91998E3853

WRITTEN QUESTION E-3853/98

by James Nicholson (PPE) to the Commission

(4 January 1999)

Subject: Abolition of duty-free sales

Has the Commission done any research into the number of jobs which will be lost as a result of the abolition of duty-free sales within the European Union?

Answer given by Mr Monti on behalf of the Commission

(17 March 1999)

The European Council in Vienna asked the Commission and the Ecofin Council to examine by March the problems with regard to employment that could arise with regard to the decision of 1991 to abolish duty-free sales to intra-Community travellers.

In response to this request, the Commission has examined how the decision to abolish intra duty-free sales would impact on employment. It has also looked at possible ways of minimising potential employment problems, including the possibility of a limited extension of the duty-free regime.

The results of this examination are featured in the communication adopted by the Commission on 17 February 1999(1). The Commission's analysis shows that the impact on employment is likely to be limited and specific in terms of localities and sectors affected. It should however be noted that, in the medium term, short-term negative effects on employment could be turned into a net creation of jobs.

The Commission will be sending the communication not only to the Council but also to the Parliament. The Council discussed this issue at its meeting on 15 March 1999.

(1) Communication from the Commission to the Council concerning the employment aspects of the decision to abolish tax- and duty-free sales for intra-Community travellers (COM(99) 65 final of 17 February 1999).