WRITTEN QUESTION E-3097/00 by Juan Naranjo Escobar (PPE-DE) to the Commission. Rising price of oil.
Date: 2000-10-04
Institutions: European Parliament, Provisional data
Subjects: EU policy, energy policy

C 151 E/62

Official Journal of the European Communities

EN

22.5.2001

waste in certain circumstances. In addition all ships calling at Community ports have to contribute to the
financing of the facilities, irrespective of whether they deliver waste or not. This, coupled with spot checks
by the authorities, should greatly reduce the problem of oil pollution by ships, in cases such as that
described by Honourable Member.

Moreover, a new decision of the Parliament and of the Council setting up a Community framework for
cooperation in the field of accidental or deliberate marine pollution should be soon finalised. This decision,
once adopted, will in particular allow the development of joint initiatives such as workshops or training
courses aiming to strengthen the measures taken by Member States against illicit operational spills from
vessels.

(1) Not yet published.

(2001/C 151 E/074)

WRITTEN QUESTION E-3097/00

by Juan Naranjo Escobar (PPE-DE) to the Commission

(4 October 2000)

Subject: Rising price of oil

The year 2000 has provided further evidence of the instability in oil prices, the grave repercussions of
which highlight the high dependency of the EU on hydrocarbons for its energy. Europe consumes 19,6 %
of the oil on the world market. Moreover, according to the Europe 2020 study published by the
Commission, average dependency on external energy in Europe is rising from 50 % to 70 %. We are now
witnessing the third increase in crude oil production so far this year, with output having been increased by
800 000 barrels a day in the hope of bringing the price of oil into line with worldwide growth. Contrary
to the predictions made about it, oil has once again highlighted the volatility capable of affecting this
market.

In such circumstances, what measures is the Commission adopting to manage the demand for energy and
energy savings and to develop domestic resources, thereby finally giving a boost to renewable energies?

What criteria does the Commission advocate for Member States as regards the management of strategic
resources?

In the economic forecasts it presented last April, the Commission predicted that inflation would remain at
1,8 % this year and stand at 1,7 % in 2001, the assumption being that the price of a barrel of oil would
remain more or less stable at around USD 24,50. That assumption no longer reflects the real situation.
Will the Commission, therefore, revise its calculations when it presents its economic forecasts this coming
autumn? Has it entertained the possibility that oil companies might be reaching certain price-fixing
agreements as a means of distorting competition, contrary to the provisions set out in Articles 81 and
82 of the Treaty?

Answer given by Mrs de Palacio on behalf of the Commission

(24 November 2000)

The present high price of oil is largely beyond the control of policy makers in the consumer countries in
terms of supply and underlines the need to continue developing a new demand strategy aimed at the
gradual replacement of oil by other energy sources, the increased use of renewable and alternative energy
sources, demand management, the improvement of energy efficiency, and the promotion of energy
savings,
in particular in buildings. As announced in its recent communication on oil supply in the
European Union (1), the Commission will present a plan on energy savings and diversification covering
both the boosting of energy efficiency, in particular in buildings, and support for the development of a
in Gothenburg. In addition, the future and the
new generation of vehicles at the European Council

22.5.2001

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Official Journal of the European Communities

C 151 E/63

respective places of the different energy sources (oil, coal, gas, nuclear, renewables) is the subject of a
Green Paper on security of supply which will be adopted by the Commission by the end of 2000.

With regard to the use of strategic reserves, the Commission will be examining how strategic oil stocks
could be strengthened by pooling their use at Community level. In order to combat speculative move-
ments, ways need to be found, similar to those used in the money markets, to limit price volatility.

As regards the impact on economic forecasts, if oil prices remain around USD 30 per barrel for the rest of
this year, the negative impact on growth of the price rise should be 0,3 % for 2000 and 0,5 % for 2001.
The price rise would add 1 % to inflation.

As far as competition is concerned, the Commission does indeed believe that, even if some cost factors
may vary from one Member State to another, oligopolistic behaviour and a lack of competition in
distribution are the only explanation for the significant price differences, excluding duties and taxes,
between Member States. This diagnosis obviously raises the question of whether or not
there are
infringements of competition law, in particular whether cartels exist (price fixing). The national authorities
of a number of Member States have started investigations on this subject. In Italy and Sweden, sanctions
have been imposed on petrol companies by the competition authorities. In general terms, it is essential to
promote a more open and competitive structure in the fuel distribution sector. A critical factor is the
development of a genuine internal market for refined products (in the wholesale market) to make for ready
and competitive supplies to all distributors, including those who are not national refiners.

(1) COM(2000) 631 final.

(2001/C 151 E/075)

WRITTEN QUESTION P-3105/00

by Florence Kuntz (UEN) to the Commission

(26 September 2000)

Subject: VAT rates applicable to the catering industry in the European Union

Certain Member States, including Spain and Portugal, were granted derogations to the Treaty at the time of
their accession to the European Union, thus making official the practice prevalent in those countries of
applying reduced or low VAT rates in the catering sector. These supposedly transitional arrangements (cid:129)
but with no exact date for the end of the transitional period (cid:129) were introduced in 1992 and the legislation
governing this matter is the 6th VAT directive.

As a result, other Member States which apply a higher rate in the catering industry are seriously harmed
by this distortion of competition, in terms both of employment, given that this area of activity employs
large numbers of people, and of the industry(cid:146)s turnover.

Could the Commission therefore say:

(cid:129) what reasons justify the failure to set a precise date for the end of the transitional period from which
some Community Member States are benefiting with regard to VAT, and what conditions must be met
before a precise date for the end of this period can be proposed to the Ecofin Council?

(cid:129) what measures can be envisaged with a view to putting as early a stop as possible to the serious

violations of the European Union(cid:146)s competition policy taking place in this area of activity?

(cid:129) why certain provisions of the 6th directive prevent the countries with no derogations to its provisions

from lowering the VAT rates applicable to the catering industry?