WRITTEN QUESTION E-2193/01 by Camilo Nogueira Román (Verts/ALE) to the Commission. Setting up, within Spain, of a public company to buy weapons for lease to the country's central government, thereby ensuring that such investment expenditure does not appear in the accounts.
Date: 2001-07-23
Institutions: European Parliament, Provisional data
Subjects: Spain, exchange of information, hire purchase, military equipment, public sector, stability pact

16.5.2002

EN

Official Journal of the European Communities

C 115 E/37

Answer given by Mrs de Palacio on behalf of the Commission

(27 September 2001)

As it indicated in its replies to Written Questions Nos E-1046/01 (1) and E-2030/01 (2) by the Honourable
Member, the Commission is planning to put forward revised guidelines on the trans-European transport
network which will add new ‘specific’ projects to Annex III. The White Paper on European transport policy
which the Commission adopted on 12 September 2001 (3)
the projects being
envisaged include the interoperability of the Iberian high-speed rail network, based on Spain and Portugal’s
national plans for high-speed rail lines. Spain’s national plan includes the lines in Galicia agreed between
the Spanish and Galician Governments, including the link between La Coruña, Vigo and the Portuguese
border.

indicates clearly that

The Commission has already contacted the Portuguese authorities, pointing out to them the desirability of
links between Portugal and Spain via the corridor covered by
ensuring continuous,
priority project No 8. At the request of the Spanish and Portuguese authorities, it has also granted TEN
financial aid for work and studies on the modernisation of the existing line while work and studies are
carried out on a rail link between Porto and Vigo.

interoperable rail

(1) OJ C 340 E, 4.12.2001, p. 155.
(2) OJ C 93 E, 18.4.2002, p. 49.
(3) COM(2001) 370.

(2002/C 115 E/036)

WRITTEN QUESTION E-2193/01

by Camilo Nogueira Román (Verts/ALE) to the Commission

(23 July 2001)

Subject: Setting up, within Spain, of a public company to buy weapons for lease to the country’s central
government, thereby ensuring that such investment expenditure does not appear in the accounts

The Spanish Government is devising such a system for financing the purchase of tanks and ships with the
intention that the public company would lease the weapons to the army, so as to prevent the full cost
thereof from appearing in the accounts for the year in which the weapons are purchased. Irrespective of
the implications which such a system has for the concept of the powers and the authority of the state,
does the Commission consider the system to be compatible with the budget-stability rules which the
Member States are required to observe?

Answer given by Mr Solbes Mira on behalf of the Commission

(8 October 2001)

In accordance with the ‘Stability and Growth Pact’ all Member States have committed themselves to respect
a medium-term objective for the general government budgetary position of close to balance or in
surplus (1). This budget-stability objective is based on general government accounts according to the
European system of accounts (ESA-95). This system includes a detailed regulation for the treatment of
leasing operations (Annex II: ‘Leasing and hire purchase of durable goods’).

On the one hand, it remains to be seen in which sector is the public corporation classified. On the other
hand, as described by the Honourable Member the operation described seems to fall under the definition of
‘financial leasing’. According to which, the lessor provides the lessee with a loan enabling the lessee to
purchase a durable good, of which the lessee becomes the de facto owner. The durable good is treated as if
owned by the lessee from the beginning of the leasing period. As a consequence, the full amount of the
principal of the loan is registered as a non-financial expenditure at the time of the contract, while interest
payments are registered annually. Naturally, a thorough assessment of the operation will not be possible
until the details of the transactions involved are known.

(1) OJ C 236, 2.8.1997.