WRITTEN QUESTION E-0738/03 by Erik Meijer (GUE/NGL) to the Commission. Transfer of the unsecured risks of German banks and insurance companies to a government funded entity.
Date: 2003-03-11
Institutions: European Parliament, Provisional data
Subjects: Germany, State aid, bank, control of State aid, financial institution, insurance company, loan, public financing

26.2.2004

EN

Official Journal of the European Union

C 51 E/45

Furthermore, at its meeting on 4 March 2003 and taking into account reports by the Commission, Spain
and France, the Environment Council adopted conclusions on a thematic strategy to protect and conserve
the marine environment and,
if
necessary, in relation to the safety of maritime transport in order to protect the marine environment and
consider related issues of liability and, if appropriate, sanctions’.

it invited the Commission ‘to include further measures,

in particular,

(2004/C 51 E/045)

WRITTEN QUESTION E-0738/03

by Erik Meijer (GUE/NGL) to the Commission

(11 March 2003)

Subject: Transfer of the unsecured risks of German banks and insurance companies to a government

funded entity

It

is the Commission aware of

1.
in the Frankfurter Allgemeine Sonntagszeitung of
23 February 2003 that the Commerzbank, the Dresdner Bank and the Hypo-Vereinsbank are to transfer an
amount of at least EUR 7 billion in risky loans to a ‘bad bank’ to be financed by the German Government
and/or the Bundesbank?

the report

2.
Are there arrangements in other EU Member States whereby banks’ and insurance companies’ risks
and losses are taken over by the government or by publicly funded bodies, while the profitable sections of
the loan portfolios continue to benefit the companies themselves?

3.
In view of the fact that since 1 January 2002 the Bundesbank has no longer been responsible for the
circulation of German currency and is integrated into the EMU system, what are the implications for the
value of the euro? Does this mean that an arrangement like that described in paragraph 1 is partly funded
at the expense of collective and individual spending capacity for the inhabitants of the 12 states of the
euro zone as a whole?

Does the Commission plan to extend the scope of such arrangements to all the Member States or

4.
does it wish to restrict and discourage them because they are seen as a form of illegal State aid?

Source: Netherlands newspaper, De Volkskrant, 23 February 2003.

Answer given by Mr Monti on behalf of the Commission

(16 April 2003)

1.
The Commission is aware of press articles indicating that certain German banks have called for the
creation of a ‘bad bank’ which would take over bad loans. In reply to an information request of the
Commission the German authorities stated that no such plans were being pursued.

The Commission is not aware of any general schemes in a given Member State applicable to the
2.
whole banking or insurance sector to hive off bad assets.
individual rescue and
restructuring operations a transfer of bad assets has been allowed in some specific cases (e.g. Crédit
Lyonnais).

In the context of

3.
The cost of such a scheme, if it were to be implemented, would in the first place be met by the
national tax payers. However, as already stated, the German government is not planning to implement
such a scheme.

4.
If such a scheme is implemented it may meet the criteria to be considered a State aid in the sense of
Article 87(1) of the EC Treaty. In principle State aids are prohibited, though this prohibition is not
absolute. Articles 87(2) and (3) of the EC Treaty set out the conditions under which certain State aids may
In particular, pursuant to Article 87(3)(c), the
be considered compatible with the common market.

C 51 E/46

Official Journal of the European Union

EN

26.2.2004

Commission can allow aid for rescuing and restructuring firms in difficulty (1). However, any such aid must
be notified to the Commission and assessed for each individual beneficiary bank. General aid schemes for
companies in difficulty are only permitted for Small and Medium-sized Enterprises.

In addition to the issues to be considered under the Union State aid rules, if the creation of a ‘Bad Bank’
were to involve an agreement between undertakings, Article 81 of the EC Treaty might apply. The
Commission has at this stage no factual elements that this is the case.

(1) Community guidelines on State aid for rescuing and restructuring firms in difficulty, OJ C 288, 9.10.1999.

(2004/C 51 E/046)

WRITTEN QUESTION E-0740/03

by Erik Meijer (GUE/NGL) to the Commission

(11 March 2003)

Subject: Croatia’s application to join the EU in 2007 at the same time as Romania and Bulgaria

1.
Does the Commission consider that the wish expressed by the Croatian government on 21 February
2003 that Croatia should join the EU in 2007 along with Romania and Bulgaria is technically feasible,
given that negotiations on accession and transposition of the Community ‘acquis’ have not started?

2.
Does the Commission consider that the fact that the neighbouring states of Slovenia and Hungary
will most probably be members of the EU at that time and that Croatia is economically stronger and has
sea ports that are used by other Member States is a reason why Croatia should be admitted to the EU
earlier than most of the other states of the former Yugoslav federation?

3. What solution does the Commission envisage for the fact that most of the Serbian minority, who
were invited to settle in Croatia centuries ago by the Austro-Hungarian empire to defend Croatia’s border
areas (Krajina) against the Turkish military threat from neighbouring Bosnia-Herzegovina, fled Croatia in
1995 and do not feel it is safe to return there, as a result of which this population group has fallen from
12 % to 4,5 % of the total population since 1991?

4. What solution does the Commission see for the claims made by the Croatian opposition and a very
large section of Croatian public opinion on the south-west area of neighbouring Bosnia-Herzegovina
bordering Dalmatia which is predominantly populated by Croats, and does it consider that it is really
possible for one section of the Croat population soon to live within the EU area and another outside it?

5. When will Croatia be told when and under what conditions EU accession is a real possibility and
what is the anticipated date of accession?

Answer given by Mr Patten on behalf of the Commission

(30 April 2003)

1.
On 21 February 2003, Croatia submitted an application for Union-membership. In accordance with
Article 49 of the Treaty on European Union, this application was addressed to the Council of the Union.

The next step in the process will be that, at one of its next meetings, the Council is likely to ask the
Commission to prepare an Opinion (‘Avis’) on Croatia’s application. From the moment the Commission
receives this request and based on previous experience, it is expected that the preparation of the Opinion
will take about a year. The Council, after analysing the Commission’s Opinion and its recommendation,
may decide whether or not to open accession negotiations, based on the fulfilment of the necessary criteria
by Croatia.