(2004/C 84 E/0400)

WRITTEN QUESTION E-0240/04

by Mario Borghezio (NI) to the Commission

(2 February 2004)

Subject:   Huge discount from banks to the ‘Democratici di Sinistra’ party in violation of the principle of free competition

On 22 December 2003, the banking syndicate providing credit to the Italian political party Democratici di Sinistra (Democrats of the Left) — headed by the Carisbo Bank (San Paolo — IMI Group), with a claim of around EUR 30 million, and also comprising Banca Intesa and Capitalia, each with claims of EUR 21 million, and Monte dei Paschi di Siena, with a claim of around EUR 3,5 million — reached an agreement on total debt clearance via a settlement transaction providing for the writing-off of 50 % of the colossal overall debt of EUR 235 million. This huge discount was granted to a political party in precisely the same period in which shareholders and bondholders in companies with ties to the above-mentioned banks saw their legitimate interests being damaged and in which the selfsame banks implemented a rigid policy on overdraft reduction vis-à-vis debtor SMEs.

Would the Commission agree that this privileged treatment, which contrasts with that afforded by many banks to ‘ordinary’ debtors, constitutes a grave and manifest violation of the principle of free competition enshrined in Community law?

Will the European Central Bank call on the Italian Central Bank, Bankitalia, to ensure respect for this principle and the provisions of Articles 101 and 102 of the Treaty on European Union, not least because some of the Italian banks concerned are Bankitalia shareholders (controllers ‘controlled’)?

Answer given by Mr Monti on behalf of the Commission

(5 March 2004)

In the area of competition policy, the Commission is responsible for the application of Articles 81 and 82 of the EC Treaty.

Article 81 of the EC Treaty prohibits agreements between undertakings, decisions of associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the common market. According to Article 82 of the EC Treaty, any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited insofar as it may affect trade between Member States.

The facts described by the Honourable Member do not amount to an infringement of the competition rules, in particular articles 81 and 82 of the EC Treaty, since there is no evidence of a prevention, restriction or distortion of competition or an abuse of a dominant position within the common market or in a substantial part of it that may affect trade between Member States.

The Commission would like to remind the Honourable Member that it cannot take a position on matters concerning the European Central Bank.