WRITTEN QUESTION E-4029/03 by Juan Naranjo Escobar (PPE-DE) to the Commission. Euro-dollar exchange rate.
Date: 2004-01-12
Institutions: European Parliament, Provisional data
Subjects: United States, economic growth, euro, exchange policy, exchange rate, foreign currency

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Official Journal of the European Union

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3.4.2004

that support for the euro remains traditionally rather stable and fluctuates between 60 % and 75 % both in
the euro area and the EU as a whole. It would, therefore, be premature to draw clear conclusions from the
declining support registered in autumn 2003.

The survey that the Honourable Member refers to was conducted between 1 October and 7 November
2003. Therefore, the public debate about the Stability and Growth Pact (SGP) preceding the decision taken
at the Ecofin Council of 25 November 2003 could indeed have influenced the results published on
15 December 2003. The results of the Flash Eurobarometer 153 (also published on 15 December 2003)
concerning the SGP, point to a possible link between the debate on the Pact and the perception of the
euro, since a clear majority (71 %) of the euro-area citizens agree with the statement that the SGP is a
useful instrument and that, thanks to that, the euro is a stable and strong currency.

The Commission continues to believe that sound public finances and fiscal discipline in line with the
requirements of the EC Treaty and the SGP are essential. The Commission will, therefore, continue to
exercise fully its role in budgetary surveillance in the framework of the SGP. But the 25 November 2003
events also show that it is time to take a further step forward. The Commission is preparing a new
initiative to enhance the framework for economic governance in the Union.
Improvements in the
implementation of the SGP will form part of this initiative.

(2004/C 84 E/0172)

WRITTEN QUESTION E-4029/03

by Juan Naranjo Escobar (PPE-DE) to the Commission

(12 January 2004)

Subject: Euro-dollar exchange rate

The rise of the euro against the dollar is reaching levels which threaten the recent timid resumption of
economic growth in the EU. The 6 % fall in German exports registered from September to October 2003 is
seen by analysts as a clear consequence of the euro’s appreciation.

Some experts think the ECB may be obliged to reduce its rates if the European currency goes on rising.
The Commission,
in its autumn forecasts, had to scale back its growth forecast for the Community
economy, to 0,8 % for 2003 and 2 % for 2004.

Does the Commission believe the euro will continue to appreciate over the coming months? Does it
believe that a level exists for the euro-dollar exchange rate which would reflect the real bases of both EU
and US economies? Are the Commission’s most recent economic growth forecasts for the next two years
still valid?

Answer given by Mr Solbes Mira on behalf of the Commission

(11 February 2004)

The Commission believes that a stable exchange rate is in Europe’s interest. The Commission also shares
the concerns of the euro-area Finance Ministers and the President of the ECB concerning excessive
exchange rate movements (as expressed in the Eurogroup statement of 19 January 2004).

The euro has undergone an appreciation of around 25 per cent against the dollar since the start of 2003.
However, the euro-area real effective exchange rate (cid:1) which is what matters for competitiveness (cid:1) has
only appreciated by around 8 per cent since then (when deflated by nominal unit labour costs). The real
effective exchange rate is based on the evolution of the euro against a basket of currencies, weighted
according to their importance in the external trade of the euro area. It also takes into account differences
in inflation rates.

Both survey data and hard indicators confirm that the Commission services Autumn 2003 forecast is still
on track. Indeed, the euro-area real effective exchange rate has only appreciated by around 4½ per cent
since the forecast was published. It is also worth noting that the latest available (January 2004) private-
sector Consensus forecast for GDP growth in the euro area in 2004 is the same as that given in the
Commission Services forecast (cid:1) 1,8 %.

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Official Journal of the European Union

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The Commission does not have an official position concerning whether or not the euro will continue to
the Commission does not have an official position
appreciate over the coming months. Similarly,
concerning what exchange rate of
the economic
fundamentals of the United States and euro-area economies.

the dollar would best

the euro against

reflect

(2004/C 84 E/0173)

WRITTEN QUESTION E-4032/03

by Geoffrey Van Orden (PPE-DE) to the Commission

(12 January 2004)

Subject: UK contribution to the EU budget

What is the UK’s gross contribution to the EU budget since it became a member in 1973?

How much money has the UK received from the EU budget since it became a member in 1973?

Answer given by Mrs Schreyer on behalf of the Commission

(30 January 2004)

A table showing:

(cid:1) the United Kingdom’s gross contribution (total United Kingdom payments, after deduction of the

United Kingdom budgetary rebate) to the Community budget during the period 1973-2002;

(cid:1) total funds received by the United Kingdom from the Community budget during the period 1985-

2002; as well as;

(cid:1) the amount of the United Kingdom correction relating to each of the years 1985-2002;

is sent direct to the Honourable Member and to Parliament’s Secretariat.

Figures on total funds received by the United Kingdom from the Community budget are only available
from 1985, i.e. since the entry into effect of the current United Kingdom correction mechanism.

(2004/C 84 E/0174)

WRITTEN QUESTION E-4033/03

by Maurizio Turco (NI) to the Commission

(12 January 2004)

Subject: Censoring of the word ‘condom’ in the Commission’s official press release to mark World Aids

Day at the request of Mr Prodi’s office

The 11-17 December 2003 edition of the weekly ‘European Voice’ published an article entitled ‘Prodi bans
condoms’, according to which the Commission’s press service was about to publish an official press release
to mark World Aids Day when a telephone call came from Mr Prodi’s office with orders to delete the word
‘condom’ from the statement.

In his answer of 10 December 2003 to written question E-3115/03 (1) the Commissioner Christopher
Patten said ‘On the basis of research conducted during the last 15 years and partly funded by the
Community, it can be claimed that condoms, when used properly, are an effective means of preventing
human immunodeficiency virus (HIV) transmission, with an efficacy close to 100 %’.

Can the Commission say:

(cid:1) whether the report published in the ‘European Voice’ is true;