New Strasbourg HQ to open after long delay

Date: 14/01/1999

By Rory Watson

ALMOST a year after the European Parliament's new Strasbourg headquarters were due to be completed, the institution is finally preparing to take possession of the building.

The move follows weeks of heavy lobbying by the French government, which has been pressing the Parliament to take over responsibility for the premises from the company in charge of the project, which is now understood to be in financial difficulties.

Under the terms of the construction contract with the Parliament, the company - Société d'Aménagement et d'Equipement de la Région de Strasbourg (SERS) - is liable to a hefty penalty of up to €28,000 per working day for any delay.

Although SERS first proposed handing over the building at the end of October last year, this was rejected by the Parliament because much of the agreed work had not been completed. MEPs raised doubts in particular about fire security, cabling and overall safety.

But now, after a thorough check by independent experts last month, the Parliament is expected to decide this week that the building is safe and usable, and take formal possession of it, provided some final legal technicalities can be settled.

"We are looking for a series of legal texts which we believe protect the Parliament's interests. We consider the building is late. You obviously have to allow for some things such as weather conditions which are outside the company's control, but we do not think that is a reason for a one-year delay," explained one senior official.

One of the issues which has yet to be resolved is the exact size of the penalties to be paid by SERS for late completion. If the two parties cannot agree a figure to be deducted from the initial contract price of almost €430 million, which was set in 1993, then the dispute will go to an outside mediator.

The second outstanding issue is the extent to which the constructor will agree to complete basic unfinished work. The Parliament is hopeful that an inventory and timetable can be agreed this week and the French government is expected to act as guarantor for SERS while it carries out the remaining work.

"We have taken a very tough line all along. We have resisted every attempt to renegotiate the contract. The cost of the building has remained within the initial estimate," said a Parliament official.

The institution has also managed to negotiate the same terms with France as it achieved for its new buildings in Belgium. As a result, the land on which the premises stand is being given free and no value added tax is being charged on the work.

Despite meeting its financial targets, the new Strasbourg building will not be universally welcomed. Many MEPs feel their new offices are too small, while media representatives are unhappy with the press facilities.

Several critics also still resent the decision taken by EU leaders in 1992 to confirm Strasbourg as the Parliament's official home, although it also operates in Luxembourg and Brussels.

There is still no date for the formal inauguration of the new building, which will be used for just 60 days a year. The French government would dearly love a plenary session to be held in it before the European elections in June, but this may prove impossible.

The Parliament itself now has to carry out work of its own, including the installation of an electronic voting system, and then test this and other aspects of the building such as acoustics - a process which could take up to three months.

Once this is done, the Parliament will move out of the Council of Europe buildings it currently rents in Strasbourg. The next phase in implementing its buildings policy will be to finalise negotiations with the Luxembourg government to purchase offices it now rents in the Grand Duchy.

The Parliament has earmarked €150 million in its current budget to help meet its overall objective of owning rather than renting property - a move guaranteed to produce a considerable reduction in the institution's running costs.