WRITTEN QUESTION E-0354/00 by Armando Cossutta (GUE/NGL) and Lucio Manisco (GUE/NGL) to the Commission. Rising cost of motor vehicle liability insurance.
Date: 2000-02-14
Institutions: European Parliament, Provisional data
Subjects: Italy, cartel, competition law, insurance company, insurance premium, motor vehicle insurance, unlawful agreement

C 330 E/136

Official Journal of the European Communities

EN

21.11.2000

Also under the above Regulation, on Monday 31 January 2000 the Commission requested more
information from the French authorities concerning the dispute and the measures which were likely to
be implemented in order to restore the free movement of goods.

The French authorities provided this information in their reply of 1 February 2000, pointing out that
instructions had been given to the law enforcement authorities to set up alternative routes and to distribute
the necessary information to those concerned. They also added that measures would be taken to allow any
subsequent claims for compensation to be dealt with under Article L. 2216-3 of the general code for local
authorities.

The Commission would like to draw the Honourable Member(cid:146)s attention to the fact that the blockades set
up during the recent disputes were lifted in a relatively short time compared with other occasions in the
recent past. The Commission believes this is certainly due in part to the implementation of Council
Regulation No 2679/98 and the steps taken by the economic operators involved.

(1) OJ L 337, 12.12.1998.

(2000/C 330 E/153)

WRITTEN QUESTION E-0350/00

by Rosa D(cid:237)ez GonzÆlez (PSE), Fernando PØrez Royo (PSE)
and Luis Berenguer Fuster (PSE) to the Commission

(14 February 2000)

Subject: Public aid in the electricity sector in Spain: costs borne by the consumer

To date Spanish consumers have paid more than Ptas 300 000 million for the CTC (costs of transition to
competition) approved by the Government and defined by the Commission, in principle, as illegal public
aid. Does the Commission consider that action must be taken to put an immediate end to this situation?

Answer given by Mr Monti on behalf of the Commission

(21 March 2000)

The Commission is closely examining this very complex dossier which would in fact appear to be a case of
state aid granted without prior notification. However, as the Commission pointed out to the Honourable
Members in its reply to written question E-0165/00 (1),
in accordance with the Court(cid:146)s case law the
unlawful nature of a state aid measure, i.e. the fact that it was granted without prior notification to the
Commission, does not prejudge its compatibility with the common market. The Commission consequently
does not plan at
this stage to apply Article 11(1) of Council Regulation (EC) No 659/1999 of
22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (2) to request
the Member State to suspend payment of the aid. Needless to say, it will take account of the amounts
already paid when it takes its final decision on the case.

(1) See page 96.
(2) OJ L 83, 27.3.1999.

(2000/C 330 E/154)

WRITTEN QUESTION E-0354/00

by Armando Cossutta (GUE/NGL) and Lucio Manisco (GUE/NGL) to the Commission

Subject: Rising cost of motor vehicle liability insurance

(14 February 2000)

Since 1994, the year in which charges for compulsory motor vehicle liability insurance were deregulated,
there has been an alarming increase in the premiums charged to motorists. This year insurance charges in
Italy are set to rise by between 30 and 60 %, an increase which will applied by all the companies present

21.11.2000

EN

Official Journal of the European Communities

C 330 E/137

on the market. There is also evidence of a coordinated trend towards higher premiums, which suggests
that some form of cartel is being operated by the insurance companies.

The head of the Italian antitrust authority, Giuseppe Tesauro, has expressed concern at the significant rise
in insurance premiums combined with a reduction in the cover provided; furthermore, a legal investigation
is under way into the possible existence of a cartel.

1. What action does the Commission intend to take to stop, and impose sanctions on, the cartel
operated by the insurance companies in Italy?

2.
Does the Commission agree that, as motor vehicle liability insurance is a statutory requirement, the
Italian State should bring pressure to bear on the insurance companies to ensure fair charges instead of the
excessive premiums fixed by the cartel in question?

Answer given by Mr Bolkestein on behalf of the Commission

(27 March 2000)

1.
The Commission notes the Honourable Members(cid:146) concerns regarding a possible cartel between Italian
insurance companies in respect of the premiums charged for motor vehicle liability insurance. It also notes
that the Italian competition authority is currently carrying out an inquiry into the matter. It is important to
remember that the Commission(cid:146)s competence extends only to examining and possibly penalising restric-
tions on competition when they substantially affect trade between Member States. Since it is uncertain
whether such an effect exists in the case in point, and since the national authorities have opened an
inquiry, it would be advisable to allow these authorities to complete their investigation into the matter, in
the spirit of cooperation set out in the Commission Notice on cooperation between national competition
authorities and the Commission (1).

2.
The Honourable Members(cid:146) attention is drawn to the fact that the Community rules in this area seek
to enable insurance companies to offer services and set up branches in other Member States on the basis of
a single authorisation granted by the Member State of origin. More particularly, the Third Insurance
Directives, in particular the Third Non-life Insurance Directive, Council Directive 92/49/EEC of 18 June
1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance
other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (2) (which is applicable to
motor vehicle insurance), established the principle of freedom to set tariffs and ended preliminary or
systematic checks on tariffs and on the contracts which insurance firms propose to market.

The Commission could not therefore intervene in the way suggested by the Honourable Members. Since
the monitoring of insurance companies is a task for the national authorities alone, the Commission is not
in a position to check the insurance premiums proposed by companies or to give an opinion on the level
of such premiums. It is the task of the competent national institution to ensure that insurance premiums
are sufficient to enable firms to meet their contractual commitments.

(1) OJ C 313, 15.10.1997.
(2) OJ L 228, 11.8.1992.

(2000/C 330 E/155)

WRITTEN QUESTION P-0360/00

by Jean Lambert (Verts/ALE) to the Commission

(4 February 2000)

Subject: Construction of a water bottling plant in Taguluche, La Gomera island (Canaries)

The Canaries Government has declared plans for a treated water bottling plant, at Taguluche, La Gomera
island, in the municipal district of Valle Gran Rey, to be a project of public and social
interest. The
proposed construction site is a listed rural conservation area; its location also coincides with an area called
Taguluche which the Canaries Government is proposing for inclusion in the Natura 2000 network (1),
reference number ES7020108, which coincides geographically with the area intended for construction.