WRITTEN QUESTION E-0081/01 by Camilo Nogueira Román (Verts/ALE) to the Commission. Imposition on the Spanish regions of a Stability Law requiring a zero deficit in their annual budgets.
Date: 2001-01-29
Institutions: European Parliament, Provisional data
Subjects: Spain, autonomous community, budgetary equilibrium, decentralisation, domestic policy, national budget, regional government, stability pact

C 235 E/112

Official Journal of the European Communities

EN

21.8.2001

Answer given by Mr Byrne on behalf of the Commission

(15 March 2001)

The Commission would refer the Honourable Member to its answer to Written Question P-0117/01 by
Mrs Paulsen (1).

(1) OJ C 187 E, 3.7.2001, p. 189.

(2001/C 235 E/116)

WRITTEN QUESTION E-0079/01

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

(29 January 2001)

Subject: Zero-deficit Spanish national budget for 2001 and respect for the principle of additionality in

implementing the Structural Funds

The Spanish national government has submitted to the national parliament, obtaining its approval,
a (cid:145)balanced(cid:146) budget for 2001 based on a zero deficit, justifying its decision on internal economic grounds
but also invoking the need to comply with the Community agreements on financial stability. This decision
of the Spanish government occurs in highly particular circumstances. For some years now the Spanish
government has been cutting the real wages of public employees, by the device of limiting pay rises to
predicted inflation levels (which always fall short of the reality), while also reducing both investment in
badly needed transport infrastructure and expenditure on R & D (not to mention cuts in other key areas).
At the same time, however, it is raising tax levels to twice the European figures. From the EU perspective,
it is surely particularly disturbing and unacceptable that a state which, every year, receives exceptional
payments under the Structural Funds and the Cohesion Funds should use those funds for the purpose of
balancing its budget and achieving a zero deficit, while at the same time cutting back on investment
funded from its own coffers, thus manifestly failing to comply with the governing principle of additionality
which prevails within the EU. In view of its responsibility for monitoring compliance with the Community
rules on the implementation of Community funds, can the Commission state its position on this attitude of
the Spanish central government? Has the Commission taken any initiative to ascertain whether this zero-
deficit budget of the Spanish state for 2001 has been drawn up and adopted on the basis of a relative
reduction in the national funding which should be earmarked for investment cofinanced by the EU, in
breach of the principle of additionality?

Answer given by Mr Barnier on behalf of the Commission

(15 March 2001)

According to the information forwarded to the Commission by the Spanish authorities, they have in the
past fulfilled all their obligations as regards additionality imposed under the Structural Funds.

During the 2000-2006 programming period, Spain intends to increase structural expenditure by an
average annual of 9,6 % in the case of Objective 1 and 17,4 % in that of Objectives 2 and 3.

(2001/C 235 E/117)

WRITTEN QUESTION E-0081/01

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

(29 January 2001)

Subject: Imposition on the Spanish regions of a Stability Law requiring a zero deficit in their annual

budgets

The Spanish national government has recently adopted (cid:129) in breach of the constitutionally guaranteed
autonomy of the Spanish regions (cid:129) a preliminary draft law, to be submitted to the Congress of Deputies,
which would oblige all administrations, from next year, to draw up their budget on the basis of a zero

21.8.2001

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Official Journal of the European Communities

C 235 E/113

deficit. This measure would be imposed on the regions despite the fact that the national constitution and
their own statutes of autonomy endow them with the legislative power to draw up and adopt their own
budgets, within general national rules which, while limiting deficits, nonetheless permit them, as is the case
for all national or territorial entities enjoying political and legislative autonomy. This decision has been
defended by the Spanish minister Mr Crist(cid:243)bal Montoro, in a speech full of attacks on the opposition
parties in which he alluded to Spain(cid:146)s (cid:145)pioneering(cid:146) role in the EU and to the (cid:145)recommendations of the Santa
Maria da Feira Council(cid:146) held under the Portuguese presidency. It is extraordinary that the Spanish state,
which receives large amounts of funding from the EU and still has major infrastructural deficits to make
up, should dogmatically seek to impose a zero deficit on all budgets, thus riding roughshod over the
statutes of autonomy. Does the Commission consider that these budgetary decisions of the Spanish
government, affecting the regions as they do, are an appropriate response to EU guidelines? Is the
Commission aware that this attitude on the part of the Spanish national authorities is part of a political
offensive intended to reduce the existing powers of the nations and regions of the Spanish state as
recognised by the constitution and the statutes of autonomy?

Answer given by Mr Solbes Mira on behalf of the Commission

(28 March 2001)

In accordance with the (cid:145)Stability and Growth Pact(cid:146) all Member States have committed themselves to
respecting a medium-term objective for the general government budgetary position of close to balance or
in surplus (1). There is broad agreement that achieving this goal contributes to a stable macroeconomic
framework on a sound basis. In the 2000 Broad Economic Policy Guidelines it was recommended that
Spain achieve and possibly improve upon the budgetary targets in the updated Spanish Stability
Programme for 1999-2003, which the Council considered to be in conformity with the Stability and
Growth Pact.

However, the Commission does not suggest how the necessary internal co-ordination between the different
general government sub-sectors should be organised to fulfil the objectives of the Stability and Growth
Pact. This decision lies with each Member State. This is especially relevant for those Member States with
highly decentralised fiscal systems. In the case of Spain, the 2000 Broad Economic Policy Guidelines
recommended continuation and full respect of co-ordination between the regions and the State.
In
addition, the Council Opinion on the updated Spanish Stability Programme 1999-2003 welcomed the
It also particularly
sharing out of
welcomed the fact that the budgets of territorial governments were targeted to be in balance from 2001.

the budgetary adjustment among all sub-sectors of government.

Additionally, it is worth noting that the Commission and Council have always encouraged deficit reduction
strategies relying primarily on current expenditure restraint, which make room for capital expenditure.

(1) OJ C 236, 2.8.1997.

(2001/C 235 E/118)

WRITTEN QUESTION E-0083/01

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

(1 February 2001)

Subject: Aid for development and national self-government in East Timor. Situation of the refugees in West

Timor (Indonesia)

What concrete information is available on the aid granted by the EU for economic and social development
and the setting-up of institutions of national self-government in East Timor, and what is the present
situation concerning this aid? How has this aid contributed to meeting the basic social and economic needs
of East Timor(cid:146)s society? What is the situation of the 1000 refugees in West Timor, who are still the target
of persecution? What action is the EU taking to enable these refugees to return home?