WRITTEN QUESTION E-0105/04 by Stavros Xarchakos (PPE-DE) to the Commission. Curious approach adopted by the Greek government to the stock exchange.
Date: 2004-01-22
Institutions: European Parliament, Provisional data
Subjects: EU Member State, Greece, application of EU law, capital market, criminal law, economic offence, financial legislation, insider trading, penalty, stock exchange

3.4.2004

EN

Official Journal of the European Union

C 84 E/535

(2004/C 84 E/0612)

WRITTEN QUESTION E-0105/04

by Stavros Xarchakos (PPE-DE) to the Commission

(22 January 2004)

Subject: Curious approach adopted by the Greek government to the stock exchange

Professor Prokopis Paulopoulos, the parliamentary spokesman of New Democracy, publicly complained on
12 January 2004 that the Greek government was decriminalising two crimes relating to the operation of
the stock exchange, notably share manipulation and the abuse of confidential information. These rules are
being introduced as part of the new code for capital markets which has been presented to the Greek
Parliament and provides for the two crimes in question to be decriminalised. Hitherto both share
manipulation (Article 72 of Greek Law 1969/91) and the abuse of confidential information (Article 30 of
Law 1806/88 and Presidential Decree 53/92, Articles 2 and 3) were criminal offences. It should be borne
in mind that Greece has suffered the greatest loss of capital in Europe over the last few years with the
collapse of the Athens Stock Exchange index. As a result 1,5 million Greeks have lost money amounting to
an estimated EUR 100 billion.

Is the decriminalisation of share manipulation of shares and the abuse of confidential
information
compatible with Community law? Which other EU country has suffered a comparable loss of capital on
the stock exchange? Which sanctions have been imposed and on whom in comparable circumstances in
the other 14 Member States of the Union?

Answer given by Mr Bolkestein on behalf of the Commission

(17 March 2004)

According to the Honourable Member’s information, the Greek Government intends to decriminalise both
market manipulation and insider dealing. These two infringements would no longer be considered as
criminal offences if the new Greek code for capital markets were to be adopted by the Greek Parliament.

Regarding decriminalisation of market manipulation and insider dealing, Member States have currently to
transpose Directive 2003/6/EC (1) (hereafter Market Abuse Directive) in order to have it implemented by
12 October 2004. As the transposition deadline is not reached, and as the Commission is not aware of
any final transposition of this Directive by Greece yet, and the Commission therefore can not assess at this
stage the legislative action of the Greek authorities.

However, Article 14, paragraph 1 of the Market Abuse Directive, makes mandatory for the Member States
the principle of administrative measures or sanctions for such infringements. In addition, the last sentence
of Article 14, paragraph 1 requires Member States
these measures are effective,
proportionate and dissuasive.

to ensure that

This paragraph foresees that the previous administrative measures and sanctions are without prejudice to
the right of Member States to impose criminal sanctions. This means that the Member States may impose
criminal offences in addition to administrative measures or sanctions. However,
if the Member States
decide not to have a criminal penalties regime, they should nonetheless maintain a mandatory regime of
administrative measures or sanctions.

Regarding the criminal regime of prosecution for market abuse, the data show poor results. A study done
by the predecessor of the Committee of European Securities Regulators (cid:1) the Forum of European
Securities Commissions (cid:1) for the period of 1995-2000 regarding the market manipulation revealed that
only thirteen criminal sanctions had been pronounced in the six year period in the whole European
Economic Area (EEA). Regarding insider dealing,
the United Kingdom
(and Switzerland) there were only nineteen criminal convictions in the same period.

in Germany, France,

Italy,

Concerning the question on comparisons of loss of capital on stock exchanges, in terms of stock exchange
price index declines and analysis of the difference between the maximum value and the minimum value of
the index on the period, the Athens Stock Exchange General index registered a decline of 76 % between
1999 and 2003. In the same period, with the same method, the decline was 52 % in London FTSE 100,
72 % in Frankfurt Dax, 65 % in Paris CAC 40 and 56 % in Milano Mibtel for instance.

C 84 E/536

Official Journal of the European Union

EN

3.4.2004

Finally, regarding the types and amounts of sanctions imposed for market abuse in Member States, figures
for Greece are as follows: between 1997 and 2004, the Hellenic Capital Market Commission (HCMC)
substantiated 136 cases of insider dealing and market manipulation, and has imposed administrative fines
of a total amount of EUR 52 million. Concerning penal sanctions, 31 from the HCMC’s investigated
market abuse cases were considered to be of penal character and have been referred to the Public
Prosecutor through the filing of criminal complaints. In these cases more than 100 natural persons are
involved.

(1) Directive 2003/6/EC of the Parliament and of the Council of 28 January 2003 on insider dealing and market

manipulation, OJ L 96, 12.4.2003.

(2004/C 84 E/0613)

WRITTEN QUESTION P-0111/04

by Minerva Malliori (PSE) to the Commission

(19 January 2004)

Subject: Dioxins in farm-raised salmon

According to a report published in the reputable ‘Science’ journal, significant quantities of carcinogenic
substances, such as PCBs, have been found in farm-raised salmon. This has caused great concern among
consumers and breeders.

Given the large quantities of salmon consumed, since it is one of the healthiest fish, being rich in omega-3
fatty acids, reducing the risk of heart disease, together with the fact that it is a major source of revenue in
areas such as Scotland, can the Commission confirm the reports of contaminated fish and will it take
immediate measures to eliminate the danger to consumers and safeguard the livelihood of fish-breeders?

Answer given by Mr Fischler on behalf of the Commission

(20 February 2004)

The Honourable Member refers to a study published in the journal ‘Science’, which analysed 246 samples
of farmed and wild salmon from all over the world for 14 organochlorine contaminants, including dioxins
(sum of dioxins, furans, dioxin-like PCBs) and polychlorinated biphenyls (PCBs)).

The substances, other than dioxins, mirex and PCBs are organochlorine pesticides or metabolites thereof,
the use of which has been prohibited for a long time, with the exception of lindane which has been
prohibited only since June 2002. Their presence in fish is due to the fact that residues of these pesticides
are still present in the environment long after their prohibition, due to their very persistent nature.

Council Regulation (EC) No 2375/2001 of 29 November 2001 amending Commission Regulation (EC)
No 466/2001 setting maximum levels for certain contaminants in foodstuffs (1) establishes maximum levels
for dioxins in a range of foodstuffs including fish. The levels found in this study were all below the set
maximum levels. The Commission is of the opinion that the levels of dioxins and PCBs found in this study
are in line with those previously found and this study does not raise any new food safety issues.
No immediate action from the Commission is therefore required but the long term strategy foresees a
progressive reduction of the maximum levels.

(1) OJ L 321, 6.12.2001.