:146)s
reply to my question E-1567/99 (1) of July 1999. That reply confirms that PPP (purchasing power parity)
texts such as Regulation (EC) No 1260/1999 (2) and
indicators are used in highly important
Regulation (EC) No 1267/1999 (3), although there is no legal basis for such use.

legal

I must make the point that, contrary to what may be inferred from the Commission reply, I do not regard
the existence of a specific legal basis for PPPs as desirable. Rather, that indicator should be incorporated
into, and subordinated to, the accounts system in force in the European Union (Council Regulation (EC)
No 2223/96 (4)).

I am genuinely surprised to read that the use of that indicator (cid:145)has not created any major problems(cid:146), when
the Portuguese Statistical Office is known to have rejected the PPPs used by Eurostat on the grounds that
there is no established and accepted scientific, legal and methodological basis for the indicator.

Equally surprising is the statement that PPPs are obtained on the basis of bilateral contracts with the
Member States(cid:146) statistical offices, when it is clear that the most important empirical consideration for
ensuring that those indicators are credible is precisely that they should be calculated on the basis of
uniform criteria.

I must also point out that the most recently published document containing results relating to the
indicator in question produced results which would strike even the most casual observer as absurd.

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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?