(2004/C 70 E/168)

WRITTEN QUESTION E-2908/03

by Franz Turchi (UEN) to the Commission

(1 October 2003)

Subject:   Alcatel industrial plan

With reference to the Alcatel industrial plan for Italy and Europe, in view of the company's recent decisions which have particularly affected employment levels, especially at the Battipaglia and Rieti plants (the latter is to be closed with the loss of over 1 000 jobs), and given the company's situation as a consortium within the Galileo project and in the context of the TEN project, will the Commission say whether or not the plan contains any future strategies for the company, in terms of relaunching, selling or closing it?

Joint answer

to Written Questions E-2901/03 and E-2908/03

given by Mrs Diamantopoulou on behalf of the Commission

(18 November 2003)

The Commission has no competence to interfere with companies' decisions insofar as they do not violate Community law. With regard to the employment aspects of Alcatel's decision to close its Rieti plant, the Commission would like to refer the Honourable Member to the answer it has given to Written Question P-2897/03, by Mrs Angelilli (1).

The Galileo project has now entered its development and validation phase. The Galileo Joint Undertaking has therefore full responsibility for that phase, but industrial contracts for the space segment (and related ground segment) will be managed by the European Space Agency (ESA). An invitation to tender will soon be issued by ESA concerning the first satellites and the core ground segment. Several companies in Europe are interested in these activities. A set of space manufacturers, i.e. Astrium, Alcatel and Alenia Spazio, have created a joint venture called ‘Galileo Industries’ which is most likely to bid for these contracts. At this stage, however, there is no guarantee whatsoever that Galileo Industries (hence Alcatel) will win them.

As regards Galileo, the Commission has no rights or obligations regarding the future of Alcatel's Battipaglia and Rieti plants. It could, however, be mentioned that a very first contract for a ‘demonstration and frequency protection’ satellite has been placed with Galileo Industries for a value of EUR 72 million. This activity could probably generate work for these sites.

As far as the negative effects on the economy are concerned, the territory of the province of Rieti is partly eligible for assistance from the European Regional Development Fund (ERDF) under Objective 2, and the municipality of Cittaducale, where one of the Alcatel plants is located, is an eligible area, as is the municipality of Battipaglia in Campania, which is an Objective 1 region.

In this connection, measures to convert production capacity may be financed following an initiative by the region of Lazio and the region of Campania, which are the authorities responsible for selecting and conducting operations in their geographical areas.

(1)  OJ C 65 E, 13.3.2004, p. 242.