WRITTEN QUESTION E-0877/01 by Alexandros Alavanos (GUE/NGL) to the Commission. A. Papandreou Avenue in Piraeus.
Date: 2001-03-27
Institutions: European Parliament, Provisional data
Subjects: Community support framework, Greece, operational programme, road building

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.