WRITTEN QUESTION P-2791/99 by Luís Queiró (UEN) to the Commission. German contravention of competition rules.
Date: 2000-01-07
Institutions: European Parliament, Provisional data
Subjects: EU law, Germany, State aid, competition law, intervention policy, takeover bid

8.8.2000

EN

Official Journal of the European Communities

C 225 E/207

Proper and objective assessment of research projects is normally made with the help of experts who are
specialists in the research field concerned.

Can the Commission tell me whether the experts assessing the quality of the research projects on each of
the disciplines concerned (homeopathy, osteopathy, etc.) have already been appointed?

If not, can the Commission tell me when they will be, and what objective criteria and what procedure will
be employed in appointing these experts?

Can the Commission tell me how many projects it has received, and the disciplines concerned?

Is the budget earmarked for these projects adequate?

Answer given by Mr Busquin on behalf of the Commission

(28 January 2000)

In response to the call for proposals (1) for the specific research programme (cid:145)Quality of life and manage-
ment of living resources(cid:146) (2), some 600 projects of a generic nature were submitted by 15 November 1999,
three of which related to non-conventional medecines.

The proposals will be evaluated by independent experts in January 2000. As stated in the Vade Mecum for
Experts Taking Part in Proposal Evaluation (www.cordis.lu/life), each proposal will be evaluated by at least
4 independent experts. All the experts are selected from the Commission(cid:146)s (cid:145)expert(cid:146) database, which is set
up through a call for applications. They are chosen for their scientific expertise in the areas of activity of
the work programme. The names of the experts taking part in the evaluation will be published once all the
decisions relating to the call for proposals have been taken.

A budget of € 86 million has been allocated for these generic activities. Given that the overall Community
contribution requested for the 600 proposals submitted will be over € 900 million, the selection rate will
probably be approximately 1 out of 10.

(1) OJ C 64, 6.3.1999.
(2) OJ L 64, 12.3.1999.

(2000/C 225 E/236)

WRITTEN QUESTION P-2791/99

by Lu(cid:237)s Queir(cid:243) (UEN) to the Commission

(7 January 2000)

Subject: German contravention of competition rules

In the last few weeks we have witnessed two instances of government intervention in the economic
activity of an EU Member State, namely Germany.

The first intervention was to prevent the imminent bankruptcy of the Philip Holzmann company, and saw
public funding to the value of DEM 257 million (EUR 127,8 million) being granted.

The second intervention came when the German government opposed the hostile take-over bid for the
Mannesmann company by the British Vodafone Air Touch company, and called for the establishment of
rules to impeded such operations, on the grounds that there is a need to prevent (cid:145)culture clashes(cid:146) between
differently-conceived models of capitalism.

1.

Do the German government(cid:146)s interventions constitute market operations?

2. Were the interventions made without prior authorisation from the Commission?

C 225 E/208

Official Journal of the European Communities

EN

8.8.2000

Are Community competition rules, which the Commission is responsible for promoting and

3.
defending, being flaunted or not?

Is firm and punctilious Commission intervention called for here, as it was when the Portuguese

4.
government opposed the Champalimaud/Santander Central Hispano agreement?

Answer given by Mr Monti on behalf of the Commission

(1 February 2000)

Vodafone Airtouch(cid:146)s hostile take-over bid for the German company Mannesmann will be assessed in
accordance with Community competition rules and specifically under Council Regulation (EEC) No 4064/
89 of 21 December 1989 on the control of concentrations between undertakings (1) as amended, the
merger regulation. This is the rule for all merger cases dealt with by the Commission.

The merger regulation would allow the German government to block the merger between Vodafone
Airtouch and Mannesmann if there were reasons of public security, plurality of the media and prudential
rules. However, if the German government were to find any other public interest being infringed by the
operation, this would have to be communicated to the Commission.

After a preliminary examination of the notified aid to Holzmann on the basis of the Guidelines on State
Aid for Rescuing and Restructuring Firms in Difficulty the Commission found that the aid raised doubts as
to its compatibility with the common market. Therefore, on 18 January 2000 the Commission initiated
proceedings in order to launch an in-depth investigation of the aid measures. The Honourable Member can
be assured that the case is being carefully scrutinised.

(1) OJ L 395, 30.12.1989, as amended OJ L 40, 13.2.1998.

(2000/C 225 E/237)

WRITTEN QUESTION E-2792/99

by Ulpu Iivari (PSE) to the Commission

(18 January 2000)

Subject: Targeting of development cooperation projects for implementation in Nicaragua

Some evaluations of development cooperation projects in Nicaragua funded by EU Member States have
in addition to the poorest sections of the population, projects also
drawn attention to the fact that,
benefited individuals close to the government and businesses owned by such people. Moreover, projects
have been concentrated in areas where support for the current government was strongest, irrespective of
whether there was a greater need for them elsewhere.

Have similar problems occurred with projects funded by the EU in Nicaragua and if so, what has the
Commission done to overcome them?

Answer given by Mr Patten on behalf of the Commission

(4 February 2000)

Commission-run cooperation projects in Nicaragua are subject to rigorous identification procedures to
determine priority areas for intervention consistent with the needs identified and the objectives set. Hence
Community aid benefits the local population of intervention areas that meet the criteria and objectives of
the projects. To ensure that these principles are properly applied and that the projects are run as proposed
and agreed, the Commission(cid:146)s system for major projects includes European experts as part of a manage-
ment unit whose mission is to ensure that Community aid is implemented correctly. Moreover, the
existence of the delegation in Managua makes it easier to monitor activities and ensure increased control
on the spot. This system has enabled the Commission to approach the Government of Nicaragua on a
number of occasions to ensure full compliance with the terms of the financing conventions signed with
the Commission.