WRITTEN QUESTION E-2425/99

by Ioannis Souladakis (PSE) to the Council

(16 December 1999)

Subject: Protection of European companies in Kosovo

In reply to my oral question H-0608/99(1) of 16 November 1999 to the Commission concerning protection of the interests of European Union companies in Kosovo, Commissioner Patten indicated that he had no information concerning pressure being brought to bear or threats being made against European companies in Kosovo. To fill the gaps in his information concerning the subject, I personally gave him a copy of correspondence between the Mytilinaios company and Mr Kouchner and Mr Dixon. I also asked him to investigate the current situation regarding the functioning of telecommunications in Kosovo in order to obtain a full picture.

Effective communications between the European Parliament and the Commission will help to protect the interests of the EU wherever they may be under threat. The sovereign rights of European companies are currently what is at stake in Kosovo. The Greek Telecommunications Organisation (OTE) and the Italian STET International, which have respectively a 20 % and 29 % holding in Srbija Telekom, are suffering losses as a result of non-payment of fees to Srbija Telekom for use of telecommunications services in Kosovo, while, at the same time, the UCK and its covert supporters are insisting on the restoration by the two companies of the damaged network and its subsequent nationalisation by Albania, in violation of international agreements. However the most serious breach of the law occurred recently when a special committee made up of UN representatives and Kosovar Albanians quite illegally transferred mobile telephony rights to the French company Alcatel. These rights are the exclusive property of the OTE and STET International, in accordance with international agreements currently in force, which state that Kosovo is part of the key area in which these two companies are entitled to operate and export their profits.

What action will the Council take to protect the legitimate rights of European companies in Kosovo which at this moment are under threat by illegal networks in which even UN officials are starting to be involved, contrary to their instructions regarding observance of the law in this area?

(1) Debates of the European Parliament (November 1999).

Reply

(14 February 2000)

So far, the Council has not been approached by any of the firms mentioned in the Honorable Member's question. The Council assumes that these firms have taken up the issues raised by the Honorable Member directly with the Ministry for Foreign Affairs of the Country in which their headquarters is established and/or with the UN Secretary General Special Representative for Kosovo, Mr Bernard Kouchner.

The Council remains firmly attached to establishing a viable and functioning market economy in Kosovo and the EU has taken on a special responsibility in this regard, since UN Secretary General, Kofi Annan, entrusted the management of UNMIK's pillar IV (responsible for the area of reconstruction and economic development) to the European Union.

Furthermore, the General Affairs Council has repeatedly called for intensified efforts by the Kosovars and the international presence to fight against organized crime in Kosovo. In this context, the Council welcomed, in its meeting on 6 December, the intention of the Commission to include the fight against organized crime in its programming for assistance to Kosovo in the year 2000 and invited member States to identify appropriate assistance in this field.