WRITTEN QUESTION E-1890/01 by Ioannis Marínos (PPE-DE) to the Commission. Loss of VAT revenue in Greece.
Date: 2001-06-27
Institutions: European Parliament, Provisional data
Subjects: Greece, VAT rate, tax avoidance, tax evasion

C 160 E/4

Official Journal of the European Communities

EN

4.7.2002

set them off there, or in Germany, outside the permitted period (which extends from 6 p.m. on NewYear’s
Eve to 7 a.m. on New Year’s Day). This is an offence, constitutes an intolerable noise nuisance for people
and animals, particularly in the months of November and December, and flies in the face of health,
environmental and nature protection requirements. A huge number of complaints has been filed by
residents on both sides of the border. The forces of order are unable to remedy this state of affairs.

Are there any plans to impose uniform and more stringent restrictions on the sale of fireworks and

1.
pyrotechnic products within the EU?

2. Why is the unrestricted sale of fireworks and pyrotechnic products not completely banned in view of
the high incidence of personal
injuries and environmental damage associated with their use and the
dangers involved in storing such items?

Answer given by Mr Liikanen on behalf of the Commission

(5 September 2001)

There is no specific Community legislation on the safe use of fireworks. It is the Member States which
determine and enforce rules on fireworks which can be adapted as necessary to fit local circumstances. The
Commission is not convinced that a Community Directive on the marketing and use of fireworks would be
a more effective solution in terms of prevention of accidents.

As regards the safe use of fireworks as indicated in the Commission’s reply to the Honourable Member’s
Written Question E-1569/01 (1),
fireworks placed on the Community market are subject to Council
Directive 92/59/EEC of 29 June 1992 on General Product Safety (2) which applies to fireworks, as well as
to many other products. Under this Directive, manufacturers must ensure that the products they place on
the market meet acceptable safety standards. It also requires the Member States to monitor products on the
market and to inform other Member States of any problem products, which can be withdrawn if necessary.

As regards the cross-border transfer of fireworks, as with all goods that are approved for legal use in one
Member State, they are typically able to circulate freely within the Community (Article 28 (ex Article 30) of
the EC Treaty)). Under Article 30 (ex Article 36) of the EC Treaty this does not preclude prohibitions or
restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or
public security. Such prohibitions or restrictions must not, however, constitute a means of arbitrary
discrimination or a disguised restriction on trade between Member States.

(1) See page 2.
(2) OJ L 228, 11.8.1992.

(2002/C 160 E/004)

WRITTEN QUESTION E-1890/01

by Ioannis Marínos (PPE-DE) to the Commission

(27 June 2001)

Subject: Loss of VAT revenue in Greece

The newspaper To Vima of 23 May 2001 reported the findings of the organisation responsible for fighting
economic crime in Greece that the loss of VAT revenue in that country amounts to the significant sum of
Drs 1,5 trillion. These findings have not been disputed by any other competent authority.

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Will the Commission say what the findings and the figures are in this respect in the other Member States,
and whether the level of tax evasion affects the VAT base and, consequently, the level of the Union’s own
resources?

Answer given by Mr Bolkestein on behalf of the Commission

(24 September 2001)

The Commission is aware of several national studies on VAT fraud. However, these studies are very
approximate and may have sharp diverging results. Since no reliable and comparable methods measuring
the level of fraud are available, the Commission cannot draw firm conclusions in this respect for other
Member States.

VAT fraud can influence the overall financial weight of Member States contributions to the Community’s
budget. Member States’ budget contributions are determined on the basis of the best available information.
Several types of fraud have been detected in the present VAT system, affecting pure domestic trade as well
as intra-community and international trade. Moreover an increasing problem of fraud affecting intra-
community trade and international trade has been identified. The Commission has analysed Member States
VAT receipts and has concluded that, although detected fraud in intra-Community trade accounts for a
considerable loss of receipts in absolute terms, it does not appear to have a tangible impact on VAT
receipts. In this context, the Commission would recall that on 28 January 2000 it submitted to the Council
and the Parliament a report constituting a comprehensive examination of each Member State’s VAT
control system and that it has therefore fulfilled its undertaking (1).

(1) COM(2000) 28 final.

(2002/C 160 E/005)

WRITTEN QUESTION E-1915/01

by Salvador Garriga Polledo (PPE-DE) to the Commission

Subject: Reform of price-fixing policy for pharmaceuticals

(28 June 2001)

Recent developments in the pharmaceuticals sector have pointed up the need for a collective and global
approach to the problem of price-fixing policy for pharmaceutical products, with a view to adapting that
policy to new circumstances and events in the health field at world level.

It is already clear that the international agreements on patents need reforming and that the pharmaceutical
industry must operate a change in attitudes which is more than thirty years overdue.

In view of these developments in the sector and the major impact which a reformed regulation of the
market in pharmaceuticals would have at world level, does the Commission believe it should make a
particular contribution by calling for a global debate and a set of proposals aimed at achieving a fair
balance between the health needs of today’s world and the business practices of the pharmaceutical
industry?

Answer given by Mr Lamy on behalf of the Commission

(12 September 2001)

Universal access to basic health services is extremely important, and achieving that goal in a way which
will make a significant contribution to poverty reduction will require a strong international effort. In the
context of the fight against the three main communicable diseases (human immunodeficiency virus/
acquired immune deficiency syndrome (HIV/AIDS), malaria and tuberculosis), the Commission has called
for global tiered pricing to be applied in order to bring about a significant reduction in the cost of key
pharmaceuticals to sufferers in developing countries. However, the Commission has not called for ‘a
reformed regulation of the market in pharmaceuticals’, nor does it advocate any kind of mandatory price-
fixing.