WRITTEN QUESTION P-1398/03 by Arie Oostlander (PPE-DE) to the Commission. Publication of the fortnightly newsletter Europa van Morgen.
Date: 2003-04-11
Institutions: European Parliament, Provisional data
Subjects: EU publication, European Commission, Netherlands, administrative expenditure (EU), communications policy, dissemination of information

C 84 E/722

Official Journal of the European Union

EN

3.4.2004

Will the simplification and more uniform application of the Community VAT system which this proposal
aims to put into effect satisfy the expectations expressed by the European Parliament (and in particular by
France) that a reduced rate of VAT for tourism services be applied more broadly, and in particular in the
hotel and restaurant sector?

Answer given by Mr Bolkestein on behalf of the Commission

(7 May 2003)

As announced in its communication on the new VAT strategy (1) and mentioned in its report on reduced
rates adopted in October 2001 (2), the Commission intends to carry out a comprehensive review of the
structure of reduced rates in the first half of 2003. As part of this exercise, an examination will be made of
the restaurant sector and all reduced rate applications from other categories. Several other sectors too have
frequently expressed an interest in the use of tax incentives.

The Commission is currently conducting an evaluation, based mainly on reports by the Member States, of
the experimental application of reduced rates on labour-intensive services. The participating Member
States’ evaluations were unable to clearly establish the link between a lower rate of VAT on labour-
intensive services and job creation or a reduction in the underground economy.

The Commission confirms its intention to submit a proposal for a directive in mid-2003 which will
comprehensively review reduced rates with a view to the simplification and more uniform application of
VAT. The basic aim of this proposal is to improve the way the internal market operates by rationalising
the use of reduced rates by Member States, avoiding potential distortions of competition by allowing
Member States equal opportunity to apply reduced rates.

No decision has yet been taken on the review to be undertaken. Nevertheless, the Commission would draw
the Honourable Member’s attention to the fact that hotel services are already included in the list of goods
and services eligible for a reduced rate (Annex H, category 11). Restaurant services, however, only qualify
for the reduced rate in eight Member States, on the basis of special derogations granted to them.

(1) COM(2000) 348 final.
(2) COM(2001) 599 final.

(2004/C 84 E/0811)

WRITTEN QUESTION P-1398/03

by Arie Oostlander (PPE-DE) to the Commission

(11 April 2003)

Subject: Publication of the fortnightly newsletter Europa van Morgen

The fortnightly newsletter Europa van Morgen (Tomorrow’s Europe) produced by the Commission
Representation in the Netherlands has not appeared since the end of February 2003. As I understand it,
this is because of an administrative slip-up. This newsletter is greatly appreciated by readers because it is
accessible and provides a starting point for obtaining further information. In view of the forthcoming
European elections, in particular, will the Commission make interim arrangements as soon as possible to
enable publication of the newsletter to continue until such time as the new tender procedure is organised.

Answer given by Mr Prodi on behalf of the Commission

(21 May 2003)

The Commission is grateful to the Honourable Member for his positive comments on the newsletter
‘Europa van Morgen’.

3.4.2004

EN

Official Journal of the European Union

C 84 E/723

The Commission’s duty is to constantly adapt its information material to the evolving requirements of its
readers. Issuing a printed newsletter is expensive. The Commission needs therefore to evaluate regularly its
content and presentation against other means of communication, as the only way to ensure that taxpayer’s
money is spent in the respect of the principles of sound financial management.

The Commission will make sure that
Representation in the Netherlands in the most appropriate form.

information is provided to the relevant

target groups by its

(2004/C 84 E/0812)

WRITTEN QUESTION P-1437/03

by Armin Laschet (PPE-DE) to the Commission

(15 April 2003)

Subject: Direct payments of EUR 10 million per month in EU aid to the Palestinian Authority

Is it correct that since 2002 the Commission has ceased payment of the monthly direct budgetary aid of
EUR 10 million to the Palestinian Authority?

Is this cessation of direct budgetary aid a temporary measure or has the Commission now decided to end
the monthly lump-sum payments once and for all?

What were the Commission’s reasons for ending these monthly payments?

Answer given by Mr Patten on behalf of the Commission

(27 May 2003)

The primary objective of Union budgetary support to the Palestinian Authority (PA) has been to mitigate
the effects of the freeze of revenue transfers by the Government of Israel, thus contributing to the
functioning of the PA administration and to the restoration of the conditions necessary for peace once the
present crisis is over.

The Union’s support has in the short term helped to avert the collapse of the institutional structures within
the Palestinian Territories. Union’s support has also been tied to conditions which have promoted reform
in the PA, in particular by contributing to the consolidation and transparency of the PA’s public finances.

The importance of the Union’s assistance to the PA was fully recognised by the international community,
most recently at the Ad Hoc Liaison Committee meeting of international donors (including the European
Union, United States, Norway, and the World Bank) in London on 18/19 February 2003.

Whereas the economic effects of the crisis are still putting a strain on the PA’s revenues, the Israeli
government has now resumed regular revenue transfers. So far, four consecutive monthly payments have
been made by the Israeli government for October 2002-January 2003, paid in December 2002-March
2003. In addition, the Government of Israel has begun repaying arrears which have accumulated since
December 2002. As of March 2003 a total of EUR 295 million has been paid over to the PA.

Consequently it has been possible for the Union to redirect its assistance to the PA. The current budgetary
assistance programme will therefore be replaced by other forms of aid as announced by the Commission
on 30 April 2003.

If Israel were to freeze transfers, a decision to resume direct budgetary support may need to be considered
on the basis of an assessment of the fiscal outlook of the PA.

Payment of the final instalments of monthly budgetary support relating to November and December of
2002 will be made to the PA in the coming weeks.

A report summarising the history of Commission Budgetary Assistance in favour of the PA is sent direct to
the Honourable member and to Parliament’s Secretariat.