WRITTEN QUESTION E-2621/00 by Carles-Alfred Gasòliba i Böhm (ELDR) to the Commission. Unequal conditions for certain undertakings.
Date: 2000-08-01
Institutions: European Parliament, Provisional data
Subjects: restriction on competition, single market, water supply

C 103 E/200

Official Journal of the European Communities

EN

3.4.2001

In these conclusions, the Council agreed a Community contribution in the order of magnitude of € 1 billion
of which the creditor part should be in the range of € 320 to 380 million. Actual disbursement was,
however, made conditional on reasonable burden sharing with other international donors.

Nevertheless, the EU has fully met its commitment to the HIPC Trust Fund by disbursing a first tranche of
assistance. The EU is urging donors, who have not yet done so, to deliver their committed contributions as
soon as possible.

With regard to the second part of the question relating to an integrated European policy on asylum and
immigration, the Council would remind the Honorable Member that the Treaty itself in Title IV provides
for the Council, in establishing progressively an area of freedom, security and justice, to adopt rules in the
area of asylum and migration as set out in Article 63 of the Treaty including rules relating to the entry and
residence of third country nationals. The European Council in Tampere called inter alia for a (cid:145)comprehen-
sive approach to migration addressing political, human rights and development issues in countries and
regions of origin and transit(cid:146),
(cid:145)a Common European Asylum System, based on the full and inclusive
application of the Geneva Convention(cid:146), (cid:145)fair treatment of third country nationals who reside legally on the
territory of its Member States(cid:146) with a (cid:145)more vigorous integration policy(cid:146) aimed at (cid:145)granting them rights and
obligations comparable to those of EU citizens(cid:146) as well as (cid:145)approximation of national legislations on the
conditions for admission and residence of third country nationals, based on a shared assessment of the
economic and demographic developments within the Union, as well as the situation in the countries of
origin(cid:146). The Commission has forwarded various proposals flowing from the conclusions of the Tampere
European Council, proposals which are currently under consideration within the Council.

(2001/C 103 E/229)

WRITTEN QUESTION E-2621/00

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

(1 August 2000)

Subject: Unequal conditions for certain undertakings

The Treaty provides for the creation of an internal market in which, among other factors, free competition
and non-discrimination among undertakings are vital conditions if its proper operation is to be ensured.

Foreseeable developments on the market for water in the European Union make it likely that distortions of
competition will be produced among undertakings in the various Member States. If the common market
for water is to function properly, it is necessary to guarantee transparency, non-discrimination among
undertakings and reciprocity.

With regard to the Commission(cid:146)s interpretative communication on concessions in Community law
governing public service contracts, why has the Commission not taken up a position in its communication
on administrative concessions regarding the unequal conditions of competition to which private under-
takings from states whose markets have largely been opened up are subject by comparison with public
undertakings from countries whose market is closed to competition?

Why has the Commission made no provision for opening up the market
reciprocity, as is the case in other sectors such as electricity?

in water and requiring

Why has the Commission not taken up a position on public undertakings responsible for supplying water
in their own countries which take part in invitations to tender for the supply of water in a country whose
market is more open? Why has no provision been made for greater transparency in such cases so as to
prevent the undertakings concerned from using public resources to finance activities outside the area of
public service for which they are responsible?

3.4.2001

EN

Official Journal of the European Communities

C 103 E/201

Answer given by Mr Bolkestein on behalf of the Commission

(18 October 2000)

As the Honourable Member rightly points out, in contrast to the electricity or gas sectors, there are no
specific measures applicable at European level designed to eliminate national barriers in the water sector.
However, this absence of specific standards does not preclude the application of the rules of the EC Treaty
on the internal market and competition.
Indeed, water supply and sewage treatment fall under the
economic activities covered by these rules.

The interpretative communication on concessions under Community law (1)
(hereafter referred to as
(cid:145)communication(cid:146)) mentioned by the Honourable Member is intended to inform economic operators and
government authorities of the rules governing concessions in all sectors, including water.

The Commission understands the concerns raised by the Honourable Member. However, it would reiterate
that this communication does not set out to examine the conditions of competition referred to between
public and private undertakings, specifically in the water sector, and still less to take a position on the
issue. The Commission(cid:146)s intention was in fact to identify and explain the rules and general principles of the
EC Treaty which already apply to the conditions for granting concessions, without prejudice to any specific
sectoral systems and the rules of competition.

As to the distortions of competition affecting private undertakings which are based in Member States with
very open markets, in contrast to public undertakings in Member States whose markets are closed to
competition, this issue concerns the rules on competition, specifically Article 86 (ex Article 90) of the
EC Treaty and the rules on state aid, and falls outside the scope of this communication. Nevertheless, it
should be noted that the EC Treaty remains neutral in regard to the system of property ownership in the
Member States (Article 295 (ex Article 222)) and that the Commission must therefore take a neutral stance
on the Member States(cid:146) option of choosing between direct management of services of general interest and
allocating such services to third parties.

The Commission considers its interpretative communication to be an important instrument for providing
including water. The Commissions states that the Member
greater transparency in the public utilities,
States must ensure these concessions are granted under conditions which comply with Community law,
specifically in regard to advertising, and competition and equal opportunities between qualified operators.
Correct application of these principles and rules should therefore allow undertakings in the Community to
benefit from wider access and greater transparency in the management of public utilities, and water in
particular.

As regards the application of rules on competition under the EC Treaty, the Commission also draws the
Honourable Member(cid:146)s attention to the recent adoption by the Commission of a communication on
services of general interest (2). This communication clarifies the Commission(cid:146)s policy in respect of services
of general interest in response to a request from the Lisbon European Council. The absence of specific
rules harmonising the conditions for opening up the water sector to competition does not present an
obstacle to applying the principles of the EC Treaty and the existing rules on competition to this sector.

Finally, the Commission would inform the Honourable Member of the existence of a Directive on the
transparency of financial relations between Member States and public undertakings (3). This Directive
requires Member States to ensure that public undertakings maintain separate and reliable accounts relating
to different activities carried out by the same undertaking. This measure is specifically intended to
guarantee the fair and effective application of the rules on competition to these undertakings in accordance
with Article 86 of the EC Treaty.

(1) OJ C 121, 29.4.2000.
(2)
(3) Commission Directive 2000/52/EC of 26 July 2000 amending Directive 80/723/EEC on the transparency of

IP/00/1022 of 20 September 2000.

financial relations between Member States and public undertakings (OJ L 193, 29.7.2000).