WRITTEN QUESTION E-2552/99 by Christopher Huhne (ELDR) to the Commission. Possible lower VAT rates on labour intensive services.
Date: 2000-01-04
Institutions: European Parliament, Provisional data
Subjects: EU policy, VAT rate, fiscal policy, service industry

C 280 E/74

Official Journal of the European Communities

EN

3.10.2000

(2000/C 280 E/073)

WRITTEN QUESTION E-2552/99

by Christopher Huhne (ELDR) to the Commission

Subject: Possible lower VAT rates on labour intensive services

(4 January 2000)

Would the Commission please publish, for each Member State, a list of services for which Member States
have applied to levy a reduced VAT rate under the provisions of the directive on reduced rates of VAT on
labour intensive services?

Answer given by Mr Bolkestein on behalf of the Commission

(8 February 2000)

The Commission has published the list requested by the Honourable Member in its proposal for a Council
decision authorising Member States to apply a reduced rate of VAT to certain labour-intensive services in
accordance with the procedure provided for in Article 28(6) of Directive 77/388/EEC (1).

(1) COM(99) 705 final.

(2000/C 280 E/074)

WRITTEN QUESTION E-2561/99

by Christopher Huhne (ELDR) to the Commission

(11 January 2000)

Subject: Jurisdiction of deposit insurance

Would the Commission please state what deposit insurance arrangements would apply to a UK depositor
who placed sterling deposits via the internet with a bank currently advertised as First-e Bank, apparently
the trading name of the Banque d(cid:146)Escompte in Paris?

Answer given by Mr Bolkestein on behalf of the Commission

(14 February 2000)

In order to give a precise answer to the question, the Commission would need to have some additional
information about the facts of the case. However, on a general basis Directive 94/19/EC of the Parliament
and of the Council of 30 May 1994, on deposit- guarantee schemes (1) stipulates that Member States shall
ensure that there is a guarantee scheme within their territory and that the Member State(cid:146)s scheme also
covers the depositors at branches set up by credit institutions in other Member States. The Directive is also
valid, by special agreement, in the three other European economic area (EEA) states; Iceland, Liechtenstein
and Norway.

If deposits were placed within e.g. a French institution, situated in France, the French deposit guarantee
scheme would apply regardless of whether the deposits were transferred via Internet, the nationality of the
depositor or the currency of the deposits (as long as deposits are in euros or one of the currencies of
Member States). The French deposit guarantee amounts to € 60 000 per depositor. It is subject to a
number of possible exemptions, e.g. as regards the type of depositor, as mentioned in the Directive.

From 1 January 2000, branches of Community credit institutions situated in other Member States (and the
three EEA states) are also obliged to offer the same deposit guarantee as their parent credit institutions.
The credit institution and its Community branches are thus regarded as one legal entity. If one takes the
example of a French branch situated in the United Kingdom, it must thus offer a deposit guarantee of
€ 60 000, just as in France. This is a new provision. Previously, according to Article 4(1) of the Directive,
such branches were not allowed to offer a higher guarantee than the prevailing level in the host country.