WRITTEN QUESTION E-1552/01 by Terence Wynn (PSE) to the Commission. French tax provisions for foreign life insurance.
Date: 2001-05-28
Institutions: European Parliament, Provisional data
Subjects: France, infringement of EU law, life assurance, restriction on competition, tax system

C 364 E/144

Official Journal of the European Communities

EN

20.12.2001

(2001/C 364 E/158)

WRITTEN QUESTION E-1549/01

by Alexandros Alavanos (GUE/NGL) to the Commission

(28 May 2001)

Subject: 20 % penalty in respect of tobacco subsidies for 1997 in southern Serrai (Greece)

In July 1998, the Commission imposed a penalty in respect of subsidies for Basma tobacco producers in
southern Serrai (Greece) because of delays in the signing and registration of contracts in respect of the
1997 harvest.

This failure to sign and register the contracts which did not apply to all producers was due to the
unreliability of certain manufacturing companies and negligence and failure to act on the part of other
bodies involved in the process.

Given that this penalty caused major financial losses to tobacco producers in the area concerned, most of
whom are small producers who derive their sole source of income is tobacco production and are unable to
cultivate other crops, will the Commission re-examine the penalty imposed on the Basma tobacco
producers of southern Serrai in 1997, not only to compensate them for loss of income but also to satisfy
their sense of justice, since they were in no way responsible for the failure to sign and register contracts
with manufacturers?

Answer given by Mr Fischler on behalf of the Commission

(16 July 2001)

Articles 2 to 5 of Commission Regulation (EEC) No 3478/92 laying down detailed rules for the application
of the premium system for raw tobacco (1), which applied to the 1997 harvest, lay down the conditions
and periods for the signature of contracts between producers and processing firms and for submission of
those contracts for registration.

The cultivation contract is an essential element of the premium system under the market organisation for
raw tobacco. The deadlines for conclusion and registration of these contracts early enough must be fixed
early enough because of the need to ensure from the beginning of the harvest year both a stable outlet for
producers for their future harvest and regular supplies to the processing undertakings.

Accordingly, Article 3(3) of
reduction in the premium if they are exceeded.

the above Regulation lays down these deadlines and prescribes a 20 %

The Commission regrets the financial loss suffered by the producers of Basmas tobacco in Serres in 1997.
However, it considers that, if the factors resulting in the reduction of the premium exist, application of the
provision in question is fully justified.

(1) OJ L 351, 2.12.1992.

(2001/C 364 E/159)

WRITTEN QUESTION E-1552/01

by Terence Wynn (PSE) to the Commission

(28 May 2001)

Subject: French tax provisions for foreign life insurance

French tax provisions for foreign life insurance policies are different from those stemming from French
contracts. Hence, one constituent living in France with an English life insurance policy will be expected to
pay 17,5 % tax, whereas a French life insurance policy would only incur a rate of 7,5 %. What measures
has the Commission taken since the original complaint (No 1999(4835) to rectify the situation?

20.12.2001

EN

Official Journal of the European Communities

C 364 E/145

Answer given by Mr Bolkestein on behalf of the Commission

(26 July 2001)

Acting on the complaint to which the Honourable Member refers, the Commission studied the relevant
legislation and asked the French authorities for further information, following which they were sent a letter
of formal notice.

The French legislation categorically rules out discharge of withholding tax at the special rate (taux du
prØlŁvement libØratoire) where income is derived from investments or policies under Articles 125-0 and
Article 125 A of the Code GØnØral des Imp(cid:244)ts (CGI) and the person liable is not resident or established in
France. The Commission considers this to be incompatible with Articles 49 (ex 59) and 56 (ex 73B) of the
EC Treaty.

In the light of the French authorities(cid:146) reply to the letter the Commission will shortly decide whether to
issue a reasoned opinion under Article 226 (ex 169) of the EC Treaty.

(2001/C 364 E/160)

WRITTEN QUESTION E-1554/01

by Mar(cid:237)a Rodr(cid:237)guez Ramos (PSE) to the Commission

Subject: A thermal power plant to be built in Tordesillas, Spain

(28 May 2001)

The American multinational ENRON wants to build an 800 megawatt natural gas and diesel oil power
plant on the outskirts of Tordesillas which, according to data supplied by the company, will release
2 540 000 tonnes of carbon dioxide (the main cause of climate change), 2 100 tonnes of nitrogen oxides,
191 tonnes of sulphur dioxide, 545 tonnes of carbon monoxide and other pollutants into the atmosphere
every year.

This project is being planned in an Autonomous Region which produces three times more electricity than
it consumes. It is therefore obviously already producing a surplus.

The plant would be located only 2 kilometres from Tordesillas, a town with 8 000 inhabitants, and 5 km
from the only protected natural area in the province of Valladolid (cid:129) the Riberas de Castronuæo nature
reserve (cid:129) and only a few kilometres from the vineyards producing wine under the registered designation
of origin (cid:145)Rueda(cid:146).

At Kyoto the EU undertook to reduce CO2 emissions by 8 % compared with 1990 levels. Spain is obliged
not to exceed certain emission values by 2010 (1,15 times the 1990 level).
If the power plant at
Tordesillas is built, according to the figures estimated by the company itself, the annual CO2 emissions
would exceed 2,6 million tonnes, a 10 % increase in the total for Castile and Leon, and prevent Spain from
meeting the Kyoto objectives.

Does the Commission have an active monitoring system to prevent the Member States from authorising
new power plants which would make it impossible to comply with the Kyoto agreements?

Answer given by Mrs Wallstr(cid:246)m on behalf of the Commission

(24 July 2001)

The Commission is not in a legal position to impose a certain energy supply policy on a Member State.
Choice of sources of energy supply falls within the competence of Member States.

In addition the Kyoto Protocol is not yet a legal binding agreement and therefore cannot provide a mandate
for any enforcement.

Member States decide how they choose to meet the politically agreed emission reduction targets. Under
certain circumstances new power plants may help to reduce greenhouse gas emissions. This may be for