WRITTEN QUESTION E-1020/04 by Cristiana Muscardini (UEN) to the Commission. Emergency on the ferrous metals market.
Date: 2004-04-05
Institutions: European Parliament, Provisional data
Subjects: Italy, ferrous metal, iron and steel industry, metallurgical industry, price increase, raw material, steel, supply, world market price

3.4.2004

EN

Official Journal of the European Union

C 84 E/929

(2004/C 84 E/1026)

WRITTEN QUESTION E-1011/04

by Olivier Dupuis (NI) to the Commission

(1 April 2004)

Subject: Extremely grave human rights situation in Vietnam and Laos

On 10 February 2004,
the European Parliament adopted a resolution on the rights, priorities and
recommendations of the European Union in respect of the 60th sitting of the United Nations Human
Rights Committee (P5_TA-PROV(2004)0079). Parliament stressed the gravity of the situation in various
countries, and called on the Commission and Council to raise various issues.

What initiatives has the Commission already taken, or will it take, within the framework of the 60th sitting
of the UN Human Rights Committee, so as to ensure that the extremely serious situation of basic rights in
Vietnam and Laos is adequately dealt with by the United Nations? In particular, has the Commission
already submitted a draft resolution on the situation of human rights in Laos and Vietnam to the Member
States and the candidate countries? Does the Commission intend to coordinate possible EU initiatives
Japan,
concerning Vietnam and Laos with initiatives taken by other countries, particularly the USA,
Australia and Canada?

Answer given by Mr Patten on behalf of the Commission

(30 April 2004)

The EU is one of the most active players in the Commission on Human Rights (CHR) and undertakes
responsibility for a wide range of country and thematic initiatives. The General Affairs and External
Relations Council (GAERC) conclusions of 23 March 2004, provided an indication of the initiatives which
will be addressed in 2004. Laos and Vietnam are not included in that list and the EU has not agreed to the
pursuit of resolutions relating to those countries.

EU deliberations on CHR initiatives took full account of the Parliament’s resolution relating to the
60th CHR. However, it is not possible for the EU to put forward draft resolutions on all situations of
concern. In order to operate effectively in the CHR, it is crucial that the EU focus on securing support for a
limited number of initiatives, not least through intensive lobbying efforts.

As an Observer Organisation at the CHR, the Community itself has delivered a statement under Item 19
relating to technical co-operation activities and is not in a position to table or pursue particular country or
thematic resolutions.

Human rights issues of concern in Vietnam and Laos are regularly addressed within the political and
human rights dialogues which the EU has established with these countries.

(2004/C 84 E/1027)

WRITTEN QUESTION E-1020/04

by Cristiana Muscardini (UEN) to the Commission

Subject: Emergency on the ferrous metals market

(5 April 2004)

The alarming rise in the prices of ferrous metals in the last year and the price explosion in 2004 are
affecting a large proportion of businesses (craft industries and SMEs) in northern Italy. There have been
record increases in the prices of steel, copper, aluminium and nickel, ranging from 22 % for nickel to
100 % for steel. Suppliers guarantee price quotations for only a few days, or sometimes even only 24 hours.
The situation is aggravated by the shortage of raw materials, and production is minimal compared with
demand. The greatest threats come from the Chinese, Indian and Russian markets, whose imports of
ferrous metals doubled or (cid:1) in the case of China (cid:1) trebled between 1999 and 2003. The prospects are far

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Official Journal of the European Union

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3.4.2004

from reassuring, since demand is set to increase in the coming years. At the same time China is drastically
reducing the export of coke needed to fuel foundries. The emergency is in particular adversely affecting
machine shops, wire-drawing, small metal products, turning shops, carpenters, electricians and plumbers.

Can the Commission say:

(cid:1) whether it has assessed the consequences of this emergency and the grave difficulties it is causing and
will continue to cause on the market, with incalculable threats to employment and the European
economy, specifically in northern Italy;

(cid:1) whether, in order to avoid these undesirable consequences, it considers that the expediency of quota

restrictions should be assessed;

(cid:1) what other steps it might propose to avoid the worst and prevent the closure of many small

businesses?

Reply by Mr Liikanen on behalf of the Commission

(23 April 2004)

The Commission keeps a close eye on developments in the world markets for steel, non-ferrous metals and
the raw materials needed for their production, and on the impact that the growing demand for these
products in Asia has on the markets and prices for these products in the countries of the European Union.
The steel and metals industries are particularly affected at present by the parallel increases in the prices of
all the raw materials they need, including in particular scrap, coke and ferro alloys.

The Community is a major producer of steel and metals, and at times like these, with rocketing world
demand and prices, all operators need to be careful about the scale of their purchases and stocks so as to
minimise the impact of their increasing financial exposure on the activities of their businesses. The metal
industry and all its downstream production and distribution operators alike are faced with this necessity,
but, of these, it is the small businesses that see their capacity for negotiation weakened compared with the
major customers. It would seem, therefore, that the Community market is not so much faced with a
problem of raw-materials supply as with considerable price pressure.

If this situation were to continue, small businesses that use metals would indeed be at risk. Over the last
few weeks, however, there has been a significant slackening in demand from Asia, which has an immediate
impact on world price levels. Even if we cannot draw any conclusions at this stage, this is an encouraging
sign.

The Commission can assure the Honourable Member that it will continue to keep a close eye on
developments in the metals market and use any means at its disposal to react to any imbalances that are
likely to lead to a genuine shortage.

(2004/C 84 E/1028)

WRITTEN QUESTION E-1024/04

by Alexandros Alavanos (GUE/NGL) to the Commission

(5 April 2004)

Subject: Olympic Airways

The Greek press has reported that, in the next few days, the Commission will bring an action against
Greece before the European Court of Justice for providing unlawful State subsidies to Olympic Airways
(OA). According to the reports, there are reasons to suppose that illegal subsidies were paid during the
process of dividing OA into two and the attempt to privatise Olympic Airlines as well as during the
process of collecting and allocating the passenger levy for the construction of the new airport at Spata.