Local view for "http://purl.org/linkedpolitics/eu/plenary/2000-05-17-Speech-3-139"
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"en.20000517.8.3-139"2
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"Mr President, the Group of the European Liberal, Democrat and Reform Party welcomes the Commission’s proposal, which will lead to increased public scrutiny of public undertakings and to increased competition. We want to thank Mrs Randzio-Plath for cooperating so well.
State aid distorts competition and is unfair to both consumers and companies. In principle, the Treaty prohibits all types of state aid, including cross-subsidies. The Treaty does not, however, prohibit the existence of public undertakings providing services in the public interest. Whatever one may think about this, it is for the Member States themselves to define what is meant by services in the public interest. The Member States should not, however, themselves decide what kinds of aid they will be granting these undertakings.
The Court of First Instance in Luxembourg stated as late as last week that state support for TV and radio companies may
be provided once the Commission has said that this is compatible with the Treaty. The rules must be applied in the same way to all parties. All aid which is not used to finance services in the public interest is prohibited and is to be opposed. State radio stations and TV companies now often provide services which are outside the scope of what we call services in the public interest. An example is Internet connection. Those resources which the State has injected into companies to finance their basic activities ought not, of course, to be used to finance the provision of Internet connections. In that case, competition is distorted, to the disadvantage both of consumers and of private companies.
The Commission’s proposal requires companies to openly account for the resources provided to them as public undertakings and for how these have been used. Companies must also show what costs they have, where their income comes from and how this is derived from their various activities. These are very reasonable demands. Both these obligations are simple means of upholding the rules governing relations between private and public undertakings. This is important for the purpose of maintaining proper rules in the internal market."@en1
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