WRITTEN QUESTION E-1570/03 by Erik Meijer (GUE/NGL) to the Commission. Criticism of the active involvement of the Flemish government in environmental rehabilitation, allegedly in breach of the promotion of free competition.
Date: 2003-05-08
Institutions: European Parliament, Provisional data
Subjects: Belgium, Flanders (Belgium), appeal to the Court (EU), application of EU law, award of contract, public contract, public sector, restriction on competition, services of general interest, water treatment

3.4.2004

EN

Official Journal of the European Union

C 84 E/471

(2004/C 84 E/0545)

WRITTEN QUESTION E-1570/03

by Erik Meijer (GUE/NGL) to the Commission

(8 May 2003)

Subject: Criticism of the active involvement of the Flemish government in environmental rehabilitation,

allegedly in breach of the promotion of free competition

On 16 October 2002 the Commission made a complaint against the significant involvement of the
1.
Flemish government since 1990 in tackling environmental problems through companies of which it is the
owner or part-owner, such as Vlaamse Milieuholding, Aquafin NV (water treatment), Indaver (industrial
and household waste), Vlaamse Afvalrecuperatiemaatschappij (recycling) and Hooge Maey’s environmental
rehabilitation company in Antwerp, which implement 90 % of Flemish environmental policy?

2.
Is Herman Matthijs, profession of economics at the Free Universities Brussels, correct in saying that
the United Kingdom is the only EU Member State to satisfy the Commission’s vision of the liberalisation of
services of general interest?

Is

the Commission considering bringing proceedings

Justice in
3.
Luxembourg, which is likely to result
the
EUR 7,5 billion budgeted for improved water treatment in Flanders, because other European companies
were unable to participate in the public invitation to tender after the contracts awarded by the Flemish
government?

in large fines having to be paid at

in the European Court of

the expense of

Is the Commission in discussions with the Flemish government with a view to finding other

4.
solutions? What has been the outcome?

Sources: De Standard, 9 and 10 April 2003, De Morgen, 10 April 2003, De Financiëel Economische Tijd,
10 April 2003.

Answer given by Mr Bolkestein on behalf of the Commission

(17 June 2003)

By letter of formal notice of 16 October 2002, the Commission raised objections, under the public
1.
procurement rules, to a number of agreements/measures awarded without a priori invitation to tender by
the local and regional authorities in the Flemish region relating to certain actions in the field of
environmental policy. Contrary to what
the Commission’s
complaint did not therefore relate to ‘the significant involvement of the Flemish government since 1990 in
tackling environmental problems through companies of which it is the owner or part-owner’.

the Honourable Member seems to say,

2.
The Commission takes no responsibility for what the Honourable Member says. It has, on a number
of occasions (1), voiced the opinion that services of general interest play a key role in the development of a
European social model and that the Member States remain free to define services of general interest and
how to organise them. However, it has to be ensured that any restrictions to applying the rules of the
EC Treaty, and particularly restrictions on competition and limitations of the internal market freedoms, do
not exceed what is strictly necessary to guarantee effective fulfilment of the general
interest mission.
In particular, when the Member States decide to entrust the management of such services to a third party,
the choice of third party should be made in accordance with the rules and principles of Community public
procurement law. In this context, it should be pointed out that the College has recently adopted a Green
Paper on services of general
(Internet site http://europa.eu.int/comm/secretariat_general/ser-
vices_general_interest), which relays the Commission’s thoughts on this matter and invites all interested
parties to submit their opinions and suggestions.

interest

3.
The proceedings initiated by the Commission against the Belgian State, which are mentioned by the
Honourable Member, are currently still at the pre-litigation stage. The arguments put forward by both
parties form the subject of a dialogue with the competent Belgian authorities.
the
Community public procurement legislation does not make it possible for the Commission to impose fines

In any event,

C 84 E/472

Official Journal of the European Union

EN

3.4.2004

at its own initiative on Member States for failure to comply with the applicable provisions. As Community
public procurement law stands at present,
it is only through referral to the Court under the strict
conditions laid down in Article 228(2) that the Court may impose a lump sum or penalty payment on a
Member State which does not comply with one of
the
its judgments. However, as stated above,
proceedings initiated by the Commission in this instance are currently only at the pre-litigation stage.

As the dialogue with the competent Belgian authorities is still being conducted,

4.
premature to make any pronouncements about what the outcome might be.

it would be

(1) OJ C 281, 26.9.1996 and OJ C 17, 19.1.2001.

(2004/C 84 E/0546)

WRITTEN QUESTION E-1571/03

by Erik Meijer (GUE/NGL) to the Commission

(8 May 2003)

Subject: Solutions for environmental problems in Flanders without increasing dependence on private firms

1.
Does the Commission’s criticism of the significant involvement of the Flemish government since
1990 in tackling environmental problems relate exclusively to the advantages secured by firms operating
in free market, including private firms employed by the Flemish government, because of the absence of
competition? Are fines to be imposed? What will happen if the firms are declared bankrupt in the
meantime?

2.
How can governments, who are responsible for dealing with environmental problems, guard
themselves against the efforts of private firms to take over some of their tasks under worse conditions,
such as road transport instead of transport by water or restricting their activities to those which are
profitable?

3.
How can governments keep down the cost of carrying out environmental improvements by avoiding
dependence on private companies who see environmental rehabilitation as a valuable market but not as an
essential objective?

4.
Could the problem raised by the Commission be solved if the legal status of the Flemish firms
concerned were to be changed from companies with some private shareholders into government services
including the Flemish provinces and Flemish intercommunal
for which the Flemish government,
associations, bear full liability?

Sources: De Standard, 9 April and 10 April 2003, De Morgen, 10 April 2003, De Financiëel Economische
Tijd, 10 April 2003.

Answer given by Mr Bolkestein on behalf of the Commission

(25 June 2003)

As indicated in the answer to Written Question E-1570/03 from Mr Meijer (1), the Commission raised
1.
objections, under the public procurement rules, to a number of agreements/measures awarded without
prior invitation to tender by the local and regional authorities in the Flemish region relating to certain
actions in the field of environmental policy. A dialogue is being conducted with the Belgian authorities in
order to reach an out-of-court settlement. It is only if the Belgian authorities should refuse to comply with
Community law throughout the entire infringement procedure that the matter would be referred to the
Court of Justice under the strict conditions laid down in Article 228(2) and the Court could impose a lump
sum or penalty payment on the Belgian authorities. In the meantime, the possible bankruptcy of certain
firms involved in this dossier does not seem to be a relevant factor in the analysis conducted by the
Commission, which seeks to ensure compliance with Community law and thus require of the Belgian
authorities that, when they decide to entrust the conduct of certain economic activities to a third party, the
choice of this third party is made after a competitive tendering process.