§ Lord Pearson of Rannochasked Her Majesty's Government:
What mechanism exists to ensure the payment of fines imposed by the European Union—
- (a) on member states; and
- (b) on commercial enterprises such as Microsoft.[HL2198]
§ Baroness Symons of Vernham DeanThe penalty payments imposed by the European Union are intended to encourage the member state to bring its law into conformity with Community law. They apply from the date of judgment and not retrospectively. It can be expected that the member states will respect the decision of the Court to impose a penalty payment in accordance with their duty under Article 10 of the Treaty Establishing European Community to take all appropriate measures resulting from actions taken by the institutions of the Community. Although the Commission regularly takes member states to court, there have been only two cases where fines were imposed. The countries in question were Greece and Spain and they paid the fines as imposed by the European Court of Justice.
Enforcement in relation to member states and commercial enterprises is dealt with in the EC Treaty. Article 244 provides that judgments of the Court of Justice shall be enforceable under the conditions laid down in Article 256. Article 256 gives detailed provision for the enforcement of financial obligations in accordance with the rules of civil procedure in the relevant member state. The Microsoft ruling is not the first of its kind; many commercial enterprises have been fined before and the fines have been paid.
§ Lord Pearson of Rannochasked Her Majesty's Government:
Which institution receives fines imposed by the European Union; and for what purposes the fines can be used. [HL2199]
222WA
§ Baroness Symons of Vernham DeanWhen the EU imposes a fine on a member state, the money received is paid directly into the EU budget. The fines are therefore used for the same purpose as the standard budget, which includes boosting economic development and fostering pan-European research and education.