WRITTEN QUESTION P-2109/01 by Mihail Papayannakis (GUE/NGL) to the Commission. Price differences in the EU.
Date: 2001-07-10
Institutions: European Parliament, Provisional data
Subjects: economic convergence, economic reform, price disparity, single market

20.12.2001

EN

Official Journal of the European Communities

C 364 E/245

While the BMW region does not equate exactly with the Connaught and Ulster area because of the
inclusion of Counties Longford, Louth, Westmeath, Offaly and Laois, figures for this region are the most
accurate available at
for 2000 of
IEP 23 110 000 in the BMW region.

this time and indicate a drawdown, under

the EMPHRD OP,

For the 2000-2006 programming round, additional assistance is allocated to the BMW region through the
Border, Midland and Western Region Objective 1 OP. The allocation to this region for 2000 amounts to
€ 1 880 000.

(2001/C 364 E/270)

WRITTEN QUESTION P-2109/01

by Mihail Papayannakis (GUE/NGL) to the Commission

(10 July 2001)

Subject: Price differences in the EU

At the end of May the Commission presented the initial results of its survey into price differences on the
European market with regard to two sectors: electronic goods and fresh products. The survey shows that
prices for certain electronic goods may diverge by up to 40 % from one Member State to another, while
prices for fresh products may vary by a factor of three. Significantly, the Commission notes that European
consumers could make savings averaging around 12 % if they purchased each product at its lowest sale
price in the EU.

Such a situation cannot be seen as constituting a genuine single market. Can the Commission specify the
reasons for these price differences among the EU Member States and indicate what steps it will take to
favour greater price convergence in the sectors concerned?

Answer given by Mr Bolkestein on behalf of the Commission

(4 September 2001)

Price convergence should take place in a competitive and efficient economic environment where
competition drives prices to converge at the lower levels of the price range. This is essential to realising
the full potential of the Internal Market to the benefit of consumers.

The Commission considers that prices are the best indicators of market performance, especially from the
point of view of consumers and consequently, the monitoring of price differences within the Internal
Market is being improved. Issue n. 8 of the Internal Market Scoreboard released the first results of this
improved monitoring. Further results will be published in the Commission(cid:146)s Cardiff report on the
functioning of product and capital markets before the end of this year. Results to this date confirm the
persistence of significantly high price dispersion in the fresh fruit and consumer electronics sectors.

Detailed information on price differences at the market level is indispensable to identify the origin of those
differences. Even in a perfectly integrated market, factors such as differences in consumers tastes or
preferences, transport costs and the tradability of some goods can result in price differences. These latter
factors explain part of the high price differences that are observed in some fresh food goods.

At this stage of its monitoring process, the Commission cannot draw definitive conclusions, but there is
evidence pointing to the existence of other causes of a structural nature which, while being compatible
with the EC Treaty, are not compatible with a well-functioning Internal Market. This evidence suggests that
factors such as differences in distribution systems and regulatory differences could explain a significant part
of remaining price differences. In those cases, structural reforms would be needed in order to improve
market performance. Most of those structural reforms have to be implemented at the national level. The
recommendations issued in the Broad Economic Policy Guidelines will contribute to that end.

C 364 E/246

Official Journal of the European Communities

EN

20.12.2001

At Community level, the implementation and development of the economic reform programme laid down
in the conclusions of the Lisbon European Council
to
undertake the necessary reforms to eliminate regulatory and structural barriers which not only are
obstacles to price convergence but also and more importantly hinder Community(cid:146)s market performance.

is the best instrument

(23/24 March 2001)

(2001/C 364 E/271)

WRITTEN QUESTION E-2121/01

by Johannes Voggenhuber (Verts/ALE) to the Commission

(13 July 2001)

Subject: The influence of certain consolidation measures by the Republic of Austria on the financial
balance of the State sector in accordance with the European System of Integrated Economic
Accounts (ESA) 95

As part of measures to consolidate the budget in order to achieve a balanced State budget in Austria, some
L(cid:228)nder are planning to alter the financing of clinics, set up property companies to deal in land, and sell off
loans which have been granted to encourage the building of housing. Hitherto the L(cid:228)nder were required to
finance their clinics(cid:146) losses by means of grants. However, in Carinthia, for example, it is intended that as
from 2001 the Clinics Operating Company, which has been a market enterprise since 1997, should take
out a loan to meet all losses. At the same time the Land of Carinthia will grant it an interest-free loan
equivalent to the annual loss and will subsequently assume the resulting annuity service and ancillary
expenses. In the context of achieving the joint consolidation objective, the Federal Ministry of Finance is
explicitly in favour of this change in the method of financing clinics because the clinics are market
enterprises and the loans which they take out are not attributed to the Land. How should the interest-free
loans from the L(cid:228)nder to the clinics actually be treated under ESA 95?

By means of an amendment to the Federal Real Estate Act, the Federal Government has transferred
property valued at ATS 33 billion to the Federal Real Estate Company (BIG). The BIG is wholly owned by
the Federation. The purpose of setting up the BIG is to bring into line with private-sector conditions the
management of buildings and land belonging to the Federation and the use and realisation of property
transferred or acquired by the Federation. How does this revenue from the transfer of property affect the
Federation(cid:146)s financial balance (pursuant to ESA 95)? Many L(cid:228)nder, including Carinthia, are planning to set
up property companies of their own to deal in land in a similar way, which would be wholly owned by
the Land. Property belonging to the Land would be sold to these companies. How will this revenue affect
the financial balances of the respective L(cid:228)nder (pursuant to ESA 95)?

Answer given by Mr Solbes Mira on behalf of the Commission

(18 September 2001)

The issues raised should be examined in the light of the European System of Integrated Economic accounts
(ESA 95).

Austria notifies the Commission of its deficit and debt data twice a year. In this context, regular follow-up
missions to Member States are organised by Eurostat. The Austrian authorities will most likely inform
Eurostat about the issues raised in the course of the next mission, which is supposed to take place before
the end of the year. A detailed discussion between Eurostat and the Austrian Central Statistical Office will
then take place.

As regards the arrangements relating to public clinics and the arrangements relating to the Federal Real
Estate Company (BIG), the ESA 95 principles should be recalled.

In ESA 95, public clinics are classified in the non-financial corporations sector (outside the general
government) only if they are institutional units and if they are providing market services.