WRITTEN QUESTION E-0702/02 by Charles Tannock (PPE-DE)and Robert Goodwill (PPE-DE) to the Commission. The implications for money-laundering and tax evasion of the new 500 note.
Date: 2002-03-13
Institutions: European Parliament, Provisional data
Subjects: European Central Bank, Germany, euro, issuing of currency, money laundering, paper money, tax avoidance

14.11.2002

EN

Official Journal of the European Communities

C 277 E/77

Answer given by Mr Barnier on behalf of the Commission

(17 May 2002)

The Commission has been following closely the progress of the draft European charter on mountain
it notes that it has still not been officially adopted by the Congress of Local and
regions. However,
Regional Authorities of Europe.

Several Community policies, in particular regional policy and the common agricultural policy, acknow-
ledge the special features of mountain areas.

In the case of regional policy, 95 % of the mountain areas in the Union are eligible for Community
assistance in 2000-2006, either under Objective 1 (the Cantabrian range and the Sierra Nevada in Spain,
the Highlands of Scotland, the mountain areas of central and northern Sweden, the Greek mountains, the
southern Apennines in Italy and the Corsican mountains) or under Objective 2 (part of the Massif central
in France, the Alps and Pyrenees and part of the northern Apennines). These programmes provide for
specific measures to develop the potential of mountain areas, reduce their disadvantages and put them on
the path of sustainable development.

In addition, Community Initiatives such as Interreg III and Leader+ take account of the ‘mountain’ aspect.
The existence of an Alpine area has been incorporated into strand B ‘Transnational cooperation’ of
Interreg III. The ‘Alpine area’ programme covers the whole of the Alps and the Alpine Convention, i.e.
France, Italy, Switzerland (with its own federal funds), Austria, Germany, Slovenia and Liechtenstein. It
seeks to promote the transnational cooperation begun during the previous programming period and
complements the usual programmes for cross-border cooperation which promote more local measures. In
addition, Leader+ provides mountainous rural areas with opportunities by helping improve relations
between towns and rural areas, providing new services to those living there, developing natural and
cultural assets and so on.

The Commission would also point out to the Honourable Members that the Second Report on Economic
and Social Cohesion, adopted on 30 January 2001, recognised mountain areas as having permanent
geographical or natural handicaps so that they qualified as one of the six territorial priorities for the future
cohesion policy.

Finally it would note that it will shortly launch a study on the mountain areas of the Union and the
applicant countries which will be line with the principles of the draft Charter, e.g. a definition of the
concept of mountains using scientific and objective criteria concerned mainly with altitude and slope, a
territorial definition of mountain areas, an objective diagnosis of the situation including an assessment and
evaluation of the problems encountered in mountain areas and a description of the specific needs of
mountain areas, and an analysis of the measures and policies developed by the Member States and the
European Union to meet the challenges posed by these areas and better develop their potential. The results
of this study will contribute to the discussion on the future of regional policy after 2006.

At European level, on 17 and 18 October the Commission will organise a seminar specially devoted to
mountain regions which will be attended by all those involved at local
level and decision-makers at
regional, national and European level, including of course the candidate countries. At this information
seminar the Community policies for mountain areas will be presented to those engaged in local
development so that the instruments now available can be better used.

(2002/C 277 E/082)

WRITTEN QUESTION E-0702/02

by Charles Tannock (PPE-DE)
and Robert Goodwill (PPE-DE) to the Commission

(13 March 2002)

Subject: The implications for money-laundering and tax evasion of the new € 500 note

In its answer to Written Question E-3213/01 (1), the Commission listed a number of EU Member States
which, until recently, used banknotes worth between € 200 and € 600, although it remains the case that
only Germany and Holland used banknotes of comparable value to the new € 500 note.

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