WRITTEN QUESTION E-3162/02 by W.G. van Velzen (PPE-DE) to the Commission. Threat to the integrity of networks and the Commission's role in this connection.
Date: 2002-11-05
Institutions: European Parliament, Provisional data
Subjects: Internet, Internet access provider, cessation of trading, committee (EU), consumer protection, information network, telecommunications equipment, telecommunications policy, transmission network

12.6.2003

EN

Official Journal of the European Union

C 137 E/167

4. Which non-EU countries have now agreed to cooperate?

5.
If no agreement is reached with third countries (cid:1) though let us hope that one will be (cid:1) will there
nonetheless still be agreement on the deduction of tax at source throughout the EU before interest is paid
to savers? If so, on what date will this be introduced?

How much tax revenue will be forfeited within the EU because the tax deducted at source is likely to

6.
be calculated at a lower rate than the normal domestic tax rates?

7. What could be done at the earliest possible date to ensure that residents of EU Member States who
keep savings accounts outside their country of residence are no longer rewarded by what in practice comes
down to exemption from the requirement to pay tax or a large reduction in the tax they are required to
pay?

Source: Dutch newspaper De Volkskrant, 8 October 2002.

Reply given by Mr Bolkestein on behalf of the Commission

(7 January 2003)

On 16 October 2001, the Ecofin Council instructed the Commission to open negotiations with the United
States and five other non-member countries (Switzerland, Liechtenstein, Monaco, Andorra and San Maríno)
with a view to obtaining adequate undertakings that they would introduce measures equivalent to those
which the EU plans to adopt within the Community concerning taxation of income on the savings of non-
residents.

These negotiations were launched after the Ecofin Council had unanimously adopted a draft directive on
13 December 2001 which brought together all the provisions on taxation of savings which were to serve
as the basis for them.

Since early 2002, in the course of carrying out these negotiations, the Commission has met several times
with the representatives of the six third countries concerned. The Commission’s objective was to achieve
concrete results in time to allow the Council to adopt the Directive on taxation of savings as part of a
comprehensive agreement on taxation before the end of 2002.

In the light of this deadline, which was set by the Feira European Council in June 2000, the Commission
drew up a report on progress with the negotiations which it adopted on 27 November 2002 (1). This report
was submitted to the Council, and was also sent to the Parliament for their information. A copy of the
report is being sent directly to the honourable member, and another is being sent to the Parliament’s
Secretariat General.

In the debate which took place during the Ecofin Council meetings of 3 and 11 December 2002,
the Member States were able to define more clearly their individual positions regarding the offers of
cooperation made by the non-member countries concerned. However, the ministers decided that certain
technical aspects deserved further discussion, and agreed to introduce a brief delay into the work
programme set out at Feira. The Ecofin meeting of 21 January 2003 was therefore set as the date on
which a decision would be made. The Commission is looking forward to the announcement of the results
of the discussions which are ongoing within the Ecofin Council; meanwhile, we continue our contacts with
the third countries involved to try and clarify their offers further. The Commission is eager to find effective
solutions and apply them rapidly, so as to ensure that the internal market can function properly.

(1) SEC(2002) 1287 final.

(2003/C 137 E/191)

WRITTEN QUESTION E-3162/02

by W.G. van Velzen (PPE-DE) to the Commission

(5 November 2002)

Subject: Threat to the integrity of networks and the Commission’s role in this connection

1.
The sudden disappearance of a company such as KPN Qwest can have serious repercussions for the
operation of infrastructure. Is the Commission aware that there was a threat that the KPN Qwest network
might collapse?

C 137 E/168

Official Journal of the European Union

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12.6.2003

A number of parts of the KPN fibre-optic network have been sold. This has repercussions for access
2.
to, and the operation of, pan-European networks. What body monitors the integrity of networks in the
EU?

3. What opportunities does the Commission have to influence policy decisions?

4. Will monitoring of the integrity of networks form one of the tasks of the Cyber Security Task Force
which is to be set up, and, if not, should it form one of its tasks, in the Commission’s view?

5. Will the Commission be putting forward additional proposals (for example to widen the functions of
the Cyber Security Task Force) in order to deal with eventualities of this kind?

Answer given by Mr Liikanen on behalf of the Commission

(9 December 2002)

The Commission thanks the Honourable Member for the interest taken on the issue of the increasing
threats jeopardising the availability of electronic communication networks and services.

The Commission has been following with particular interest the developments since KPN Qwest filed for
bankruptcy on 31 May 2002. The Dutch data carrier being one of Europe’s largest Internet backbone
operator, numerous Internet service providers, corporations and other telecom carriers have contracts with
KPN Qwest to pass their data through its lines.

The Commission has identified this situation as the first case of possible ‘unavailability’ of information
networks as described in the Commission Communication on network and information security (1). This
to depend
unfortunate event has also reminded users of electronic communication networks not
completely on a single provider.

The existing Community regulatory framework foresees that Member States should ensure the integrity of
networks (article 8.4 (f) and article 23 of the Universal Service Directive, Directive 2002/22/EC of the
Parliament and of the Council of 7 March 2002 on universal service and users’ rights relating to electronic
communications networks and services (2)). However, there are several overlapping issues at stake such as
cybersecurity, emergency communications, national security concerns, etc.

An initial discussion on network integrity has taken place with Member States in the context of the
Communications Committee. Issues such as economic failure, technical shortcomings and external events,
such as terrorist attacks, have been addressed, although no common perception of the issue has been
perceived. Additional work is planned to identify more closely the issues at stake, especially in the area of
the protection of critical infrastructures.

The gathering and analysis of data related to possible disruptive events, could in due course be included in
the tasks of the currently considered Network and Information Security Unit (‘Cyber Security Task Force’).
This could provide the Commission with elements to develop a European ‘network integrity policy’.

The work on ‘integrity’ related issues conducted in the Communications Committee should enable the
Commission to define the role of the public sector and exchange information on possible remedies with
other organisations (e.g. CEPT, ETNO, ITU, NATO (3)).

The Commission will keep the Honourable Member informed about the developments of the policy work
done in these areas.

(1) COM(2001) 298 final.
(2) OJ L 108, 24.4.2002.
(3) European Conference of Postal and Telecommunications Administrations; European Public Telecommunications

Network Operators; International Telecommunication Union; North Atlantic Treaty Organisation.