WRITTEN QUESTION E-1338/00 by Glyn Ford (PSE) to the Commission. Transfer of jobs from the United Kingdom to Germany due to tax credits.
Date: 2000-05-04
Institutions: European Parliament, Provisional data
Subjects: Germany, Saxony, South West (England), United Kingdom, common commercial policy, control of State aid, hydraulic machinery, job cuts, regional aid, tax incentive, transfer of businesses

20.2.2001

EN

Official Journal of the European Communities

C 53 E/129

Can the Commission say:

1. Whether it considers that

the universal service
obligations, as the European Parliament has stated, and whether it agrees that free Internet access for
schools is not covered by the Community rules on competition, in accordance with Article 86(2)
(ex Article 90(2));

free Internet access for schools forms part of

2. Whether it considers that free Internet access for schools is the best way of gradually achieving the
aim of linking up all European schools to a trans-European high-speed network, as was decided at the
Lisbon European Council meeting of 23 and 24 March?

Answer given by Mr Monti on behalf of the Commission

(14 June 2000)

1.
The Commission has not been called on to examine the Schulen ans Netz initiative, which was
launched jointly by Deutsche Telekom and the German Ministry of Education and Research in 1996, and
is, therefore, unable to give an opinion on whether it is compatible with Community rules. The EC Treaty
rules do not prevent public authorities from contributing to the costs of Internet equipment and access in
schools, provided that the arrangements in place are compatible with the rules on state aid and,
in
particular, that the contribution is granted on a non-discriminatory basis. However, subsidising access for
schools does not form part of the universal telecommunications service within the meaning of Parliament
and Council Directive 98/10/EC of 26 February 1998 on the application of open network provision (ONP)
to voice telephony and on universal service for telecommunications in a competitive environment (1). The
Directive makes it clear that the exception in Article 86(2) (former Article 90) of the EC Treaty regarding
services of general economic interest does apply in the area of telecommunications. Article 86(2) could
not, therefore, be cited as grounds for having a universal service fund finance the provision of services not
covered by the Directive.

2.
The Lisbon European Council urged the Member States to see to it that all schools in the Community
had Internet access by the end of 2001. It did not, however, stipulate that access had to be free of charge.
Access always involves a cost for someone. Providing subsidies may increase the demand for access and
help achieve the objective set out in the Lisbon conclusions. However, schools should not be deprived of a
genuine choice of service provider and access infrastructure. As in other areas, it is competition that makes
for high-quality products and best stimulates innovation.

(1) OJ L 101, 1.4.1998.

(2001/C 53 E/164)

WRITTEN QUESTION E-1338/00

by Glyn Ford (PSE) to the Commission

(4 May 2000)

Subject: Transfer of jobs from the United Kingdom to Germany due to tax credits

Is the Commission aware of the transfer of jobs from Commercial Hydraulics Ultra Division in Chelten-
ham, UK, with the loss of 252 jobs and the closure of the factory, to Sachsen Hydraulics in Chemnitz,
Germany, and of the claim that this transfer is largely motivated by tax credits available in Germany and
not in the UK?

Answer given by Mr Monti on behalf of the Commission

(9 June 2000)

The Commission has not previously been made aware of the facts mentioned by the Honourable Member.
However the Commission fully understands the social and economic difficulties created in regions which
lose jobs to other parts of the Community.

C 53 E/130

Official Journal of the European Communities

EN

20.2.2001

The Commission has authorised a number of state aid schemes in Saxony, including a fiscal aid scheme
called the (cid:145)Investitionszulage(cid:146) which allows tax credits for investments made. Unlike Cheltenham, Saxony is
an area where the standard of living is abnormally low and which is therefore eligible for such regional
state aid under Article 87(3)(a) (ex Article 92) of the EC Treaty. The Commission is not currently in
possession of any information which would suggest that Community state aid rules have been breached in
this case.

The Commission believes that it is important not to overestimate the importance of aid in firms(cid:146) decisions.
Although aid may affect the choice of a new location, it is much more doubtful that it has a decisive
influence on a decision to close or reduce the existing one. Other internal and external elements such as
the firm(cid:146)s overall strategy, availability of manpower, wage levels and infrastructure play an important role.

That said, the Commission has already taken action which will reduce the level of incentives which
Member States can give companies to close down in one place and open up in another.

In particular, the Commission reduced levels of regional aid which Member States can grant in the new
regional aid guidelines (1). The multisectoral framework on regional aid for large investment projects (2) can
further reduce these levels for large projects.

The Commission has also adopted a notice on the application of the state aid rules to measures relating to
direct business taxation (3), explaining how state aid rules can apply to fiscal incentives.

(1) OJ C 74, 10.3.1998.
(2) OJ C 107, 7.4.1998.
(3) OJ C 384, 10.12.1998.

(2001/C 53 E/165)

WRITTEN QUESTION E-1343/00

by Hanja Maij-Weggen (PPE-DE) to the Commission

(4 May 2000)

Subject: Turkmenistan

Will the Commission inquire about the fate of Mrs Artykgul Atakova of Turkmenistan, a young woman
with five children who is under serious threat on account of her conversion to Christianity?

Is the Commission aware that, although the Constitution of Turkmenistan provides for freedom of religion
and freedom of expression, Christian evangelists are deported from there, gatherings of Christians are
disrupted, and Christians are threatened, arrested and sentenced to prison or labour camps?

What are the European Union(cid:146)s relations with Turkmenistan, and what can the Commission do to bring
pressure to bear to guarantee freedom of religion for Christians in Turkmenistan?

Answer given by Mr Patten on behalf of the Commission

(22 May 2000)

The Commission has been informed that Mrs Artygul Atakova, a mother of five children, has been
harassed by the authorities because she protested to her children(cid:146)s school about the requirement for all
pupils to bow to the portrait of President Nyazov. No charges have been made against her but she has
been questioned by the komitet nasionalniy bezopastniy (KNB) and her movements have been restricted.