WRITTEN QUESTION E-1562/02 by Richard Corbett (PSE) to the Commission. Cost of non-Europe.
Date: 2002-06-03
Institutions: European Parliament, Provisional data
Subjects: consumer protection, economic analysis, economic integration, financial market, financial statistics, single market

C 155 E/4

Official Journal of the European Union

EN

3.7.2003

situations, notably the Yugoslav and African Great Lakes crises, were of extraordinary magnitude in terms
of the number of refugees and people displaced. The number of conflicts and natural disasters returned to
an average level towards the end of the last decade. More recently, the trend has once again been upwards.

The UNHCR has a recognised mandate to co-ordinate the assistance provided by the donors of the
international community in humanitarian crises involving large-scale population movements. For the
Commission, it is important to support those efforts through a constant and open dialogue with the
UNHCR. As for the assistance provided for people in need, the Commission has to ensure that the funds
are channelled as cost-effectively as possible. This sometimes involves funding through the UNHCR, which
in turn subcontracts important aspects of the implementation of their assistance to international non-
governmental organisations (NGOs) who distribute the aid to the people in need. On other occasions, the
Commission directly supports international NGOs present in the field.

The Commission is currently working to improve its partnership with the various United Nations agencies,
funds and programmes. The aim is to establish more effective long-term co-operation which is both
financially predictable and transparent. This is being done through the implementation of the Commission
Communication entitled ‘Building an effective partnership with the United Nations in the fields of
development and humanitarian assistance’ (1). The Commission will soon take further steps towards
deciding on UN agencies, funds and programmes as ‘strategic partners’. The Parliament and Member States
will naturally be kept fully informed.

(1) COM(2001) 231 final.

(2003/C 155 E/004)

WRITTEN QUESTION E-1562/02

by Richard Corbett (PSE) to the Commission

(3 June 2002)

Subject: Cost of non-Europe

A recent study by the European Financial Services Round Table, quoted in the Financial Times on
22 April, concluded that the absence of a completed Europe-wide market for financial products was
costing consumers and investors up to EUR 15 billion per year.

Does the Commission consider that it would be opportune to undertake and publish a new study into the
‘costs of non-Europe’, as it did in 1986?

Answer given by Mr Bolkestein on behalf of the Commission

(5 July 2002)

In 1988, the European economic model used in the original Cecchini report evaluated the potential benefit
of the liberalisation of financial services as 1,5 % of the Community’s 12 Member States gross domestic
(GDP) out of a total of 4,5 % to be reached after the completion of the Internal Market
product
programme.

The report of the European financial services round table, quoted in the Financial Times on 22 April 2002,
focused on the substantial potential benefits of an integrated retail market for financial services in Europe
in terms of consumer gains and macro-economic growth. It concluded that closer integration of the
European financial services might create additional economic growth of at least 0,5 % per year which
represents EUR 43 billion per year. It also showed that, despite a number of legislative decisions already
made, much remains to be done. In particular in the field of securities markets and financial services, the
Community markets still remain fragmented.

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Official Journal of the European Union

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In reply to the question of the Honourable Member, the Commission is currently not keen on launching a
new broad ‘macro’ study to calculate the cost of the non-integration. This is because methodological issues
still remain to be dealt with in this area and because this kind of study would not clearly identify the
specific measures needed to maximise the benefits from integration or provide a judgement on specific
priorities. For this, a more detailed examination of the level of integration in the various sectors of the
the Community’s financial market
Community’s financial system and of
convergence is needed.

the likely consequences of

The Commission is therefore undertaking several research/study projects that could contribute to this. All
studies will be finalised before the end of the 2002.

They are concentrated on two areas:

(i)

developing indicators to monitor trends and developments in the financial sector on the one hand and

(ii) quantifying the benefits of financial integration on the other hand.

In the first area, (i) two studies will provide the tools for monitoring financial markets and assessing the
impact of Commission policies:

(cid:1) A first study on integration indicators was finalised in January 2002. The study compares alternative
It
indicators and proposes
distinguishes between the most integrated markets from those in need of further action. The study is
now publicly available on the Internal Market Directorate General (DG) website (1).

integration in financial markets.

to monitor

indicators’

‘the best

(cid:1) The second study on ‘The monitoring of structural changes and trends in the Internal Market for
financial services’ will provide economic and policy significant data, develop indicators and identify
structural trends and developments, to allow for early detection of the remaining problem areas and
swift reaction to keep pace with market developments.

In the second area, (ii above) two further studies are underway:

(cid:1) A DG Internal Market one which will calculate the benefits of securities markets integration in terms
of economic growth, employment, etc., concentrating on the evolution in trading costs and the costs
of capital in the securities markets.

(cid:1) The second study led by DG Economic and Financial Affairs, adopts an alternative bottom-up
approach, tries to measure the link between financial market efficiency, increasing integration and
corporate growth and calculates the changing costs of finance for Community companies in a context
of deeper financial integration.

(1) http://www.europa.eu.int/comm/internal_market/en/update/economicreform.

(2003/C 155 E/005)

WRITTEN QUESTION E-1661/02

by Richard Corbett (PSE) to the Commission

(11 June 2002)

Subject: Taxation of subscriptions to professional organisations and trade unions

Do all Member States allow membership subscriptions to professional organisations to be tax deductible?

Do any Member States allow membership subscriptions to trade unions to be tax deductible?

Does the Commission agree that all should be treated equally?