WRITTEN QUESTION E-1243/01 by Juan Naranjo Escobar (PPE-DE) to the Commission. Relations between the ECB and central banks in the eurozone.
Date: 2001-04-26
Institutions: European Parliament, Provisional data
Subjects: European Central Bank, central bank, euro area, financial control

4.12.2001

EN

Official Journal of the European Communities

C 340 E/203

the restructuring of dealership networks is a normal
The Commission would also underline that
commercial decision, and one whose essential legitimacy is recognised in the Regulation. The main rules
governing the right to terminate a dealership will be set out in an individual dealer(cid:146)s contract, and will be
subject to any over-riding rules of national
law. Article 5 of Regulation (EC) No 1475/95 provides
additional protection by stipulating that a manufacturer wishing to terminate a dealership must give two
years(cid:146) notice, or one year(cid:146)s notice should a re-structuring of the dealership network become necessary. In
case of dispute, the Regulation provides for reference to an expert third party or an arbitrator, without
prejudice to the parties(cid:146) right to apply to a national court.

The Commission notes that several manufacturers have carried out network re-structuring in recent years,
and it is aware that DaimlerChrysler is currently re-structuring its network in the United Kingdom.
Although most of this re-organisation would seem to simply involve the merging of existing exclusive sales
territories and the consequent termination of dealerships, the Commission understands that DaimlerCh-
rysler is taking direct control of Mercedes sales and marketing in several metropolitan areas.

The Commission is also aware that certain british Mercedes dealers have taken DaimlerChrysler to court in
the United Kingdom, alleging a breach of contract. While the british courts have the necessary legal
competence to apply the Regulation should this be necessary, the Commission would be pleased to answer
any questions that the british judges might put as to its interpretation, pursuant to the Notice on Co-
operation with National Courts (2).

(1) OJ L 145, 29.6.1995. The Commission adopted an Evaluation Report on Regulation (EC) No 1475/95 on
15 November 2000. The report is available on the Internet at http://europa.eu.int/comm/competition/car_sector/
distribution/eval_reg_1475_95/report/#report.

(2) OJ C 39, 13.2.1993.

(2001/C 340 E/233)

WRITTEN QUESTION E-1243/01

by Juan Naranjo Escobar (PPE-DE) to the Commission

(26 April 2001)

Subject: Relations between the ECB and central banks in the eurozone

In the context of the debate in various Member States, including Germany, Belgium and Austria, where
governments are discussing the possibility of creating either a supervisory body independent of their
respective central banks, or a single supervisory body for the banking, securities and insurance sectors, the
European Central Bank has defended the financial supervisory role played by the central banks in the
eurozone. In the opinion of the ECB, the fact that the central banks of eleven countries that share the same
currency have lost control over the creation of money does not imply a conflict between their new
banking supervisory tasks and their monetary policy functions.

What is the Commission(cid:146)s position with regard to the possibilities being discussed by these Member States?
What is the likelihood, in the future, of conflicts of interest or centres of concentration of power, should
the central banks adopt less rigorous policies than are necessary to achieve the objective of price stability
in the event of a crisis in the banking system?

What steps is the Commission taking to encourage both the creation of links between the ECB and the
central banks of the eurozone, and other means of cooperation and information exchange between these
institutions?

Answer given by Mr Solbes Mira on behalf of the Commission

(2 July 2001)

The debate on the relationship between the central banking function and the supervisory function has
a long history. The debate revolves around differing views on the likely interactions between a central
bank(cid:146)s role as a supervisor and its role in conducting monetary policy. On one side, it is argued that the

C 340 E/204

Official Journal of the European Communities

EN

4.12.2001

knowledge acquired by a central bank in its day-to-day dealings with the banking system enhances its
effectiveness as a financial supervisor. On the other side, it is argued that responsibility for the smooth
functioning of the financial system (including the possible need to provide emergency lending assistance)
risks interfering with the central bank(cid:146)s freedom of action in the conduct of monetary policy.

The fact that the two models (cid:129) supervision independent from the central bank and supervision within the
central bank (cid:129) are represented in the Community, suggests that the arguments for or against either model
are not conclusive. Nevertheless, it is the case that the introduction of the euro, combined with processes
of globalisation, technological change and deregulation, is leading to rapid and on-going changes in the
financial markets. As a result, the supervisory framework must be kept under constant review to ensure
that it remains appropriate.

In this context, two reports have been made by the Economic and Finance Committee to Finance Ministers
over the last year (cid:129) the first on crisis prevention and the second on crisis management. Both reports have
stressed that, while the existing institutional arrangements have served well, the practical functioning of
those arrangements must be enhanced. A series of recommendations have been made to that effect. Many
of these relate to the need for improved co-ordination and exchange of information among the relevant
authorities (central banks, Ministries, and supervisory authorities) at cross-sectoral, national, and European
levels.

Priority must now be given to ensuring that these recommendations are implemented.

In the longer-term, however, a more far-reaching rationalisation of current arrangements may be
necessary. Without pre-judging the model of supervision which may ultimately prove desirable, the issue
of whether the stability of an integrated Community financial system can best be assured by having a single
forum, rather than several, for co-ordination and information exchange must be studied carefully.

(2001/C 340 E/234)

WRITTEN QUESTION E-1249/01

by Per Stenmarck (PPE-DE) to the Commission

(26 April 2001)

Subject: Competition

A major threat to competition and diversity currently exists in the field of goods transport. Many large,
state-owned firms such as Deutsche Bahn and the SNCF compete on deregulated markets in other
countries, with the aid of state funds. This results in a distortion of competition because other firms cannot
compete under the same conditions. What does the Commission plan to do to prevent this distortion?

Answer given by Mr Monti on behalf of the Commission

(6 July 2001)

The recently adopted Directive 2001/12/EC (1) is aimed at developing competition in the rail sector, in
particular for goods transport. This Directive, which is still to be implemented by the Member States,
freight and
requires amongst others that railway undertakings shall keep separate accounts for rail
passenger services. I also makes it clear that public funds paid for public service activities may not be
transferred to activities relating to any other transport service or any other activity.
In addition to
legislative measures the Commission is also making use of the competition law, in particular state aid rules
as a mean to enhance competition in the rail sector.

As regards the application of European competition law (e.g. rules on antitrust and state aid)
the
Commission is actively pursuing a number of cases based on either complaints or ex-officio procedures.
Although the Commission is not challenging the legal and factual possibilities for publicly owned
enterprises to invest and expand commercially it will, under these rules, have to satisfy itself that when