WRITTEN QUESTION E-1507/03 by Ilda Figueiredo (GUE/NGL) to the Commission. Bankruptcy of Grundig AG and how to safeguard jobs in Portugal.
Date: 2003-05-05
Institutions: European Parliament, Provisional data
Subjects: EU aid, Portugal, cessation of trading, electronics industry, job preservation, modernisation aid, offshoring

C 88 E/612

Official Journal of the European Union

EN

8.4.2004

(2004/C 88 E/0632)

WRITTEN QUESTION E-1507/03

by Ilda Figueiredo (GUE/NGL) to the Commission

(5 May 2003)

Subject: Bankruptcy of Grundig AG and how to safeguard jobs in Portugal

The media have reported that Grundig AG filed for bankruptcy at the district court of Nuremberg,
Germany, on 14 April 2003.

Grundig currently controls the ‘Car InterMedia System’ (CIS) in Braga, Portugal, which employs around
700 workers, produces car radios and accounts for about 30 % of the production of Fehst Componentes
Lda, which has more than 300 employees. All this demonstrates the viability and self-sufficiency of CIS.

Grundig has a substantial impact on employment and regional development in the Braga area, hence our
concern at the decisions taken in Germany. It should be borne in mind that there are no alternative jobs
and that the relocation of other multinationals in the north of the country has helped to aggravate the
unemployment situation.

In view of the above, can the Commission say:

1. what Community support the Grundig Group has received, in particular the Car InterMedia System,

and what the terms of this support are;

2. what steps will be taken to safeguard the activity of CIS in Braga and the jobs it provides directly or
indirectly, bearing in mind that Portugal currently has the highest rate of unemployment in the
European Union?

Supplementary answer
given by Mrs Diamantopoulou on behalf of the Commission

(2 December 2003)

The Commission hereby informs the Honourable Member that the Grundig Group has received the
following assistance:

(cid:1) From the European Social Fund (ESF)

Community Support Framework I (CSF I)

A table is being sent directly to the Honourable Member and to the Secretariat of the Parliament.

Community Support Framework II (CSF II)

The last procedure registered for the two projects submitted by the Grundig Group for Measure 1
(‘Estimular a modernização empresarial do PRIME’) was the approval by the Ministry of Economic
Affairs in accordance with the ESF dates and amounts set out in the following table:

NIF

Name of Promoter

Project No

Decision
Date

FSE Investment

Eligible FSE
Investment

FSE
Subsidy

502302178 Grundig (cid:1) Sist. de

Electronica, Lda.

00/06144

12.12.2002

300 249,29

165 717,70

99 430,62

503263834 Grundig (cid:1) Sist. de

Electronica, Lda.

00/13274

18.08.2003

363 272,99

333 711,15

197 413,84

(euros)

(cid:1) None of

the projects mentioned has received payments under the ‘Programa de Incentivos à

Modernização Económica (PRIME)’.

Community Support Framework III (CSF III)

8.4.2004

EN

Official Journal of the European Union

C 88 E/613

(cid:1) Project No 42/4655 under measure 3.3 ‘Inovação e Internacionalização de Estruturas Empresariais’
was presented as part of the ‘Programa Estratégico de Dinamização e Modernização da Indústria
Portuguesa (PEDIP II)’. The closure of the ESF component for this project was approved on 16 August
2001 with the final amount of assistance coming to PTE 92 480 187 (EUR 461 289,23).

All the payments which were due have been made.

(cid:1) From the European Regional Development Fund (ERDF)

ERDF co-financing of EUR 1 473 867,72 has been awarded to the company ‘Car InterMedia System’
(CIS) and is to be distributed as follows:

(cid:1) a sum of approximately EUR 84 285,26 for a project approved on 31 December 1992 under the

Community’s ‘Stride’ programme (CCA I),

(cid:1) a total of EUR 1 389 582,46, under the programme to promote economic modernisation (CSF II).

This last amount concerns financial assistance for the following projects:
(cid:1) ‘Calibração de instrumentos’, approved on 31 December 1999
(cid:1) ‘Modernização tecnológica’, approved on 17 April 1998
(cid:1) ‘Diagnóstico e análise estratégica’, approved on 29 December 1995.

Assistance from the ERDF was awarded by the Member State under an aid scheme approved by the
Commission. The Member State must ensure that Community rules are complied with.

If, within five years of the decision of the competent authorities on the contribution of the Structural
Funds, a substantial modification occurs in a co-financed operation due to a cessation or change of
location of a co-financed productive activity, the Member States are obliged to inform the Commission.
Article 30(4) of the Council Regulation laying down general provisions on Structural Funds (applicable to
the 2000-2006 programming period) provides that where such a modification occurs, Article 39 on
financial corrections shall apply.

Moreover, in order to prevent delocalistion problems, the guidelines on national regional aid which were
adopted by the Commission on 10 March 1998 stipulate that the assets eligible for funding and the
employment created must be maintained for at least five years from the date on which the investment for
which funding has been granted is made.

(2004/C 88 E/0633)

WRITTEN QUESTION P-1555/03

by Eija-Riitta Korhola (PPE-DE) to the Commission

Subject: Averting alcohol-related harm in Finland

(2 May 2003)

I wish to thank Commissioner Frits Bolkestein for the answer which he gave on 14 April 2003, on behalf
of the Commission, to question P-0870/03 (1).

However, the Commissioner did not answer the part of my question concerning the possible use of
Articles 30 and 95 of the EC Treaty.

I should therefore like to repeat the last part of my question:

(cid:1) if a Member State can show that complete freedom as regards private imports (of alcoholic beverages)
(cid:1) that is, complete freedom from import restrictions (cid:1) causes serious problems from the point of
view of public morality, public policy, public security, or health, as referred to in Article 30 of the EC
Treaty, or specific public health problems within the meaning of Article 95, can it act to put matters
right;

(cid:1) what kind of measures are possible in such a situation?

(1) OJ C 33 E, 6.2.2004, p. 85.