WRITTEN QUESTION E-3392/03 by Christopher Huhne (ELDR) to the Commission. Economic monitoring.
Date: 2003-11-17
Institutions: European Parliament, Provisional data
Subjects: EU Member State, International Monetary Fund, economic analysis, economic situation, economics, financial situation, stability programme, technical profession

C 78 E/808

Official Journal of the European Union

EN

27.3.2004

The implementation of a possible grant, in particular the selection of individual operations would lie with
the authorities of Malta and the Commission cannot intervene.

Absence of storm water plans or similar alleged shortcomings have no effect on the eligibility for grants
from the Solidarity Fund. However, in their final report on the implementation of the Solidarity Fund
grant, beneficiary states are obliged to give details on the preventive measures introduced or proposed in
order to limit damage and to avoid, to the extent possible, a recurrence of similar disasters.

(1) OJ L 311, 14.11.2002.

(2004/C 78 E/0857)

WRITTEN QUESTION E-3392/03

by Christopher Huhne (ELDR) to the Commission

(17 November 2003)

Subject: Economic monitoring

1. Will the Commission compare its monitoring of Member States’ financial and economic performance
each year, particularly its scrutiny of stability and convergence programmes, with the Article IV
consultations and reports undertaken by the International Monetary Fund?

In particular, will it state: (a) how many trained economists are allocated to report specifically on
2.
each Member State and how that compares with the staffing of IMF country desks, (b) what is the length of
stay and staffing of missions to Member States and (c) what is a typical programme of such a visit,
indicating the seniority and responsibilities of those interviewed?

3. Will the Commission state whether it plans any changes or improvements in the manner of its
monitoring in future?

Answer given by Mr Solbes Mira on behalf of the Commission

(19 December 2003)

The Honourable Member refers to the practices and the resources associated to the follow-up of the
economic and financial situation of Member States by the Commission in comparison with the
International Monetary Fund.

The Commission routinely compares the outcome of its monitoring of the economies of Member
1.
States (and Acceding States). In particular, the assessment of stability and convergence programmes, with
the outcome of
the Article IV
consultations. Based on such comparisons, the Commission contributes to coordinating the Union’s
position on Article IV Consultations on Member States and Acceding Countries. This activity includes
(since the start of the Economic and Monetary Union (EMU)) the Article IV consultations on the euro-area.

the economic surveillance undertaken by the Fund,

specifically,

2.
The number of trained economists in the Commission dedicated to the monitoring of the economic
situation of individual Member States typically ranges from two (for the four largest economies) to one (for
the other Member States). This would compare with a range from three to one in the geographical
departments of the Fund. This number does not include either support staff (secretaries, assistants) or
managerial staff (Heads of Unit and Director for the Commission, Heads of Division, Head of Department
for the Fund).

Concerning the Commission’s missions dedicated to the specific follow-up of the economic situation in
Member States, these include routine mission typically undertaken in connection with the Autumn and
Spring forecasts and the preparation of the Report on the Implementation of the Broad Economic policy
Guidelines, and ad hoc missions, undertaken on specific policy occasions (for example, in preparation of
possible steps to be taken in the framework of the Excessive Deficit Procedure).

27.3.2004

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Official Journal of the European Union

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The former typically include the economist(s) following the Member State in question and may or may not
include the responsible Head of Unit. They last between one and three days. The programme typically
includes meetings with the finance ministries, the Central bank and forecasting institutions, at operational
and middle management level.

The latter are typically headed by a Director (or the Director-General) and include the responsible Head of
Unit and the economists following the Member State in question. They last between one and two days. The
programme typically includes meeting with the finance ministries at senior management level.

It needs to be noted that the resources and the contacts outlined above are supplemented, as far as the
Commission is concerned, by the resources in the ‘horizontal’ (non-geographical services) and the contacts
with officials from Member States on the occasion of official and unofficial meetings taking place at the
seat of the European institutions.

3.
The Commission is continuously looking for ways to improve its monitoring of the economies of
Member States. Concerning missions in particular, the Commission Communication on strengthening the
co-ordination of budgetary policies (1) mentions explicitly the intention to organise more frequent and
comprehensive missions.

(1) COM(2002) 668 final.

(2004/C 78 E/0858)

WRITTEN QUESTION E-3398/03

by Stefano Zappalà (PPE-DE) to the Commission

(17 November 2003)

Subject: Dumping by China on the world copper market

China has introduced protectionist arrangements for subsidising its copper industry, allowing it to operate
on the world markets in such a way as to obtain undue and unfair advantages.

In particular, firms importing secondary raw materials (scrap) are directly reimbursed 30 % of VAT, while
the remaining 70 % goes to a state company grouping the five main enterprises in the sector.

This unfair advantage is being used to create a monopoly on the main world markets in raw materials, at
prices which are so high that other potential buyers cannot pay them.

In just four years, from 1998 to 2002, exports of copper scrap and alloy from the EU to China rose from
70 000 to 246 000 tonnes per annum.

The EU, which lacks copper ore of its own, is losing its copper scrap and alloy (cid:1) the only resource
available to it (cid:1) thus ensuring that
its manufacturing industry will suffer a dramatic decline in
competitiveness leading to a reduction in activity and job losses.

These distortions are affecting the refining industry, which produces raw materials similar to those which
we otherwise have to import, and, even more so, the sector producing semi-finished products, which
relies, for over 50 % of its requirements, on the availability and accessibility in cost terms of scrap
originating in the EU.

It is disappointing that the Commission, which has for a long time now been made aware of these
circumstances by the professional associations and, more recently, also by Europa Metalli, has still not
responded and has taken no steps to re-establish fair market conditions.

Can the Commission state what urgent action it will take against China’s protectionist measures on the
copper market, and, in particular, what measures it intends to take to secure an end to China’s direct and
indirect subsidies to its industry, and in particular the reimbursement of VAT?