WRITTEN QUESTION E-2860/00 by Antonios Trakatellis (PPE-DE) and Ioannis Marínos (PPE-DE) to the Commission. Manipulation and government intervention on the Athens Stock Exchange ‐ squandering of public funds.
Date: 2000-09-14
Institutions: European Parliament, Provisional data
Subjects: Greece, competence of the Member States, economic offence, financial intervention, financial legislation, intervention policy, price of securities, stock-exchange transaction

8.5.2001

EN

Official Journal of the European Communities

C 136 E/113

the supporting country reports expanding in detail on the reasons behind the evaluation have since been
published on internet. It must be understood that this opinion of the SSC, being independent scientific
advice,
is not a formal legal act. Accordingly it is not opportune to consider action against countries
having a different perception of their geographic BSE risk.

The Commission, for its part, adopted as a precautionary measure Decision 2000/418/EC regulating the
use of material presenting risks as regards transmissible spongiform encephalopathies and amending
Decision 94/474/EC (1). It did so in view of BSE cases continuing to occur in the Community, even in
Member States that have not identified native cases in the past, and the repeated statements of the SSC
recommending the exclusion of specified risk materials (SRMs) from food and feed chains. This decision
applies also to Germany and will require, from 1 October 2000, a range of specified risk materials.

Community legislation on surveillance for the presence of BSE, has been in place since the summer of
1998. In addition, the obligation to test a considerable random number of dead-on-farm and emergency
slaughtered cattle was adopted by the Commission on 5 June 2000 by Decision 2000/374/EC amending
Decision 98/272/EC on epidemio-surveillance for transmissible spongiform encephalopathies (2). An
important objective of this Decision is to screen a statistically significant number of cattle that are most
likely to harbour detectable levels of BSE. This will allow for a better assessment of the epidemiological
situation in the Member States. This obligation enters into force from 1 January 2001 and applies also to
Germany. The results, which will be closely followed by the Commission, will provide valuable informa-
tion on the extent of BSE in the Member States. The German authorities have now informed the
Commission that they intend to carry out a much higher number of tests than required under the
Commission decision.

level, the Food and veterinary office (FVO) of the Commission carries out regular
On a more general
missions assessing the application of BSE controls on-the-spot
in all Member States. The evidence
produced in the course of these missions formed an integral part of the scientific SSC evaluation
mentioned above. In the framework of a round of missions assessing the BSE epidemio-surveillance system
in all Member States the FVO will conduct a mission in September 2000 visiting several German L(cid:228)nder.
A report on this inspection will be made available to the Parliament and published on the internet.

The Commission does agree that selective non-application of BSE tests in order not to detect BSE-cases, to
which the Honourable Member refers, would indeed raise serious concern, should it happen. It would hide
a serious consumer health risk and be a breach of Community legislation. However, the Commission has
no information indicating that this unacceptable behaviour has taken place in Germany.

(1) OJ L 158, 29.7.2000, p. 76.
(2) OJ L 135, 8.6.2000, p. 27.

(2001/C 136 E/129)

WRITTEN QUESTION E-2860/00

by Antonios Trakatellis (PPE-DE) and Ioannis Mar(cid:237)nos (PPE-DE) to the Commission

(14 September 2000)

Subject: Manipulation and government intervention on the Athens Stock Exchange (cid:129) squandering of

public funds

Reports in the Greek press, to which there has been no response, and a complaint by a leading member of
the opposition, which was investigated on the orders of the Public Prosecutor of the Supreme Court of
Greece, strongly suggest that the public company dealing in transferable securities (DEKA) and various
government-controlled credit institutions intervened on the Athens Stock Exchange before the elections on
9 April with the aim of influencing the outcome of those elections. More specifically, the government
bodies concerned bought shares in government companies over a number of days to support prices
artificially prior to the elections while subsequently selling them on at very low prices, making huge losses
for taxpayers and shareholders alike.

C 136 E/114

Official Journal of the European Communities

EN

8.5.2001

Do these acts, and in particular DEKA(cid:146)s part in affecting the Athens Stock Exchange share index, not
1.
constitute an attempt to manipulate the Exchange, which is contrary to the spirit of recommendation 77/
534/EEC (1) concerning a European code of conduct relating to transactions in transferable securities?

Given that the Board of the company in question and that of other institutions are appointed by the
fraudulent competition and

2.
Government who dictate their investment policy,
distortion of the free fluctuation of the stock exchange share and securities index?

is this not a case of

3. What measures will the Commission take in this regard? Does it intend to prevent such occurrences
by incorporating them into its draft proposal for a directive to combat manipulation of the markets which,
according to its action programme on financial services (1999 interim report), is to be submitted by the
end of 2000?

(1) OJ L 212, 20.8.1977, p. 37.

Answer given by Mr Bolkestein on behalf of the Commission

(24 October 2000)

In order to create a common European market for capital and securities, several directives have been
adopted to harmonise the standards in the national securities legislation. However, no provisions have yet
been agreed at Community level to deal with market manipulation.

Directive 89//592/EEC of 13 November 1989 coordinating regulations on insider dealing (1) limits itself to
preventing the misuse of privileged information. Other directives dealing with protection of markets and
investors are Council Directive 79/279/EEC of 5 March 1979 coordinating the conditions for the
admission of securities to official stock exchange listing (2), Council Directive 80/390/EEC of 17 March
1980 coordinating the requirements for the drawing up, scrutiny and distribution of the listing particulars
to be published for the admission of securities to official stock exchange listing (3), and Council Directive
93/22/EEC of 10 May 1993 on investment services in the securities field (4).

None of these directives gives the Commission any powers in the field of market manipulation.

Commission Recommendation 77/534/EEC of 25 July 1977 concerning a European code of conduct
relating to transactions in transferable securities (5) limits itself to recommending to Member States (cid:145)that
they should ensure the observation of certain basic(cid:146) and widely recognised (cid:145)principles(cid:146). In part IV No 13 of
the Recommendation it is stated that, (cid:145)In recommending the European code of conduct to the Member
States, the Commission is of course well aware that a recommendation does not bind the States as to the
results to be achieved(cid:146).

The Commission therefore has no powers to intervene in a case of suspected market manipulation. Powers
for the detection, investigation and punishment of market manipulation remain completely in the hands of
national authorities. Market manipulation is banned and sanctioned in most of the Member States by
national
law. Under Greek legislation, price manipulation through certain practices is prohibited and
administrative and criminal sanctions may be imposed by the national authorities.

The financial services action plan stated that by the end of 2000, the Commission would bring forward a
proposal for a directive addressing market manipulation. The Commission is preparing such a proposal.
The aim of such a directive would be to ensure the integrity of European financial markets, to establish
common standards throughout Europe, and to enhance investors(cid:146) confidence in these markets. The
Commission(cid:146)s proposal will provide common European standards against market manipulation, applicable
to everyone (i.e. all natural and legal persons) as well as to governments.

(1) OJ L 334, 18.11.1989.
(2) OJ L 66, 16.3.1979.
(3) OJ L 100, 17.4.1980.
(4) OJ L 141, 11.6.1993.
(5) OJ L 212, 20.8.1977.