WRITTEN QUESTION E-0509/00 by Christopher Huhne (ELDR) to the Commission. Assessment of inflation differentials.
Date: 2000-02-28
Institutions: European Parliament, Provisional data
Subjects: comparative study, euro area, inflation, purchasing power parity, statistical method, statistics

C 330 E/178

Official Journal of the European Communities

EN

21.11.2000

However,
difference results from taxes and transfers.
production, while disposable income should be estimated for the households(cid:146) place of residence.

it is true that income from production is not the same as citizens(cid:146) disposable income: the
the place of

In addition, regional GDP is estimated at

level.
The Commission does not yet have information on households(cid:146) disposable income at regional
However, as part of the 1995 revision of the European System of Accounts (ESA), methodological
principles for the drawing up of regional household accounts have been established. This work, carried
out with the assistance of the national statistical institutes, will produce the first data in this area from
2001. The data will be published regularly and will provide users with an additional indicator to measure
regional differences.

(2000/C 330 E/204)

WRITTEN QUESTION E-0509/00

by Christopher Huhne (ELDR) to the Commission

(28 February 2000)

Subject: Assessment of inflation differentials

In the answer to Written Question E-2228/99 (1) given by Mr Solbes Mira on 20 December 1999, the
Commission says that it will assess inflation differentials in view of the overall economic situation in order
to avoid any harmful divergence in inflation. Given that it also states that (cid:145)it would be fraught with
difficulty to provide a quantitative assessment of the scope for sustained inflation differentials across the
euro area(cid:146), how does it propose to (cid:145)assess(cid:146) such inflation differentials? Would the Commission(cid:146)s proposed
assessment be more credible if it were based on a study of this issue ex ante rather than ex post? Will the
Commission publish such a study albeit with any necessary emphasis on the uncertainties involved in the
assumption?

(1) OJ C 219 E, 1.8.2000, p. 127.

Answer given by Mr Solbes Mira on behalf of the Commission

(27 March 2000)

The Commission and the Council constantly monitor economic developments in the euro area and in each
of the Member States. This monitoring takes place inter alia in official documents, such as the annual
review of
the Community economy, and in surveillance discussions in the economic and financial
committee, the economic policy committee, the Euro-11 group and the Ecofin Council. Monitoring of
inflation differences and cyclical divergence across the euro area is a crucial aspect of economic
surveillance.

The Commission recognises that sustained inflation differentials may occur in the Economic and monetary
union (EMU). Recent empirical studies based on the Balassa-Samuelson framework are useful in stressing
this fact and they form an important background element in the assessment of actual inflation develop-
ments. Nevertheless, a review of the assumptions underlying these numerical simulations suggests that it is
fraught with difficulty to quantify ex ante the scope for sustained inflation differentials across the euro
area. This cannot be done with any great confidence.

The Commission does not apply a static framework for assessing inflation differences across EMU and it
will not do so in future. Rather, a variety of
factors which may justify differences in economic
performances have to be considered. The Commission currently assesses cyclical divergence and inflation
differences on the basis of a wide range of indicators, including output gaps, economic growth, wages, unit
labour costs, inflation, price movements for traded and on-traded goods, and movements in real exchange
rates relative to long-run purchasing power parity (PPP)-levels.

21.11.2000

EN

Official Journal of the European Communities

C 330 E/179

In order to improve the understanding of inflation differentials in EMU, the Commission expects to launch
an external study analysing the sources of sustained inflation differentials in a modified Balassa-Samuelson
framework. The results of this study, which are expected at the end of 2000, will be made public. More
important than providing a set of ex ante estimates of the scope for inflation differentials in EMU, the
study is intended to help in improving and refining the framework used by the Commission to assess
cyclical divergence and inflation differences across EMU.

(2000/C 330 E/205)

WRITTEN QUESTION E-0519/00

by Elizabeth Lynne (ELDR) to the Commission

(28 February 2000)

Subject: Transparency

In the Briefing of the European Parliament Press Service for the part session 12-16 February 1996, it is
stated that, regarding the matter of the (cid:145)Wild Birds Directive(cid:146), (cid:145)the Commission is also proposing that in
future such decisions would be taken in secret by a special committee, away from the glare of publicity
and not subject to Parliamentary scrutiny(cid:146).

Can the Commission provide details of the context of this statement? Has the Commission specified a lack
of Parliamentary scrutiny on other occasions? If so, in what circumstances is this deemed appropriate?

Answer given by Mrs Wallstr(cid:246)m on behalf of the Commission

(4 April 2000)

The statement of the Parliament Press Service was made in the context of the first reading at the
Parliament (cid:129) session of 15 February 1996 (cid:129) of the Commission(cid:146)s proposal (1) to modify Article 7(4) of
Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds (2).

The Commission does not share the sentiment of the statement quoted by the Honourable Member. On
the contrary, from the seven amendments voted by the Parliament (3), the Commission immediately agreed
with amendment No 4 concerning the transmission of the composite report of the application of the
Directive to the Member States and the Parliament.

Furthermore, the Parliament is informed by the Commission of committee proceedings on a regular basis,
as set out in Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise
of implementing powers conferred on the Commission (4).

(1) OJ C 100, 9.4.1994.
(2) OJ L 103, 25.4.1979.
(3) Bulletin, 1996/1/2, p. 1.3.152.
(4) OJ L 184, 17.7.1999.

(2000/C 330 E/206)

WRITTEN QUESTION E-0522/00

by Monica Frassoni (Verts/ALE) to the Commission

(28 February 2000)

Subject: Procedure followed by Poste Italiane SpA for the award of contracts for mail delivery services

Does the Commission intend to take steps to check the regularity of the procedures for the award of
contracts followed by Poste Italiane SpA, the Italian postal services provider, with particular reference to
the priority mail service?