24.7.75 OfficialJournaloftheEuropeanCommunities NoL192/27
COUNCILDIRECTIVE
of10July1975
onaidtoshipbuilding
(75/432/EEC)
Whereastheobjectivesofacompetitiveand
balancedshipbuilding industryrequirean
appropriateadjustmentofproductionstructuresso
thattheundertakingsinthesectormayeventuallybe
abletofollowgeneraleconomicdevelopments and
meetcompetitionontheworldmarketwithoutthe
supportofinterventionbythepublicauthoritiesand
sothattheinvestmenteffortsofthesectorare
compatiblewiththeworldbalancebetweensupply
anddemand;
Whereasdistortionsincompetitionontheworld
markethavebeenreducedthroughaseriesof
understandings concludedbythemainshipbuilding
countrieswithintheframeworkoftheOECDwith
theobjectofharmonizingexportcreditconditions
forships;whereas,withinthissameorganization ,
theprincipalshipbuildingcountrieshaveconcluded
ageneralarrangementontheprogressivereduction
ofspecificaidmeasuresdistortingcompetitioninthe
shipbuildingindustry,withaviewtotheirabolition
by1November1975;
Whereas,furthermore ,theobjectiveofmakingthe
shipbuildingindustrycompetitiveinarelatively
shorttimerequiresconsideration oftheoverall
effectsofaidsandinterventionsdirectlyorindirectly
affectingcompetitionandtradeconditionsonthe
marketforthebuilding,conversionorrepairof
ships;
Whereasthecontinuedapplicationofaidsto
shipbuildinghasaprotectiveeffectwhichwas
justifiableinthepastbutisnotlikelyinthelong
termsignificantly toimprovetheworld
competitiveness oftheCommunityshipbuilding
industry;whereas,however,elminationofsuchaids
musttakeplacegraduallytoenableshipyardsto
adjusttothenewconditions;
Whereasaidtoshipbuildingshouldnot,however,
adverselyaffecttradingconditionstoanextent
contrarytothecommoninterest,THECOUNCILOFTHEEUROPEAN
COMMUNITIES ;
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ,andinparticular
Articles92,3(d),and113thereof;
Havingregardtotheproposalfromthe
Commission ;
HavingregardtotheOpinionoftheEuropean
Parliament(*);
HavingregardtotheOpinionoftheEconomicand
SocialCommittee (2);
WhereasCouncilDirectiveNo72/273/EEC(3)of20
July1972onaidtoshipbuilding,whichwas
designedtooffsetdistortionsincompetitiononthe
worldmarket,hashelpedtoreduceandto
harmonizedirectaidstoshipbuilding inthe
Community ;whereasthisDirective,lastextendedby
DirectiveNo74/59/EEC(4),expiredon30June
1975;
Whereasthepositionofshipbuilding inthe
Communityhasimprovedsincetheadoptionof
DirectiveNo72/273/EEC,duetofavourablemarket
developments andtotherationalization and
restructuringeffortsofshipyards;whereas,however,
ifundertakingsaretobemadecompetitiveanda
balanceachievedinthissector,theseeffortsmustbe
intensified;whereasthisisparticularlyurgentin
viewoftheseriousdifficultiesthreateningthesector;
Whereasasoundandcompetitiveshipbuilding
industryisnecessarytotheCommunity;whereasit
contributestoitseconomicandsocialdevelopment,
byprovidingasubstantialmarketforarangeof
sectors,includingthoseusingadvancedtechnology,
andasanemployerinanumberofCommunity
regions;whereasthisisalsothecasewithship
conversionandshiprepair;HASADOPTEDTHISDIRECTIVE :
Article1
Aidandinterventiontoassistshipbuildingmaybe
consideredcompatiblewiththecommonmarket,(*)OJNoC76,3.7.1974,p.41.
(2)OJNoC97,16.8.1974,p.40.
(3)OJNoL169,27.7.1972,p.28.
(4)OJNoL38,11.2.1974,p.1.

NoL192/28 OfficialJournaloftheEuropeanCommunities 24.7.75
underthisDirective,insofarastheysatisfythe
conditionssetoutinArticle2(1)and(2)and
Article3.TheCommissionshallregularlydrawupanoverall
reporttoserveasthebasisfordiscussionwith
nationalexperts.
Article3
Article1shallapplytoaidandinterventioninthe
formofcreditfacilitiesforexportandforallother
salesofships,providedthatsuchfacilitiessatisfythe
conditionslaiddownintheunderstanding onexport
creditforshipscontainedintheresolutionofthe
CounciloftheOECDof18July1974,orinany
agreementsreplacingit.
Theseaidsandinterventionsmayapplyunderthe
sameconditionstotheconversionofmetal-hulled
sea-goingvesselsofnotlessthan5000gross
registeredtons,onconditionthatconversion
operationsentailradicalalterationstothecargo
plan,thehullorthepropulsionsystem.
Article4
TheMemberStatesshallinformtheCommission of
theirdecisionstograntaidtoinvestments in
shipbuilding ,conversionorrepairyardswherethe
amountxofsuchinvestmentisinexcessoffive
millionunitsofaccount.Thisinformation shallbe
providedeveryyearintheformofatablebasedon
thespecimeninAnnexII:on1March,inrespectof
thedecisionstakeninthesecondhalfoftheprevious
calendaryearandon1Septemberforthosetakenin
thefirsthalfofthecurrentcalendaryear.Article2
1.Article1shallapplytoaidandinterventionfor
thebuilding,intheCommunity ,ofthefollowing
metal-hulledsea-goingvessels:
—merchantvesselsforthecarriageofcargoand/or
passengersofnotlessthan150grossregistered
tons,
—fishingvesselsofnotlessthan150gross
registeredtons,
—dredgersofnotlessthan150grossregistered
tons,
—tugsofnotlessthan500hp.
2.(a)Article1shallapplytotheaidand
interventionreferredtoinparagraph1until
31December1975only,onconditionthat
theirpresentlevelisnotincreased.
(b)Nevertheless ,Article1shallapplybeyond31
December 1975whentheseaidsand
interventionsaregranted:
—inIreland,providedthatsuchaidsand
interventions areprogressively reduced
andthatthereisatthesametimea
rationalization plan,
—inItaly,providedthatsuchaidsand
interventions areprogressively reduced
andthatthereisatthesametimeputinto
operationaplanfortherationalization of
theshipbuildingindustrytheeffectof
whichwouldbetomaketheindustry
properlycompetitiveandabletocontinue
withoutsuchmeasures,
—inFrance,intheformofapriceguarantee
introduced—underthespecific
interventionschemetoassistshipbuilding
—bythelawof24May1951,provided
thatthetermsofthisschemearemade
progressivelymorerestrictive.
3.TheMemberStatesshallprovideatable,for
theexclusiveuseoftheCommission ,basedonthe
specimengiveninAnnexI,settingoutthedecisions
ontheaidandinterventionreferredtoinparagraph1
andanestimateoftheireffects.Thisinformation
willbeprovidedon1Marchofeachyearinrespect
ofthedecisionstakenduringthesecondhalfofthe
previouscalendaryearandon1Septemberforthose
takeninthefirsthalfofthecurrentcalendaryear.Article5
Aidandinterventionofaconservatory nature
intendedasatemporarysolutionfortherescueofa
shipbuilding ,shipconversionorshiprepair
undertakingpendingasolutiontotheproblems
confrontingtheundertakingconcernedshallbe
notifiedindividuallytotheCommission ,pursuantto
Article93oftheTreaty.
Article6
TheMemberStatesshallrefrainfromany
intervention measurestopromotewithintheir
nationalterritoriesthebuilding,conversionand
repairofshipstobeusedfornavigationorforuseat
seaandthemanufactureofproductsintendedto
formpartofsuchships,otherthanthoseprovided
forinArticles2and3orthoseconsidered
compatiblewiththecommonmarketunderArticles
92and93oftheTreaty.

24.7.75 OfficialJournaloftheEuropeanCommunities NoL192/29
Article7
TheMemberStatesshallinformtheCommission of
theirrulesandproceduresforimplementingtheaid
andinterventionsystemstoassistthebuilding,
conversionandrepairofshipsbeforesuchrulesand
proceduresenterintoforce.Article9
ThisDirectiveshallapplyuntil31December1977.
Article10
ThisDirectiveisaddressedtotheMemberStates.
FortheCouncil
ThePresident
E.COLOMBOArticle8
TheCouncil,actingbyaqualifiedmajorityona
proposalfromtheCommission ,shallamendthis
Directiveasandwhenappropriate .
ANNEXI
InformationtobefurnishedbytheMemberStatesconcerningtheaidandinterventionreferred
toinArticle2(3)
Serial
numberTypeof
vesselGross
(registeredtons)Financialeffect,asapercentage
ofthecontractpricef1)
(')Subsidyequivalentshallbecalculatedbyadjustingamountsupwardsby8°/o.Wherepaymentisbyinstalments ,
therelevantsubsidyequivalentsareshowninthetablerelatingtotheperiodinwhichthepaymentsweremade.
ANNEXII
TableofinvestmentaidunderArticle4
Description
ofinvestmentPurpose
ofinvestment(')Amount
ofinvestmentForm
ofassistanceNetsubsidyequivalent
asapercentage
oftheinvestment
(')Whereapplicable,indicatewhetherpartofasectoralorregionaldevelopmentprogramme .