Brussels, 17/06/2014 (Agence Europe) - Competition Commissioner Joaquin Almunia was blunt - being from Bilbao and a former minister in the Spanish government that gave tax incentives to four football clubs does not amount to a conflict of interests in his current job as commissioner dealing with complaints about those very tax incentives.
On Monday 16 June, the European Ombudsman, Emily O'Reilly, published an exchange of letters with Almunia in December 2013 following the European Commission's announcement of an investigation into possible unlawful state aid for seven Spanish football clubs. Four of the clubs had been complained about back in 2009 (Real Madrid, FC Barcelona, Osasuna and Atletico Bilbao).
In a letter from on 20 December 2013, the Spanish commissioner said: “Despite this good cooperation between the Commission and your body, much to my surprise, your office chose to make successive public announcements regarding this case on 17 and 18 December (see EUROPE 10987). (…) On 18 December, a further press release commended the Commission for acting following your 'call on the Commission to stop delaying a decision'”.
On 17 December, however: “Your office published a press release hinting at a conflict of interest on my part, given my 'strong links' to one of the football clubs in question; and making public the confidential information you had received that the College was to adopt the relevant decision the following day”. Almunia said that state aid decisions need to be kept confidential to avoid last-minute lobbying, but O'Reilly's announcements had jeopardised this.
Almunia added: “On Wednesday 18 December, the Commission adopted a decision opening an in-depth investigation of the compatibility with the State Aid rules of certain tax privileges granted to four Spanish football clubs. This decision and its timing came as no surprise to you. This is first due to the fact that the investigation has been subject to a complaint to the European Ombudsman and that, on 26 September 2013, the Commission had accepted the Friendly Solution proposed by your predecessor confirming the intention to open this investigation”. He explained that is not possible to make a decision overnight, as claimed by O'Reilly, because several months of work are required and such matters are decided weeks in advance. He adds that O'Reilly's statements make no mention of the six-month extra time granted by the Ombudsman herself.
“Last but not least, it is no secret that I am a supporter of Athletic Club Bilbao. I am astonished by your insinuation that this 'can look like a conflict of interest'. Let me also tell you that I am also a Spanish citizen, member of the PSOE, keen opera-goer, I enjoy cinema and I use the internet every day. These elements are however irrelevant when it comes to the Commission adopting decisions on State aid regarding Spanish cases, or granted by centre-left governments, or benefitting cinema or culture in general, or to tackling antitrust issues with Microsoft and Google. The very opening of a State aid investigation into Athletic Club Bilbao is the best proof that this allegation is misplaced”, added Almunia.
In a reply sent in January 2014, O'Reilly writes about misunderstandings. She says that Almunia had already announced that the Commission was going to open an investigation and that when her press release was published, it was common knowledge that a decision was imminent. She rejects the idea that she hinted in her press release on 18 December that the Commission was taking action following her recommendation on 17 December. As for the accession of a conflict of interests, O'Reilly said it was clearly mentioned in her press release that this was the view of plaintiffs, but that the Ombudsman's investigation had not in fact found any conflicts of interest. (EL)