OfficialJournaloftheEuropeanCommunities 749
NoL169/28 OfficialJournaloftheEuropeanCommunities 27.7.72
COUNCILDIRECTIVE
of20July1972
onaidtoshipbuilding
(72/273/EEC)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanEconomicCommunity ,andinparticular
Articles92and113thereof;
HavingregardtotheproposalfromtheCommission;
WhereastheCouncilDirectiveof28July19691on
thegrantofaidstoshipbuildingtooffsetdistortions
incompetitionontheworldmarkethaseffectively
helpedtoreduceandharmonizeaidsgrantedto
shipbuildingintheCommunity ;
WhereasthatDirectiveshouldbereviewedinthe
lightofthechangeswhichhaveoccurredinthe
worldshipbuildingmarketsinceitsadoption;
Whereasdistortionsincompetitionontheworld
shipbuildingmarkethaverecentlybeenreduced,
principallythroughaseriesofunderstandings
concludedbythemainshipbuildingcountrieswithin
theframeworkoftheOECDwiththeobjectof
harmonizingexportcreditconditionsforships;
WhereastheGovernments ofmanyshipbuilding
countriesareincreasingly convincedthatthe
shipbuilding industrymustultimatelyoperate
withoutaid;
Whereas,furthermore,shipbuilding inthe
Communityhasshownarelativeimprovement
followinganincreaseindemandandthefirstresults
oftherestructuringofshipyards;
WhereastheDirectiveof28July1969should
thereforeberevisedsoastoprovideforareduction
intheaidsgrantedtoshipbuilding ;Whereasaidsdesignedtoimproveexportcredit
conditionsforshipsarestillgrantedinsome
shipbuildingcountries,theaimofexistingOECD
understandings beingsolelytolaydownfor
international transactions maximumcreditlevels
abovewhichaidmaynotbegranted;whereasthere
areformsofaidotherthanthoserelatingtoexport
creditforshipswhichcausedistortionsin
competitionontheworldmarket;
Whereasinthesecircumstances itisinthecommon
interestthataidtoshipbuilding withinthe
Communitybemaintainedatareducedlevel;
Whereassuchaidwill,furthermore,facilitatecertain
restructuringoperationswhichhaveyettobecarried
outwithintheCommunityshipbuildingindustry;
whereastheseoperationshavebeenhinderedbythe
deteriorationofthefinancialpositionofnumerous
shipyardsasaresultofdistortionsincompetitionon
theworldmarket;
Whereasaidsgrantedtoshipbuilding should
neverthelessnotaffecttradingconditionsinaway
contrarytothecommoninterest;
WhereasitisintheinterestoftheCommunitytofind
asolutionbothtotheproblemofanyexcess
productioncapacitythatmayariseinthe
shipbuildingindustryandtotheproblemofaidand
interventionsignificantlyaffecting,whetherdirectly
orindirectly,conditionsofcompetitionandtradeon
theshipbuildingandshipconversionmarket;
WhereastheCommissionshouldwithoutdelay
undertake,withtheassistanceoftheMemberStates,
astudyofthevariousfactorsresponsibleforthe
imbalanceofsupplyanddemandonthatmarket—
accountbeingtakenalsoofstudiesmadeby
internationalorganizations—andofallexistingaids
andinterventions ,inordertodeterminetheeffectof
suchaidsandinterventions ontheconditionsof
competitionandtrade;whereastheCommissionwill,
onthebasisoftheresultsofthisstudy,submit 1OJNoL206,15.8.1969,p.25.

750 OfficialJournaloftheEuropeanCommunities
proposalstotheCouncilforactiontopreventsupply
fromdevelopinginsuchawayasmightjeopardize
therequiredbalance—withouttherebyprejudicing
anydecisionswhichtheCouncilmaychoosetotake
inthefieldofindustrialpolicy—andwillalso
submitadraftforanewdirectivedesignee!to
coordinateinthecommoninterestallaidsand
interventioninrespectofshipbuildingandship
conversion;whereastheCouncilshouldactonthe
proposalsfromtheCommissionassoonaspossible
andinanyeventnotlaterthan31December1973;
HASADOPTEDTHISDIRECTIVE :
Article1
Aidsandinterventionstoassistshipbuildingmaybe
consideredcompatiblewiththecommonmarketin
sofarastheysatisfytheconditionssetoutinArticles
2and3.(b)othercreditfacilitiesforsalesandconversionsof
shipsprovidedthattheconditionsreferredtoin
(a)aresatisfied;
(c)anyformofaidorinterventioncomingwithin
Article1,otherthanthosespecifiedunder(a)
and(b),theamountofwhich,subjectto
exemption,doesnotexceed5%oftherelevant
contractpricein1972and4%ofthecontract
pricein1973.
2.Grantsexceedingtheaforementioned ceilings
shallinthefollowingcasesbetreatedasexemptions
forthepurposesofparagraph1(c)
—wheretheexcessisduetotheoperationofa
schemeofinsuranceagainstexceptionalrisesin
costs;
—wherethegrantistotheItalianshipbuilding
industry,providedthatsuchgrants,are
progressivelyreducedatarateatleastequalto
thatindicatedunder(c),andthereisatthesame
timeputintooperationaprogrammeforthe
rationalization ofItalianshipbuildingindustry
designedtomaketheindustryproperly
competitiveattheEuropeanlevelnotlaterthan
theendof1976;
—wheretheexcessistheresultofindirectaidor
interventionforthebuildingorconversionof
ships.
3.Thecontractpricemeansthesalepricefixedby
contract,takingaccountofanypricerevisionclause.
4.TheCouncil,actingbyaqualifiedmajorityona
proposalfromtheCommission,shallmodifythis
Articleasandwhenappropriate .Article2
Grantsofaidandinterventionsmaybemadeforthe
followingpurposes:
(a)thebuilding,inashipyardoftheCommunity,of
metal-hulledsea-goingvesselsbeinganyofthe
following:
—merchantvesselsforthecarriageofcargo
and/orpassengersofnotlessthan150gross
registeredtons;
—fishingvesselsofnotlessthan150gross
registeredtons;
—dredgersofnotlessthan150grossregistered
tons;
—tugsofnotlessthan500hp;
(b)theconversion,inashipyardoftheCommunity,
ofmetal-hulledsea-goingvesselsofnotlessthan
5000grossregisteredtons,onconditionthat
conversionoperationsentailradicalalterationsto
thecargoplan,thehullorthemainpropulsion
systemofsuchvessels.Article4
TheMemberStatesshallcommunicate tothe
Commission,insofarasisnecessary,particularsof
theirrulesgoverningaidandinterventionfor
shipbuildingandshipconversionandoftheir
proceduresforapplyingsuchrules.
Theserulesandproceduresmustmakeitclear
whethertheconditionslaiddowninArticles2and3
havebeencompliedwith.Article3
Article51.,Aidorinterventionforthebuildingor
conversionofshipsfallingwithinArticle2may
consistof:
(a)exportcreditfacilitiesinrespectofships,
providedthatsuchfacilitiessatisfytheconditions
laiddoyvnintheunderstandingonExportCredit
forShipscontainedintheResolutionofthe
CounciloftheOECDof16December1970;TheMemberStatesshallrefrainfromany
discriminatory practicecalculatedtofavourwithin
theirnationalterritoriesthebuildingorconversionof
shipsorthemanufactureofproductsintendedto
formpartofsuchships. 1.

751 OfficialJournaloftheEuropeanCommunities
Article6 Article7
1.ThisDirectiveshallapplyuntil31December
1973.
2.TheCommissionshallassoonaspossible
undertakeastudyoftrendsinsupplyanddemandon
theworldshipbuildingmarketandoftheoverall
effectofaidsandinterventionssignificantlyaffecting,
whetherdirectlyorindirectly,theconditionsof
competitionandtradeonthatmarketwithinthe
Community .ItshallsubmittotheCouncilproposals
basedontheresultsofthisstudy.TheCouncilshall
actontheseproposals,immediatelyifpossible,butin
anyeventnotlaterthantheendof1973.OntheentryintoforceoftheTreatyconcerningthe
AccessionoftheKingdomofDenmark,Ireland,the
KingdomofNorwayandtheUnitedKingdomof
GreatBritainandNorthernIrelandtotheEuropean
EconomicCommunityandtheEuropeanAtomic
EnergyCommunity :
(a)thefollowingtemporaryexceptionsto
subparagraph (a)ofArticle2shallapply:
—theminimumtonnagelevelforaidand
interventionintheUnitedKingdomofGreat
BritainandNorthernIrelandinrespectofthe
aforementioned shipbuildingoperationsshall
be100grossregisteredtons;
—theminimumtonnagelevelforaidand
interventionintheKingdomofNorwayin
respectoftheconstructionoffishingvessels
shallbe50grossregisteredtons;
(b)thefollowingindentshallbeaddedtoArticle3
(2):
'wherethegrantistotheIrishshipbuilding
industry.'Article8
ThisDirectiveisaddressedtotheMemberStates.
DoneatBrussels,20July1972.
FortheCouncil
ThePresident
T.WESTERTERP