WRITTEN QUESTION E-0532/00 by Raffaele Costa (PPE-DE) to the Commission. Conditions imposed by certain Italian credit institutions on its own current account-holders.
Date: 2000-02-28
Institutions: European Parliament, Provisional data
Subjects: European social policy, Italy, bank deposit, common commercial policy, consumer protection, interest

28.12.2000

EN

Official Journal of the European Communities

C 374 E/97

(2000/C 374 E/112)

WRITTEN QUESTION E-0528/00

by Michl Ebner (PPE-DE) to the Commission

(28 February 2000)

Subject: Reduced VAT rate for electronic news media products

Under the sixth VAT directive, Member States are permitted to apply a reduced VAT rate to the supply of
certain goods and services. Some Member States include newspapers and periodicals under Annex H to the
directive in question, levying a reduced VAT rate on such products. The fact is, however, that news media
services are increasingly being provided electronically, and this is resulting in distortion of competition
between paper and non-paper publications.

Will the Member States have the possibility in future of extending the reduced VAT rate to electronic news
media products, and in particular CD-ROMs and on-line publications?

Reply given by Mr Bolkestein on behalf of the Commission

(10 April 2000)

In principle, under current Community VAT legislation, particularly Article 12 of the sixth Directive
(77/388/EEC) (1), the standard rate of VAT applies to newpapers and other news media.

However, Member States wishing to do so may allow a reduced rate for books, newspapers and
periodicals.

Where intagibles are concerned, in June 1998 the Ecofin Council approved the principle by which an
operation that makes a product available in digital form via an electronic network should be regarded for
VAT purposes as a service provided.

The question whether some services of this kind may be added to the list of goods and services eligible for
a reduced rate will be examined more widely in the course of a forthcoming revision of the scope of
reduced rates of VAT. However, at this stage, it would be premature to anticipate the Commission(cid:146)s work
by commenting on the future VAT treatment of electonic news media products.

(1) OJ L 145, 13.6.1977, as last amended by Directive 1999/85/EC (OJ L 277, 28.10.1999).

(2000/C 374 E/113)

WRITTEN QUESTION E-0532/00

by Raffaele Costa (PPE-DE) to the Commission

(28 February 2000)

Subject: Conditions imposed by certain Italian credit institutions on its own current account-holders

What consumer protection rules exist in relation to bank deposits?

Can banks always do as they wish, within the bounds of the laws to prevent usury, or does the European
Union consider that they are obliged to comply with specific rules?

Is the Commission aware that, in Italy, certain credit institutions have set borrowing rates of 13 % for their
customers while paying only 0,1 % (or even less) on accounts that are in credit?

C 374 E/98

Official Journal of the European Communities

EN

28.12.2000

Answer given by Mr Bolkestein on behalf of the Commission

(12 April 2000)

Under Article 47(2) of the EC Treaty (formerly Article 57(2)), there are various Community directives
which coordinate and, where necessary, harmonise the provisions laid down by law, regulation or
administrative action in the Member States to facilitate access to credit activities and their exercise within
the single market.

In this connection, the European Parliament and the Council adopted, on 30 May 1994, Directive 94/19/
EEC (1) on deposit-guarantee schemes, which ensures a harmonized minimum level of deposit protection.
From 1 January 2000, the aggregate deposits of each depositor must be covered up to at least EUR 20 000.

in its communication (cid:145)Implementing the framework for financial markets: action plan(cid:146) (2),
Moreover,
adopted on 26 May 1999, which was sent on the same date to the European Parliament and the Council,
and was confirmed by the Cologne European Council, the Commission pointed out that cross-frontier
retail financial trading would only flourish if consumers had confidence in the integrity of the service being
provided and the selling methods used by suppliers, the credentials of the supplier and the availability and
efficacy of redress procedures in the event of a dispute. For this reason, the communication stresses that
action at EU level for retail markets and for the protection of consumers remains a high priority. The
communication lists a series of areas for action which the Commission has identified to give consumers
the tools (information) and guarantees (clearly established rights and effective redress procedures) they need
to participate fully and actively in the single financial services market: identifying the consumer protection
rules which are not harmonised and which should not be maintained, to reduce obstacles to the cross-
border provision of services; promoting the introduction of effective mechanisms to overcome the flaws in
the single retail financial services market due to differences in private law; creating the legal conditions
necessary for pan-European use of new distribution routes and new distance-selling technologies; encoura-
ging the introduction of safe and cheap methods of payment which will allow individuals to make cross-
border payments without having to pay exorbitant fees.

However, the Commission feels that it is neither possible nor appropriate to intervene as regards the
interest rates offered by credit institutions. As the Honourable Member is aware, under Article 4 (formerly
Article 3a) of the EC Treaty, the Community(cid:146)s economic policy is based on the single market and is
conducted in accordance with the principle of an open market economy with free competition. It is
respect for this principle which ensures the best allocation of economic resources. Within this context, it is
for each credit institution, while observing the rules on competition, to define its own commercial policy
according to its perception of market risks. As it pointed out in its reply to Written Question E-2738/99
by Mr Zappala and Mr Tajani (3), the Commission feels that, quite apart from being legally questionable,
public intervention designed to impose restrictions on the financial market would be an obstacle to the
free movement of financial services. It would prevent consumers from taking full advantage of the benefits
of the single market as regards increased choice and competitive conditions and would, therefore, be
harmful to both firms and consumers, with a negative impact on development and employment.

Regarding European competition rules, Article 81 (formerly Article 85) of the EC Treaty prohibits any
anti-competitive agreements between firms, particularly as regards pricing, and Article 82 (formerly
Article 86) prohibits any abuse by one or more undertakings of a dominant position within the common
market. These articles only apply, however, to restrictions on competition which significantly affect trade
between Member States. If this is not the case, the national competition authorities are responsible for
applying national competition law.

The Honourable Member is probably aware that the Bank of Italy, as the Italian competition authority for
the banking sector, has recently adopted a decision admonishing Italian banks for anti-competitive
agreements, particularly as regards credit and debit interest rates, concluded by a group known as the
(cid:145)friends of the bank(cid:146) and imposing fines. Since the Bank of Italy has made investigations which led to this

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Official Journal of the European Communities

C 374 E/99

decision, and it has yet to be established whether the matter has had a significant effect on trade between
Member States, the Commission did not consider it appropriate to intervene in the case in question.

(1) OJ L 135, 31.5.1994.
(2) COM(1999) 232 final.
(3) OJ C 280 E, 3.10.2000, p. 120.

(2000/C 374 E/114)

WRITTEN QUESTION E-0533/00

by Raffaele Costa (PPE-DE) to the Commission

(28 February 2000)

Subject: Falcone programme (1997-2001)

Could the Commission list the regional and/or national administrative authorities and public or private
bodies to which sums or contributions have been allocated, stating the amount involved and whether or
not payments have already been made, for each of the various actions included in the Falcone programme
(1997-2001) (which has a budget of ECU 10 million, or approximately ITL 19 billion) in Italy and in the
other Member States?

Has any action been taken to check that the funds were used for their intended purpose and the projects
successfully implemented?

Answer given by Mr Vitorino on behalf of the Commission

(14 April 2000)

The Commission would draw the Honourable Member(cid:146)s attention to the general background against which
the implementation of the Falcone programme,
like all other Justice and home affairs programmes, is
evaluated. Projects are selected in two stages, first by professionals and then by representatives of the
Member States meeting within the Falcone committee. The aim is to encourage cooperation between
professionals from a large number of Member States (and non-member countries) on a multidisciplinary
basis. Emphasis is put on training measures, joint projects and studies on themes linked to combating and
preventing organised crime. The approach taken is not to consider the beneficiary and his national origin
but to support projects which create synergy between Member States. The selection criteria and priority
themes are described in detail in the annual Falcone programme published in the Official Journal (1).

The Commission publishes a report each year giving the breakdown of projects by type of beneficiary and
type of measure. In addition to the priorities by type of project set out in the annual programme, the
Commission endeavours to encourage cooperation between both national authorities and regional
authorities or non-state organisations (universities, associations). The breakdown for 1998 was: 51,3 %
for national authorities, 11,3 % for regional authorities and 37,4 % for non-governmental organisations
(NGOs) and a number of research institutes. The corresponding figures for 1999 are 59,7 %, 18,3 % and
22 %.

Number of projects

National authorities

Regional authorities

1998: 35

1999: 38

18

22

6

8

Financing

National authorities

Regional authorities

1998: € 2 252 644

1999: € 1 959 960

1 156 064

1 171 306

255 458

357 974

NGOs,
including universities

11

8

NGOs,
including universities

841 122

430 680