WRITTEN QUESTION E-0852/01 by Christopher Huhne (ELDR) to the Commission. Budgetary rigour.
Date: 2001-03-22
Institutions: European Parliament, Provisional data
Subjects: Germany, Ireland, budget policy, economic analysis, gross domestic product, inflation, public finance

11.12.2001

EN

Official Journal of the European Communities

C 350 E/51

However, there is no historical data available on the evolution of the number of slaughterhouses over the
past 15 years, as requested by the Honourable Member. The purpose of the lists is to ensure that the
relevant products in Community trade are produced in approved plants and that this can be verified by the
relevant authorities. It had not been the intention to provide statistical information on the number of
plants.

The Commission will review future possibilities for making better use of these lists for statistical purposes,
in line with its resources and other competing priorities.

(2001/C 350 E/053)

WRITTEN QUESTION E-0850/01

by Christopher Huhne (ELDR) to the Commission

(22 March 2001)

Subject: Prior notification of fiscal policy actions

Will the Commission indicate whether it believes that the Finance Ministers of the Member States should
notify the Commission of proposed fiscal policy actions before they take them and, if so, why?

Answer given by Mr Solbes Mira on behalf of the Commission

(20 June 2001)

In its Communication on strengthening economic policy co-ordination within the euro area (1), the
Commission proposed that the principle of informing beforehand other members of the euro area and the
Commission, before adopting an economic policy measure, should form part of a set of rules of conduct
outlined in the Communication.

This pre-informing should take place at the Eurogroup or at the Eurogroup working party of the Economic
and Financial Committee, and should provide the authorities of the Member State concerned with the
reactions or the messages even before the finalisation of the measure at hand.

Similarly, the main points of the stability programmes should be transmitted to the Commission before
their adoption by the Member States.

The Commission has indicated with its Communication that the principle that Member States inform
beforehand the Eurogroup and the Commission of proposed fiscal policy actions before they take them is
important as it allows to assess national policies in the light of the economic situation of the euro area as
a whole and consider the repercussions on other European Monetary Union (EMU) participants.

(1) COM(2001) 82 final.

(2001/C 350 E/054)

WRITTEN QUESTION E-0852/01

by Christopher Huhne (ELDR) to the Commission

(22 March 2001)

Subject: Budgetary rigour

Will the Commission estimate the impact on GDP after one year and the impact on consumer price
inflation after two years of a 1 percentage point discretionary tightening in the general government budget
balance for Ireland and for Germany?

C 350 E/52

Official Journal of the European Communities

EN

11.12.2001

Answer given by Mr Solbes Mira on behalf of the Commission

(21 June 2001)

The quantitative effect of fiscal tightening on real gross domestic product (GDP) and on inflation depends
on a number of factors, which do not allow attaching a single number to the economic multipliers. An
important determinant is the degree of openness of an economy. Effects for small open economies such as
Ireland tend to be smaller than in large economies such as Germany because a larger share of the impulse
would be transmitted to the trading partners. This would apply in particular to a reduction in government
procurement, where a substantial share is imported and the domestic multiplier effect in the Member State
would be accordingly relatively small. If, however, the fiscal tightening were to be achieved by reducing
government employment, the effect would be substantially larger, since this would more directly impact on
the labour market and therefore wages. This is more so for Ireland in current circumstances, which despite
its relative openness to labour migration is characterised by increasing labour shortages. The nature of the
fiscal tightening and the circumstances in relation to capacity constraints are therefore crucial elements in
the assessment.

(2001/C 350 E/055)

WRITTEN QUESTION E-0877/01

by Alexandros Alavanos (GUE/NGL) to the Commission

(27 March 2001)

Subject: A. Papandreou Avenue in Piraeus

The construction of A. Papandreou Avenue in Piraeus which, according to the original plans, will link up
Poseidonos Avenue with Schistou Avenue and began over three years ago has come to a stop, causing
enormous traffic congestion, and its future is now in doubt. The Municipality of Piraeus has reacted to the
construction of the project by calling for underpasses to be built instead of flyovers, and it will probably
ask the courts to issue an injunction.

Given that there are indications at the site that the project is being funded by the EU, will the Commission
say:

1. Can it provide information about the progress of the project, the take-up of funds and the timetable

for completion?

2. Why have delays occurred?

Answer given by Mr Barnier on behalf of the Commission

(21 June 2001)

The (cid:145)Andreas Papandreou Avenue(cid:146) project is being cofinanced by the regional operational programme for
Attica under the Community Support Framework for the 1994-1999 period.

According to information provided to the European Commission by the Greek authorities responsible for
the management of the programme, the initial contract was cancelled on 15 September 2000 by decision
of the Ministry of Physical Planning and Public Works (MPPPW). The explanations given for this decision
concerned problems relating to expropriation procedures and archaeological findings on the site. At that
time, 20 % of the project had been completed entailing an expenditure of GRD 1,86 billion.

Attempts to negociate a new contract have been stalled by discussions in relation to technical aspects of
the project between the MPPPW the municipality of Piraeus. The Commission has written to the Greek
authorities asking them to take the necessary steps to ensure the completion of this project within
a reasonable timeframe.