WRITTEN QUESTION P-3047/02 by Benedetto Della Vedova (NI) to the Commission. Compatibility of the Italian special wages guarantee fund (CIGS) with Article 87 of the EC Treaty.
Date: 2002-10-18
Institutions: European Parliament, Provisional data
Subjects: Italy, State aid, aid to undertakings, cessation of trading, employment aid, financial equalisation, restriction on competition, social security, unemployment

3.7.2003

EN

Official Journal of the European Union

C 155 E/79

Can the Commission state whether this method is in line with any guidelines which it has issued to the
Portuguese authorities?

Can it state whether it has received similar explanations from the Portuguese authorities?

Can the Commission explain on what basis this ‘notional deficit’ is taken into account in the definition of
the deficit forecast for the public administrative sector, and, at all events, supply a reasoned answer based
on the existing national accountancy standards?

Joint answer
to Written Questions E-3042/02, E-3043/02 and E-3044/02
given by Mr Solbes Mira on behalf of the Commission

(25 November 2002)

On a national accounts basis and according to the European System of National and Regional Accounts
(ESA 95), expenditure is recorded on an accrual basis and not on a cash basis, which means that
expenditure shall be registered in the years when the commitment was made and not when the actual
payment took place. In the economic report of the Portuguese rectifying budget for 2002, it is mentioned
that the regularisation of expenditure arrears in 2002 (cid:1) on account of commitments made and recorded
as expenditure in previous years (cid:1) amounts to EUR 2,1 billion, which represents 1,6 % of the estimated
gross domestic product (GDP) for 2002.

Concerning the extra-budgetary deficit in the Ministry of Education, it should be highlighted that the focus
of the Commission budgetary surveillance is the general government sector as a whole and not any of its
constituent units or sectors in particular, unless the latter display uncommon features that might risk
compliance of the general government sector with overall budgetary targets. Moreover, the deficit referred
to by the Honourable Member seems to be on a public accounts basis and not according to the ESA 95
national accounts rules.

According to the economic report accompanying the Portuguese 2003 budget, the general government
deficit target on a national accounts basis for 2003 is 2,4 % of GDP. National accounts budgetary figures
are those relevant for budgetary surveillance, in particular, the implementation of the Stability and Growth
Pact. The Commission is not aware of any other official projection for the Portuguese government deficit
in 2003.

(2003/C 155 E/091)

WRITTEN QUESTION P-3047/02

by Benedetto Della Vedova (NI) to the Commission

(18 October 2002)

Subject: Compatibility of the Italian special wages guarantee fund (CIGS) with Article 87 of the EC Treaty

On 6 June 2002, the author of the present question tabled question P-1680/02, on the compatibility of
the Italian special wages guarantee fund (CIGS) with Community law on state aids for companies and
employment (1). The Commission’s answer, dated 5 July 2002, stated:

(cid:1) that the CIG (‘Cassa integrazione guadagni’) fulfils the function in Italy of providing a minimum degree
of protection for employees in the event of the insolvency of their employer, while also in practice
having functions that go beyond that objective; and

(cid:1) that where such measures in support of employees ‘benefit enterprises selectively, whether through
discretionary granting, or by applying only to certain sectors, only in certain geographical regions or
only to firms of a certain size, state aid may be involved’; and that in such cases, ‘the compatibility of
any such aid would need to be assessed against paragraphs 2 and 3 of Article 87 of the EC Treaty’.

C 155 E/80

Official Journal of the European Union

EN

3.7.2003

CIGS support is granted on a discretionary basis, in practice almost exclusively from the funds of the
Italian state, and only the employees of certain types of undertaking are eligible.

In the past, the CIGS has frequently been used to benefit employees known to have been made redundant
and to have no chance of returning to their original employment. This has happened despite the fact that
Law No 223/1991 (Articles 1 and 24) prohibits use of the CIGS for this purpose. Nonetheless, such use of
the CIGS appears to be on the cards, according to statements made by Italian government representatives,
in the wake of the severe crisis now affecting Fiat.

Does the Commission believe that the CIGS is compatible with Article 87 of the EC Treaty?

(1) OJ C 92 E, 17.4.2003, p. 79.

Answer given by Mr Monti on behalf of the Commission

(26 November 2002)

In almost all the Member States there are national systems, often complex, to deal with the temporary or
partial unemployment or the protection of workers in the event of the insolvency of their employer (1).

As the Commission has already indicated in its answer to Written Question P-1680/02 from the
Honourable Member (2),
it may be the case, under certain circumstances, that measures which were
intended at the outset to protect workers in the event of the insolvency of their employer may have the
effect of state aid within the meaning of Article 87 of the EC Treaty. This may be the case in several
Member States.

It is undeniable, however, that these measures are all, to a certain extent, types of risk pooling and that
they form part of the social safety net of each Member State.

The Commission’s approach must
therefore be to act responsibly towards European citizens while
respecting the rules on state aid in particular. It must avoid destabilising systems which guarantee the
social protection of workers and, at the same time, ensure fair play between Member States.

The Commission feels that the best and most balanced approach is to tackle the problem as a whole,
taking into account both the competition and employment aspects, in close cooperation with the Member
States themselves. This approach should allow us to reach a real Community solution in a consistent
manner in all of the Member States.

(1) Council Directive 80/987/EEC of 20 October 1980 on the approximation of the laws of the Member States relating

to the protection of employees in the event of the insolvency of their employer (cid:1) OJ L 283, 28.10.1980.

(2) OJ C 92 E, 17.4.2003, p. 79.

(2003/C 155 E/092)

WRITTEN QUESTION E-3050/02

by Bart Staes (Verts/ALE) to the Commission

(24 October 2002)

Subject: The use of epoxy derivatives in wine storage

In Directive 2002/16/EC (1) on the use of certain epoxy derivatives in materials and articles intended to
come into contact with foodstuffs, the Commission states in its recitals that the use of epoxypropyl ether
(‘BADGE’) has raised serious questions about its safety. Test results have shown significant levels of these
substances and certain derivatives thereof in some foodstuffs.