WRITTEN QUESTION E-1784/00 by Jorge Hernández Mollar (PPE-DE) to the Commission. Regulating sugar cane production in the European Union.
Date: 2000-06-08
Institutions: European Parliament, Provisional data
Subjects: Andalusia, Spain, common agricultural policy, sugar cane

C 89 E/86

Official Journal of the European Communities

EN

20.3.2001

complete transposition of the directive during the year 2000. Furthermore, the candidate countries have
been reminded of
the Council conclusions of 24 September 1998 on accession strategies for the
environment, in which it was stated that all new investment should comply with the environmental acquis.

As for the habitats directive, Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural
habitats and of wild fauna and flora (2), Cyprus is aware that it has to propose a list of sites to be
designated as special areas of conservation for inclusion in the Natura 2000 network. A project under the
LIFE programme, which is assisting the Cypriot authorities in this task, has identified the Akamas region in
an indicative list of such areas.

The Commission has not been informed by the Cypriot authorities of any plans to relax nature
conservation measures in the Akamas region in order to allow large-scale tourist development and
infrastructure projects. However, through the means indicated above, and in particular the consultations
on nature protection, the Commission will continue to monitor Cyprus(cid:146) commitment to the progressive
introduction and implementation of the acquis in this area.

(1) OJ L 175, 5.7.1985.
(2) OJ L 206, 22.7.1992.

(2001/C 89 E/089)

WRITTEN QUESTION E-1784/00

by Jorge HernÆndez Mollar (PPE-DE) to the Commission

Subject: Regulating sugar cane production in the European Union

(8 June 2000)

The European Union(cid:146)s only sugar cane plantation, which is located in southern Spain, is going through a
difficult period, as evidenced by the thorny negotiations currently being conducted between sugar cane
growers and sugar cane processing companies in the Malaga region.

There is no secret about the fact that this crop, which is particularly rare in the Union as a whole, needs
firm support from the CAP if it is to continue to be grown within the EU and to be profitable for the
farmers who produce it.

Would the Commission say what its intentions are regarding sugar cane and to what extent it considers
that the CAP should be used to ensure its survival within Community agriculture?

Answer given by Mr Fischler on behalf of the Commission

(11 July 2000)

The Commission can confirm that it is aware of the special circumstances facing the growers of sugar cane
in the south of Spain, which is indeed the only remaining continental region of the Community where this
agricultural product is cultivated.

Over the years since the accession of Spain in 1985, the common organisation of the markets in the sugar
sector has included measures aiming to facilitate the adjustment of
this cultivation to the specific
conditions in the Community where sugar beet is the predominant agricultural raw material for sugar
manufacture. Currently these measures consist of the possibility for the Spanish authorities to grant
national adjustment aid to the growers concerned, in accordance with Article 53 of Council Regulation
(EC) No 2038/1999 of 13 September 1999, on the common organisation of the market in the sugar
sector (1) during the six marketing years from 1 July 1995 to 30 June 2001.

the rules governing the Community(cid:146)s structural

In addition,
funds, currently laid down in Council
Regulation (EC) No 1260/1999 and Council Regulation (EC) No 1257/1999 of 27 June 1999 laying
down general provisions on the structural funds (2) allow grant-aids to be awarded by the European
agricultural guidance and guarantee fund to alleviate the less-favourable situation in the cane growing area,
within the framework of approved programmes prepared by the Spanish authorities.

20.3.2001

EN

Official Journal of the European Communities

C 89 E/87

After falling to an all-time low of 4 240 tonnes, white sugar equivalent, in the 1995/1996 marketing year,
market statistics show that the cultivation of sugar cane is recovering and looks set to return to the
historical level of 15 000 tonnes, white sugar equivalent, annually.

The sugar sector as a whole, like the other agricultural sectors in the Community, is having to adapt to
changing world trade conditions in agricultural products and the future survival of marginal productions in
sensitive rural areas may well depend upon non-production linked grant-aids of the kind provided by the
structural funds.

(1) OJ L 252, 25.9.1999.
(2) OJ L 161, 26.6.1999.

(2001/C 89 E/090)

WRITTEN QUESTION E-1796/00

by Jonas Sj(cid:246)stedt (GUE/NGL) to the Commission

(8 June 2000)

Subject: Swedish ceiling on carbon dioxide tax

The only carbide factory in Sweden, Akzo Nobel, which employs 50 people at Stockvik close to Sundsvall,
is threatened with closure if EU legislation prohibits Sweden from capping its carbon dioxide tax. Raising
the level of carbon dioxide tax would result in the carbide factory no longer being profitable. Sweden has
the highest level of carbon dioxide tax in the EU but a ceiling was introduced in 1997 so that energy-
intensive industries would not be excessively affected.

According to media reports, however,
government aid in breach of EU competition rules. Are these reports correct and,
Commission justify its position?

the Commission regards the Swedish ceiling on the tax as
if so, can the

Answer given by Mr Monti on behalf of the Commission

(19 July 2000)

In 1997 the Commission approved a Swedish proposal for a lower carbon dioxide (CO2) tax rate on fuel
for energy-intensive industrial activity and greenhouse heating in connection with commercial greenhouse
cultivation. The approval was based on the Community guidelines on state aid for environmental
protection (1). It is therefore correct that the Commission considers the ceiling on the CO2 tax to constitute
state aid.

A relief from a general tax falls under the scope of Article 87(1) (ex Article 92) of the EC Treaty when the
relief is targeted at certain undertakings and this in turn has an effect on trade between Member States.
The Swedish relief was estimated to benefit about 60 companies, and (cid:129) as appears from the question (cid:129)
it does affect trade within the Community.

Point 1.5.3 of the environmental guidelines stipulates that (cid:145)the introduction of environmental taxes and
charges can involve state aid because some firms may not be able to stand the extra financial burden
immediately, and require temporary relief. Such relief is operating aid. It may take the form of relief from
environmental taxes introduced in some Member States, where it is necessary to prevent their firms being
placed at a disadvantage compared with their competitors in countries that do not have such measures(cid:146).