WRITTEN QUESTION E-0631/01 by Eija-Riitta Korhola (PPE-DE) to the Council. Revision of the rules on the expenses and allowances of Members of the European Parliament.
Date: 2001-03-08
Institutions: European Parliament, Provisional data
Subjects: Member of the European Parliament, Statute for Members of the Parliament, allowances and expenses

4.12.2001

EN

Official Journal of the European Communities

C 340 E/53

More intensive co-operation by Community financial market regulators will be the result of an imminent
Commission proposal for a directive on financial conglomerates. The proposed directive will require the
appointment in individual cases of a co-ordinating supervisor. Another step towards closer co-operation
between regulators was taken by setting up the Round Table of Regulators, comprised of the Chairmen
and secretariats of all Community regulatory fora. This is an informal forum for the exchange of ideas and
experience in the field of financial regulation.

In the mean time, there have been several developments contributing to the integration and improved
functioning of government bond markets, notably the introduction of electronic trading in several of the
Member States. There has also been further progress in the co-ordination of issuing techniques/instruments
in the context of the Brouhns Group (3).
In addition, the proposed Directive on collateral (4) should
contribute to improving the functioning of the repro market.

remains rather

In October 2000, the Commission published a further Communication to the Council and the Parliament
reviewing progress in implementing the Risk Capital Action Plan (RCAP) (5). This Communication
confirmed progress in developing Community risk capital markets since the late 1990(cid:146)s, but noted that
the market
small and fragmented. The Communication noted the importance of
implementing those elements of the FSAP that are relevant to risk capital and pointed to actions already
taken e.g. in respect of prudential supervision of supplementary pension funds, harmonised accounting
standards etc. A number of priority areas for action at the national level were also highlighted, i.e. further
relaxation of regulatory constraints on institutional investment in equity markets, continued easing of the
administrative burdens on business have been lightened, removing major disincentive effects of bankruptcy
and insolvency procedures and accelerating relevant tax reforms. While progress in implementing the
RCAP is satisfactory, intensified efforts will be required if the deadline of 2003 (cid:129) as set by the Lisbon
European Council (cid:129) is to be met.

Considerable progress has been made towards concluding the tax package in line with the Helsinki
European Council
at
step was
Santa Maria da Feira in June 2000 on the way forward on the taxation of income from savings. Following
this, a comprehensive agreement was reached in the Ecofin Council meeting on 26-27 November 2000 on
all aspects of the tax package, with a view to seeing its final adoption in the Council by the end of 2002.

the European Council

conclusions. The

agreement

first

at

A report by Commission and Council on the contribution of public finances to growth and employment
was presented to the Stockholm European Council in March 2001. The joint report addresses issues such
as sustaining sound public finances, making tax and benefit systems more employment friendly and
redirecting public expenditure towards physical and human capital accumulation.

(1)

(2)

(cid:145)Proposal for a directive of the Parliament and the Council on the activities of institutions for occupational
retirement provisions(cid:146), COM(2000) 507 final.
(cid:145)Proposal for a regulation of the Parliament and the Council on the application of international accounting
standards(cid:146), COM(2001) 80 final.

(3) The Economic and Financial Committee Sub-Group on Community Government Bonds and Bills.
(4)

(cid:145)Proposal for a Directive from the Council and the European Parliament on financial collateral arrangements(cid:146),
COM(2001) 168 final.
(cid:145)Progress report on the Risk Capital Action Plan(cid:146), COM(2000) 658 final.

(5)

(2001/C 340 E/061)

WRITTEN QUESTION E-0631/01

by Eija-Riitta Korhola (PPE-DE) to the Council

(8 March 2001)

Subject: Revision of the rules on the expenses and allowances of Members of the European Parliament

The European Parliament has proposed revising the rules on Members(cid:146) expenses and allowances in such
a way as to indicate clearly and openly the amount of remuneration payable to Members and to refund
travelling expenses in accordance with actual costs.

C 340 E/54

Official Journal of the European Communities

EN

4.12.2001

Will the Council approve the revision of these rules? What is the intended timetable for the Council(cid:146)s
decision? What practical obstacles are there to a Council decision on the matter?

Reply

(13 July 2001)

In the framework of the draft Statute for Members of the European Parliament, the Council is currently
giving careful consideration to the rules on Members(cid:146) expenses and allowances proposed by the European
Parliament. As the Honourable Member is undoubtedly aware, the draft Statute is the subject of regular
contacts between representatives of the Parliament and of the Council. These contacts are progressing
favourably, but it is too early to predict when a conclusion will be reached.

(2001/C 340 E/062)

WRITTEN QUESTION E-0633/01

by Ioannis Souladakis (PSE) to the Commission

(6 March 2001)

Subject: Deregulation of electricity

The recent electricity crisis in the State of California has highlighted the problems caused by the
deregulation of electricity in this State. There are many reasons for this crisis, such as overcharging for
wholesale prices, the disastrous financial situation of the distribution companies and the failure of the State
authorities to intervene in time. This crisis has also had a variety of consequences which are equally
serious: the risk of a sudden increase in electricity prices, inflationary pressure, a fall in the shares of
companies involved in electricity, the risk of a reduction in the growth rate of the State, etc.

Given that the EU has been moving towards a similar deregulation of electricity for years, will the
Commission say:

1. What studies has it carried out with a view to ensuring a sufficient quantity of electricity without

running the risk of excessive increases in electricity prices?

2. Has it examined safeguards to ensure that the electricity market does not operate solely through the

spot market, but also through long-term contracts?

3. Has it established rules governing the intervention of Member States in the event of electricity
the production

intervention takes place at prices which cover the costs of

shortages, so that
companies without passing costs on to consumers?

4. Has it provided for specific phases of the deregulation of the market in electricity and periods of time
for reviewing deregulation so as to correct any distortions which might result in disruptions of energy
supplies and, consequently, cost increases?

Answer given by Mrs de Palacio on behalf of the Commission

(10 May 2001)

Security of supply is a key objective of European energy policy, as highlighted in the Commission(cid:146)s

1.
recent Green Paper (cid:145)Towards a European strategy for the security of energy supply(cid:146) (1).

On the basis of an analysis of the events in California, the Commission has reached the conclusion (cid:129)
shared by nearly all analysts (cid:129) that the problems in California result from the specific structure of the
market and the regulatory framework in California. This structure is mainly characterized by insufficient
generation capacity, barriers to new entrants and fluctuating, high prices, facilitated by the existence of an
obligatory pool and the exclusion of the possibility of long-term contracts.