WRITTEN QUESTION E-0706/02 by Gabriele Stauner (PPE-DE) to the Commission. Irregularities in the southern Caucasus.
Date: 2002-03-13
Institutions: European Parliament, Provisional data
Subjects: Commission Delegation, Georgia, fraud, management, retired person

C 277 E/78

Official Journal of the European Communities

EN

14.11.2002

The Commission pointed-out that it is difficult to assess the extent to which the euro will be used in
unlawful transactions, adding that it would endeavour to detect any evidence of disproportionate use of
banknotes in unlawful transactions after 2001. It did not, however, indicate, as requested, whether police
forces were consulted before the decision was made to issue the € 500 note, and whether the Commission
would be prepared to recommend the note be withdrawn if, following its introduction, Europol or Interpol
were to conclude that it significantly assisted organised criminals in carrying-out their activities. Could the
Commission now make clear whether or not this is the case?

Can the Commission also confirm that the note was introduced primarily because the German government
insisted on it, despite the fact that it makes it easier for German residents who wish to evade taxes to take
money out of the country undetected? If so, does the Commission believe that this sits easily with the
German government’s insistence in recent years on the need for a Europe-wide ‘withholding tax’ or
exchange of information in order to reduce tax evasion?

(1) OJ C 147 E, 20.6.2002, p. 133.

Answer given by Mr Solbes Mira on behalf of the Commission

(2 May 2002)

According to the EC Treaty and the European system of central banks (ESCB) Statute the competence for
banknotes lies with the European Central Bank. Decisions to introduce or to withdraw banknotes can
therefore not be taken by the Commission.

In relation to € 500 banknotes, which were introduced only a few months ago, the Commission considers
that it would be inappropriate to consider or to anticipate hypothetical policy recommendations based on
pre-judgements or speculations on the specific use which will or could be made of this specific banknote
denomination.

(2002/C 277 E/083)

WRITTEN QUESTION E-0706/02

by Gabriele Stauner (PPE-DE) to the Commission

(13 March 2002)

Subject: Irregularities in the southern Caucasus

Allegations of irregularities and mismanagement have been made in connection with the former head of
the Commission’s delegation in Tbilisi, Georgia.

Does the Commission have any knowledge of irregularities or mismanagement which have occurred
within or around the Commission’s delegation?

Will the Commission say whether the former head of the delegation has left the Commission’s service on
age grounds? If that is not the case, will the Commission state the reasons for his retirement?

Answer given by Mr Patten on behalf of the Commission

(14 May 2002)

The Commission carried out a full inspection of the Delegation in Tbilisi, Georgia, between 25 September
and 3 October 2000 and can confirm that it found no evidence of irregularities or mismanagement. It
previously carried out an inspection of that Delegation between 28-31 October 1997.

The former Head of the Commission’s Delegation in Tbilisi
following his own request made several months earlier.

in Georgia, retired on 1 September 2001