91996E0417

WRITTEN QUESTION E-0417/96 by Cristiana Muscardini (NI) to the Commission (29 February 1996)

Subject: New Commission premises in Luxembourg

There are reports in the press that the Commission is conducting negotiations with the German company Hochtief with a view to renting an office block, to be used as an annex to the Jean Monnet Building, which the company is now in the process of erecting in Luxembourg. The complex is 3 km away from the Commission's current premises and has 35 000 m2 of available office space situated on the upper floors of a huge shopping centre.

1. Is it true that the Commission has promised to pay rent for 25 years, entailing a total cost of some LF 8 bn, and will not become the owner of the building?

2. Does it not have the alternative possibility of acquiring a whole building for its exclusive use, adjacent to its current premises, for which the overall expenditure in a 15-year time-span would be approximately LF 5 bn, saving LF 6 bn compared with the first plan (LF 3 bn less than the rent set by Hochtief, plus ownership of the building)?

3. Is it true that this second option has been rejected and, if so, for what reasons and a decision taken instead to conclude a lease contract with Hochtief, already under investigation for other shady deals?

4. What calculations of financial advantages are inducing the Commission to forgo a saving of LF 6 bn?

Answer given by Mr Liikanen (12 April 1996)

1. The Commission has not given any commitment along the lines referred to by the Honourable Member.

2. The Commission has always been interested in the possibility of acquiring a building on a site adjacent to its current premises. An unsolicited offer to that effect was made to it recently.

3. This proposal has not been rejected. However, the builder has not yet confirmed the availability of the site nor the capacity of the proposed building. The builder will have to be selected in accordance with the procedure laid down in Council Directive 93/37/EEC ((OJ No L 199, 9.8.1993. )) relating to public works contracts.

4. In any case, before committing itself, the Commission always carries out a cost/effectiveness analysis. At this stage, it cannot comment on this point.