A4-0363/98

Resolution on the draft ECSC operating budget for 1999 (SEC(98)0966 - C4-0394/98)

The European Parliament,

- having regard to the provisions of the ECSC Treaty, and in particular Articles 55, 56 and 95 thereof,

- having regard to the draft ECSC operating budget for 1999 drawn up by the Commission (SEC(98)0966 - C4-0394/98),

- having regard to the communication from the Commission on a request for Council assent and consultation of the ECSC Committee, pursuant to Article 95 of the ECSC Treaty, concerning a draft Commission decision (SEC(98)0967),

- having regard to the resolution of the ECSC Consultative Committee concerning a proposal for the transfer of the ECSC budget to the general budget,

- having regard to the preliminary draft budget and the draft budget for the 1999 financial year (C4-0300/98),

- having regard to preliminary draft supplementary and amending budget No 1/98 presented by the Commission,

- having regard to its resolution of 22 October 1998 on the Communication from the Commission to the Council: Expiry of the ECSC Treaty - Financial activities (COM(97)0506 - C4-0573/97) ((Item 1(c) of these Minutes.)),

- having regard to the report of the Committee on Budgets (A4-0363/98),

A. whereas the reserves and provisions accumulated by the ECSC are sufficient to guarantee the financing of the operating budgets until the expiry of the Treaty on 23 July 2002,

B. whereas the assets of the ECSC, which is now being wound up, could revert to the remaining Communities,

C. whereas, following the expiry of the Treaty, certain activities which have clearly demonstrated their effectiveness, and in particular research (Article 55) linked to these two industrial sectors, should be continued,

D. whereas the financial arrangements drawn up by the ECSC, in particular pursuant to Article 56 of the Treaty, have gone a long way towards offsetting the serious social and structural consequences of the restructuring of the coal and steel industries over the last few decades,

E. whereas, according to the Commission's forecasts, in 1999 up to 11 000 jobs could be lost in the coal sector and up to 6 000 in the steel sector,

1. Notes that the ECSC operating budget can properly be said to have entered the phasing-out stage, since it is now funded only from internal resources;

2. Notes that the Commission has entered a sum of EUR 30 m in the operating budget, pursuant to Article 95 of the Treaty, in the form of a transfer to the general budget for the Rechar II and Resider II Community initiatives;

3. Takes the view that this is designed to offset the discontinuation of certain financial activities, such as the conversion loans granted pursuant to Article 56 of the Treaty;

4. Takes the view that such a transfer is in keeping with the call made by Parliament in its resolution of 18 December 1997 on the draft ECSC operating budget for 1998 (SEC(97)0933 - C4-0270/97) ((OJ C 14, 19.1.1998, p. 120.)), in that it provides for the rational use of surplus provisions;

5. Approves, therefore, both the budgetary and institutional aspects of the Commission proposal, since it marks a practical first step in the phasing-in process by entering a total of EUR 60 m in the statement of revenue in the general budget;

6. Takes the view that by opting to do this the Commission has responded to Parliament's desire to foster job creation in the regions and sectors in which ECSC intervention measures are traditionally carried out;

7. Notes that the proposal is consistent with the guidelines laid down by the Amsterdam European Council, and in particular the Council resolution of 15 December 1997 concerning the employment guidelines for 1998 ((OJ C 30, 28.1.1998, p. 1.));

8. Lends its support, as one arm of the budgetary authority, to the entry of the abovementioned amount in the budget as earmarked revenue constituting an additional resource intended to strengthen policies funded from the general budget;

9. Deplores the fact that the Council has not approved the proposal and that, therefore, there is no assent pursuant to Article 95 of the Treaty authorising the transfer of EUR 30 million to the general budget, as proposed by the Commission;

10. Considers that the ECSC Treaty (Articles 49 to 56) confers major powers on the Commission as regards the establishment of requirements and the management of resources; expects the Commission, therefore, to implement its proposal to enter into the budget part of the surpluses which have accumulated within the provisions (EUR 30 million in 1999) by means of redeployment and conversion measures in the areas of the Union which are affected by restructuring in the sectors concerned; is ready to take the action needed to achieve this objective;

11. Takes the view, with regard to the other planned expenditure, that certain adjustments are required, particularly in respect of the redeployment aid, the social measures for the coal and steel industries and aid for research;

12. Takes the view that, since the ECSC Treaty will expire in 2002, the phasing-in of the ECSC must be dealt with in the context of the enlargement and, in that connection, calls on the Commission to earmark appropriations from the PHARE programme for activities in conjunction with the coal and steel sectors of the applicant countries;

13. Calls on the Commission to reduce administrative expenditure, which has remained at a constant level for 46 years, now that the ECSC has entered the active operational phasing-out period;

14. Points out that, in a statement to Parliament in 1993, the Commission undertook to accept the binding nature of the opinions delivered by Parliament on the ECSC operating budget;

15. Instructs its President to forward this resolution to the Commission, the Council and the ECSC Consultative Committee.