WRITTEN QUESTION E-0795/00 by Stephen Hughes (PSE) to the Commission. Lucent Technologies.
Date: 2000-03-16
Institutions: European Parliament, Provisional data
Subjects: EU national, dismissal, free movement of workers, labour law

C 330 E/214

Official Journal of the European Communities

EN

21.11.2000

It is possible that funded provision for old age will become more important, but pay-as-you-go pension
schemes can be expected to continue providing the largest share in the total income of pensioners in most
Member States. Furthermore, it cannot be assumed that funded pension schemes will remain unaffected by
demographic change, although the impact of such change on asset prices and returns is more difficult to
predict than the impact on the financial equilibrium of pay-as-you-go systems.

This being said, the Commission believes that actions can be taken at Community level
in order to
enhance the efficiency of funded pension schemes. Several concrete proposals were made in its commu-
nication (cid:145)Towards a single market for supplementary pensions (cid:129) Results of the consultations on the Green
Paper on supplementary pensions in the single market(cid:146) (2) of 11 May 1999 including liberalisation of
investment and management rules in order to take advantage of Community-wide capital markets,
possibility for pension funds to manage pension plans on a cross-border basis, and transferability of
supplementary pension rights. As a first step, the Commission plans to adopt by mid-2000 a proposal for
a directive on pension funds. This proposal will establish strict prudential standards in order to protect the
future pensioners and contain investment rules allowing pension funds to optimise the
rights of
performance and security of their investments. It will also aim at the mutual recognition of national
prudential systems so as to facilitate cross-border affiliation.

In its communication (cid:145)A concerted strategy for modernising social protection(cid:146) (3) of 14 July 1999, the
Commission stressed the need (cid:145)to make pensions safe and pension systems sustainable(cid:146). This was endorsed
by the Council on 17 December 1999 when it called for a group of high-level officials to be set up for the
implementation of the action proposed in the communication. The group has now been established on an
interim basis and pensions are one of the initial issues it has decided to focus on. The Commission has
adopted a proposal for a Council decision which would formalise the group (4). The Lisbon special
European Council of 23-24 March 2000 has given the group the task of exploring the long term
sustainability of pension schemes.

(1) COM(1999) 221 final.
(2) COM(1999) 134 final.
(3) COM(1999) 347 final.
(4) COM(2000) 134 final.

(2000/C 330 E/249)

WRITTEN QUESTION E-0795/00

by Stephen Hughes (PSE) to the Commission

(16 March 2000)

Subject: Lucent Technologies

In mid-1999 Angela Elliot Mathis, a British citizen and a senior executive and board member of Lucent
Technologies in Belgium, was dismissed without warning and with no reason given for the dismissal. She
had been (cid:145)head hunted(cid:146) from outside Belgium into the company just 13 months earlier because of her
excellent record in the IT sector and her record of performance with the company offers no explanation
for her dismissal. Under Belgian law she had no protection or rights against dismissal under these
conditions.

Does the Commission agree that individuals will be increasingly unlikely to take advantage of the
possibility to move and work wherever they like within the EU unless minimum social guarantees, such
as those on individual dismissals, are put in place throughout the EU?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(11 April 2000)

As regards protection against individual dismissals in the context of free movement of workers, Article 7
of Regulation (EEC) No 1612/68 of the Council of 15 October 1968 on freedom of movement for workers

21.11.2000

EN

Official Journal of the European Communities

C 330 E/215

within the Community (1) provides that (cid:145)A worker who is a national of a Member State may not, in the
territory of another Member State, be treated differently from national workers by reason of his nationality
in respect of any conditions of employment and work, in particular as regards remuneration, dismissal,
and should he become unemployed, reinstatement or re-employment(cid:146).

According to the information available to the Commission, the protection against individual dismissals in
Belgium depends, in some cases, on the earnings of the individual employee. For employees above a
certain earnings ceiling the protection against dismissal is agreed in the individual contract of employment.

(1) OJ L 257, 19.10.1968.

(2000/C 330 E/250)

WRITTEN QUESTION P-0809/00

by Harlem DØsir (PSE) to the Commission

(10 March 2000)

Subject: Condemnation by the WTO(cid:146)s body of appeal of the tax treatment of foreign sales corporations

(FSCs) in the USA

On 24 February 2000 the WTO(cid:146)s body of appeal published its report on the tax treatment of foreign sales
corporations (FSCs) in the USA. This report upholds the condemnation of the tax arrangements under
which some 50 % of American exports benefit from a tax refund which is tantamount to an export subsidy
totalling some $ US 4 billion annually. Although European companies are not the only ones affected, they
are among those hardest hit.

Will the Commission say why, having condemned these practices, the WTO has not fixed the amount of
compensation due to the European Union and why the Commission itself which is responsible for
protecting the Union(cid:146)s commercial interests has failed to take any action vis-(cid:224)-vis the United States to
obtain compensation, bearing in mind that the latter is continuing to take retaliatory measures against the
European Union over bananas and beef treated with hormones and the WTO itself has acknowledged that
the commercial losses incurred by the EU are far higher?

Answer given by Mr Lamy on behalf of the Commission

(30 March 2000)

Under the World Trade Organisation (WTO) ruling on Foreign Sales Corporations (FSC), the United States
have until 1 October 2000 to bring their legislation into line with the conclusions of the panel and the
appelate body. If, at that date, the United States have not abolished the FSC status or amended it so as to
bring it into line with WTO regulations, the Community will be able to exercise its rights as laid down in
article 22 of the memorandum on dispute settlement, and either obtain compensation from the United
States, or suspend equivalent concessions, as the United States themselves have done in the cases of
hormone-treated beef and bananas.

(2000/C 330 E/251)

WRITTEN QUESTION P-0810/00

by Pasqualina Napoletano (PSE) to the Commission

(10 March 2000)

Subject: Situation of dentists in Italy

In 1985 Italy transposed the 1978 EU directive on dentistry by means of Law 409/85, which was to apply,
inter alia, to graduates in medicine who had registered at university prior to 28/1/1980. This gab between
1978 and 1985 meant that thousands of young people took up medical studies after 1980 with the
to do so by the 1985 law
intention of becoming dentists and were retroactively denied the right