RESOLUTION OF THE COUNCIL AND OF THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL of 20 July 1998 concerning the expiry of the Treaty establishing the European Coal and Steel Community (98/C 247/04)

THE COUNCIL OF THE EUROPEAN UNION AND THE REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE EUROPEAN COMMUNITIES, MEETING WITHIN THE COUNCIL,

RECALLING:

- the resolution of the European Council on growth and employment adopted in Amsterdam on 16 and 17 June 1997, according to which the Commission is invited to make the appropriate proposals in order to ensure that, on expiry in 2002 of the Treaty establishing the European Coal and Steel Community (hereinafter referred to as 'the ECSC`), the revenues of outstanding reserves are used for a research fund for sectors related to the coal and steel industries,

- the Commission's communication on the expiry of the ECSC Treaty - Financial Activities of 10 October 1997,

1. NOTE THAT:

(a) it is important to recognise the excellent results of research funded by the ECSC and the contribution made to the improvement of the competitiveness and social conditions in the coal and steel industries;

(b) the overall approach contained in the Commission's communication of 10 October 1997 is in line with the guidelines adopted by the European Council in its abovementioned resolution;

(c) this approach is consistent with the opinions already expressed by the European Parliament, the ECSC Consultative Committee and the coal and steel industries which, through their levy payments, made a significant contribution to the ECSC assets.

2. NOTE THAT, in relation to the ownership of the ECSC assets and liabilities:

(a) on expiry of the ECSC Treaty, ownership of these assets and liabilities will revert to the Member States, in accordance with the principles of international law unless the Member States decide otherwise by common accord;

(b) the decision on the ownership of the assets and liabilities must be consistent with the achievement of the aim agreed at the Amsterdam European Council to use the revenues and outstanding reserves for a research fund for sectors related to the coal and steel industries;

(c) implementation of the conclusions of the Amsterdam European Council requires further consideration, in particular the legal means by which they can be brought into effect and their practical consequences. This should be a subject for further study by the Council, the Commission and the Member States.

3. CONSIDER THAT in relation to the management of the ECSC assets:

(a) in order to ensure separation from other Community funds, it is important to secure the ECSC assets as the 'ECSC in liquidation`;

(b) these funds should remain separate from other Community funds for the purposes agreed by the Member States, even after all outstanding financial operations have been completed and all the possible contingencies that could emerge have been adequately covered;

(c) administration of the assets should be entrusted to the Communities remaining, as represented by the Commission. This will enable the continuing management of budgetary and financial operations not completed in 2002;

(d) any changes to the purpose for which the assets have been provided should be subject to a unanimous decision of Member States;

(e) to ensure the long-term viability of the assets, they should be managed on the basis of multiannual financial guidelines proposed by the Commission and adopted by the Council. The management of the assets readily available should be aimed at the highest possible yield that is securely attainable;

(f) in order to ensure transparency, the Commission should adopt annual financial reports certified by the Court of Auditors and then transmitted to the Council;

4. FURTHERMORE, CONSIDER THAT in relation to the organisation of research funds:

(a) the revenues from the ECSC assets should constitute 'dedicated` revenue under the general budget of the European Communities to be administrated by the Commission. This should be directed to a research programme for sectors related to the coal and steel industries, guided by the proposals on scientific and technical content set out in the Commission communication and including the possibility of widening the scope of the existing programme to applied research. Further changes to the use of the revenue should be subject to a unanimous decision of Member States;

(b) to maximise the impact of research on the competitiveness of these industries, the research programme should be managed along lines similar to the existing research programme and on the basis of multiannual research guidelines proposed by the Commission and adopted by the Council, in close consultation with industry;

(c) these guidelines should further develop the current research programme financed by the ECSC, by ensuring a high degree of concentration and by making it complementary to those under the Community framework programme. They should take account of the objective of strengthening competitiveness, growth and employment. The guidelines should state clearly how industry experts are to be involved both in future research decisions and in the monitoring of projects;

(d) in order to ensure the efficient annual allocation of funding, the existing procedures concerning the adoption of individual research projects should be respected, that is, the decisions of the Commission should be taken with the agreement of the Council and in consultation with the sectors concerned;

(e) it is important that a full evaluation of the research is undertaken at the completion of the projects financed during the period covered by each multiannual research guideline. In particular, this evaluation should examine the benefits of the research to the sectors concerned. It is also important that preliminary results of research are made known to Member States before the expiry of each guideline as a basis for future decision-making.

5. CALL ON the Commission, in consultation with interested parties, to present, before the next meeting of the Council, a contribution to the study referred to in paragraph 2(c) which reflects the consequences of any possible solution.

6. INVITE the Commission, in doing so, to consider how:

- new Member States might join in any arrangements established to implement the conclusions of the Amsterdam European Council, after having contributed appropriately,

- the breakdown between the allocations for the coal-related research and that for steel-related research can be calculated. This should initially be based on the financial contribution paid by the two industries with the possibility for future review.

7. INVITE the Commission to bring forward, where appropriate and in good time, proposals in other areas affected by the expiry of the ECSC Treaty, and for their part, agree to adopt all necessary measures to deal with the consequences of the expiry.