WRITTEN QUESTION P-2839/01 by Gary Titley (PSE) to the Commission. Czech banking laws.
Date: 2001-10-05
Institutions: European Parliament, Provisional data
Subjects: Community acquis, Czechia, accession to the European Union, competition law, financial institution, law of banking

C 160 E/44

Official Journal of the European Communities

EN

4.7.2002

payment of state aid. In the absence of such an agreement and pending the negotiating mandate, it is up to
the Member States to proceed with a minimum of Community co-ordination in the framework of the
bilateral agreements.

In respect of the environmental impact, in the short term the attacks of 11 September have compounded
the already burgeoning problems of over-capacity in the industry. Measures to correct this have resulted in
the removal of substantial portions of many fleets and the acceleration of retirement programmes for
older, less efficient equipment. As a result, the short term environmental impact of both emissions and
noise from aviation has actually been reduced. It is likely to be some time before traffic returns to its pre-
it is likely to be with somewhat less
11 September level, with or without state aid, and as it does,
environmentally damaging fleets.

For the longer term, and further to the results of the recent 33rd Assembly of the International Civil
Aviation Organisation, the Commission is working on proposals for a framework setting the conditions
under which States could introduce operating restrictions at their airports with a view to tackling the noise
issue. The Community is also considering how emissions related levies might be introduced to meet the
objective of internalising the external costs of aviation. A Commission study is scheduled for completion
later in the year.

It is of course important that there be fair competition in all respects and that aviation be treated no more,
nor less, favourably than other modes. To this effect, the Commission is keen to ensure that assistance
given to the airlines both in the EU and elsewhere addresses only the damages incurred as a direct result of
the attacks.

(2002/C 160 E/049)

WRITTEN QUESTION P-2839/01

by Gary Titley (PSE) to the Commission

(5 October 2001)

Subject: Czech banking laws

In its report of July 2001, the European Parliament alerted the Commission to competition problems in
the Czech Republic’s banking sector. The recent implementation by the Czech authorities of an unlimited
guarantee granted to the CSOB bank, in the context of its take-over last year of IPB, is evidence that such
problems are ongoing.

We understand that the Commission is examining that specific case and the wider issue of competition
and state aid in the financial services sector of the Czech Republic and other accession countries. While
accepting that the Europe Agreement does not provide for satisfactory remedies in specific cases, the
Commission nevertheless has a powerful political tool available to it, in the shape of the Enlargement
report it is drafting on each of the candidate countries. Reference to existing problems in these reports,
backed up by case-specific examples, would send a strong signal to the authorities in the candidate
countries that they must address these issues more satisfactorily.

Since I raised this issue with the Commission in the Foreign Affairs Committee of June 2001, I have been
informed that the Czech authorities have taken no discernible steps to resolve the situation. Even more
worryingly, there are strong indications that the competition authorities in the Czech Republic are not
dealing with the case in an independent manner and that proceedings by them to evaluate the state aid in
this case are simply being ignored.

The value of the Enlargement reports is that, as well as accurately reporting and analysing the convergence
of accession countries towards the acquis, they provide an assessment of the readiness of accession
countries to conform with the principles and philosophy of the EU. Could the Commission indicate
whether it intends to use the opportunity presented by the publication of the reports to send a powerful
message to the Czech Republic that it must address this issue promptly?

4.7.2002

EN

Official Journal of the European Communities

C 160 E/45

Answer given by Mr Verheugen on behalf of the Commission

(5 November 2001)

The Commission has been following attentively the competition dimension of the various restructuring
operations in the Czech financial sector, notably in the light of the Czech Republic’s obligations under the
Europe Agreement. The Commission is of the view that greater transparency is first needed regarding these
operations, before any conclusions can be drawn regarding compliance with the Europe Agreement. To
this end, the Commission is following up in detail these issues with the Czech authorities using fully the
mechanisms of the Europe Agreement.

Furthermore, the overall track record of the Czech Republic of compliance with the competition acquis,
including in the financial sector, is currently in the process of being assessed in the framework of the
accession negotiations.

The 2001 Regular Report will assess progress of the Czech Republic in meeting the Copenhagen economic
criteria and in applying Community competition rules,
including in relation to the financial sector.
However,
it is not possible to divulge the content of the Regular Report before its publication on
13 November 2001.

(2002/C 160 E/050)

WRITTEN QUESTION P-2880/01

by Marianne Thyssen (PPE-DE) to the Commission

(10 October 2001)

Subject: Introduction of international accounting standards/financial support for training members of the

accounting profession and national standards setters

In view of the proposed introduction of international accounting standards (cf. proposal for a regulation in
COM(2001) 80 final) (1), will the Commission state if there is any legal basis for providing financial support
for members of the accounting profession and national standards setters, who, very soon, will need to
undergo a huge amount of training?

If there is currently no legal basis, are there any legal obstacles to creating one? Is the Commission
prepared to draw up and present a relevant proposal in the near future?

(1) OJ C 154 E, 29.5.2001, p. 285.

Answer given by Mr Bolkestein on behalf of the Commission

(14 November 2001)

The Commission adopted on 13 February 2001 a proposal for a Regulation of the Parliament and of the
Council on the application of international accounting standards in the Union. Under this proposal,
companies whose securities are traded on a regulated market as well as companies required to publish a
public-offer prospectus will have to prepare their consolidated accounts in accordance with International
Accounting Standards (IAS) from the year 2005 onwards. Member States will have the possibility to
extend this obligation to the preparation of annual accounts. Furthermore, Member States will have the
choice to permit or require other companies to prepare their consolidated accounts and /or their annual
accounts in accordance with IAS.

The Commission is aware that this switch-over from national accounting standards to IAS entails a
substantial training effort for accountants and statutory auditors involved in the preparation and the audit
of consolidated accounts. However, the Commission does not consider it either appropriate or necessary to
provide resources for supporting these activities, because the market is already catering for the training
needs of accountants, auditors and national standard setters.