WRITTEN QUESTION E-0971/04 by José Ribeiro e Castro (UEN) to the Commission. Venezuela — referendum.
Date: 2004-03-29
Institutions: European Parliament, Provisional data
Subjects: EU relations, Venezuela, objections to an election result, political crisis, referendum

8.4.2004

EN

Official Journal of the European Union

C 88 E/257

On 6 October 2003, the Portuguese authorities wrote to Eurostat describing a transaction they were
considering, namely the sale of non-performing tax claims, and asking Eurostat’s views on the recording of
this transaction.

To answer this request, Eurostat met a delegation of Portuguese officials in Luxembourg on 13 October
2003. Based on the information provided by Portugal, Eurostat considered, on 4 November 2003, that the
sale of the claim of uncollected taxes and social contributions could be considered as revenue, that is, as a
non-financial transaction.

Eurostat based its answer on the following main reasons.

(a)

In the Portuguese government accounts, tax and social contributions are recorded on a cash basis, or
on a time adjusted cash basis, in line with Regulation (EC) No 2516/2000 (1). Therefore, the tax claims
that were sold had never been recorded as revenue.

(b) The Portuguese government would not provide any explicit or implicit guarantee to the acquirer:
either guarantees on the recovery performance of the tax claims, or on the funding needs involved in
the purchase.

(c) The difference between the initial payment and the market-based estimated price was less than 15 %,
thus implying an effective transfer of risk to the acquirer. This is in line with the Eurostat framework
decision of 3 July 2002 on securitisation.

On 16 February 2004, Portugal provided Eurostat with copies of the contract and associated documents,
including the independent report by IDEFE mentioned by the Honourable Member.

The Commission is aware that the sale involves a set of non-performing claims, which are legally disputed.
If a tax claim is considered to be inexistent (and only in this case), in full or in part, the Portuguese State
will have to provide a substitute for that claim. However, this does not constitute a guarantee on the
amounts collected or on the taxpayers’ solvency. The sole purpose of this mechanism is to ensure the
material integrity of the claim portfolio that was sold.

(1) Regulation (EC) No 2516/2000 of the Parliament and of the Council of 7 November 2000 modifying the common
principles of the European system of national and regional accounts in the Community (ESA) 95 as concerns taxes
and social contributions and amending Council Regulation (EC) No 2223/96, OJ L 290, 17.11.2000.

(2004/C 88 E/0262)

WRITTEN QUESTION E-0971/04

by José Ribeiro e Castro (UEN) to the Commission

(29 March 2004)

Subject: Venezuela (cid:1) referendum

The media report that the Coordenadora Democrática, the umbrella organisation covering the political
parties opposed to President Hugo Chávez, have welcomed the decision of the Supreme Court of Justice
(SCJ) to urge the National Electoral Council (NEC) to validate 876 017 signatures whose authenticity has
been called into doubt, despite the fact that they were accompanied by the signatories’ fingerprints.

The SCJ has decided to urge the NEC to add a further 876 000 signatures to the 1 832 493 already
validated (making a total of 2 708 510) and to call the referendum on revoking the President’s mandate.

A Coordenadora Democrática spokesman told the Venezuelan media of the movement’s satisfaction at the
the impending NEC
‘return of
jurisdictional decision.

stressing the obligation to respect

legality and constitutionality’,

the Mayor of Libertador (one of

Meanwhile,
the two Caracas local authorities), Fredy Bernal, has
announced that the Movimento Quinta República (MVR), the government party, was going to appeal
against the decision of the Electoral Chamber of the SCJ.

C 88 E/258

Official Journal of the European Union

EN

8.4.2004

Various political analysts believe that there could shortly be conflict between Venezuela’s various legal
authorities and institutions, particularly between the SCJ’s electoral and constitutional chambers, and the
NEC.

The Commission:

1. What information does it have concerning these facts?

2. Does it believe that the holding of the referendum revoking the presidential mandate should remain

unscheduled?

3. What consequences does it think that this situation could have for Venezuela?

4. What initiatives is it taking or does it intend to take to help prevent this possible tension between
institutions, and ensure that the Venezuelan people are finally given the chance to speak, the only way
of resolving the democratic crisis which Venezuela is undergoing?

Answer given by Mr Patten on behalf of the Commission

(30 April 2004)

After the National Electoral Council (CNE) announced the preliminary results for the Presidential recall
referendum on 2nd March 2004, the legal activity on the recall referendum has been intense. The CNE
ruled that, out of the amount of signatures examined (3 086 013 (cid:1) the opposition said it submitted
3 467 050), just over 1,8 million signatures have been declared valid, 876 017 doubtful, and more than
230 000 invalid. The signatures considered doubtful are the result of the so called ‘planillas planas’
(signature forms where the basic data of those who signed have been filled in similar handwriting) and
would have to be double-checked in a ‘repair process’ (‘reparo’), together with certain other signatures
originally declared invalid. As a consequence, according to the CNE, more than 1 million signatures needed
further verification and they had to be confirmed, by those who signed. 2,4 million signatures are needed
to call the Presidential referendum.

Nevertheless, the Supreme Court’s Electoral Chamber ruled, on 15 March 2004, that the ‘planillas planas’
were valid. The CNE appealed this ruling to the Supreme Court’s Constitutional Chamber, which
considered that the Electoral Chamber was not competent according to the 1999 Constitution and ordered
it to refrain from ruling on the referendum process. The Electoral Chamber has reaffirmed its competence
on the matter and asked the Court’s plenary to decide. The outcome cannot be predicted with any
certainty. This Constitutional controversy is causing further delays for the possible referendum on President
Chávez.

The European Union supports the role of the Organisation of American States (OAS) and the Carter Center
in the conflict and the efforts they are making to implement the political agreement signed on 29 May
2003 by the Venezuelan government and the opposition, in line with the OAS resolution 833, which calls
for a pacific, democratic, constitutional and electoral solution. The EU has reiterated the importance of
implementing this agreement. Nevertheless, even if a referendum takes place, the polarisation in society
will take time to overcome as will the recovery of the economic situation.

(2004/C 88 E/0263)

WRITTEN QUESTION E-0972/04

by José Ribeiro e Castro (UEN) to the Commission

(29 March 2004)

Subject: Natura Network (cid:1) funding

The Portuguese Secretary of State for the Environment, José Eduardo Martins, recently stated that the
amounts which the EU was preparing to assign Portugal for the management of the Natura Network were
quite clearly inadequate, and fell far short of what was required. He said that merely for the management
of Portugal’s Natura Network between 2003 and 2007, Portugal needed some 220 million euros, but that
the EU financial perspective fell far short. Apparently, a similar problem will occur with Spain, Italy,
France and Greece.