WRITTEN QUESTION E-3379/03 by Mihail Papayannakis (GUE/NGL) to the Commission. Expansion of petroleum installations in the Ambracian Gulf.
Date: 2003-11-14
Institutions: European Parliament, Provisional data
Subjects: Greece, application of EU law, environmental impact, environmental law, environmental protection, impact study, oil industry

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27.3.2004

Under this evaluation exercise the Commission carried out a comparative analysis using its macroeconomic
QUEST model, of the effects of reducing VAT rates and the impact on labour costs. This exercise showed
that, even under the best assumption that the reduction of VAT rates would be passed on in full to
domestic prices, a reduction in labour costs would create 52 % extra jobs within the European Union at
the same cost to the budget.

The evaluation period was originally set by the Council at three years (and then extended for one year) and
is sufficiently long to determine whether the anticipated economic mechanism (reduction in prices,
increase in demand and ultimate increase in jobs) works correctly. One of the important lessons learned
from this experiment is that, in many cases, the reduction in VAT rates is not passed on, or if it is, only
partially, in the selling price to the final consumer. If it is passed on, it is usually only temporarily and
there is a catching-up effect in the sectors concerned (prices rise more than the rate of inflation). It is
therefore concluded that the economic mechanism does not work as had been anticipated and the impact
on employment is often unpredictable, even in the longer term.

for a Directive on reduced rates (3). As the
On 23 July 2003 the Commission adopted a proposal
Commission’s objective is to improve the functioning of the internal market it is essential that all Member
States are able to apply reduced rates if they wish in the same sectors. The proposal does not include
reduced rates for hairdressing services.

The proposal
Parliament’s opinion, on the future scope of reduced VAT rates.

is being examined by the Council. It has to decide by unanimity, and in the light of

(1) Council Directive 1999/85/EC of 22 October 1999 amending Directive 77/388/EEC as regards the possibility of

applying on an experimental basis a reduced VAT rate on labour-intensive services, OJ L 277, 28.10.1999).

(2) COM(2003) 309 final.
(3) COM(2003) 397 final.

(2004/C 78 E/0556)

WRITTEN QUESTION E-3379/03

by Mihail Papayannakis (GUE/NGL) to the Commission

(14 November 2003)

Subject: Expansion of petroleum installations in the Ambracian Gulf

Local citizens have complained that plans are going ahead to expand the petroleum installations in the
Ambracian Gulf. This marine environment with its rare ecosystem is one of the most important wetlands
in Greece, and for this reason part of it is protected under the international Ramsar Convention as a
Special Protection Area.

Given that the Ambracian Gulf forms part of the Natura 2000 Network drawn up as part of the
implementation of Directive 92/43/EEC (1), what does the Commission intend to do to ensure the
preservation of the rare biodiversity (flora and fauna) in the region as a whole and to avert any threat to
human health? As co-funder (under the third CSF) of many environmental protection projects in the region
over the last decade (biological purification plants), does the Commission intend to examine whether the
impact of such an entrepreneurial activity on the ecosystem has been adequately studied and assessed?

(1) OJ L 206, 22.7.1992, p. 7.

Answer given by Mrs Wallström on behalf of the Commission

(19 December 2003)

The Amvrakikos Gulf (Ambracian Gulf) has been designated a special protection area (GR2110004) under
Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds (1) and has been proposed
by the Greek authorities as a site of Community importance (GR2110001) under Council Directive 92/43/

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EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (2). The obligations
arising from Article 6(2), (3) and (4) of Directive 92/43/EEC therefore apply. In addition, the situation
reported by the Honourable Member might also constitute an infringement of Directive 85/337/EEC (3), as
amended by Council Directive 97/11/EC of 3 March 1997 on the assessment of the effects of certain
public and private projects on the environment (4).

Examination of the information transmitted by the Honourable Member shows that the Greek authorities
have begun the procedure for assessing the environmental impact of the plan to expand the petroleum
installations in question. The plan is intended to modernise the existing installations and to improve the
treatment system for waste produced there. At present, on the basis of the information available, the
Commission does not believe that Directive 85/337/EEC has been infringed. If the Honourable Member
has further information showing that an infringement has been committed, the Commission would ask
him to forward such information to it.

Regarding the presumed infringement of the obligations arising from Article 6(2), (3) and (4) of Directive
92/43/EEC, it should be noted that the installation in question is not located within the boundaries of the
protected site, but clearly outside it. Moreover, as the project’s objective is to modernise the existing
installations, it is unlikely to have a serious adverse impact on the site. The project is the subject of an
environmental impact assessment.

The Commission will check to see whether there is a coherent, specific and comprehensive legal
framework ensuring the sustainable management and effective protection of Amvrakikos Gulf, having
regard to the conservation objectives of Directives 79/409/EEC and 92/43/EEC.

(1) OJ L 103, 25.4.1979.
(2) OJ L 206, 22.7.1992.
(3) OJ L 175, 5.7.1985.
(4) OJ L 73, 14.3.1997.

(2004/C 78 E/0557)

WRITTEN QUESTION E-3384/03

by Gianfranco Dell’Alba (NI), Emma Bonino (NI),
Marco Cappato (NI), Benedetto Della Vedova (NI),
Olivier Dupuis (NI), Marco Pannella (NI)
and Maurizio Turco (NI) to the Commission

(17 November 2003)

Subject: Corridor 5

The Italian (‘Trans-Padania’) leg of Corridor 5, which is to link Lisbon and Kiev and thereby ensure
optimum east-west transport conditions in southern Europe,
is important to the European and Italian
facets of the economy of the Friuli-Venezia-Giulia region and the city of Trieste.

The Trieste node is of particular importance in terms of links with the countries of Central and Eastern
Europe and as an ideal point of passage for east-west road and rail traffic south of the Alps.

Despite numbering among the Transeuropean projects originally proposed by the Commission, it seems
that the Venice-Trieste-Capodistria-Ljubljana-Budapest section has unexpectedly been discarded from the
slimmed-down ‘quick list’, which could jeopardise a prompt launch of the project.

Can the Commission urgently explain the reasons for this step backwards and indicate whether this means
it has revised its position?