RESOLUTION OF THE EUROPEAN COAL AND STEEL COMMUNITY (ECSC) CONSULTATIVE COMMITTEE

towards a coal policy in the internal market

(93/C 14/02)

(Unanimously adopted at the 302nd Session of 19 November 1992, less three abstentions)

THE CONSULTATIVE COMMITTEE,

- having taken note of:

- the Community energy policy objectives for 1995 (1), adopted by the Council in 1986 and still valid,

- the Commission communication on the internal energy market (2),

- the Commission working paper on security of supply, the internal energy market and energy policy (3),

- the Commission mid-term report to the Council on the application of Decision No 2064/86/ECSC establishing Community rules for state aid to the coal industry during the period 1987 to 1990 (4),

- the Resolution of the European Parliament on 'Coal and the Internal Energy Market` (5),

- the communication from the Commission to the Council on the future of the ECSC Treaty (6),

- the communication from the Commission to the Council on a Community strategy to limit carbon dioxide emissions and to improve energy efficiency (7) and of the Commission's proposal for a Council Directive introducing a tax on carbon dioxide emissions and energy (8),

- referring to the Community coal producers memorandum On a coal policy in the Internal Market (9),

wishes, in view of the urgency, to make known as of now its views so that the Commission may take account of them in any initiative it might undertake, including decisions on state aid for the coal industry after 1993.

These views are as follows:

The Consultative Committee

A. Considering that

- already more than half of Community energy consumption has presently to be covered by energy imports from third countries and this degree of dependence can only increase,

- Community primary energy production will not increase since:

- known Community gas and oil deposits have already been substantially used up,

- coal production in the Community has for a long time been in constant decline and the Commission itself (in the study referred to in the next paragraph) estimates that by 2005 it might not be more than ± 90 million tonnes HCE, ie, about half the current level of production,

- nuclear energy seems unlikely to expand at least until the end of the century,

- the consumption of primary energy in the Community is forecast to increase (according to the recent Commission study A view to the future, by more than 20 % in the period 1990 to 2005, reaching a total of 1,9 billion tonnes HCE).

B. Noting that

- most of the Community coal industry is currently unable to compete with imported coal despite a continuing dramatic improvement in productivity (which increased by 52 % between 1985 and 1991),

- the Community coal industry and its workforce have during the past 30 years undergone an unparalleled process of adaptation and restructuring (the number of workers employed has fallen by some 1 300 000, from 1 564 000 in 1960 to 270 000 in 1990),

- this major contraction notwithstanding, Community coal today still makes a significant contribution to the energy supply of the Internal Market and to the diversification of its energy balances,

- there are many regions in which indigenous coal plays a key economic and social role, both directly and indirectly. An acceleration of the restructuring process could put in jeopardy the economic and social fabric of these regions,

- the Community currently accounts for one third of international trade in coal. Imported coal already represents 40 % of coal requirements and its share will increase in years to come.

C. Recalling that

- energy policy remains within the competence of national governments. The Treaty signed at Maastricht does not change this situation. In these circumstances it is entirely natural that the energy policies of Member States should vary according to the availability of energy resources and their economic, social and environmental policies,

- without state aids, or the support of national economic policies, or the application of Article 56 of the ECSC Treaty, virtually the entire coal production of the Community would by now clearly have been closed down,

- the Commission has recognized security of energy supply in the Internal Market as the first commandment of energy policy and that the future development of the Internal Market in energy cannot be left solely to market forces (1),

- the European Parliament stated in its resolution on coal and the internal market (2) that Community coal is the only fossil energy resource which Europe has available in sufficiant quantities. It thus constitutes a strategic resource, providing a guarantee of secure supplies in the long term - particularly for electricity and iron and steel production - while ensuring price stability,

- in some Member States indigenous coal plays and will continue to play an important role in energy policy.

D. Observing with concern that

- Community coal is subject to the constant competitive pressure of imported energy and that this is pressure that the coal industry cannot overcome unaided,

- that as a result, coal production is continuing to decline in all producing countries in the Community,

- the CO2 tax proposed by the Commission would damage the coal industry at a time when coal, both indigenous and imported, is called upon to make an indispensable contribution to energy supply.

For all these reasons, the Consultative Committee:

1. INSISTS on the urgency of a new positive policy for Community coal so that the latter may take its contribution to the energy supply of the Internal Market at competitive prices, recognizing that the world coal market is not a totally free market;

2. CONSIDERS that a new approach of this kind is indispensable if Community coal production is not to rapidly disappear and the reserves to be abandoned with all the grave consequences this would entail both in human, social and regional terms and for long-term security of energy supply;

3. REQUESTS the Commission to shape its initiatives with regard to the coal industry, on the basis of the ECSC Treaty, so as to enable Member States to formulate specific coal policy measures.

This particularly concerns the new decision on State aids which should ensure, for the period 1994 to 2002, the proper functioning of the common market for coal and provide a reliable basis for the survival of the Community coal industry and for its long-term restructuring programmes, as has been the case up to now.

It considers that a central regulation that seeks to lay down one single percentage figure for indigenous energy contribution for the whole of the Community or to impose an average cost of production as a precondition for state aid is inappropriate.

It requests the Commission to propose to the Council new objectives for long-term energy policy that take account of the indispensable role of coal, and, in particular, of Community coal.

4. REQUESTS the Commission to ensure that the further pursuit of its programme for the protection of the environment through fiscal regulatory measures should not place coal at a disadvantage as compared with other energy sources at a time when the role of coal in the energy balance should be strengthened.

5. INSISTS that, in the interests of diversification of energy supply, together with the enhancement of the environment, the Commission should as a matter of urgency table concrete proposals for a Community programme for clean coal technology.

(1) OJ No C 241, 25. 9. 1986.

(2) COM(88) 238 final, 2. 5. 1988.

(3) SEC(90) 1248, 14. 9. 1990.

(4) SEC(91) 1983, 11. 11. 1991.

(5) DOC PE 160.503.

(6) SEC(91) 407, 15. 3. 1991.

(7) COM(92) 246 final, 1. 6. 1992.

(8) COM(92) 226 final, 24. 5. 1992.

(9) DOC CC 5641/92, 30. 9. 1992.

(1) SEC(90) 1248, 14. 9. 1990.

(2) Doc PE 160.503.