WRITTEN QUESTION E-0595/04 by Christopher Huhne (ELDR) to the Commission. Horse racing prizes in Greece.
Date: 2004-02-26
Institutions: European Parliament, Provisional data
Subjects: Greece, animal show, complaint to the Commission, discrimination on the basis of nationality, remuneration of work

3.4.2004

EN

Official Journal of the European Union

C 84 E/815

Answer given by Mr Bolkestein on behalf of the Commission

(5 April 2004)

It should first of all be remembered that only those cooperatives whose shares are traded on a European
stock market and that produce consolidated accounts will be affected by Accounting Standard IAS 32,
i.e. a minority of cooperatives. Moreover, according to our information, the American situation is more
complex than the Honourable Member describes since in the United States stock exchange-quoted entities
cannot benefit from the deferred application of the provisions of the American standard FAS 150,
equivalent to IAS 32.

the Commission is well aware of

That said,
the problem raised by the possible reclassification of
cooperatives’ share capital as debt in the application of Accounting Standard IAS 32. This issue has been
the subject of numerous discussions with the International Accounting Standards Board (IASB) and is
currently under examination.

Although Accounting Standard IAS 32 was published by the IASB in December 2003, the specific
accounting treatment of cooperatives’ shares is currently being examined by the International Financial
Reporting Interpretations Committee (IFRIC) of the IASB, where the Commission has observer status.
Progress has already been made thanks to sustained dialogue between the IASB and the European
Association of Co-operative Banks. It would appear that the IASB and IFRIC are starting to have a better
understanding of the way in which cooperatives operate as well as the characteristics of their shares.

Discussions have highlighted that there is more than one type of cooperative, that the issue of shares is
complicated and that their accounting treatment can depend on attributes given to them by the statutes of
the cooperatives concerned. It is up to the IASB to take into account the variety of these situations
through either an interpretation of Accounting Standard IAS 32 or advice on its application.

The IFRIC should be able to issue such interpretation or advice before the summer, clarifying the fact that
cooperative members’ contributions are considered as capital if their reimbursement by the cooperative is
subject to a decision by the competent body within the organisation, implying that this reimbursement is
neither automatic nor unconditional.

It would seem that the cooperative world, particularly its banking sector, will be satisfied with this result.
The Commission will continue to follow very closely the developments in this field in order to guarantee
that the result of current discussions accords with the indications provided by the IASB.

(2004/C 84 E/0910)

WRITTEN QUESTION E-0595/04

by Christopher Huhne (ELDR) to the Commission

(26 February 2004)

Subject: Horse racing prizes in Greece

1. Will the Commission confirm whether it has received any complaints concerning discrimination by
the Greek Jockey Club against owners whose winners are bred outside Greece, notably in Britain and
Ireland?

2. Will it confirm that a proportion of the prize money is withheld by the Greek racing authorities if
the horse is bred outside Greece? If so, does it agree that this represents prima facie evidence of
discrimination against the nationals of another Member State?

3.
Is it investigating the case? On what timescale does it expect to reach a conclusion that upholds the
Treaty provisions against discrimination? Can arrangements be made for the reimbursement of prize
money unfairly withheld from owners with horses bred outside Greece?

C 84 E/816

Official Journal of the European Union

EN

3.4.2004

Answer given by Mr Bolkestein on behalf of the Commission

(1 April 2004)

The Commission has received a letter claiming that the Greek Jockey Club is withholding prize money
from non-Greek-bred race-horses emanating from other Member States. The information provided to date
is not sufficient to permit the Commission to ascertain whether, as suggested by the Honourable Member,
a proportion of the prize money is indeed withheld by the Greek racing authorities if a horse is bred
outside Greece. It is also not yet in a position to ascertain the compatibility with Community law of any
such practice, especially since it has not yet received the relevant regulations. More particularly, it is not
clear whether the Greek Jockey Club is a private body, a recognised association that has legal autonomy to
act in Greece or a public organisation (e.g., whether it is governed by public law). Consequently, it is yet to
be determined whether the problem raised will be analysed under competition law or under Internal
Market rules.

To permit the Commission to examine the concerns raised regarding the practices of the Greek Jockey
Club and to be in a position to register a formal complaint, the Commission has requested additional
information from the interested party.

(2004/C 84 E/0911)

WRITTEN QUESTION P-0600/04

by Generoso Andria (PPE-DE) to the Commission

(23 February 2004)

Subject: Remuneration of amateur football managers

Football is a very popular sport in Italy which is played by large numbers of young people.

The astronomical sums paid to professional footballers have created major problems for all clubs and have
required government intervention in the form of the ‘Spalma-debiti’ decree allowing clubs to spread their
debts over ten years.

This decree is now under close scrutiny by the Competition Commissioner Mario Monti.

Amateur football is a sport which gives young people the opportunity to develop their physical and
mental skills in the open air and participation has always been unpaid or the amounts involved have been
very small.

The chairmen of amateur clubs also incur considerable expenses without any remuneration apart from
their love of the game.

However, other managers in the football sector, from the President of the League to board members, are
known to receive remuneration of thousands of euro in the form of per diem allowances to cover their
expenses, which are questionable from the tax point of view and circumvent the provisions of Article 10 of
the law governing the Italian Football Federation (FIGC) which says that the duties performed by officers
shall not be remunerated and prohibits offices in the federation from being held by those who derive
financial gain from their involvement in football.

Can the Commission say whether this situation amounts to a distortion of competition in a particularly
sensitive sector or involves serious irregularities?