WRITTEN QUESTION E-2792/99 by Ulpu Iivari (PSE) to the Commission. Targeting of development cooperation projects for implementation in Nicaragua.
Date: 2000-01-18
Institutions: European Parliament, Provisional data
Subjects: EU aid, Nicaragua, cooperation policy, fact-finding mission, management audit, project evaluation

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.