WRITTEN QUESTION E-2980/03 by Konstantinos Hatzidakis (PPE-DE) to the Commission. Suspension of funding for public works studies in Greece from the Community budget.
Date: 2003-10-09
Institutions: European Parliament, Provisional data
Subjects: EU financing, Greece, Structural Funds, award of contract, infringement of EU law, public works, suspension of aid, works contract

C 78 E/204

Official Journal of the European Union

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27.3.2004

However, whatever type of measures the Member States choose, they must comply with the general
objectives of the Directive. If a Member State chooses contractual measures, it is still required to establish,
on a permanent basis, conservation measures which meet the ecological requirements of Annex I natural
habitats and Annex II species present on the sites, and it must still comply with the Directive’s general
conservation objective.

In addition to the general conservation measures the Member States must establish for special conservation
areas under Article 6(1) of the Directive, the requirements of Article 6(2), (3) and (4) also apply. These
provide for preventive measures to avoid deterioration, disturbance and adverse effects on Natura 2000
sites.

(1) Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora,

OJ L 206, 22.7.1992.

(2004/C 78 E/0208)

WRITTEN QUESTION E-2980/03

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(9 October 2003)

Subject: Suspension of funding for public works studies in Greece from the Community budget

According to reports which have appeared in the Greek press, Community funding for advance studies for
all projects covered by the Structural Funds has been suspended owing to a breach of Community law.

More specifically, the Commission Director-General for the internal market stated in a letter sent to the
other directors-general on 31 July 2003 that he had detected infringements of Community directives,
notably Directive 92/50/EEC (1) on public contracts. As a result, the press reports state that it was decided
to suspend the financing of studies.

1. What is the Commission’s official position on this matter?

If the Commission has already made cuts, to what extent will the reduction in funding for studies

2.
affect the budget?

3.

How will these studies be financed?

If studies are financed from national funds despite the Commission’s objections in relation to
is it possible that the projects themselves could still be financed

4.
compatibility with Community law,
through the Structural Funds and the Cohesion Fund?

(1) OJ L 209, 24.7.1992, p. 1.

Answer given by Mr Bolkestein on behalf of the Commission

(7 January 2004)

1.
In the course of a regularly scheduled on-the-spot control mission concerning the Egnatia project, the
studies of which are partly co-financed through the Trans-European Transport Network (TEN-T) budget
line, some issues were identified, which showed that Egnatia’s practices for the award of study contracts
may not be compatible with public procurement rules and thus required further clarification. Egnatia
seems to award the contracts on the basis of the quality of the enterprise itself and not the quality of the
services which selected enterprises can provide, which would be contrary to Council Directive 92/50/EEC
of 18 June 1992 relating to the coordination of procedures for the award of public service contracts.

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Official Journal of the European Union

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The Commission is in close contact with the Greek authorities, in order to collect all necessary information
which would allow it to assess the issues raised.

2. Whilst awaiting the outcome of the compatibility assessment under the public procurement rules, a
line, has been suspended by the
part of
Commission (the suspended payments concern 38 decisions (cid:1) studies (cid:1) which amount to EUR 82 million
of the total planned support).

the payments, namely those linked to the Ten-T budget

3. and 4.
Should the Commission reach the conclusion that an infringement of Community law is at
stake, it may initiate the procedure foreseen under article 226 EC. In such a case, all Community payments
(i.e. including those concerning the European Regional Development Fund and the Cohesion Fund) related
to the subject-matter of the possible infringement proceeding will have to be suspended. The Commission
would like to stress that a cooperative dialogue is currently taking place between the Greek authorities and
the competent Commission services with a view to clarify the current situation and bring the possible
infringement to an end.

(2004/C 78 E/0209)

WRITTEN QUESTION E-2982/03

by Mihail Papayannakis (GUE/NGL) to the Commission

(9 October 2003)

Subject: Stability pact

In reply to my Oral Question H-0564/01 (1) to the Council on the Greek stability and development
programme I was informed that ‘on 12 February 2001, the Ecofin Council discussed Greece’s initial
stability programme which relates to the 2000-2004 period (…). The Ecofin Council was of the opinion
that, under normal circumstances, the budget estimates provide sufficient guarantees against exceeding the
shortage threshold of 3 %’.

It has been reported that, after carrying out exhaustive checks on the budgets for projects in connection
with the Olympic Games in cooperation with the ‘Athens 2004’ organisation, the Greek Government has
now concluded that an additional sum of around EUR 2,3 billion will be required in 2003-2004 to
complete the projects. To what extent does the Commission believe that Greece will not exceed the safety
margin and that its deficit will remain stable? Does the Commission still take the view that Greece has not
deviated from the constraints set by the stability pact in the two years that have passed since the Ecofin
Council first assessed Greece’s financial situation?

(1) Written answer of 4.7.2001.

Answer given by Mr Solbes Mira on behalf of the Commission

(4 November 2003)

The Commission is closely monitoring developments in the Greek public finances all the more that the
increasing costs of the preparations for the Olympics as well as the cost of the announced social package
seem to add significant pressures to the State budget. In fact, the Greek Government has recently revised
the figure for the general government deficit to 1,4 % of the gross domestic product (GDP) in 2003. In
spring, the Commission forecasted the government deficit at 1,1 % of GDP in 2003 and 1,0 % of GDP in
2004. Recent developments imply that these estimates will be certainly revised in the Commission Autumn
forecasts, which, however, are not completed as yet. Under these circumstances,
it is certain that the
Commission will examine with the closest attention budgetary developments in Greece in case clear signs
of deterioration would emerge; it should be reminded that the Council in its Opinion on the 2002 updated
stability programme (January 2003) recommended to Greece to implement stronger and more robust
medium term budgetary adjustment; it was stressed that this effort was required taking into consideration
the still very high level of the government debt and its insufficient decline in the recent years.