WRITTEN QUESTION E-3040/00 by Joachim Wuermeling (PPE-DE) to the Commission. Discrimination against PVC products in Denmark.
Date: 2000-09-28
Institutions: European Parliament, Provisional data
Subjects: Denmark, environmental protection, plastics, tax system, trade restriction

11.12.2001

EN

Official Journal of the European Communities

C 350 E/1

I

(Information)

EUROPEAN PARLIAMENT

WRITTEN QUESTIONS WITH ANSWER

(2001/C 350 E/001)

WRITTEN QUESTION E-3040/00

by Joachim Wuermeling (PPE-DE) to the Commission

Subject: Discrimination against PVC products in Denmark

(28 September 2000)

New legislation has been introduced in Denmark to prohibit and impede the trade in PVC products, inter
alia by imposing higher tax duties and introducing a new criminal offence. The effect of this legislative
measure is to hinder the trade in PVC products in Denmark or to ban their sale completely.

1.

2.

Does the Commission regard this Danish legislation as compatible with EU law?

If not, does the Commission propose to initiate proceedings for breach of Treaty obligations?

Supplementary answer
given by Mr Bolkestein on behalf of the Commission

(11 June 2001)

On the basis of the research carried out concerning Danish law 439 of 26 July 1998, the Commission can
advise the Honourable Member of the following.

The main characteristics of the Danish tax can be enumerated as follows:

(cid:129) the tax is levied on foodstuff packaging folios made of soft polyvinyl chloride (PVC) and is based on

the weight of the folio;

(cid:129) the tax covers goods in headings 3919, 3920, 3921 and 3926 of the Combined-Nomenclature;

(cid:129) it is part of a general system of taxes on consumption and levied irrespective of their origin;

(cid:129) soft PVC is apparently not produced in Denmark; however, substitutes for soft PVC in packaging exist

and are not taxed. Some of these folios are produced in Denmark.

These different aspects of the legislation have been analysed in the light of the non-discrimination principle
of Article 90 (former Article 95) of the EC Treaty, prohibiting any unfavourable tax treatment of goods
coming from other Member States compared to the treatment of similar or competitive goods being
produced nationally.

Nevertheless, this basic principle does not exclude the possibility for Member States to apply a tax
differentiation, that is to say, the possibility for them to give fiscal advantages to certain groups of
products in comparison to other product groups, on the basis of objective criteria (cid:129) such as
environmental considerations (cid:129) and irrespective of the origin of the goods.

C 350 E/2

Official Journal of the European Communities

EN

11.12.2001

The Danish tax aims to discourage all use of soft PVC, regardless of its origin, in Denmark.

Thus, the Commission is inclined to believe that the fact that there is no production of soft PVC in
Denmark is not sufficient to establish a breach of Article 90 alone.

The issue of whether the measures are justified on the basis of environmental considerations will have to
be evaluated in the light of the future Community strategy on PVC, which the Commission intends to
adopt in the course of the coming months. This strategy will be based on the evaluations and assessments
contained in the Green Paper on the environmental issues of PVC (1), the results of the comprehensive risk
assessments carried out in the framework of Council Regulation (EEC) No 793/93 of 23 March 1993 on
the evaluation and control of the risks of existing substances (2), and the numerous reactions received
during the public consultation process launched by this Green Paper. The Parliament has adopted
a resolution on the Green Paper on 3 April 2001.

(1) COM(2000) 469 final.
(2) OJ L 84, 5.4.1993.

(2001/C 350 E/002)

WRITTEN QUESTION E-3148/00

by Ilda Figueiredo (GUE/NGL) to the Commission

(6 October 2000)

Subject: Use of Community funds

The Portuguese company Electro Moagem do Marco S.A., which has approximately 70 employees, has
been active for over 70 years in the food sector and is based in Marco de Canaveses (Portugal), an inland
region with little industrial development.

The company, which holds a quality certificate issued by the Portuguese Quality Institute in 1999, has
allegedly received a significant amount of Community funding for modernisation purposes. However, its
employees are not being paid at the moment and the company is threatened with bankruptcy.

Would the Commission provide the following information: Did Electro Moagem do Marco S.A. actually
receive Community funding? If so, how much? Has the use to which that funding was put been monitored,
with particular reference to the protection of jobs?

Supplementary answer
given by Mr Barnier on behalf of the Commission

(4 July 2001)

Electro Moagem do Marco SA has received Structural Fund aid as follows:

(cid:129) Two projects were approved under the PNCIPA/SIBR (regional

incentive scheme included in the
Community support
framework for the Objective 1 Portuguese regions during the 1989-1993
programming period. The European Regional Development Fund(cid:146)s contribution to these was PTE 51
and 98 million respectively (about € 750 000).

(cid:129) Under the Industry (PEDIP) subprogramme of the Economic fabric operational programme included in
the Community support framework for the Objective 1 regions during the 1994-1999 programming
period two projects were approved:

(cid:129) an enterprise certification project
PTE 5 700 000 (about € 28 500);

(included in measure 3.7) (cid:129) the ERDF contribution was

(cid:129) an investment project

(included in measure 3.3) casting PTE 1 400 000 000 with an ERDF
contribution of PTE 406 000 000 (€ 2 030 000) in the form of reimbursable aid. This project is
now being cancelled owing to the promoter(cid:146)s failure to meet his contractual obligations. The
payments made amount to PTE 324 800 000 (about € 1 620 000).