WRITTEN QUESTION P-2013/01 by Joan Colom i Naval (PSE) to the Commission. Aid for the meat marketing sector in the wake of BSE.
Date: 2001-07-03
Institutions: European Parliament, Provisional data
Subjects: EU action, State aid, beef, bovine spongiform encephalopathy, public awareness campaign, slaughter of animals, trading operation, veterinary legislation

C 40 E/162

Official Journal of the European Communities

EN

14.2.2002

The best recipe to reduce or manage geopolitical risks and to ensure security of supply for Europe is
clearly one based on free trade; integration of open markets and closer co-operation with external suppliers
and transit countries. A reciprocal integration and opening of upstream and downstream markets will also
attract capital to undertake necessary investments in production and transportation infrastructure.

On the occasion of the Union-Russian Summit of 30 October 2000 in Paris, it was agreed to institute an
energy dialogue on a regular basis between the Community and Russia to enable progress to be made in
the definition and arrangements for a Union-Russian Energy Partnership. Its overall objective is to improve
energy relations, while ensuring that the policies of opening and integrating energy markets are pursued.

With a view to enhancing the reliability of energy supply between Russia and the Community, the Joint
Statement from the Russia-Union Summit held in Moscow on 17 May 2001 identified an assessment of
the reliability of the existing energy transport infrastructure as a priority.

Community gas suppliers have a range of instruments available to ensure security of supply in case of
disruption of supplies, including underground gas storage. The Community(cid:146)s storage capacity has increased
significantly these last years. Continued diversification of supply including from liquified natural gas is also
a key objective. Being surrounded by around 80 % of the world(cid:146)s total proven gas reserves within an
economic distance, the Community is in a relatively comfortable gas supply situation and world gas
reserves are considered to be abundant.

The potential of domestic Community gas production should, however, not be underestimated either. The
Commission is currently examining, in close liaison with gas producers, both internal and external gas
supply prospects with a view to ensuring continued security of supply of gas to Europe and an appropriate
and stable framework conducive to investments in the gas sector.

In recognition of the strategic importance of security of supply, the Commission is recommending in its
proposal for amending the existing internal market Directive for gas (2) that Member States shall designate
a body to monitor security of supply issues, and in particular the supply/demand balance in its national
market and the level of expected future demand and available supplies.

(1) COM(2000) 769 final.
(2) COM(2001) 125 final.

(2002/C 40 E/174)

WRITTEN QUESTION P-2013/01

by Joan Colom i Naval (PSE) to the Commission

(3 July 2001)

Subject: Aid for the meat marketing sector in the wake of BSE

The BSE crisis in the cattle sector led the Commission to approve aid to producers hit. However, those
involved in marketing meat products were equally badly hit (cid:129) butchers, offal merchants, meat
transporters, meat suppliers, slaughter house staff, etc. They have all suffered major losses, and many of
their businesses have been virtually ruined. While this is a general problem throughout the EU,
in
Barcelona and the surrounding province, we have the additional specific problem that this sector is mainly
concentrated in municipal markets (cid:129) i.e. we are speaking about (cid:145)specialist tradesmen(cid:146) (cid:129) which are
restricted to the sale of beef and mutton, and cannot diversify in terms of the products they sell (which
would not be the solution either, given the particular idiosyncrasies of the markets in which they work).
This means that their situation is even more worrying than that of their counterparts in the rest of the EU,
since the latter are, in many cases, in a position to diversify the products on sale in their shops and sales
points. Data supplied by the sector in Barcelona shows that sales fell by as much as 70-80 % for butchers

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Official Journal of the European Communities

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and almost 100 % for offal merchants, and that these figures now stand at 50-60 % for butchers and 80 %
for offal merchants. In financial terms, the average loss is between € 3 000 and 6 000 per business, or
worse where loss of activity has led to staff being paid off.

What specific action has the Commission taken to mitigate the effects of the crisis, which could lead to
many small family businesses in this sector closing down? Does the Commission intend to take any steps
to assist this sector in respect of the damage caused by BSE? Does the Commission believe that economic
measures should be adopted for those undertakings which have been obliged to cease trading as a result of
the crisis?

In view of the precedents, e.g. swine fever, does the Commission believe that by lifting the embargo, the
treatment applied to the UK has been similar to that given previously to other countries?

Answer given by Mr Fischler on behalf of the Commission

(4 September 2001)

No Community aid has been paid to beef and veal producers to help them cope with the recent bovine
spongiform encephalopathy (BSE) crisis. However, following pressing demands for support of this type
from certain Member States, the Commission agreed at the Agriculture Council held on 26 February 2001
to examine national aid proposals which complied with the rules laid down by the EC Treaty. Scrutiny of a
number of such proposals is currently nearing completion.

Where trade and distribution are concerned, no specific measures are planned. However, the possibility of
granting national aid to these sectors could also be investigated. This was done at the time of the 1996
BSE crisis, when the United Kingdom was authorised to assist the slaughter industry in order to maintain
operations and preserve jobs.

In addition to the specific measures taken in connection with the management of the market in beef and
veal under the rural development support scheme governed by Council Regulation (EC) No 1257/1999 of
17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee
Fund (EAGGF) and amending and repealing certain Regulations (1), Member States can propose support
measures aimed at improving the marketing of agricultural products. It should be pointed out, however,
that investments at retail
level are ineligible for support. In this same context of rural development
programming, Member States can propose measures aimed at diversifying activities linked to agriculture
and encouraging craft activities.

The steps taken by the Community to mitigate the effects of the crisis have been aimed in particular at
keeping the entire beef and veal production chain in operation as far as possible through:

(cid:129) the purchase and storage of meat suitable for consumption, and the purchase of slaughtered animals

of over 30 months which have not been screened for BSE,

(cid:129) encouragement for exports,

(cid:129) information measures targeted at importing countries,

(cid:129) hygiene measures aimed at restoring consumer confidence and, therefore, domestic demand,

(cid:129) a seven-point plan, recently approved by the Council, aimed at increasing the environmental and

social sustainability of Community beef and veal.

The Commission considers that there has been no discriminatory treatment.

(1) OJ L 160, 26.6.1999.