WRITTEN QUESTION E-3528/01 by Christopher Huhne (ELDR) to the Commission. Expenditure on Private Finance Initiatives and Public Private Partnerships.
Date: 2002-01-08
Institutions: European Parliament, Provisional data
Subjects: EU Member State, private investment, public investment, statistics

C 147 E/198

Official Journal of the European Communities

EN

20.6.2002

Has this revenue been taken into account in the Commission’s existing projections for public finances?

How should it be treated in public finances?

Answer given by Mr Solbes Mira on behalf of the Commission

(25 January 2002)

The Commission does not have any comparable estimates for Member States of the likely financial gain
from the introduction of the euro on seignorage revenues. The introduction of the euro essentially involves
the substitution of non-interest-bearing claims denominated in euro for the non-interest-bearing claims
denominated in the original national currencies and as such has no direct effect on aggregate seignorage
revenue in the euro area. The allocation of seignorage income among the euro area National Central Banks
(NCBs) will be based on the European Central Bank’s (ECB’s) capital key (Article 32.5 of the European
System Central Bank’s Statute). On 6 December 2001, the ECB Governing Council agreed on a transitional
regime of five years in order to mitigate the impact of the introduction of euro banknotes on the NCBs’
current relative income positions. Future shifts in the patterns of cash holdings and possible non-surrender
of notes and coins in the original national currencies will also have an impact on the balance sheets of
central banks (notes) and governments (coins). At present the scale of such impacts and the timing of their
recognition in balance sheets are not clear.

In the light of the above it is not possible to further express this as a percentage of gross national product
in each case.

The Commission has not taken into account any gains of the kind referred to in its projections for the
public finances.

Seignorage revenue is an analytical concept which is not identified in the European System of national
accounting framework used for the public finances but it makes its presence felt through property income
flows. Essentially, the transactions and balance sheet adjustments involved are ‘below the line’ and should
have no impact on the general government surplus/deficit. Any transfers to government from central
banks of exceptional gains from the transition should be treated as financial transactions not affecting the
government surplus/deficit but potentially affecting government debt.

(2002/C 147 E/207)

WRITTEN QUESTION E-3528/01

by Christopher Huhne (ELDR) to the Commission

(8 January 2002)

Subject: Expenditure on Private Finance Initiatives and Public Private Partnerships

1. Will the Commission specify the annual expenditure commitments entered into by each Member
State with respect to arrangements such as Private Finance Initiatives or Public Private Partnerships for the
last five years, and for as far into the future as they are given?

2. Will it further express such commitments as a percentage of GDP and projected GDP?

Answer given by Mr Solbes Mira on behalf of the Commission

(26 February 2002)

The Commission does not have the information requested.