WRITTEN QUESTION No. 311/98 by Johanna MAIJ-WEGGEN to the Commission. Spending commitments in Italian Government finances
C 223/164 EN Official Journal of the European Communities 17. 7. 98 5. Regulation (EEC) No 2078/92, the áagri-environmentí regulation enables a Member State to recompense farmers for managing a natural area, particularly if the Community-wide appeal of that is recognised under the Natura 2000 network. That approach has already been very widely adopted by the Member States. Article 2(3) provides that general account shall be taken of socio-economic and regional interests against 6. the backdrop of a directive that is intended to maintain natural habitats and species in a favourable state of conservation. The criteria for site selection are set out in detail in Article 4(1)(3) and in Annex III. They are without exception scientific. Article6(4) states that socio-economic factors may be taken into account in managing selected sites. (98/C 223/213) WRITTEN QUESTION P-0311/98 by Johanna Maij-Weggen (PPE) to the Commission (10 February 1998) Subject: Spending commitments in Italian Government finances In the Netherlands Second Chamber the following questions were put to the Dutch Finance Minister. Will the Commission also answer these questions with a view to ensuring the greatest possible objectivity in relation to Italyís position? Is the Commission aware that the Bank of Italy made a capital gain of LIT 7 billion from gold sales on 1. which it paid capital gains tax of 50%, or 0. 175% of GDP, to the Italian Government? 2. Does the Commission not agree that this profit can only have been obtained by selling the gold at significantly below its market value? Is this an accounting measure to ensure that in a roundabout way the transaction is allowed for the purposes of the EMU deficit, whereas sell-offs of gold or other State assets are not? Can the Commission examine whether this transaction has been allowed by Eurostat for the purposes of the 3. EMU deficit? 4. When looking at the excessive deficit procedure preceding admission to EMU, will the Commission see that all Member States make it clear what extent the 1997 deficit position has been influenced by ad hoc measures? Answer given by Mr de Silguy on behalf of the Commission (16 March 1998) In 1974, to combat speculative attacks on the Lira, the Bank of Italy obtained a USD 2 billion (1 840 MECU) loan from the Bundesbank. The loan was granted upon guarantee of 543 tons of gold that the Ufficio Italiano Cambi (UIC) bought from the Bank of Italy. The loan was redeemed in September 1978, but the gold remained in the balance sheet of the UIC. In the following years the gold was revalued quarterly, but the related capital gains were not taxed. According to the Italian tax code, capital gains are taxed only when realised. In July 1997, UIC sold the gold back to the Bank of Italy. The sale gave rise to a capital gain for the UIC and, accordingly, to a tax obligation of ITL 3. 076 Trillion (1 577 MECU) or 0. 16% of gross domestic product (GDP) that was settled in November 1997. Eurostat has analysed this operation to determine its appropriate accounting treatment in terms of the system of integrated accounts ESA 79. In its decision of 27 January 1998 it is stated: Eurostat has decided to treat this payment as a financial transaction which has no effect on the measurement of the government deficit as defined for the purposes of the excessive deficit procedureí. In other words, this operation will not reduce the deficit in the definition which is relevant for access to economic and monetary union (EMU). The Commission will present an assessment of the sustainability of the Italian budgetary position, as well as that of other Member States, in its report on convergence, in accordance with Article 109j(1) of the EC Treaty, to be released by 25 March 1998