WRITTEN QUESTION P-1073/00 by Gary Titley (PSE) to the Commission. Euratom loans to the applicant countries.
Date: 2000-04-04
Institutions: European Parliament, Provisional data
Subjects: Bulgaria, Euratom loan, Lithuania, Slovakia, decommissioning of power stations, eligibility criteria, modernisation aid, nuclear industry

C 26 E/152

Official Journal of the European Communities

EN

26.1.2001

Reports of the misappropriation of € 9 million of Community funds, primarily from the ESF, by the
Catalan authorities have resurfaced in the Spanish media in recent days. Some of those already implicated
in previous cases are said to have been involved.

The Commission has failed to give details of the outcome of the investigations and activities conducted by
UCLAF or by its successor, OLAF, in spite of the ample time it has had in which to do so, the action taken
by the Spanish police, and the fact that the courts have ordered international letters rogatory.

if any, have emerged from UCLAF or OLAF
Can the Commission say what conclusions or results,
activities? Does it believe that OLAF(cid:146)s work on these cases can be described as (cid:145)effective(cid:146)? What
shortcomings as regards legislation or funding are preventing OLAF from fulfilling its remit promptly?

Answer given by Ms Schreyer on behalf of the Commission

(22 June 2000)

The Honourable Member is asked to refer to the Commission(cid:146)s answer to his Written Question
P-258/99 (1), in which it stated that the Task Force for Coordination of Fraud Prevention (UCLAF) had
offered to cooperate with the Spanish judicial authorities.

Since then, the Commission has been in regular contact with the Spanish authorities, both at central
government level (UAFSE (cid:129) the unit responsible for administering the ESF) and in Catalonia (Directorate-
General for Employment), while taking on board reports appearing in the press. The information received
by the Commission through these channels has proved insufficient or even incomplete. Nevertheless, the
Commission is still in contact with the above-mentioned authorities.

The European Anti-Fraud Office (OLAF) (2) has informed the Commission that, having received no reports
under Commission Regulation (EC) No 1681/94 of 11 July 1994 concerning irregularities and the recovery
of sums wrongly paid in connection with the financing of the structural policies and the organisation of an
information system in this field (3), it recently reminded the Spanish authorities of the Member States(cid:146)
obligation to report all fraud cases, including, where appropriate, new allegations appearing in the press.

OLAF has also informed the Commission that the Spanish authorities have not requested its assistance.
Under Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot
checks and inspections carried out by the Commission in order to protect the European Communities(cid:146)
interests against fraud and other irregularities (4), referred to in the new legislation on the
financial
establishment of OLAF, the Commission must take account of the inspections in progress or already
carried out by the Member State, on the basis of its legislation, in respect of the same facts with regard to
the economic operators concerned.

(1) OJ C 348, 3.12.1999.
(2) OLAF succeeded the Task Force for Coordination of Fraud Prevention on 1 June 1999. See the legislation published

in OJ L 136, 31.5.1999.

(3) OJ L 178, 12.7.1994.
(4) OJ L 292, 15.11.1996.

(2001/C 26 E/189)

WRITTEN QUESTION P-1073/00

by Gary Titley (PSE) to the Commission

(4 April 2000)

Subject: Euratom loans to the applicant countries

Loans by Euratom to the applicant countries are currently made solely on the basis of improving the safety
of their old Soviet-era nuclear power plants, pending their eventual closure.

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Official Journal of the European Communities

C 26 E/153

In a number of applicant countries, however, notably Bulgaria, Lithuania and Slovakia, such a restrictive
policy does not take any account of political reality. For these governments, the complete closure of their
nuclear power plants raises extremely difficult economic and social issues.

In light of these difficulties, the best way to reconcile social and economic concerns with improved nuclear
safety might be to replace old Soviet-design reactors with modern western-designed reactors, incorporating
the latest safety technology.

Will the Commission therefore consider widening the criteria for Euratom loans to take account of
political reality in the applicant countries and allow the financing of new western-designed reactors?

Answer given by Mrs de Palacio on behalf of the Commission

(8 May 2000)

Council Decision 94/179/Euratom of 21 March 1994 amending Decision 77/270/Euratom, to authorise
the Commission to contract Euratom borrowings in order to contribute to the financing required for
improving the degree of safety and efficiency of nuclear power stations in certain non-member countries (1)
authorises the Commission, within the ceiling set by the Council (currently EUR 4 000m), to contract
borrowings in the form of loans for the financing of projects designed solely to improve the safety and
efficiency of nuclear power stations in non-member eligible countries, including the applicant countries
which produce nuclear electricity.

This Decision also allows the financing of new investment projects, but only where these are located in the
Community.

The Decision is based primarily on Article 203 of the Euratom Treaty, which provides that the Council
shall act unanimously on a proposal from the Commission after consulting the European Parliament.

The political circumstances would appear not to be conducive to establishing unanimous agreement on
extending the eligibility of Euratom loans to new reactors to be built
in applicant countries. The
Commission will nonetheless analyse the conditions to be met before submitting a proposal along the
lines proposed by the Honourable Member.

As far as priorities are concerned, the Commission takes the view that the first problem regarding
investment in applicant countries concerns the decommissioning of obsolete (non-modernisable) nuclear
installations, as negotiated by the Commission, and nuclear safety upgrading of installations having to
remain temporarily in operation. On 18 April 2000, for example, the Commission decided to issue a
Euratom loan for the modernisation of units 5 and 6 of the Kozloduy nuclear power station in Bulgaria.
However, Euratom loans as such will not be sufficient to modernise installations that have to remain in
operation. Applications will need to be made for funding available under the PHARE Programme and to
the organisation of donors(cid:146) conferences (as in the case of the decommissioning of the Ignalina facility in
Lithuania).

(1) OJ L 84, 29.3.1994.

(2001/C 26 E/190)

WRITTEN QUESTION E-1077/00

by Raffaele Costa (PPE-DE) to the Commission

(7 April 2000)

Subject: Terms and conditions to which several Italian credit institutions subject their current account-

holders

Italian banks normally pay an annual interest rate of between 0,05 % and 1 % to their current account-
holders, whilst demanding figures of around, or even above, 10-12 % when granting loans (credit lines).