WRITTEN QUESTION E-0133/01 by Christopher Huhne (ELDR) to the Commission. Schemes to vary national demand.
Date: 2001-01-31
Institutions: European Parliament, Provisional data
Subjects: euro area, exchange rate, financial market, interest, tax system

C 350 E/10

Official Journal of the European Communities

EN

11.12.2001

All the efforts during the last months, at the meetings of the Parties at technical and political level, in close
co-ordination with the most concerned Member States, have been focused on delineating a new framework
for a fisheries partnership which must be mutually beneficial and balanced.

This position will be maintained by the Commission, in line with the directives of the Council.

The Commission reiterates its undertaking to regularly and fully inform the Council, the Parliament, and all
the actors involved of the developments on this key issue over the coming weeks.

(2001/C 350 E/010)

WRITTEN QUESTION E-0133/01

by Christopher Huhne (ELDR) to the Commission

(31 January 2001)

Subject: Schemes to vary national demand

Is the Commission aware of any schemes operating in the Member States of the euro area which have the
effect of varying demand nationally in order to escape the full consequences of an interest rate and
exchange rate operating only for the euro area as a whole?

Will it describe any such schemes?

Does the Commission see any legal or other impediment to:

(a)

(b)

(c)

the variation of capital charges in the banking sector in order to guard against the higher risk of, for
example, property lending;

the variation of tax reliefs or mandatory contributions to pension funds depending on the cyclical
position of the economy;

the taxation or tax relief of interest payments within the territory of a Member State depending on the
projection of the economic cycle?

Answer given by Mr Solbes Mira on behalf of the Commission

(17 May 2001)

In the Community banking sector minimal compulsory capital charges to address risks to the financial
system are established by directives at European level. National authorities may impose higher charges in
order to guard against higher risks. If, however, this increased charges were to be introduced with the
objective of influencing demand growth in a Member State economy, it could be interpreted as acting
contrary to the EC Treaty provisions on the free movement of capital in the cross-border provision of
financial services. Any such barrier would require justification under the relevant EC Treaty provisions.

Under the subsidiarity principle Member States are free to decide on the parameters of their domestic
pension systems, including the potential variation of pension contribution rates as long as they are applied
in a non-discriminatory manner. History shows a number of examples when governments have reduced
unit labour costs through a reduction of indirect labour costs thus causing the real exchange rate to
depreciate (the Honourable Member is referred to an Annex which is sent direct to the Honourable
Member and to Parliament(cid:146)s Secretariat). However, such tax measures are generally taken for structural and
not conjunctural reasons.

11.12.2001

EN

Official Journal of the European Communities

C 350 E/11

Although Member States are free to decide on their tax structure as long as it is applied in a non-
discriminatory manner, it would be very difficult to vary interest taxation according to the cyclical position
of a Member State. Given the lags involved, modifying interest taxation for cyclical purposes would imply
rather distortive effects on financial markets.

Moreover, the provision of tax relief, e.g. for mortgage payments, should be considered as a structural
measure. Changing it for cyclical reasons could distort private sector decisions as these are based upon
long term factors.

(2001/C 350 E/011)

WRITTEN QUESTION E-0181/01

by Patricia McKenna (Verts/ALE) to the Commission

Subject: Recovery plans for fish stocks in the North-East Atlantic

(1 February 2001)

Considering that two-thirds of fish stocks in the North-East Atlantic are below safe biological limits, is the
Commission planning to develop recovery plans for all of these stocks?

(2001/C 350 E/012)

WRITTEN QUESTION E-0204/01

by Catherine Stihler (PSE) to the Commission

(2 February 2001)

Subject: Fish stock recovery plans for north-east Atlantic

Considering that two-thirds of fish stocks in the north-east Atlantic are below safe biological limits, is the
Commission planning to develop recovery plans for all of these stocks?

Joint answer
to Written Questions E-0181/01 and E-0204/01
given by Mr Fischler on behalf of the Commission

(8 March 2001)

The Commission is aware that many fish stocks in the North-East Atlantic are outside safe biological limits.

However, the Commission uses the terminology (cid:145)recovery plan(cid:146) for stocks which are in immediate danger
of collapse. The stocks in question at present are cod in the North Sea, Irish Sea and to the west of
Scotland and the northern hake stock. Recovery plans are either in place (Irish Sea) or are in the process of
being put in place for the others.

For stocks outside safe biological limits but not immediately in danger of collapse, and indeed all other
relevant stocks, the Commission has initiated a process whereby a precautionary approach to management
will be applied. This is already the case for cod, haddock, plaice, saithe and herring in the North Sea where
agreement has been reached with Norway, the joint managers of these stocks with the Community, to
adopt such an approach. Also with Norway, agreement has been reached on application of a precautionary
approach to the North-East Atlantic mackerel stock. In the Baltic and via the International Baltic Sea
Fisheries Commission agreement has been reached to apply a precautionary approach to management of
cod, sprat and salmon.