WRITTEN QUESTION E-0319/03 by Dominique Souchet (NI) to the Commission. Removal of Cyprus and Malta from the Black List in the Paris Memorandum.
Date: 2003-02-10
Institutions: European Parliament, Provisional data
Subjects: Community acquis, Cyprus, Malta, State aid, accession to an agreement, accession to the European Union, flag of convenience, maritime law, maritime safety, tax incentive

18.9.2003

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Official Journal of the European Union

C 222 E/183

If so, can President Da Silva count on the EU Member States for assistance?

To what extent do the Member States contribute to food aid for Brazil?

Reply

(13 May 2003)

1.
The EU has reaffirmed at several occasions its intention to strengthen its political, economic, trade
and co-operation relations with Brazil both bilaterally and in the bi-regional EU-Mercosur framework.
At present, EC co-operation with Brazil amounts to some EUR 210 million in terms of projects under
implementation. The sector where most financial resources are allocated to ongoing projects is the
environment (EUR 80 million) mainly in the framework of the Pilot Programme for the Protection of
Brazilian Tropical Forests (PPG7). In the social field, the fight against poverty is the key priority and two
significant projects are under way, for a total amount of EUR 12,6 million. Many European NGOs pursue
active development projects in Brazil with the support of EC funding, generally aimed at improving the
living condition of underprivileged communities. In 1999 and 2000 EC funding for NGO activities in
Brazil amounted to EUR 43 million.

2.
Particular reference should also be made to the Memorandum of Understanding on Co-operation
(MoU) signed by the European Commission and Brazil on 19 November 2002. The MoU, which foresees
an indicative budget of EUR 64 million, establishes the priorities for bilateral EC-Brazilian co-operation
until the end of 2006. The MoU concentrates on five priority areas: public administration, economic co-
operation, social development, R & D and environment. Three projects adopted in the framework of the
above Memorandum are already being implemented: modernisation of public administration, support to
taxation reform and human rights training for the policy. A fourth project is being prepared with a view
to establishing a network of technology centres.

It is recalled that the MoU expressly foresees the possibility of adjustment when the parties consider it
necessary. The competent EU authorities will, if necessary, carefully examine any request of the Brazilian
authorities to adjust the above mentioned agreed co-operation priorities.

3.
In the framework of EU-Mercosur co-operation, the European Commission adopted the Regional
Indicative Program (RIP) worth of EUR 48 million for the period of 2002-2006. The RIP covers support
for the completion of Mercosur internal market, strengthening of Mercosur institutional building and
sectoral policies and improving possibilities for civil society actors to actively contribute to further
integration and to EU-Mercosur relations.

4.
Concerning food aid to Brazil there seems to be a consensus on the fact that hunger in Brazil is not
due to lack of food or lack of distribution channels, but rather to the low purchasing power of large
groups of the Brazilian population. Therefore, the efforts of international donors have been concentrated
on improving the social and economic conditions of these groups.

(2003/C 222 E/210)

WRITTEN QUESTION E-0319/03

by Dominique Souchet (NI) to the Commission

(10 February 2003)

Subject: Removal of Cyprus and Malta from the Black List in the Paris Memorandum

The Cypriot and Maltese flags are flags of free registration and are still deemed to be flags of convenience
since they continue to appear on the Black List in the Paris Memorandum.

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Cyprus and Malta are, however, countries applying for accession to the European Union. One condition
for accession is
that an applicant country must bring its legislation into line with the acquis
communautaire. That being the case, Cyprus and Malta have undertaken to comply with European
maritime legislation. As far as I am aware, they have asked, in that connection, for neither a transitional
period nor a derogation.

According to its Regular Report for 2002, the Commission notes that, despite the progress made in the
field of maritime safety, Cyprus and Malta must continue their efforts to have their names removed from
the Black List.

Can the Commission answer the following:

1. What progress has been made by Cyprus and Malta in the transposition of the acquis communautaire

in the maritime field?

2. Has a timetable for implementation been drawn up? If so, are the countries referred to complying with

it?

3. What is the degree of actual implementation of the legislation? Do Cyprus and Malta really have the

resources for and the determination to achieve rapid implementation?

4. When and how will Cyprus and Malta become signatories to the Paris Memorandum?

5. What undertakings have Cyprus and Malta given in relation to the campaign against

flags of

convenience?

6. What (tax and social) concessions are still being granted by Cyprus and Malta? What undertakings

have Cyprus and Malta given in relation to tax concessions?

7. What is the average age of their respective fleets?

8. How will the Commission persuade Cyprus and Malta to comply at the earliest possible date with

Community and international legislation?

Answer given by Mrs de Palacio on behalf of the Commission

(18 March 2003)

As regards the transposition of the acquis communautaire, as mentioned in the regular report for 2002,
Cyprus and Malta have made progress on the transposition of maritime legislation since the regular report
for 1998 for Cyprus and the Commission opinion of 1999 for Malta. In the case of Cyprus, the regular
report for 2002 concluded that much of its maritime transport legislation was in line. As regards Malta,
the regular report for 2002 mentioned that, in spite of some progress in the legislative sphere, there was a
need to transpose major areas of the acquis and continue efforts in this direction.

The Commission points out that there are timetables which form part of the commitments entered into
during accession negotiations. As stated in the document ‘Towards the enlarged Union (cid:1) strategy paper
and report of the European Commission on the progress towards accession by each of the candidate
countries’ (1), the Commission continues to closely monitor the situation in the Member States regarding
their commitments and reports on this to the Council on the basis of current procedures. This continuous
monitoring should be done through established channels such as the structures of
the association
agreements. Building on its present practice, the Commission will signal any delays or problems in the
fulfilment of commitments.

The will and the means employed by Cyprus and Malta to transpose and implement the acquis in the field
of maritime transport can be seen in the administrative capacity put in place to this end.
In this
connection, the regular report for 2002 concluded that Cyprus has made significant progress as regards
strengthening the administrative capacity of the mercantile marine department and improving safety
standards, while stressing that more efforts are still needed as regards staffing in these two areas. As
regards Malta, the regular report for 2002 concluded that it has made a substantial effort to increase
administrative capacity but must continue its efforts to improve safety standards. An assessment of the
undertakings given by these two candidate countries regarding their administrative capacity forms part of
the continuous monitoring referred to above.

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As regards the Paris Memorandum, Cyprus and Malta have already expressed their intention to become
signatories. To this end, their administrations have requested the Secretariat of the Paris Memorandum for
information concerning the procedure to be used for acceding as cooperative members. Discussions were
held in 2002 on this subject.

However, according to the information available, neither of the two administrations has so far presented a
formal request for accession or transmitted a self assessment of its compliance with the criteria laid down
in Article 8(2) of the Memorandum relating among other things to their capability and performance in
terms of flag state control and port state control, which is the first stage of the accession procedure.

It should be pointed out that the campaign against flags of convenience concerns vessels not meeting
Community and international standards in terms of working conditions and safety. The checks aimed at
identifying such vessels are covered by the acquis communautaire, the transposition and implementation of
which in Cyprus and Malta are being monitored by the Commission.

The State aid schemes for maritime transport in Malta and Cyprus have the same basic characteristics of
tonnage taxes as those existing in EU countries. It should be pointed out in this connection that the 1997
Community guidelines on State aid for maritime transport allow tax and social charge concessions for
shipowners and seafarers which may extend to zero rating of the charges in question.

According to the 2001 statistics produced by the Institute of Shipping, Economics and Logistics in
Bremen, the average age of vessels of 1 000 gross tonnes (gt) or more, of all types, is 17,9 years for Cyprus
and 23,4 years for Malta. It should, however, be pointed out that the safety of vessels is only partially
determined by their age and other factors, including their maintenance, have a major influence on the
general condition of the vessel and thus on its level of safety. For this reason the annual rate of detention
of vessels sailing under the Cypriot and Maltese flags (provisional figures for 2002: 7,68 % and 7,61 %
respectively, compared with 8,85 % and 9,48 % in 2001 and 11,8 % and 9,7 % in 2000) gives a more
accurate picture of their safety level.

Since March 2000, the Commission has planned and implemented a number of pre-accession aid projects
aimed at increasing the administrative capacity for implementing the acquis in the field of maritime safety
in Cyprus and Malta. The total amount of such projects is around EUR 4 million. Moreover, throughout
2003 and up to the accession of those countries in May 2004, the Commission will continue to monitor
progress achieved with regard to both the implementation of these projects and the commitments made
on maritime safety. This monitoring process is being carried out by means of various structures
(association committees, monitoring missions, joint committee for monitoring pre-accession projects). It
will be the subject of interim reports, with specific follow-up of the most important points with the
countries concerned. An overall monitoring report is scheduled for the end of 2003. Apart from that
report, the Commission will continue to provide Parliament, in particular through the Joint Parliamentary
Committees, with information on the implementation of Community legislation by the two countries
concerned during the period preceding ratification of the Accession Treaty.

(1) COM(2002) 700 final.

(2003/C 222 E/211)

WRITTEN QUESTION E-0331/03

by Joan Vallvé (ELDR) to the Commission

(10 February 2003)

Subject: European agency for islands

Written question E-2303/01 (1) raised with the Commission the issue of the problems suffered by island
regions that are not among the most remote regions in the Community but are nonetheless separate from
mainland Europe and whose competitiveness is seriously compromised by the fact that they incur much
higher transport costs than firms situated on mainland Europe and by their lack of access to railways,
motorways and other overland transport systems, with this representing a serious handicap in the free-
trade area that is the EU’s single market.