WRITTEN QUESTION E-1414/01 by Theresa Villiers (PPE-DE) to the Commission. Fiscal State aids.
Date: 2001-05-14
Institutions: European Parliament, Provisional data
Subjects: State aid, aid to undertakings, competition policy, control of State aid, tax system

11.12.2001

EN

Official Journal of the European Communities

C 350 E/147

As mentioned by the Commission, transparency in the financing of political parties is of great importance.
However, in a situation where political parties would be entitled to funding out of the general EU budget,
it may well be that parties would devote parts of their budgets to youth movements, most of which are
independent legal persons. This would not contribute to increased transparency. The most effective and
transparent solution in this respect may be to set up a statute for, as well as a system for direct financing
of, political youth organisations at European level.

Considering this, would the Commission be ready to put forward a proposal concerning a statute and
funding for European youth organisations?

Answer given by Mrs Reding on behalf of the Commission

(29 June 2001)

The Commission is aware of the importance of the activities of political youth organisations in

1.
connection with European integration.

2.
As mentioned by the Honourable Member, these organisations are eligible for financial assistance
under budget line A-3029 (1) of the Commission(cid:146)s general budget provided that, in the same way as other
types of organisation, they meet the conditions and criteria set out in the annual call for proposals
published in the Official Journal (2).

The funding provided in this connection relates to the organisations(cid:146) operating expenses and may not
exceed 50 % of
the
organisations concerned must be in receipt of at least 20 % cofinancing from sources other than the
Commission(cid:146)s budget.

In addition, as stated in the comments on Article A-302,

this expenditure.

The financing arrangements are transparent. The organisations are obliged to declare the Community
financial support they receive, and also in future any Community funding they may receive via the
financing of political parties.

The proposal for a Council Regulation on the statute and funding of European political partie is
3.
currently being discussed in the Council. Given the transparency of
the
Commission does not at this stage see any need to submit a proposal of the same kind concerning
European political youth organisations.

the current arrangements,

(1) The appropriation under budget line A-3029 is intended to cover the provision of funding to international non-

governmental youth organisations working in a European context.

(2) OJ C 11, 13.1.2001, for the 2001 financial year.

(2001/C 350 E/159)

WRITTEN QUESTION E-1414/01

by Theresa Villiers (PPE-DE) to the Commission

(14 May 2001)

Subject: Fiscal State aids

In a statement on 23 February 2000 (IP/00/182) Commissioner Mario Monti said that he had instructed
the Commission(cid:146)s Competition Department (cid:145)to examine all the relevant cases of fiscal State aids in business
taxation, so as to allow the Commission to comply fully and promptly with its own institutional
obligations, also on the basis of the Commission notice on the application of the State aid rules to
measures relating to direct business taxation of 11 November 1998(cid:146).

Could the Commission please explain what action it has taken so far to examine relevant cases of

1.
fiscal State aids in business taxation?

Has the Commission identified any cases where fiscal State aids have been put into effect in breach of

2.
the State aid rules of the Community and, if so, what action has the Commission taken?

C 350 E/148

Official Journal of the European Communities

EN

11.12.2001

3.

Could the Commission provide a breakdown of the number of cases by Member State?

Does the Commission have any plans to amend or update the (cid:145)Communication on the application of

4.
the State Aid rules to measures relating to direct business taxation(cid:146) (SEC(1998) 1800)?

Answer given by Mr Monti on behalf of the Commission

(20 July 2001)

In line with its obligations under the EC Treaty, the Commission investigates and evaluates permanently
new and existing State Aid measures,
including those granted in the form of fiscal aid, pursuant to
Article 88 (ex Article 93) of the EC Treaty. As part of this permanent task, it has started to also scrutinise
all the tax measures that the Code of Conduct Group reported to the Ecofin Council on 29 November
1999.

In this respect the Commission decided on 11 July 2001 to launch aid investigations under Article 88(2) of
the EC Treaty for 11 corporation tax schemes in 8 Member States and to ask to put an end to existing
fiscal advantages, under Article 88.1 of the Treaty, to four Member States. These schemes are no longer
justified following the higher degree of integration of member States economies due to the completion of
the Single Market,
the liberalisation of capital movements and the establishment of economic and
monetary union.

The Commission will continue to scrutinise tax systems in all Member States and it cannot be excluded
that State aid investigations similar to the present, will have to be opened in future.

The Commission is currently evaluating the experience gained in implementing the Communication on the
application of the State Aid rules to measures relating to direct business taxation in order to have a basis
for the possible up-dating of this notice.

(2001/C 350 E/160)

WRITTEN QUESTION E-1417/01

by Robert Goebbels (PSE) to the Commission

(14 May 2001)

Subject: Award of public contracts

On 24 August 1996 a call for tenders (No 96/S 163-97283/FR) was issued by the Commission and
published in the Official Journal of the European Communities for the award of a contract in respect of
removal, transport and handling services.

The contract was awarded to an Italian company. However, it now transpires that the company does not
have a valid authorisation to operate in Luxembourg, which was one of the preconditions. It is therefore
understandable that many of the candidates who did meet all the requirements should feel that the
decision was unfair to them.

Can the Commission answer the following:

(cid:129) Do the relevant Commission services check whether bidders meet all the requirements?

(cid:129) What measures can the Commission normally take when it is established after the event that a bidder

does not meet one or more requirements?