WRITTEN QUESTION E-1228/00 by Sebastiano Musumeci (UEN) to the Commission. Reduction of the tax and social contributions burden on undertakings in southern Italy.
20. 3. 2001 EN Official Journal of the European Communities C 89 E/17 Moreover, in January 2000 the Commission sent administrative letters to the Member States in order to obtain information on the measures which they have taken in order to ensure that national legislation is in conformity with Decision No 128/1999/EC. This includes looking into the relevant legislation in particular with regard to selection procedures for licences to provide 3G services, measures taken to promote competition in the market and measures taken to ensure coverage of regions with low population density. According to the information available to the Commission, Member States which have adopted 3G licensing procedures have prohibited multiple licence applications by single operators or by groups of operators. On the other hand, the fact that individual operators or groups seek to obtain licences in a large number of Member States is not objectionable as such, as it may contribute to the further integration of the European mobile market and the improvement of services to European consumers. Surveillance against abuses of dominant position will continue to be enforced in accordance with Community competition rules, and taking into account the interests of consumers. (1) OJ L 117, 7. 5. 1997. (2) OJ L 20, 26. 1. 1996. (3) OJ L 17, 22. 1. 1999. (2001/C 89 E/015) WRITTEN QUESTION E-1228/00 by Sebastiano Musumeci (UEN) to the Commission (14 April 2000) Subject: Reduction of the tax and social contributions burden on undertakings in southern Italy including Ireland, the Netherlands and Given that the Commission has allowed other Member States, Portugal, to provide assistance to firms operating in disadvantaged and run-down areas and that in southern Italy, and particularly Sicily, the development of small and medium-sized undertakings is seriously limited by Italyís draconian fiscal policy, could the Commission state whether it considers that the following could be envisaged for southern Italy: 1. measures to assist undertakings by reducing the burden of tax and social charges to which they are subject with a view to increasing investment and employment? 2. inclusion of the unemployment rate as a benchmark criterion for the allocation of Community funds? Answer given by Mr Monti on behalf of the Commission (9 June 2000) Provided that the conditions laid down by the EC Treaty are met, the Commission authorises the aid which a Member State decides to grant in order to pursue certain objectives, such as the economic development of areas where the standard of living is abnormally low or where there is serious underemployment, the execution of important projects of common European interest or to remedy a serious disruption in the economy of a Member State, or the development of certain economic activities or of certain economic areas, or culture and heritage conservation. Through the Structural Funds, the Commission may contribute to the co-financing of national aid schemes, which it has first authorised. Aid intended for regional development which a Member State decides to grant firms by reducing the burden of tax and social contributions with a view to increasing investment and employment may be considered to be compatible with the EC Treaty if it complies with all the conditions laid down by the Community Guidelines on national regional aid and the Guidelines on aid to employment (1) and, where appropriate, by the Commission notice on the application of the state aid rules to measures relating to direct business taxation (2). The latter states in particular that, if it is to be considered by the Commission to be compatible with the common market, state aid intended to promote the economic development of particular areas must be áin proportion to, and targeted at, the aims soughtí. Tax measures or measures to reduce social contributions which are not directly linked to initial investment or to job creation but are aimed at reducing a firmís current expenses are normally prohibited. Exceptionally, however, such aid may be granted in regions eligible under the derogation in Article 87(3) (formerly Article 92(3)) of the EC Treaty provided that (i) it is justified in terms of its contribution to regional development and its nature and (ii) its level is proportional to the handicaps it seeks to alleviate. It is for the Member State to demonstrate the existence of any handicaps and gauge their importance. C 89 E/18 Official Journal of the European Communities EN 20. 3. 2001 On 1 March 2000 the Commission decided that the south of Italy satisfied the eligibility criteria for the derogation in Article 87(3)(a) of the EC Treaty for the duration of the new regional aid map, i. e. until 31 December 2006. In the case of the Structural Funds, the unemployment rate is one of the criteria used by the Commission to apportion between the Member States the commitment appropriations allocated under Objectives 1 and 3 for the period 2000-06. The unemployment rate is also one of the criteria used by the Commission to determine in each Member State concerned the population ceiling eligible for Objective 2. (1) OJ C 74, 10. 3. 1998, and OJ C 334, 12. 12. 1995. (2) OJ C 384, 10. 12. 1998. (2001/C 89 E/016) WRITTEN QUESTION E-1246/00 by Bart Staes (Verts/ALE) to the Commission (14 April 2000) Subject: Adjustment programmes for tax systems in Southern Africa In order to cope with the financial consequences of the free trade agreement between the European Union and South Africa, Botswana, Lesotho, Namibia and Swaziland will have to drastically reform their tax systems. Together with South Africa, these four countries are in a customs union and are not allowed to levy duties at their common frontiers. Accordingly, EU products are bought and sold ü via South Africa ü duty-free, even though Botswana, Lesotho, Namibia and Swaziland are heavily dependent on customs tariffs for their revenue. In its answer to written question E-2382/99 (1), the Commission announced its willingness to help the countries in Southern Africa with the tax reforms needed to diversify their sources of income. Has the Commission already started programmes for advising the countries in question on the tax 1. reforms needed to diversify their sources of income? If not, why not? 2. When will the programmes be started and by when must the adjustments be made? 3. What institutions and/or organisations are involved in the programmes? 4. What is the main thrust of the programmes with the countries in question? 5. What budget will be released for the programmes? (1) OJ C 280 E, 3. 10. 2000, p. 36. Answer given by Mr Nielson on behalf of the Commission (15 June 2000) The Commission would like to repeat its assurance to the Honourable Member, following the answer to the Honourable Memberís Written Question E-765/00 (1), that the Community is ready to assist Botswana, Lesotho, Namibia and Swaziland (BLNS) in implementing fiscal reform according to their own established timetables and their own fixed priorities. The Commission is currently assisting the BLNS countries, at their request, with the preparation of a general support programme. The first phase will undertake analysis of adjustment issues arising from trade liberalisation and prepare activities to take advantage of the new opportunities in addition to coping with the necessary adjustment process. This phase is valued at € 6 million and is foreseen to be implemented over a three year period from January 2001-December 2003. It could be set up as a BLNS wide or a South facility, while its financing would come from a mix of European African Customs Union (SACU)