WRITTEN QUESTION E-0380/02 by Ioannis Marínos (PPE-DE) to the Commission. Misleading presentation of public debt.
Date: 2002-02-21
Institutions: European Parliament, Provisional data
Subjects: budget policy, financial statistics, public debt, public finance, statistical method

18.7.2002

EN

Official Journal of the European Communities

C 172 E/191

Answer given by Mrs de Palacio on behalf of the Commission

(2 April 2002)

The recognition of the ‘Hellenic Register of Shipping’
is limited to Greece, according to the
provisions of Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship
inspection and survey organizations and for the relevant activities of maritime organisations (1). This
recognition is valid for a period of three years from the 13 December 2001, and was given following a
specific request of the Greek Ministry of Mercantile Maríne, and after assessments carried out by the
Commission and a positive opinion of the corresponding Committee of Member States representatives.

(HRS)

The assessments carried out by the Commission verified that HRS meets all the criteria of Directive
94/57/EC. However, as concerns the quantitative criteria set out under paragraphs 2 and 3 of the section
‘General’ of the Annex, which foresee that, in order to be granted a full recognition, a classification society
must have in its class a fleet of at least 1 000 ocean-going vessels and must employ a technical staff of, as a
minimum, 100 exclusive surveyors, they were not met by HRS. During the assessments of HRS mentioned
above, it was ascertained that the number of ocean-going vessels in the HRS classed fleet is of 349 and
that the number of exclusive surveyors employed by HRS is of 68. When considering all the recognised
organisations, this is one of the best ratio ‘tonnage in class per surveyor’, but this is not enough to allow a
full recognition.

The recognition of HRS is therefore limited to Greece since HRS does not meet the quantitative criteria of
the Annex to the Directive. However, taking into consideration the fact that HRS meets all the qualitative
criteria of the Directive, this organisation could work on behalf of any other administrations of the
Member States that might decide to put forward a similar request to the Commission.

(1) OJ L 319, 12.12.1994.

(2002/C 172 E/203)

WRITTEN QUESTION E-0380/02

by Ioannis Marínos (PPE-DE) to the Commission

(21 February 2002)

Subject: Misleading presentation of public debt

By exploiting the method of calculating public debt used by the Union’s statistical services, some Member
States are using new methods of expanding their debt without the corresponding increase being reflected
in the statistics.

In specific terms, government bonds are issued against future government or public company revenue
which is not always certain to materialise. Recently, new bonds were issued against anticipated funds from
the EU’s 3rd Community Support Framework. These loans are not recorded as public debt and, therefore,
in the short term the debt appears, falsely, to have decreased, whereas in fact it not only remains
outstanding but has increased at the same time as incurring very high interest-rate charges. The emergence
of the debt and its payment are simply deferred to a later point in time to burden future generations and
governments who will have to deal with a problem for which they bear no responsibility. The
International Monetary Fund has already sharply criticised such ‘creative accounting’.

Is the Commission aware of this matter? Has it investigated which countries employ these methods? Does
it intend to change the method of calculating public debt to show the actual extent of the debt? If not, is it
not inevitable that Member States’ public finances and, consequently, the general economic situation in the
Union will deteriorate in the medium term?

C 172 E/192

Official Journal of the European Communities

EN

18.7.2002

Answer given by Mr Solbes Mira on behalf of the Commission

(4 April 2002)

The Commission is aware that some Member States have securitised future revenue streams through
special purpose vehicles (SPV).

A Task Force of statistical experts from Member States is currently examining this matter in relation to
existing rules and will make recommendation to the Committee for Monetary, Financial and Balance of
Payments statistics (CMFB) on appropriate accounting treatment in line with existing Maastricht debt
definitions.

A change in the method of calculation of public debt is not being contemplated at present.

Based on existing information, the Commission does not see that actions undertaken will endanger
budgetary policy co-ordination or will lead to any deterioration of public finances.

The stability and growth pact has proved to be an effective tool for budgetary policy co-ordination
enabling the necessary macro-economic stability, which fosters growth and employment in the medium
term.

(2002/C 172 E/204)

WRITTEN QUESTION E-0384/02

by Bernard Poignant (PSE) to the Commission

(21 February 2002)

Subject: China’s accession to the WTO and respect for human rights

During last October’s part-session in Strasbourg, the European Parliament adopted Mr Gahrton’s report on
China’s accession to the WTO (A5-0366/2001). Incorporating China into the World Trade Organisation
cannot be viewed in any way other than favourably. As far as can be judged, the repercussions for the
Chinese population could only be positive. The choice of holding the Olympic Games in Peking in 2008 is
presumably based on the same logic.

However,
there are signs of public concern. Admitting the Chinese communist regime into the
international community must not mean forgetting its daily violations of human rights: death sentences,
torture, arbitrary detention etc., are not uncommon.

If China joins the World Trade Organisation it must conform to the rules. One of those is the GATT’s
General Agreement on customs tariffs of 1947, Article 20 of which provides for exceptions to the
agreement, notably concerning the import of products manufactured in prison.

In the case in point, many Chinese are sentenced to forced labour and are thereby compelled to
manufacture products for export.

The European Union has a duty to monitor this situation. How does the Commission intend to deal with
this matter?

Answer given by Mr Lamy on behalf of the Commission

(18 March 2002)

The Commission fully shares the concern of the Honourable Member with regard to practices of forced
labour and prison labour.

Respect
including core labour standards, globally is a priority objective for the
Commission. The Communication from the Commission ‘Promoting core labour standards and improving

for human rights,