WRITTEN QUESTION P-2879/01 by Gerard Collins (UEN) to the Commission. UK implementation of Directive 73/239.
Date: 2001-10-10
Institutions: European Parliament, Provisional data
Subjects: European Parliament, United Kingdom, complaint to the Commission, exchange of information, fraud, insurance company, undisclosed partnership

C 115 E/184

Official Journal of the European Communities

EN

16.5.2002

(2002/C 115 E/192)

WRITTEN QUESTION P-2878/01

by Sir Robert Atkins (PPE-DE) to the Commission

(10 October 2001)

Subject: Financial support to Sabena

Will
in
the Commission make a statement on any discussions held with the Belgian Government
connection with the subsidy given to Sabena Airlines? Does this financial support contravene EU statutes
on state aid and if so, what action will the Commission take as a matter of urgency?

Answer given by Mrs de Palacio on behalf of the Commission

(6 November 2001)

On 5 October 2001 the Belgian Government notified the Commission of its intention to grant a loan of
€ 125 million to Sabena as rescue aid, so as to enable the company to meet its existing cash flow
requirements for a period not exceeding three months. The Commission has examined this measure as a
matter of urgency, given the precarious position in which the company finds itself.

On 17 October 2001 the Commission decided to authorise the rescue aid on the grounds that, in this
instance, all the conditions laid down in the Guidelines on State aid for rescuing and restructuring firms in
difficulty (1) had been met.

Rescue aid is subject to strict rules. In order to be authorised, it must, among other things, comply with
the following five conditions:

6 take the form of loan guarantees or interest-bearing loans at market rates;

6 be limited to the amount strictly necessary to keep the firm in business (for example by covering wage

or salary costs or routine supplies);

6 be granted for a period not exceeding six months;

6 be warranted on the grounds of serious social difficulties and have no unduly adverse spillover effects

on other Member States;

6 be accompanied by an undertaking to restructure or liquidate the aid beneficiary, or to reimburse the

loans.

The aim of rescue aid is to permit the assisted firm to survive for a short period. This time must be used to
assess in detail the prospects for future viability of the economic activities under threat.

The Commission would stress that State aid to the restructuring of airlines is governed by guidelines laying
down very strict conditions, including the ‘one time, last time’ principle. The Commission will scrutinise
any proposal for the granting of aid to the restructuring of Sabena in the light of these conditions.

(1) OJ C 288, 9.10.1999.

(2002/C 115 E/193)

WRITTEN QUESTION P-2879/01

by Gerard Collins (UEN) to the Commission

(10 October 2001)

Subject: UK implementation of Directive 73/239

Is the Commission aware that a considerable number of Union citizens have suffered substantial loss by
being liable for a share of the losses that Lloyd’s of London has incurred in business written in the United

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Official Journal of the European Communities

C 115 E/185

States as a consequence of their membership of that company’s insurance market? Is the Commission
further aware of evidence that Lloyd’s syndicates had not properly reserved for that business as required by
Directive 73/239 (1)? Does the Commission propose to open infringement proceedings against the UK in
relation to this matter and will the Commission make available to Parliament any documentation and
correspondence which it possesses in relation to this matter?

(1) OJ L 228, 16.8.1973, p. 3.

Answer given by Mr Bolkestein on behalf of the Commission

(12 November 2001)

The Honourable Member has raised four issues.

The Member of the Commission responsible for the Internal Market has already responded to many of
these in the detailed briefing to the Petitions Committee on 18 June 2001:

6 First, the Commission is aware that a considerable number of Union citizens have suffered substantial
loss by being liable for a share of the losses that Lloyd’s of London has incurred in business written
the United States as a consequence of their membership of Lloyd’s.

6 Second, the Commission is aware that on an ex-post basis,

it became evident that many Lloyd’s
syndicates were under-reserved for their liabilities as a result of rising asbestosis claims in the United
States. However, as part of its enquiries into the respect of the requirements of the first Council
Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative
provisions relating to the taking-up and pursuit of the business of direct insurance other than life
assurance, with regard to Lloyd’s, the Commission is examining whether sufficient reserves were
established on an ex-ante basis.

6 Third, the Commission is taking very seriously the many complaints it has received regarding alleged
infringements of the Community insurance directives with respect to Lloyd’s. In this regard The
General Directorate (DG) Internal Market has made official enquiries (what are termed pre-Article 226
(ex Article 169) of
to the British authorities. The situation is extremely
complicated and the Commission hopes to complete its preliminary analysis very shortly. The
Commission will then take a decision on whether to launch formal infringement proceedings under
Article 226 of the EC Treaty. The Parliament will be informed of the Commission’s decision.

the EC Treaty letters)

6 Fourth, the Commission has always sought to keep Parliament fully informed by submitting extensive
written comments and by oral explanation of Commission officials at Petitions Committee meetings.
In particular, the Honourable Member of the Commission responsible for the Internal Market made a
lengthy presentation to the Petitions Committee on 18 June 2001 and responded to detailed Members’
questions. The Commission has also sought to provide documents, unless bound by confidentiality
constraints, and the Commission provided a copy of questions it sent to the British authorities in
October 2000.

(2002/C 115 E/194)

WRITTEN QUESTION E-2881/01

by Torben Lund (PSE) to the Commission

(22 October 2001)

Subject: Hair dyes with extremely damaging effects on health

Many consumers who use hair dyes frequently or daily have, unfortunately, discovered that some dyes
have extremely damaging effects on health. The reactions vary from stinging, itching, sores, swelling of the
scalp, allergy and hair loss 6 in some cases even fainting. It is also well known that there is a potential risk
in using hair dyes of developing bladder cancer. Many of these effects are attributed to the chemical
colouring agent, para phenylenediamine (PPD), which is often used in such products.