WRITTEN QUESTION P-2759/00 by Francesco Speroni (TDI) to the Commission. Unreliability of the accounts of the Italian public authorities.
Date: 2000-08-02
Institutions: European Parliament, Provisional data
Subjects: European accounting system, Eurostat, Italy, auditing, consolidated account, public accounting

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WRITTEN QUESTION E-2755/00

by Alexandros Alavanos (GUE/NGL) to the Commission

Subject: Bombing of a medieval orthodox church in Kosovo

(1 September 2000)

In its answer to my previous question (E-0015/00) (1)

On 17 July 2000 a medieval orthodox church in Kosovo Polje near Pristina was destroyed when a bomb
the Commission informed me of
exploded.
(cid:145)the establishment of a high-level group of experts in the field of cultural heritage with the aim to propose
solutions to problems arising from the damage and destruction of cultural property in Kosovo(cid:146) and
(cid:145)identify in detail the damage and destruction of cultural property(cid:146).

Given the continued violence in Kosovo, which is still destroying cultural monuments, does the
Commission take the view that a more urgent response is required than that described in the answer to
my previous question? With regard to the church referred to above, will the Commission announce its
intention to restore the building, so as to provide a concrete demonstration of its disapproval of vandalism
and intolerance in Kosovo?

(1) OJ C 303 E, 24.10.2000, p. 124.

Answer given by Mrs Reding on behalf of the Commission

(26 October 2000)

As stated in the reply given by the Commission to the Honourable Member(cid:146)s written question E-0015/00,
following the conclusion of a covenant with the Council of Europe, a high level group of experts was to be
established. The aims are, after a survey, to identify in detail the damage and destruction of cultural
property, mainly architectural and archaeological heritage (monuments and sites) of all ethnic and religious
groups throughout Kosovo; to establish a list of priorities for intervention based on the survey; and to
assist in setting up teams of experts from local, regional and federal levels, representing all ethnic and
religious groups of the region, who will draw up feasibility studies and intervention plans for the priorities
established in by the survey. The conclusions drawn by the group of experts are expected by the end of the
year.

The Commission will share the results of this study with the United Nations Mission in Kosovo. The
possibility of restoring the church to which the Honourable Member refers will be decided by the United
Nations interim administration of Kosovo (UNMIK) only after the conclusion of the survey and on the
basis of the priorities of intervention that will be established in its public reconstruction investment
programme for 2001 and will be submitted for consideration of the international donors involved in
Kosovo.

Due to the pressing investment needs in infrastructures and services vital for the welfare of the population
of Kosovo, the Commission does not intend at this stage to undertake the reconstruction of religious
buildings with Community funding.

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WRITTEN QUESTION P-2759/00

by Francesco Speroni (TDI) to the Commission

(2 August 2000)

Subject: Unreliability of the accounts of the Italian public authorities

The consolidated treasury accounts and the statement of revenue and expenditure of the public authorities
for 1997 and 1998 contained in the Annual Treasury Report presented by the Minister for the Treasury to
the Italian Parliament on 4 April 2000 differ substantially from those contained in the report presented on
18 March 1999 and are in contradiction with the General Financial Statement of the Italian State for 1997
approved by Parliament, without any note of explanation.

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in the statement of revenue and expenditure both the net debt burden of the public
In particular,
authorities and the GDP are different, although the ratio between them (Maastricht parameters) for 1997
is unchanged. The European Economic Research and Forecasting Centre has reported to Parliament on the
lack of transparency, the inconsistencies and missing information and the downright incomprehensibility
of the Treasury Report not only for persons unconnected with the work. The statements of revenue and
expenditure, which are important for the purposes of the assessment of convergence provided for by the
Maastricht Treaty, are said to have been drawn up by the ISTAT (Italian Central Statistical Office) which
gradually adjusts the figures as the available data are updated, and as a result of the auditing process and
the changes to the reference accounting system, in agreement with Eurostat, and are said not to have been
formally approved by the State. The balance sheets for various sectors of the Italian civil service reach
ISTAT and the State years after the end of the corresponding financial years. The Italian Court of Auditors
has stated that the situation regarding the information on public accounts is serious because of the lack of
transparency and failure to produce them on time, emphasising the lack of precise, methodical
links
between the various public accounts and pointing out that for the purposes of Maastricht, there are several
figures and explanations which may differ, perhaps greatly, from those approved by Parliament at its
budget part-session.

Can the Commission therefore answer the following questions:

1.

Is the Commission aware of, and does it know, the precise reasons for these discrepancies between the
values given in the accounts?

2. Does it know and share the criticisms made to the Italian Parliament by the European Economic

Research and Forecasting Centre and the Court of Auditors?

3. Does ISTAT prepare the national statements of revenue and expenditure for the EU and if so, on what

legal basis?

4. What instruments of inspection and auditing of the Italian statements of revenue and expenditure are

available to the European Union?

5. What level of reliability and certainty does the Commission ascribe to the data provided up to now by

Italy to the EU?

6.

Is the State answerable for any errors or false figures given in the national statements of revenue and
expenditure, and if so, to what extent?

7. Does the Commission intend to take any measures in this connection, and if so, what?

Answer given by Mr Solbes Mira on behalf of the Commission

(29 September 2000)

Economic accounts are drawn up by the Member States under their own responsibility. However, they
must conform to the European system of national accounts (ESA). Italy, like the other Member States, has
complied with the Community rules which have established a changeover from the old national
accounting methodology (ESA 79), to the new methodology (ESA 95).

The Commission, through its statistical office (Eurostat), verifies the application of ESA 95 by all Member
States and to this end conducts missions to the Member States on a regular basis. If new questions arise,
they are discussed and dealt with at a European level. Decisions are made public through press releases.
Eurostat verifies their application in the Member States.

Twice a year, the Member States must report to the Commission figures for government deficit and debt
levels and for gross domestic product under Council Regulation (EC) No 3605/93 of 22 November 1993
on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the
Community (1), as amended by Council Regulation (EC) No 475/2000 of 28 February 2000 (2).

The Commission considers that the figures notified by Italy through the deficit and debt reporting exercise
are reliable, on account of the procedures described above.

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The (cid:145)discrepancy(cid:146) mentioned by the Honourable Member is essentially due to the change in the accounting
methodology, which has had an impact on the figures for the general government deficit, the public debt,
and the gross domestic product. The (cid:145)Relazione trimestrale di cassa(cid:146) (RTC) of 18 March 1999 was based on
figures in ESA 79, as were the deficit, debt and GDP figures reported to the Commission in March 1999,
while the RTC of 4 April 2000 is based on figures in ESA 95, as are the figures reported to the
Commission in March 2000.

The comments made by the Centro Europa Ricerche (CER) and by the Corte dei Conti (State Audit Court)
do not concern the effect of the switchover to ESA 95, but rather the need for more transparency in the
presentation of the state sector accounts in the RTC and greater comparability between the state sector
budget and the consolidated account of the general government. The Commission, as a user of public
finance information, welcomes improvements in these areas.

The Commission considers that the other questions raised do not fall within its competence and should be
addressed to the Italian authorities.

(1) OJ L 332, 31.12.1993.
(2) OJ L 58, 3.3.2000.

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WRITTEN QUESTION E-2762/00

by Mark Watts (PSE) to the Commission

(1 September 2000)

Subject: Night-vision equipment for high-speed craft

Is the Commission aware of the loophole in the IMO specification for High-Speed Craft that could lead to
a situation where a high-speed passenger vessel could operate legally without night-vision equipment
because of the definition of a high-speed craft that is concerned with hull design rather than with
navigational safety at high speed?

Does the Commission have any proposals to address this problem?

Does it agree that the relevant Directives should be amended along the lines of the Hong Kong Mar(cid:237)ne
Department(cid:146)s decision to impose a blanket requirement for all craft operating at 25 knots or more at night
to carry approved night-vision equipment?

Answer given by Mrs de Palacio on behalf of the Commission

(16 October 2000)

The carriage of night-vision equipment is covered by the International Maritime Organization (IMO) high
speed craft (HSC) code, adopted by the Maritime safety committee in 1994. On 1 January 1996 this code
became mandatory for HSC engaged on international voyages. Passenger high speed craft constructed on
or after this date operating on domestic voyages have also to comply with this code through Council
Directive 98/18/EC of 17 March 1998 on safety rules and standards for passenger ships (1).

The relevant provision in the HSC code stipulates that (cid:145)When operational conditions justify the provision
of night vision enhancement equipment, such equipment should be fitted(cid:146). This means that it is the
responsibility of the Flag State to decide whether or not such equipment should be fitted in function of the
prevailing nautical conditions on the route where the high speed craft is operating.