WRITTEN QUESTION E-1640/00 by Alejandro Agag Longo (PPE-DE) to the Commission. Competition in the telecommunications sector.
Date: 2000-05-29
Institutions: European Parliament, Provisional data
Subjects: liberalisation of the market, restriction on competition, telecommunications industry, trade licence

C 136 E/6

Official Journal of the European Communities

EN

8.5.2001

initial rules on traffic distribution. The issues at stake were not (cid:145)vague and confused(cid:146) but set out clearly in
the publication in the Official Journal of that decision. Since then, environmental concerns have intervened
and measures were taken by the Italian Government by virtue of Decree of 13 December 1999 of Prime
Minister D(cid:146)Alema. These measures entered formally into force on 26 March 2000 and thereupon into an
experimental phase until 26 June 2000.

The uncertain situation created by these measures combined with new traffic distribution rules between the
two airports of Milan Linate and Malpensa adopted by Decree of 3 March 2000, has led to a series of
complaints lodged by twelve major air carriers with the Commission.

In order for the Commission to examine whether these measures are in conformity with Community law
an in depth analysis by an independent expert of the real capacity of Malpensa at present and in the future
taking into account the constraints resulting from the applicable environmental measures was required.
Such expert, as well as previous external experts who have worked on the Malpensa case, has been chosen
by the Commission following a transparent,
impartial and non-discriminatory tender based selection
procedure at Community level. The results of the study became available in August permitting thus the
Commission thereafter to take a fully informed position on the new Italian rules.

On the issue of Mr Andrew Cahn, former Chief of Staff of Commissioner Kinnock, pursuing his career
outside the Commission, the Commission has already answered to Written Question E-1664/00 put by the
Honourable Member to the Commission, where it stated that after a very thorough consideration of
Mr Cahn(cid:146)s new appointment he was formally authorised to take up his new post. Also, Commissioner
Kinnock presented to the Honourable Members on 3 May 2000, the current arrangements relating to the
appointment of Permanent and Temporary officials outside the Commission and affirmed the consistency
of the new duties of Mr Cahn with the relevant rules.

(1) OJ L 337, 12.12.1998.

(2001/C 136 E/006)

WRITTEN QUESTION E-1640/00

by Alejandro Agag Longo (PPE-DE) to the Commission

Subject: Competition in the telecommunications sector

(29 May 2000)

The introduction of competition in the telecommunications sector is now an objective pursued, albeit with
varying degrees of intensity, by all the Member States of the EU and backed up by the Commission in the
recommendation contained in the broad economic policy giudelines. It is well known that there are
different ways of issuing licences to the different operators charged with creating competition. Recent press
reports indicated that the British State received some USD 36 000 million (ESP 6,3 trillion) as a result of the
auction of third generation mobile telephony licences.

Without prejudice to the necessary level of subsidiarity of such decisions, does the Commission consider
that the various methods of issuing licences are neutral vis-(cid:224)-vis the process of opening up the sector to
competition? In other words, does the Commission not think that the high prices achieved in such
auctions may constitute a (cid:145)prior(cid:146) distortion of competition since they have an impact on the subsequent
setting of prices and since they encourage the process concentration of businesses based solely on the need
to be able to bid in such auctions?

Answer given by Mr Monti on behalf of the Commission

(11 September 2000)

The number of operators to whom frequencies can be granted for the offer of third-generation mobile
services in particular is limited under the UMTS norm by the frequency spectrum available. A selection
procedure is inevitable. Community directives provide that the criteria be objective, proportionate, open
and non-discriminatory. Compliance with the criteria is indispensable in order not to distort competition

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Official Journal of the European Communities

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between potential operators. As the Commission stated in its answer to Written Question P-1839/2000 by
Mr Van Velzen (1), Member States may apply the selection procedure of their choice as long as it is based
on these criteria.

The choice between an (cid:145)auction(cid:146) type of procedure and a (cid:145)beauty contest(cid:146) type of procedure will affect the
development of these services, which depend on a variety of factors (duration of the licence, methods of
payment, compulsory geographical coverage, compulsory roaming function) and on the strategies
employed by the firms in question and consumer reaction. These effects must therefore be assessed on a
case-by-case basis.

(1) OJ C 89 E, 20.3.2001.

(2001/C 136 E/007)

WRITTEN QUESTION E-1863/00

by Carles-Alfred Gas(cid:242)liba i B(cid:246)hm (ELDR) to the Commission

(9 June 2000)

Subject: Agricultural over-exploitation, and citrus-growing in particular,

in the Valencian Autonomous

Community

The conversion of unirrigated land and woodland into farmland is causing over-production, while the new
farms frequently take no account whatever of the fact that the area already suffers from grave water
shortages.

Both the increase in the number of farms and the over-production involved, contrary to the Common
Agricultural Policy, are frequently tacitly supported by the autonomous and state governments. Such
practices threatens farmers(cid:146) professional standards, and considerably lowers prices and farmers(cid:146) incomes.

How does the Commission intend to deal with this anomaly, particularly in the Valencian and Catalan
citrus-growing sector? What measures does the Commission intend to take to oblige the Valencian
Autonomous Community (Objective 1) to apply modernisation and agricultural improvement measures,
particularly as regards citrus-growing, as part of the aid which the Valencian Community will be receiving?

Supplementary answer
given by Mr Fischler on behalf of the Commission

(25 October 2000)

The new rural development policy adopted by the Council in June 1999 has become the second pillar of
the common agricultural policy. An essential component of the European model for agriculture, its aim is
to put in place a coherent and durable framework that, by favouring the maintenance and creation of jobs,
secures the future of rural areas. Its main priorities are stronger agriculture and forestry sectors, improved
competitiveness of rural areas and conservation of the environment and the rural heritage.

Among the structural aids included in Council Regulation (EC) No 1257/1999 (1) of 17 May 1999 on
support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and
amending and repealing certain Regulations that should go some way to meeting the Honourable
Member(cid:146)s concerns are aid for afforestation of agricultural land, compensatory allowances in less-favoured
areas and areas subject to environmental constraints, agri-environmental aid and aid for agricultural
production structures.

Under the subsidiarity principle it is up to the Member State to present its rural development programme.
At the end of December 1999 the Spanish authorities presented programmes for EAGGF Guarantee
Section financing. These include a general programme of accompanying measures (agri-environment, early
retirement, afforestation and compensatory allowances) covering all of Spain except the Basque Country
and Navarre. Due to be approved shortly by the Commission, it includes agri-environmental aid in the