WRITTEN QUESTION E-0907/03 by Olle Schmidt (ELDR) to the Commission. Azerbaijan.
Date: 2003-03-24
Institutions: European Parliament, Provisional data
Subjects: Armenia, Azerbaijan, EU financing, EU relations, aid to refugees, the EU's international role

C 84 E/462

Official Journal of the European Union

EN

3.4.2004

(2004/C 84 E/0537)

WRITTEN QUESTION E-0857/03

by David Bowe (PSE) to the Commission

(20 March 2003)

Subject: Purchase of Corus by Outokumpu

Following the purchase by the Finnish company Outokumpu of the stainless steel business of the Anglo-
Dutch company Corus, will the Commission say what action it took to ensure that the purchase did not
create an over-concentration of ownership in this industrial sector?

What effect on competition and employment in the sector does the Commission think the purchase will
have?

Answer given by Mr Monti on behalf of the Commission

(28 April 2003)

As there is no single operation that can be regarded as the purchase of Corus’s stainless steel business by
Outokumpu it may be useful to outline the main developments in the process. Between 1992 and 1994
there was a series of operations through which British Steel plc acquired joint control with Swedish
investment institutions of Avesta Sheffield a company combining British Steel’s stainless steel business with
the Swedish stainless steel producer, Avesta. Subsequently, the Swedish institutions withdrew in two stages
so that by the end of 1994 British Steel plc had sole control of Avesta Sheffield.

In 2000 Corus and Outokumpu notified a concentration to the Commission which would combine their
respective stainless steel businesses in Avesta Polarit. This operation was cleared on 4 December 2000
under both the ECSC Treaty and the Merger Regulation (1). After an extensive first phase investigation the
Commission concluded that the concentration would not give rise to competition problems. The clearance
decisions (2) are available on Directorate General Competition’s web site.

The final operation occurred on 28 August 2002 when the Commission authorised the acquisition by
Outokumpu of sole control of Avesta Polarit through the purchase of Corus’s minority interest (3). This
operation had no direct effect on either competition or employment as it involved only a change from
joint control by Corus and Outokumpu to sole control by Outokumpu. Outokumpu subsequently bought
out the remaining minority shareholders.

In assessing the effects of the concentrations falling within its jurisdiction the Commission is required by
the Merger Regulation (4) to base its analysis on competition considerations. It does not therefore directly
consider the effects of a particular operation on employment. However stable long-term employment is
best served by competitive companies operating on a level playing field, conditions which Community
competition policy fosters.

(1) Council Regulation (EEC) No 4064/89 of 24 December 1989 on the control of concentrations between

undertakings, OJ L 395, 30.12.1989.

(2) COMP/M.2180 (cid:1) Outokumpu/Avesta and COMP/ECSC.1342 (cid:1) Outokumpu/Avesta.
(3) COMP/M.2900 (cid:1) Outokumpu/Avesta Polarit.
(4) http://europa.eu.int/comm/competition/index_en.html

(2004/C 84 E/0538)

WRITTEN QUESTION E-0907/03

by Olle Schmidt (ELDR) to the Commission

(24 March 2003)

Subject: Azerbaijan

Azerbaijan, the independent republic bordering the Caspian Sea, which is seeking closer relations with the
EU, has serious internal problems of an economic and humanitarian nature. One million people are

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currently refugees in their own country because of the Nagorno-Karabakh conflict and the Armenian-
occupied areas. Many of these refugees are therefore forced to live in wretched conditions in various
camps.

In the hope that the Commission is aware of the conditions under which these people are living, I would
ask what the EU has done hitherto to resolve the conflict between Armenia and Azerbaijan and relieve the
human suffering and, specifically, what funds the EU has allocated in direct aid to the region?

Answer given by Mr Patten on behalf of the Commission

(22 April 2003)

The Commission is acutely aware of the difficult conditions under which people (internally displaced
people and refugees) are living in Azerbaijan as a consequence of the Nagorno Karabakh conflict.

The Union’s policy to the region is defined in the General Affairs Council conclusions of its 2 331st
meeting in Brussels 26/27 February 2001. The Council concluded:

The Ministerial Troika visit to Armenia, Georgia and Azerbaijan on 20/21 February 2001 demon-
strated the importance the EU attaches to strengthening relations with the Southern Caucasus, with a
view to promoting peace, stability, prosperity and regional cooperation.

The EU is willing to play a more active political role in the region. The Council welcomes the warm
reception received from the three countries by the Troika visit, perceived as a sign of the EU’s
continued commitment to the region. All supported a stronger EU role in the Southern Caucasus.
In close co-operation with the parties, competent international organisations and the countries of the
region, the EU will look for further ways in which it could support efforts to prevent and resolve
conflicts as well as in post conflict rehabilitation in the region. Special attention should be given to
strengthening the co-operation with the OSCE, the UN and the Council of Europe.

In this context, the EU will reinforce the bilateral and multilateral political dialogue with the countries
of the Southern Caucasus. It will also intensify the political dialogue about the region with Russia,
Turkey, Iran and the United States.

The EU is continuing its support to the region, in close co-ordination with the relevant international
organisations and the IFIs. The effectiveness of
is connected to the
development of the peace processes in the region.

its assistance, however,

The Commission works within this overall policy.

Community funds committed to the region (Azerbaijan, Armenia and Georgia) total over EUR 1 billion
between 1992 and 2003. A total of EUR 399 674 million have been allocated directly to Azerbaijan since
1992. Of this total some EUR 254 569 million (51,6 %) were allocated to humanitarian and reconstruction
actions (cid:1) EUR 157,82 million were allocated to humanitarian assistance (39,5 % of the total) and
EUR 48 374 million on post conflict rehabilitation and reconstruction activities (12,1 %).

the benefit of

Funds have also been allocated under the European Initiative for Democracy and Human Rights (EIDHR) to
regional projects for
the three South Caucasian states. Two complementary Joint
Programmes with the Council of Europe and the Organisation on Security and Cooperation in Europe
(OSCE), focussing on conflict prevention and strengthening of democratic stability, have been financed
under this budget line. In addition, the Commission is working with non-governmental organisations
NGOs) in the region, notably to combat discrimination against certain minority groups.

Poverty alleviation is the primary focus for current and future Tacis and Food Security Programmes in all
countries of the Southern Caucasus.