Verbatim report of proceedings

Tuesday, 13 December 2005 - Strasbourg

60. Commission Question Time

  President. The next item is Question Time (B6-0343/2005).

The following questions are addressed to the Commission:

  President. Question No 56 by Arlene McCarthy (H-1030/05):

Subject: Premier League broadcasting rights investigation

What staff time and resources have been taken up by the Commission’s investigation into the UK Premier League’s allocation of broadcasting rights for live football matches?

What lessons have been learnt by the Commission, with a view to changing your internal procedures and prioritising genuine competition cases?

Does the Commission agree that if it has an issue with the broadcasting rights of live sports it would be more efficient and appropriate to investigate the broadcasting market for potential abuse of a dominant position?

  Neelie Kroes, Member of the Commission. The case began in 2002 and there have been ebbs and flows in the workload over that time. During that time, there has been one primary case handler working on the case part-time while carrying out other work in the Directorate-General. The case has also involved the hierarchy of DG Competition and the Cabinet at appropriate stages.

The Commission does not accept the suggestion that this was not a genuine competition case. Football is an extremely popular sport, as we all know, and the way in which its media rights are sold can have significant long-term effects on the development of the media markets. The importance of this case is shown by the number of companies, free-to-air and pay-TV broadcasters, internet operators, mobile operators and potential new entrants who have expressed their concerns to the Commission and, on occasion, to the relevant national authorities in the course of this case.

In addition, both the Office of Fair Trading and the Office of Communications strongly supported both the existence of the Commission’s investigation and its focus. Finally, the UK Consumers’ Association published its own report into these issues, concluding that there was a genuine consumer problem and that the cause of that problem lay in the manner in which the English Football Association Premier League jointly sold the rights to Premier League games.

The Commission does not agree, therefore, that it would have been more efficient or appropriate to investigate the broadcasting market for potential abuse of a dominant position. Where there are concerns about dominance, it is appropriate for a competition authority to look closely at the causes of that dominance. Where dominance exists on a downstream market, at least in part as a result of upstream agreements that potentially infringe Article 81, the most efficient and effective course of action is to look at those upstream agreements. The joint selling of football rights risks creating a seller with market power and the consequent transfer of that market power downstream. The joint selling can cause competition problems downstream and therefore deserves close examination. To treat only the downstream dominance without looking at the upstream rights contracts would be to treat the symptom of the competition problem rather than one of the causes.

  Arlene McCarthy (PSE). – As ever, the Commission never really answers the question because it was a 3½-year run of resources. I have to say we are not just talking about Commission resources; we are talking about millions of pounds spent on lawyers’ fees by people involved in this action.

I have to ask the question again: does the Commission believe that is proportionate to the outcome of having achieved that one extra package will go to an operator other than Sky, with no guarantee that will be a free-to-air provider. It may well be another cable operator and, potentially, that will have a cost to the consumer. Will the Commission now, more importantly, allow this current agreement to run without interfering, so that we see whether it delivers for the public interest and allow the football clubs, particularly, to be able to have legal certainty in managing their own resources, especially when investing in community finance in their local areas?

  Neelie Kroes, Member of the Commission. Mr President, I understand the message from honourable Members, but I strongly disagree that we have not answered the question; indeed, we have. If the answer is not convenient for the honourable Member, that is something else, but I have answered and I will answer again.

The Premier League sells rights to its matches to media operators throughout the world, including a large number of EU countries. Premier League football is very popular, for example, in Ireland, and the Premier League has changed its rights policies as regards Ireland as a result of the Commission’s intervention. To put it plainly, there is a clear cross-border element, which the Commission was well placed to address when the case began in 2002. Whether there are a couple of lawyers or far more than a couple, that is up to them; we are willing and able to deal with this case and have had some success, for we have solved a problem in which competition was harmed.

  Manolis Mavrommatis (PPE-DE). – (EL) Mr President, does the Commission agree that important international sporting events should be broadcast solely by subscriber, in other words, pay-per-view television networks?

Have you wondered if all the citizens have this facility, even if certain international federations have complied with this and allow these international events to be broadcast free to air?

Why do you not take measures against the Member States of the European Union which have not sent lists of sports to be broadcast free to air for about the last twelve years, as they should have done?

  Neelie Kroes, Member of the Commission. Competition law is not interested in pure sporting rules, only the economic activities connected with sporting events. I am the referee of the game of competition and not of the game itself. Pure sporting rules are rules inherent to a sport or necessary for its organisation or for the organisation of a competition. These are not subject to the application of competition rules.

As the Commission’s decision regarding the UEFA and DFB shows, it is perfectly possible to operate collective selling mechanisms that help provide solidarity payments and are compatible with competition rules. However, that means that collective selling must work to benefit fans and not just the clubs. Many leagues seem to think their first responsibility is to find different ways to make their fans pay ever higher sums. That cannot be right.

  President. Question No 57 by Jaime Mayor Oreja (H-1036/05):

Subject: Commission decision to refrain from investigating Gas Natural's takeover of Endesa

A meeting was held in the Palacio de la Moncloa on the night of 6 November 2005 between the Commission President and the Spanish Prime Minister, on the latter's initiative. This meeting was not made public and came to light only several days later thanks to the persistence of the media. As has been acknowledged by both sides, the topics discussed at the meeting included the question of the authority competent to settle the case involving Gas Natural's takeover of Endesa. A matter of hours afterwards this item was withdrawn from the agenda for the meeting of the College of Commissioners on 9 November 2005 and postponed to the meeting on 15 November, when the final decision was taken to leave the takeover bid in the hands of the Spanish authorities. It subsequently became known that the Competition Directorate-General had prepared two contradictory drafts on the case.

How does the Commission believe that this series of events might affect its image as guarantor of neutrality and objectivity in defending the Community interest?

  Neelie Kroes, Member of the Commission. The honourable Member suggests that there is a connection between a meeting between the President of the Commission and the Spanish Prime Minister and the postponement of the Commission’s decision on whether there was a Community dimension to the proposed merger between Gas Natural and Endesa from the agenda of 9 November.

I can give the House a categorical assurance that there was no such link. In fact, given the highly complex legal, economic and accountancy issues raised by this case, the Commission simply had not finished its analysis of the case in time for its meeting on 9 November. That was the reason, nothing more and nothing less. Indeed, further information from the parties continued to be received by the Commission over the weekend preceding the 9 November meeting of the College.

Honourable Members will recall that the Gas Natural-Endesa case was notified to the Spanish competition authority. On 19 September, Endesa referred the case to the Commission for a decision on whether the case had a Community dimension.

On 15 November, the Commission decided to reject Endesa’s claim in favour of the Community dimension of the proposed takeover bid. Having respected essential due process requirements by allowing the two sides sufficient time to comment on each other’s submissions and having considered all the arguments put forward, the Commission concluded that, under existing EU merger control rules and on the basis of Endesa’s 2004 audited annual accounts, the proposed concentration does not have a Community dimension and therefore falls outside the Commission’s competence.

The Commission considers that its objectivity and its neutrality cannot be questioned by the fact that the Spanish Prime Minister may have touched upon the issue of Gas Natural’s bid for Endesa during a meeting with the President of the Commission. I was not at the meeting. The President of the Commission meets regularly with many EU Heads of Government, including the Spanish Prime Minister, and discusses, as he told me, a wide range of issues with them.

The Commission is entitled and indeed required to listen to any opinion by interested parties from the private or public sector and examine all the aspects of a case before adopting any decision. The existence of different drafts is in no way exceptional or unique to this case. Instead, it can simply be seen as part of the internal discussions carried out within the Commission in order to assess the issues at stake from all relevant perspectives.

  Jaime Mayor Oreja (PPE-DE). – (ES) Mr President, I am grateful for the Commissioner’s reply, but, having listened to her, I have the impression that, with regard to this matter, only technical issues have been dealt with, when the reality is that this decision has been the subject of many statements and positions prior to the meeting of the two Presidents which are far from normal. You have not referred to the statement of the ministers of the Spanish Government, nor the position of certain Commissioners who are not competent in this field, nor even the request for exclusion from the Socialist Group a week before the decision so that you would not be competent in relation to these issues.

Against this extremely unusual background, on the Sunday before the week of the decision, the meeting that previously only you have mentioned took place. A meeting that was not public, which was opaque, which was made public by means of subsequent leaks, thanks to which we found out that the OPA was dealt with.

Commissioner, correct procedures are of the greatest importance in our democracy, and you know the saying: ‘Caesar’s wife must not just be honourable, but must appear to be so’. A government of the Union must comply with Community rules, but the foremost rule is common sense in the way this decision is made.

The Commission cannot be strong with the weak and weak with the strong. You must not give the impression that you are nothing more than top officials of national governments; your strength is based on the independence and common sense of your decisions. I wonder whether you have obeyed those rules.

  Neelie Kroes, Member of the Commission. That was an interesting last sentence from the honourable Member – that you need to take decisions based on common sense. As Commissioner for competition, I am used to taking decisions based on facts and figures, nothing more and nothing less; not common sense: just facts and figures. It was my responsibility to deal with this case and it is my responsibility to deal with any case if the facts and figures show that it is a case for the Commission.

I did not deny that the President of the Commission and the Prime Minister of Spain held a meeting. But I repeat that I was not influenced. In accordance with Article 213 of the EC Treaty, the Members of the Commission acted independently and in the general interests of the Community in the performance of their duties. They neither sought nor took instruction from any government or any other body.

I swore that I would behave like that and I swear that I will behave like that. I do my duty based on facts and figures and whatever the surrounding emotion, you can be sure that I will stick to my line.

  Antonio Masip Hidalgo (PSE). – (ES) Madam Commissioner, please do not worry, what you have said is absolutely correct. You have shown that you tell the truth and I am very sorry that a compatriot of mine has called your honour into question.

  Gerardo Galeote Quecedo (PPE-DE). – (ES) Madam Commissioner, without going into detail, the facts are as follows: you asked the College of Commissioners for support, which is an exceptional situation. The President of the Commission went to Madrid on a secret trip and shortly afterwards you withdrew that point from the agenda of the College of Commissioners. The following week you made the College of Commissioners decide on an issue with hardly any debate.

In the mean time, a colleague of yours from the European Commission keeps making statements in Spain stating in advance what the European Commission’s position was going to be. And I am wondering, and I would like to ask you, Commissioner, whether you are aware that, in one Member State, these events have led to a loss of credibility for the European Commission as a guardian of the Community interest.

  Neelie Kroes, Member of the Commission. My credibility is not affected by a working dinner or whatever. I repeat that my duty is to make proposals to the Commission based on facts and figures. That is what happened in this case. I was not asking the Commission for support. I just presented my decision based on the facts and figures. The Commission has a duty to make its decisions on an informed basis and that is particularly the case in the competition portfolio. Again, I repeat that when I went to the College I stated the facts and figures. Standard EU rules in this case meant that we could not deal with it and proposed that it should be dealt with in Spain, by the national competition authority.

  President. Question No 58 by Margarita Starkevičiūtė (H-1007/05):

Subject: Funds for decommissioning of Ignalina nuclear power station

Total payments against the 2005 commitment for decommissioning of Ignalina nuclear power plant will amount to only 50% of the total. This represents a substantial under-consumption of the payment appropriations planned in the 2005 budget. This is largely due to the fact that the Fund Manager (EBRD) for IDSFs failed to establish accurate payment forecasts. What does the Commission intend to do to avoid this type of problem and improve the services of the Fund Manager in the future?

  Andris Piebalgs, Member of the Commission. Community assistance under the Ignalina programme is delivered in two ways. The first is directly to the beneficiary country using a mechanism based on one of the European Community’s pre-accession financial instruments, PHARE. The second, covering the bulk of assistance, is delivered through an international fund managed by the European Bank for Reconstruction and Development, the EBRD. The Community is the main, but not sole, contributor to that fund. The commissioning of a nuclear power plant is a long process, often spanning decades, and involves the planning and construction of large complex facilities. Related projects will often only be commissioned several years after a contract has been signed.

For the specific case of EBRD-managed projects, the rules of the Ignalina decommissioning support fund require that before contracts can be concluded on any project sufficient funds must be available on the EBRD’s account. That is normal project management practice. That situation leads to contracts being awarded that will not be completed for several years and, clearly, do not require disbursement of all budget costs. As a consequence, the annual appropriations for the Ignalina programme will not necessarily match payments in any one year. Payments in any given year may even exceed the actual annual Community commitment to the fund.

  Margarita Starkevičiūtė (ALDE). – I am quite disappointed by the Commissioner's answer, because he has probably heard about the rows about the so-called accumulated appropriations that have still not been paid. What surprised me is that 50% of the total amount foreseen in the 2005 budget was not used, so the problem is not about using the funds in the future, but rather about why we have to accumulate such large amounts of money and appropriations in advance.

  Andris Piebalgs, Member of the Commission. Only 50% of the funds earmarked have been spent so far under the Ignalina International Decommissioning Support Fund. This is not to say that the remaining funds allocated to this important aid programme will not be disbursed. As already stated, the EBRD fund covers projects that are realised over a long period. The funds are disbursed as necessary and the Commission will follow the implementation of the use of Community money, because the Commission entrusts its contribution to the care of the EBRD, an internationally recognised and respected financial institution.

Commission departments chair the assemblies of contributors, at which the major financial decisions are made, and periodically seek additional information from the EBRD and reserve the right to audit as necessary. I believe that all commitments from the EBRD side will be fulfilled.

  President. Question No 59 by Marie Panayotopoulos-Cassiotou (H-0981/05):

Subject: Assisting and facilitating journeys by rail for people with special needs and for families

In the context of developing a European rail network and reshaping energy policy, and with freedom of movement in mind, what specific measures does the Commission intend to take in regard to infrastructure, services and cost in order to assist and facilitate journeys by people with special needs and by young families, particularly those with several children?

  Jacques Barrot, Vice-President of the Commission. (FR) Mr President, it is a pleasure for me to answer Mrs Panayotopoulos-Cassiotou’s first question. Several initiatives taken by the Commission in the realm of transport and energy demonstrate the importance we attach to people with special needs. In terms of the public-service requirement, the Commission has undertaken to create a suitable legal basis on which the Member States can guarantee users high-quality transport services at affordable prices.

In 2005, the Commission stepped up its efforts by defining the elementary principles of its policy on passenger rights. This time the Commission focused on fair treatment for passengers with reduced mobility. It proposed a regulation on the rights of rail passengers, which is currently under discussion by the European Parliament and the Council, the latter having arrived at a political agreement on 5 December.

For example, the proposed legislation requires operators to respect the right to fair access to rail services and the right to be informed of the accessibility conditions. It requires rail companies and station administrators to provide assistance free of charge to passengers with reduced mobility, both in stations and on trains. In a parallel effort, the Commission is dealing with the accessibility of trains and stations.

In connection with the implementation of the Directive on the interoperability of the trans-European rail system, the Commission is compiling a set of technical specifications designed to improve the accessibility of the public areas of the rail infrastructure for people with reduced mobility. Special attention has been devoted to problems in boarding and alighting from trains and to obligations relating to evacuation in emergencies. In response to specific transport-related needs expressed by the general public, Member States could also go beyond the requirements of Community legislation.

As far as public services are concerned, it is Community legislation that lays down detailed rules governing public intervention. On the other hand, the establishment of a system of concessionary fares for certain passenger categories, such as members of large families, remains a matter for the Member States. All initiatives of this type are underpinned by the strategy of the European Union to improve the active inclusion of people with disabilities. The priority objective of the second phase of the 2006-2007 action plan is the promotion of access to transport services and non-discrimination, in accordance with the communication recently adopted by the Commission on the situation of disabled people in the enlarged European Union. These are the points I wished to make to the honourable Member in reply to her question.

  Marie Panayotopoulos-Cassiotou (PPE-DE). – (EL) Mr President, Commissioner, thank you for all the information you have given and congratulations on the programme on which you have already decided.

I wanted to ask you, by way of a supplementary question, if children, young people and short people in general are included in the people who need special protection under the legislation proposed by the Commission.

  Jacques Barrot, Vice-President of the Commission. (FR) Yes, Mrs Panayotopoulos-Cassiotou, I did indeed say that we had put in place a European action for persons with reduced mobility, and so far as the other categories are concerned, I mentioned large families, but I could just as well have spoken of young persons and children. Member States obviously have some discretion in the matter because they are able to introduce benefits for these categories in their laws. You will understand that we need to target Community interventions on the major issues. The accessibility of transport to persons with reduced mobility is a really important issue for the European Union at present.

  President. Question No 60 by Gyula Hegyi (H-0982/05):

Subject: Sustainable urban transport

It is clear that Europe and the whole world are facing an energy crisis. Oil prices are rising while demand is also growing at an exceptional rate. Europe and other developed countries have a responsibility to show the way out of this trap.

Transport is responsible for 30% of our energy consumption, of which 85% is from road transport. Road transport causes severe environmental pollution in many European cities, which also means increasing health problems for European citizens living in urban areas. We have the solution for many environmental problems, however, we need to make an effort to implement it. Cycling, trams, suburban railway systems and public transport generally can significantly reduce air pollution and also fossil fuel consumption.

What does the Commission plan to do to foster sustainable urban transport, especially to support and popularise urban and suburban public transport and cycling?

  Jacques Barrot, Vice-President of the Commission. (FR) Everywhere in Europe, people are increasingly seeing mobility as a right. Cities are very much affected by the growth in mobility. Urban transport has become a major problem.

While respecting the principle of subsidiarity, the Commission is trying to play a significant part in the development of an urban transport policy by promoting an exchange of good practice.

The Civitas programme is an innovative initiative combining transport, energy and environmental aspects. The LIFE programme and the STEER programme are two other examples of financial support for a number of cities’ projects to encourage sustainable urban transport.

We need to go even further than that, Mr Hegyi, and that is why the Commission has developed new initiatives. For example, sustainable urban transport will be one of the priorities of the research axis of the seventh framework programme for research and development. The forthcoming financial perspectives for 2007-2013 should open up the possibility of financing from the Cohesion Fund. Moreover, to give fresh impetus to the organisation of public transport, the Commission has adopted a revised proposal for a regulation on land-based public passenger transport services.

Fleet renewal can also make an effective contribution to reducing the effects on urban air quality, and public contracts could set an example. I am preparing a proposal for a directive to oblige public bodies to acquire a minimum quota of clean vehicles when renewing their fleets.

Finally, in its communication on air quality adopted on 21 September, the Commission announced its intention to establish a common framework for designating low-emission zones.

The next thematic strategy on the urban environment will encourage an integrated approach to the management of our cities, including urban transport. This strategy, which will be published in January 2006, will recommend that Member States and local and regional authorities draw up plans for sustainable urban transport.

Finally, we will be taking advantage of the updating of the transport policy White Paper to mention all these problems: the space given over to the car in our cities, passengers’ rights, future applications of the Galileo project, accessibility to public transport and the improvement of road safety, especially for cyclists and pedestrians.

As you see, Mr Hegyi, I share your concerns.

  Gyula Hegyi (PSE). – Thank you, Commissioner. I am more or less satisfied with your answer, but I should like you to be more specific. How does the Commission plan to discourage individual car driving and in the meantime encourage the environmentally friendly means of transport: cycling, public transport and rail?

As you mentioned cohesion funds, I will ask what may appear to be a simplistic question. Could you say approximately how much money we spend on the development of public transport infrastructure in our cities? I think people are interested in hearing how much money will be spent and not just our ideas.

  Jacques Barrot, Vice-President of the Commission. (FR) I would prefer not to give you too precise a figure, Mr Hegyi, because up to now some EUR 100 million have been invested through the framework programme for research and development, and the programme will continue with the seventh framework programme for research.

I can also tell you that the Civitas programme has received a great deal of financial support from the Commission to encourage the exchange of good practice. We will see what policy for greater support we are able to adopt when the White Paper is revised.

  Josu Ortuondo Larrea (ALDE). – (ES) Commissioner, the suburban railway network is vital to sustainable urban transport in the majority of European cities. Do you not believe, however, that the liberalisation of the railways, if an international passenger service is allowed to drop off and pick up passengers in two stations within a single Member State, could affect the economic balance and viability of the suburban railway network?

  Jacques Barrot, Vice-President of the Commission. (FR) The revised proposal put forward by the Commission on public service obligations answers your question, Mr Larrea, because it will indeed be necessary to ensure that the opening up of international passenger transport to competition respects the public service tasks recognised by the public authority.

There is a link between the text on the liberalisation of international passenger transport and the one on public service obligations, which will avoid some members of the public being in a difficult situation because they cannot have the means of transport they need, as you have just indicated in your question. Thank you for your question; I shall be very careful to ensure that this liberalisation respects all services that are considered public services.

  Gay Mitchell (PPE-DE). – I would like to thank the Commissioner for his reply and ask him if he would give particular attention to integrated ticketing on urban transport.

In Dublin, for example, we have a commuter train, a rail network, a Luas tram and public buses. So far, there is no integrated ticketing system to be used on all four. Would he consider making Dublin a study and promoting the whole question of integrated ticketing, so that people would use public transport more often and it would become more efficient?

  Jacques Barrot, Vice-President of the Commission. (FR) This is a very pertinent question, Mr Mitchell; there really should be integrated ticketing. However, urban and interurban transport is really a question of subsidiarity.

What we need to do is to encourage the exchange of good practice between our European cities in order to find the best solutions. Thank you for raising this issue, which is very important for our citizens.

  President. Questions Nos. 61 to 72 will be answered in writing⁽¹⁾.

As the author is not present, Question No 73 lapses.

  President. Question No 74 by Beglitis (H-0990/05):

Subject: Turkish veto regarding participation by the Republic of Cyprus in international organisations

At the meeting of the Black Sea Economic Cooperation Organisation held on 28 October 2005 in Chisinau in Moldova, Turkey, as a full member, once more vetoed an application by the Republic of Cyprus to attend with observer status. It is also continuing to obstruct Cypriot accession to the International Export Control Regime.

In view of the specific undertakings given by Turkey within the negotiating framework, in particular paragraph 7, adopted by the Council of Ministers on 3 November in Luxembourg, what view does the Commission take of Turkey's continued refusal to meet EU conditions even after commencement of the negotiation accessions? What measures will it take to ensure that Turkey complies fully with the Community acquis and European law in its dealings with an EU Member State?

  Olli Rehn, Member of the Commission. The Commission is aware that Turkey has blocked applications by the Republic of Cyprus for membership of a number of international organisations, as was clearly mentioned in the 2005 Progress Report on Turkey, which we published in November.

The Commission fully shares the position set out in the document defining the framework for accession negotiations, in other words the negotiating mandate of the Union that Turkey should progressively align positions within international organisations with those of the EU, including in relation to membership of all Member States in relevant organisations.

This position is reflected in the Commission’s proposal for a revised accession partnership with Turkey, in which one of the short-term priorities is that Turkey should ‘progressively align policies towards third countries and positions within international organisations with those of the EU and its Member States, including in relation to the membership by all EU Member States of relevant organisations and arrangements such as Wassenaar.

The Commission will use all the instruments at its disposal, in particular the negotiating framework and the association agreement, as well as the accession partnership in order to ensure that Turkey aligns progressively with the Community acquis also in this regard. I remind you that this was one of the key issues that was discussed on 3 October when the decision on the opening of the accession negotiations with Turkey was taken.

I would also like to point out that the EU Presidency has just made a demarche to Turkey concerning the Cyprus application for membership in the Wassenaar agreement.

  Panagiotis Beglitis (PSE). – (EL) Mr President, I should like to extend my special thanks to Commissioner Rehn for his reply.

I would, however, like to point out that we all know the institutional framework which now governs relations between Turkey and the European Union. The question is: how will Turkey be persuaded to apply and respect the acquis communautaire and the legitimacy of Europe?

On 23 November, the Commissioner said, in his speech before the EU-Turkey Joint Parliamentary Committee, 'the time for celebration is over, now comes the time for delivery'. What is this 'delivery', Commissioner? Will the Commission propose the activation of the negotiation suspension clause if Turkey continues next year, over the next two years, not to respect acquis communautaire and not to be bound by paragraph 7 of the negotiating framework?

  Olli Rehn, Member of the Commission. This is a very pertinent question and we raise this issue regularly both in formal meetings of the Association Council and in other bilateral meetings. I have raised it myself on several occasions with the members of the Turkish Government. One should also bear in mind that there are several international organisations of which both Turkey and the Republic of Cyprus are members, such as the Council of Europe and the OSCE.

It is clear to me and to the Commission that we cannot have the same kind of progress report in 2006 as in 2005. This means that Turkey will need to make serious and significant progress both on the reforms related to the Copenhagen political criteria and concerning the normalisation of its relations with the Republic of Cyprus, in accordance with the EU declaration and the negotiating framework.

The safeguard clause, or the emergency brake as it is called, is a very serious policy tool, but it is not appropriate to speculate further on this before concrete negotiations on the chapters have really started. However, in the case of a serious and persistent breach of human rights, the rule of law or political criteria, the Commission would not hesitate to propose using this safeguard clause, provided for by the negotiating framework.

Let us not tempt fate. Let us work in order to solve these problems. I expect that Turkey will comply with its commitments to support Cypriot membership of international organisations.

  President. Question No 75 by Bernd Posselt (H-0992/05):

Subject: Sandzak of Novi Pazar

Given the possible forthcoming division of Serbia and Montenegro, what is the Commission's view of the situation in the Sandzak of Novi Pazar, which is split between these two Republics?

  Olli Rehn, Member of the Commission. First, concerning Mr Posselt’s question, the Commission’s position on the possible referendum on independence in Montenegro is as follows: firstly, the Constitutional Charter must be respected and the international standards complied with. I refer in particular to the Venice Commission whose recommendations should be observed when the preparations are made for the possible referendum on independence. Moreover, we have underlined that in both Serbia and Montenegro it is now essential for us to focus our energy on the negotiations on the Stabilisation and Association Agreement and not let other issues interrupt that process.

The Commission is following closely the situation in Sandžak, notably with a view to the possible independence of Montenegro, should there be a referendum along the lines I described. We note that the Bosniak communities living in the Serbian part and in the Montenegrin part of Sandžak have differing attitudes towards this issue. As regards the Serbian part, the local Bosniak leaders are concerned about the potential adverse implications of Montenegrin independence, in particular on trade flows and the movement of people.

As regards the Montenegrin part of Sandžak, the Bosniak political leaders seem to be in favour of Montenegro’s independence. However, a large part of the non-Bosniak population in the Montenegrin part of Sandžak declares itself Serb and is against Montenegro’s independence. Hence, there is a risk of inter-ethnic tension and it is a very complex situation, a reflection of the ethnic and political patchwork of the western Balkans.

For the Commission and for the European Union it is essential that both in Serbia and in Montenegro the rights of the minorities, including the Bosniak community, are duly protected.

  Bernd Posselt (PPE-DE). – (DE) Mr President, I am much obliged to the Commissioner for his very good, very detailed answer. Knowing the region as I do, I can say that his answer really was very precise. I should like to put just two brief supplementary questions. Could the Commissioner envisage more intensive development of the local infrastructure? I ask because the region is extremely isolated. Furthermore, can he envisage a cross-border Euro-region as a solution to achieve cooperation between the Sandžak people in Montenegro and Serbia?

  Olli Rehn, Member of the Commission. I thank the honourable Member for this important question. I will start with the earlier one related to the question of the Euro Region.

Should Montenegro use the constitutional possibility of withdrawing from the State union, then the Serbian and Montenegrin authorities will need to ensure adequate bilateral cooperation, which is in the mutual interests of their citizens. That is particularly important for those living in the border areas such as Sandžak, where the establishment of an international border could exacerbate the difficult economic situation. We have to contemplate different alternatives if there is either a referendum or a process that will lead to the independence of Montenegro. The time is not yet right to answer this question more precisely.

Concerning your first question relating to investment and economic development, previous experience shows that there is significant capacity in Sandžak for the implementation of projects that are geared towards peaceful conflict settlement and cross-border cooperation. The European Agency for Reconstruction will initiate, through a project to be implemented by UNDP, a set of mediators and associations in the region of Sandžak, based on the already successful model implemented in Bosnia and Herzegovina. That project is part of the overall framework in support of an anti-discrimination framework in Serbia and Montenegro and will be carried out under the Cards 2006 Programme for the State union.

  President. Questions Nos. 76 to 82 will be answered in writing⁽²⁾.

  President. Question No 83 by Milan Gaľa (H-1006/05):

Subject: Combating the emergent market in antivirals in EU Member States

In connection with the increasing signs from several Member States of the emergence of a black market in antiviral drugs against influenza, can the Commission indicate what steps it is taking against this irresponsible action by individuals and/or organised groups?

  Luis Yañez-Barnuevo García (PSE). – (ES) Mr President, in view of my lack of experience in this Parliament, I would like to know, purely by way of information, on what the written reply you have mentioned is based, because one of the questions is by myself. Is this a decision by the Commission, or is it something laid down in the Rules of Procedure?

  President. I am happy to satisfy your legitimate curiosity, Mr Yáñez. We are applying the Rules of Procedure strictly. When the questions to a Commissioner exceed the time allotted, we move on to the next bloc and all the others have to be replied to in writing.

  Olli Rehn, Member of the Commission. I am standing in for Mr Verheugen on this issue, but I know something about this because of my previous responsibilities in this field.

The problem of a black market in medicinal products is very closely related to counterfeiting activities. Counterfeit medicinal products, inside and outside the Union, are a subject of ongoing concern in the EU, the Council of Europe and the World Health Organisation. Part of the overall problem is that, recently, antiviral drugs have potentially been at risk in counterfeiting activities. The possibility that such drugs could be in short supply has become a concern for many people. The situation is naturally attractive to counterfeiters.

Over recent years, the Commission has taken action to address this problem at a horizontal level, as regards intellectual property and customs actions. The legal framework has been changed, and indeed several times, in order to improve the enforcement of intellectual property rights and customs action.

In September this year the Council of Europe published a survey report that provides an update on the extent of counterfeiting in the pharmaceutical sector. It is currently evaluating the possibility of further action based on that report. At the same time, the WHO has proposed a framework convention to combat counterfeit medicinal products at global level.

The Member States are responsible for the enforcement of any activities against counterfeiters. Therefore, the Member States are currently evaluating the results of a survey with the aim of identifying the extent of the problem of counterfeit medicines and the development of an anti-counterfeit strategy.

While the above-mentioned actions of the Commission and the Member States are far reaching, the Commission continuously monitors and analyses the situation for possible legal implications within the European Union and opportunities for future international cooperation.

  Milan Gaľa (PPE-DE). – (SK) The Commissioner has very accurately described the illegal activities that underpin the black market in antivirals and medicines in general. These activities manifest themselves in the following ways: firstly, the purchase and subsequent sale of antivirals on the black market at greatly inflated prices; secondly, the sale of counterfeit medicines with no effect whatsoever on influenza – medicines with the so-called ‘placebo effect’; thirdly, the production of generic influenza medicines with inadequate guarantees of effectiveness against ordinary influenza; and fourthly, the trade in precursors.

I thank you for your reply and your interest. I believe that what you have said will contribute towards reducing the size of this black market, bringing it under control and eventually eradicating it.

  Olli Rehn, Member of the Commission. I take due note of the point made by the honourable Member. This is a very important issue which indeed has to be tackled both at EU level and at global level. I will convey your message to Vice-President Verheugen, who is responsible for this in the Commission.

  President. Questions Nos 84 to 126 will be replied to in writing⁽³⁾.

  Yiannakis Matsis (PPE-DE). – (EL) Mr President, I understand that you are applying the Rules of Procedure, and quite rightly so, but Commissioner Rehn has only been given 12 of the 20 minutes allocated to him for his replies. I have the 76th question and you have prevented the Commissioner from replying to my question, which was the next question, even though you only allowed 12 of the 20 minutes to which he was entitled.

  President. I am afraid that that is not possible, Mr Matsis. It is gone 8.00 p.m. and the Commissioner is going to be late for an unavoidable commitment. That, therefore, concludes Question Time.

(The sitting was suspended at 8.05 p.m. and resumed at 9.00 p.m.)

IN THE CHAIR: MRS ROTH-BEHRENDT
Vice-President

(1) For questions not taken see Annex 'Question Time'.

(2) For questions not taken see Annex 'Question Time'.

(3) For questions which have not been replied to through lack of time, see Annex on Question Time.