WRITTEN QUESTION E-1423/02 by Eluned Morgan (PSE) to the Commission. Euro-Mediterranean Bank (EMB).
Date: 2002-05-23
Institutions: European Parliament, Provisional data
Subjects: European Investment Bank, Union for the Mediterranean, subsidiary

17.4.2003

EN

Official Journal of the European Union

C 92 E/55

Answer given by Mr Bolkestein on behalf of the Commission

(25 July 2002)

The Commission is fully aware that many people are only able to become owners-occupiers with the aid
of mortgage loans which entail regular instalments for interest.

The Commission cannot confirm that, from 2005 onwards when listed Community companies will be
required to use endorsed International Accounting Standards (IAS) for the preparation of their consolidated
accounts, banks and business will be required to measure their mortgage portfolios at fair value.

The relevant IAS 39 that deals with recognition and measurement of financial instruments at fair value
excludes the application of fair value for loans and receivables originated by the reporting company.
Therefore, the application of IAS 39 is not the cause of the suggested implications for fixed-interest
mortgage loans.

The limits to the scope of IAS 39 have been laid down in the pre-amble of Directive 2001/65/EC of the
Parliament and of the Council of 27 September 2001 amending Directives 78/660/EEC, 83/349/EEC and
86/635/EEC as regards the valuation rules for the annual and consolidated accounts of certain types of
institutions (1), that amongst others introduces the
companies as well as of banks and other financial
application of fair value within the Community. One of the preamble points makes explicit that financial
reporting on the basis fair value should only be appropriate for those items where there is a well
developed international consensus. At the moment, there is no consensus that fair value should be applied
to all financial assets and liabilities.

Finally, the minutes of the Council when the aforementioned Directive was adopted (31 May 2001)
includes a statement that application of IAS 39 does not serve to alter the provision of mortgage loans
with a fixed interest rate.

The Commission is aware that the International Accounting Standards Board (IASB) is working on an
improvement to the present IAS 39. The proposals for improvement do, as known by now, not modify
the scope of application of the fair value concept in such a way that it would have consequences for the
provision of fixed interest rate mortgage loans.

(1) OJ L 283, 27.10.2001.

(2003/C 92 E/056)

WRITTEN QUESTION E-1423/02

by Eluned Morgan (PSE) to the Commission

(23 May 2002)

Subject: Euro-Mediterranean Bank (EMB)

The Commission has expressed support for the creation of a Euro-Mediterranean Bank (EMB) as a
subsidiary of the European Investment Bank (EIB). Why is a separate EMB necessary, and why could not
the work of the EMB be carried out by the EIB directly?

Answer given by Mr Solbes Mira on behalf of the Commission

(9 July 2002)

In its Report adopted on 27 February 2002 in response to the request of the Council of Laeken of
December 2001 calling for an assessment of the setting up of a Euro-Mediterranean Bank, the Commission
considered various options to address the financing needs of Mediterranean Partner Countries. The report
favoured the setting up of an European Investment Bank (EIB) subsidiary for a number of reasons. A bank
structure would ensure ownership by and partnership with Mediterranean Partner Countries. The setting
up of a subsidiary would not only encompass the work that the EIB is already doing in the region, but it
would also enhance it and allow for the use of a wider variety of financial instruments. For instance, the
EIB cannot commit equity from its own resources for its operations for statutory reasons, while an EIB
subsidiary could potentially engage in such activities.

C 92 E/56

Official Journal of the European Union

EN

17.4.2003

It should be noted that on the basis of the mandate of the European Council of Barcelona of 14 March
2002, the EIB is currently proceeding with the preparation of a Euro-Mediterranean Investment Facility.
According to the mandate, this Facility will be complemented with the Euro-Mediterranean Partnership
arrangement and an EIB representative office located in the area. It will enhance the Bank’s current
activities in the region and particularly focus on private sector development, which is recognised as a
priority. It was also decided in Barcelona that a decision on whether to incorporate the newly created
facility in an EIB majority owned subsidiary will be considered one year after the launching of the new
facility, on the basis of its performance. The latest Ecofin meeting of 4 June 2002 has called for the facility
to be launched before the end of autumn 2002.

(2003/C 92 E/057)

WRITTEN QUESTION E-1426/02

by Glyn Ford (PSE) to the Commission

(23 May 2002)

Subject: Use of the euro

Which countries outside of the twelve have been authorised to issue euro coins, and what procedure is
necessary for such authorisation?

Answer given by Mr Solbes Mira on behalf of the Commission

(1 July 2002)

In addition to the twelve participating Member States, three countries not belonging to the Union have
been authorised to issue euro coins: the Principality of Monaco, the Republic of San Maríno and the
Vatican City.

This stems from the Maastricht negotiations where it was agreed (Declaration No 6 annexed to the Treaty)
‘… that the monetary relations between Italy and San Maríno and the Vatican City and between France and
the Principality of Monaco remained unaffected by the Treaty establishing the EC …. The Community
undertakes to facilitate the renegotiations of the existing arrangements as might become necessary …’.
On 31 December 1998 the Council granted a mandate to France and Italy respectively to negotiate on
behalf of the Community (Council Decisions 1999/96/EC, 1999/97/EC, 1999/98/EC of 31 December
1998 on the position to be taken by the Community regarding an agreement concerning the monetary
relations with the Principality of Monaco, the Republic of San Maríno and Vatican City (1)). In 2001
monetary agreements were concluded by the Italian Republic, on behalf of the Community, with the
Republic of San Maríno (2) as well as with the Vatican City and, on its behalf the Holy See (3). The same
year, a similar monetary agreement was reached between the Government of the French Republic, on
behalf of the Community, and the Government of His Serene Highness the Prince of Monaco (4). All three
agreements provide for the issue of limited quantities of euro coins by the States concerned.

(1) OJ L 30, 4.2.1999.
(2) OJ C 209, 27.7.2001.
(3) OJ C 299, 25.10.2001.
(4) OJ L 142, 31.5.2002.

(2003/C 92 E/058)

WRITTEN QUESTION E-1435/02

by Camilo Nogueira Román (Verts/ALE) to the Council

Subject: The return of state terror in Guatemala

(23 May 2002)

Nobel Peace Prize winner Rigoberta Menchú today had to go back to Guatemala, where she is the object of
death threats, to attend the funeral of her co-worker Guillermo Ovalle, murdered by repressive paramilitary
forces (cid:1) protected or tolerated by the government (cid:1) which do not respect the peace agreements, and