WRITTEN QUESTION E-1555/02 by Bob van den Bos (ELDR) to the Council. EU aid to the Palestinians.
Date: 2002-06-03
Institutions: European Parliament, Provisional data
Subjects: EU aid, EU financing, International Monetary Fund, Palestine question, financial management, management audit, terrorism, use of aid

6.3.2003

EN

Official Journal of the European Union

C 52 E/77

Answer given by Mr Verheugen on behalf of the Commission

(5 July 2002)

The Commission has the duty, in the context of the enlargement discussions, to examine if Estonian tax
law is compatible with the EC Treaty freedoms and the specific provisions of Community legislation
relating to corporate tax in particular Council Directive 90/435/EEC of 23 July 1990 on the common
system of taxation applicable in the case of parent companies and subsidiaries of different Member
States (1), and Council Directive 77/799/EEC of 19 December 1977 concerning mutual assistance by the
competent authorities of the Member States in the field of direct taxation (2).

(1) OJ L 225, 20.8.1990.
(2) OJ L 336, 27.12.1977.

(2003/C 52 E/087)

WRITTEN QUESTION E-1555/02

by Bob van den Bos (ELDR) to the Council

(3 June 2002)

Subject: EU aid to the Palestinians

According to the Israeli Government, the Palestinian Authority has misused EU aid funds to finance
terrorism. The Dutch newspaper NRC Handelsblad reported on 8 May 2002 that the European Union had
already been aware of the Palestinian Authority’s misuse of funding a year ago. Commissioner Patten was
said to have observed at that time that the use made of the EU funds was not being adequately monitored,
and he therefore sought the assistance of the IMF to improve supervision thereof.

Did the Council urge Mr Patten to seek the assistance of the IMF? If not, why not?

To what extent did the reports of possible misuse influence the Council last year in its relations with the
Palestinian Authority and the Israeli Government? What weight did these accusations carry in the EU’s
policy on the Middle East?

Will the Council step up monitoring of the aid provided by the Member States? If not, why not? If so,
how?

What will the Council do to prevent funding being misused by the Palestinian Authority for terrorism and
corruption?

If the misuse of
considering measures? If so, what?

funds for purposes of

terrorism and corruption has been proven,

is the Council

In what respect will the reforms which have been initiated within the Palestinian Authority also include
reform of financial management and supervision thereof? Will the Council urge the Palestinian Authority
to ensure that they do?

Reply

(5 November 2002)

is also aware of a number of
Like the Honourable Member of the European Parliament, the Council
statements and media reports regarding the misuse of EU assistance to the Palestinian Authority but never
comments on public declarations or media reports. Nevertheless,
in this specific case, because of the
seriousness of such allegations and the possible impact on the credibility of the EU, the Council has been
in touch with Commissioner Patten on this, including at the last General Affairs Council on 17 June 2002
in Luxembourg. According to the Commission there is no evidence so far for such abuse. As in the past

C 52 E/78

Official Journal of the European Union

EN

6.3.2003

the EU continues to press on the Palestinian Authority to improve internal financial management and
control. The Commission has insisted on monitoring by the IMF. The Council believes that these are
important messages which must be conveyed to the Palestinians also in the future. Any reform of the
Palestinian Authority will also have to address these issues.

(2003/C 52 E/088)

WRITTEN QUESTION E-1560/02

by Klaus-Heiner Lehne (PPE-DE) to the Commission

(3 June 2002)

Subject: The Commission’s policy on China

I learn from the Commission’s internal communication on its strategy towards China that under the
current programme a total of EUR 50 million is earmarked for improving the development of the rule of
law and civil society in the People’s Republic of China.

Therefore, the following questions:

1. What measures (indicated by means of key words and examples) are being funded with this EUR 50

million?

2.

Is there any cooperation with the similar programmes of the EU Member States, for example the
Federal Republic of Germany’s law programme?

3. To what institutions and organisations is the implementation of this measure entrusted?

4. How have these projects gone?

Answer given by Mr Patten on behalf of the Commission

(18 July 2002)

In line with the Commission’s overall policy objectives towards China, support for good governance
1.
and strengthening of the rule of law constitutes one of the three cooperation priorities of the China
Country Strategy Paper 2002-2006 adopted by the Commission on 1 March 2002. In the National
Indicative Programme 2002-2004 which is part of the Country Strategy, an amount of EUR 30 million has
been allocated to this priority.

Two programme proposals have been defined in this connection. The first one aims at combating illegal
migration and the trafficking in human beings between China and Europe. This programme may include
awareness raising activities targeting vulnerable groups, actions to improve capacities of Chinese and EU
officials to detect and prevent illegal migration, and actions to promote exchange of information and
research. Discussions between the Commission and China are at their initial stage.

The second proposal aims at supporting the newly developing sectors of civil society in China.

These two new programmes follow on from a number of ongoing projects in the same area such as the
EU-China Legal and Judicial Cooperation Programme (EUR 13,2 million),
the EU-China Training
Programme on Village Governance (EUR 10,7 million),
the Human Rights Small Project Facility
(EUR 0,84 million) and the EU-China Network for the Ratification and Implementation of UN Human
Rights Covenants (EUR 1,4 million).

Several Member States,

2.
including Germany, have projects in the area of Good Governance and
Strengthening of the Rule of law in their bilateral assistance programmes with China. Coordination
between EC assistance and bilateral assistance from Member States is a key feature of the China Country