COUNCIL RESOLUTION of 4 March 1975 on concerted action and consultation between the Member States on industrial policy in the aeronautical sector

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community;

Whereas the aeronautical industry is important for the economic and technological position of the Community in the world ; whereas there are problems facing the industry in meeting external competition;

Whereas the launching of programmes by undertakings is dependent on action by public authorities ; whereas it is therefore necessary for Member States to coordinate their national policies in order to avoid unnecessary duplication, improve the choice of these programmes and determine together the means for carrying them out;

Whereas such concerted action should be based on a thorough investigation to be carried out in consultation with users and producers, of the requirements and prospects of the market and of other important factors affecting the future of aeronautical programmes;

Whereas the strengthening of the Community's aeronautical sector requires that Member States coordinate their policies in that sector to achieve the promotion of an improved industrial structure in the Community and its Member States;

Whereas the demands of competition require among other things that competitive prices be charged and sustained,

HAS AGREED AS FOLLOWS:

I. In order to coordinate their civil aeronautical policies, the Governments of the Member States shall: 1. (a) make available to one another all the information necessary for that purpose;

(b) concert their action on new programmes for civil aircraft and engines intended for such aircraft. This concerted action shall consist of mutual consultation with a view to reaching an agreement, without any legal obligation to do so;

2. adopt a favourable attitude on any moves towards the structural alignment of aeronautical undertakings in the various Member States of the Community, with a view to improved industrial structure whereby the competitiveness of the European aeronautical industry on world markets can be ensured; (a) if necessary, hold appropriate consultations on any moves towards alignment which aeronautical undertakings might make;

(b) intensify their efforts to ensure the swift adoption of Community measures intended to create a legal framework for European undertakings and to reduce obstacles to structural groupings.

II. Member States recognize that in order to ensure a market for aircraft produced in the Community, the demands of competition require, among other things, that competitive prices be charged and sustained.

To this end, and in observance of the Treaty's provisions on State aid, the Governments concerned shall, wherever a programme is carried out jointly in several Member States, undertake to examine whether it is possible to grant and harmonize aid.

III. The concerted action referred to in point I 1. (b) and the consultations referred to in points I 2. (a) and II will take place within the Council, it being understood that: - the concerted action and consultations will be as informal and flexible as possible and, in particular, will not prejudge the right of each Member State to take part in discussions with other Member States or with third countries, and

- representatives of the airlines and aeronautical industries in the Member States may be invited, in accordance with the arrangements adopted by the Council, to take part in the concerted action and consultations.

IV. The Council shall conduct a regular examination of the way in which this resolution is implemented. It hereby requests the Permanent Representatives Committee to submit to it, by 1 October 1975, a preliminary general report, based on a Commission report, on the operating conditions obtaining in the Community aircraft construction industry and on the measures necessary for its development.