WRITTEN QUESTION E-0074/01 by Nicholas Clegg (ELDR) to the Commission. Credit Unions.
Date: 2001-01-22
Institutions: European Parliament, Provisional data
Subjects: consumer credit, credit institution, investment loan, loan, savings, small and medium-sized enterprises

C 187 E/174

Official Journal of the European Communities

EN

3.7.2001

EC Treaty. As far as the disposal system for scrap cars is concerned, both the Netherlands competition
authority and the Commission have received a corresponding notification, which is currently being
examined. In its scrutiny of this notification the Commission applies the above-mentioned principles.
Since the Commission(cid:146)s investigation in this case is not yet completed it is not possible to indicate the
likely outcome. The Commission will not hesitate to inform the Honourable Member when the examina-
tion of the case is completed.

(1) OJ C 3, 6.1.2001.

(2001/C 187 E/185)

WRITTEN QUESTION E-0074/01

by Nicholas Clegg (ELDR) to the Commission

(22 January 2001)

Subject: Credit Unions

Is the Commission aware of, or has it itself carried out any comparative studies on the existence of Credit
Unions across the EU?

Experience suggests that Credit Unions provide an invaluable service by offering loans and savings
accounts to small businesses and individuals who might otherwise be denied such services by mainstream
banks and lending organisations.

Answer given by Mr Liikanen on behalf of the Commission

(27 March 2001)

The Commission is fully aware of the importance of credit unions across the Community. This term covers
both those organisations (credit unions proper) which are organised essentially on a local basis and provide
savings and credit facilities to the individuals who are members, and those organisations more generally
known as mutual guarantee societies (MGS) which provide access to credit
facilities for the small
businesses which belong to them. Credit unions are normally, and MGS often, organised along co-
operative lines. In both cases their major purpose is to facilitate access to credit for their members, to be
used in the case of credit unions normally for expenditure on private consumption, and in the case of
MGS for business investment. Exceptionally, the same organisation may carry out both functions.

Regulatory requirements and traditions regarding both credit unions and MGSs, and the concept of risk-
sharing in general, differ widely across the Member States, as does public support for their development.

Credit unions proper are particularly established in the United Kingdom, for example, where they fall
under the Credit Unions Act of 1979. These unions specialise in the provision of finance to low income
consumers and their objectives under the Act include: the promotion of thrift among members; the
creation of sources of credit for members at a fair and reasonable rate of interest; the use and control of
members(cid:146) savings for their mutual benefit; the training and education of the members in the wise use of
money and in the management of their financial affairs. No Community directives yet apply to these
institutions. Credit unions in Ireland and the United Kingdom are exempt from the prudential regulations
that apply to other credit institutions that are eligible to receive deposits from the public, although in both
of these jurisdictions there are national supervision regimes that apply.

MGSs are sometimes established by small businesses or their representatives together with financial
intermediaries, such as banks. They facilitate access to loan finance by offering guarantees to lenders,
thus helping to address the fact that a large number of small businesses are undercapitalised, and banks
can be reluctant to give loans to them as also launched several smaller comparative studies some years ago.

In order to increase awareness of mutual guarantee schemes, the Commission, following a call
for
proposals, has selected the European Mutual Guarantee scheme (AECM) to organise several conferences
in the Member States, including those Member States where such schemes are underdeveloped.

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In addition, under the 3rd Multiannual Programme in favour of small and medium-sized enterprises (SMEs)
(1997-2000) (1) the Commission launched a pilot action that supported both feasibility studies and the
establishment or the development of a small number of MGSs (including in Ireland and the United
Kingdom).

Under the Growth and Employment Initiative (1998-2000) and the new Multiannual programme for
enterprises and entrepreneurship,
in particular for SMEs (2001-2005) adopted by the Council on
20 December 2000, Community funds aimed at strengthening loan guarantee schemes and MGSs will be
made available and managed by the European Investment Fund (EIF).

The 3rd European Round table of Bankers and SMEs also mentioned in its final report the important role
of MGS and highlighted some of the best practices in Europe (2).

(1) COM(1999) 319 final.
(2)

see: http://europa.eu.int/comm/enterprise/entrepreneurship/financing/round_table.htm#3roundtable.

(2001/C 187 E/186)

WRITTEN QUESTION E-0078/01

by Camilo Nogueira RomÆn (Verts/ALE) to the Commission

(29 January 2001)

Subject:

(cid:146)Purchase for destruction(cid:146) of cattle aged over 30 months to prevent possible consumption of BSE-
infected meat and the implementation of this rule in Galicia

What is the general scope of the rule concerning the (cid:145)purchase for destruction(cid:146) of cattle aged over 30
months adopted by the Agriculture Council at its meting of 4 December 2000 with a view to preventing
possible consumption of meat from cattle infected by BSE ((cid:146)mad cow disease(cid:146))? When will this rule be
implemented in the EU, and how? How will it be applied in Galicia? How many cattle will be affected, and
what technical and budgetary resources will be used?

Answer given by Mr Fischler on behalf of the Commission

(20 March 2001)

A purchase for destruction scheme as laid down in Regulation (EC) No 2777/2000 of 18 December 2000
adopting exceptional support measures for the beef market (1) was adopted by the Commission and entred
into force on 1 January 2001. This is an exceptional market support measure intended to withdraw beef
from the market until 30 June 2001, when testing for bovine spongiform encephalopathy (BSE) of all
slaughtered animals above 30 months (OTM animals) becomes obligatory.

In the meantime, under that Regulation, only OTM animals having tested negative for BSE can be sold for
human consumption while animals which have not been tested should be purchased by Member States
with the view to removing them permanently from the market through a destruction process.

Although the Regulation concerned is applicable in all Member States some of its provisions permit,
nevertheless, certain derogations. Consequently, Denmark, the Netherlands, Austria, Finland and Sweden
are not actively participating in the scheme whereas Germany and Luxembourg are buying OTM animals
despite full testing capacity for all their OTM animals presented for slaughter.

Spain is participating fully in the application of the Regulation but internal problems of technical capacity,
staff training, logistics, etc. have delayed the physical start of the operations.