WRITTEN QUESTION E-2870/02 by Christopher Huhne (ELDR) to the Commission. Economic assumptions.
Date: 2002-10-11
Institutions: European Parliament, Provisional data
Subjects: EU Member State, budget estimate, econometrics, economic analysis, economic forecasting, stability programme

C 280 E/12

Official Journal of the European Union

EN

21.11.2003

(2003/C 280 E/013)

WRITTEN QUESTION E-2870/02

by Christopher Huhne (ELDR) to the Commission

(11 October 2002)

Subject: Economic assumptions

Is the Commission satisfied that the economic assumptions used in the preparation of Member State

1.
budgets and stability programmes are of a uniformly realistic nature?

2. What measures might be taken to improve the realism of official forecasting assumptions?

Answer given by Mr Solbes Mira on behalf of the Commission

(31 October 2002)

Each year Member States provide new or updated Stability and Convergence programmes. These
programmes are drawn up under the full responsibility of the Member State concerned. The programme
is examined by the Council based on assessments of the Commission and the Economic and Financial
Committee.

the economic assumptions on which the
In its assessment
programme is based, predominantly against its own forecast. To the extent that biases in the economic
scenarios are identified, the Commission draws attention to the implications for the budgetary strategy.

the Commission judges the realism of

Several measures have been taken to induce Member States to base their programmes on as realistic and
transparent assumptions as possible. In particular the ‘Code of conduct’ on the content and format of
stability and convergence programmes specifies the information that Member States are expected to
provide to facilitate the assessment of the programme. To make the projections more uniform, the Code
also proscribes the use of commonly agreed assumptions for the extra-Union variables. These should be
used by Member States when drafting their central scenario or for sensitivity analysis. In any case, Member
States should stand ready to explain and justify the chosen scenario should the Commission draw attention
to divergences from the Commission forecast. In addition, a further step has been taken by agreeing at
Union level on a new production function method to calculate potential output. This will serve as another,
commonly agreed reference, against which country specific growth assumptions can be judged effectively
and which will serve to calculate cyclically adjusted budget balances.

(2003/C 280 E/014)

WRITTEN QUESTION E-3111/02

by Charles Tannock (PPE-DE) to the Commission

(30 October 2002)

Subject: State aids to the French electricity sector

Can the Commission confirm that Commissioner Monti has recently launched an inquiry into the
unlimited state guarantees given by the French Government to the state-owned energy utility Electricité de
France (EdF)? Does
the utility has benefited from approximately
EUR 900 million in unlawful tax breaks, and what is the legal position regarding France’s failure to open
up its electricity sector?

the Commission believe that

Commissioner Monti was reported in the press as saying ‘The Commission has decided to wind up a
situation which creates a distortion of competition (…), especially where EdF is expanding into other
countries.’ If the Commission believes that France is currently in breach of its obligations to liberalise its
electricity sector, will it prohibit further acquisitions by EdF?

Finally, the French Government is reported to have described the Commission’s actions as ‘a provocation.’
If the Commission decides to issue a reasoned opinion, does it have the option of publishing it and
including the responses of the French Government so that an open and informed debate on the issue may
take place with full disclosure of the relevant facts?