91998E2598

WRITTEN QUESTION E-2598/98

by Konstantinos Hatzidakis (PPE) to the Commission

(1 September 1998)

Subject: Failure of Libya to pay off debts owed to Greek construction firms and other commercial enterprises

Since 1980, the Libyan Government has owed a number of Greek construction companies and other commercial enterprises the sum of US$ 644 000 000 for work carried out in Libya, which has never been repaid on a regular basis and ceased to be repaid at all once the embargo was imposed. Meetings between the Greek Ministry for Economic Affairs and a Libyan State Commission to discuss the issue have proved fruitless, despite the fact that the Libyan Government itself agrees that it owes a substantial portion of the amount claimed by the companies. In view of the fact that other companies from other Member States of the Union (Germany, Italy, etc.) are in the same position, will the Commission say whether it will take any action that might resolve this problem?

Answer given by Mr Marín on behalf of the Commission

(23 September 1998)

The Commission has taken note of the Libyan Government's failure to pay its debts to Greek companies since the embargo was imposed. However, the terms of its exclusive competence for economic and social affairs under the first pillar do not give it any legal power to intervene in this matter, in the absence of any contractual ties between the Community and Libya.

Recent developments in the Lockerbie case, and the possibility of a suspension of the embargo by the United Nations Security Council, might create a new basis for resolving the problem of Libya's cessation of bilateral payments to the Member States concerned. Should such efforts prove fruitless, the Commission is willing, within its sphere of competence, to support any démarches undertaken by the Member States concerned through the appropriate European institutions.