ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)461
Vol.1980/0160

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)461 final
Brussels.18thSeptember 1980
1
<i
PROPOSAL FORACOUNCIL DIRECTIVE
ONAIDTOSHIPBUILDING
(presented bytheCommission totheCouncil)
COM(80)461final

Subjec*:Proposed 5thDirective onaidtoshipbuiLding.
1.Background
1.1.The4thCouncilDirective onaidtoshipbuilding willexpireatthe
endof1980.ThisDirective aimedbothtodefinetheaidswhichcould
beconsidered compatible withtheCommonmarketunderArticle92(3)EEC
andtoexercise adiscipline inthegrantofsuchaidsandpreventdis­
tortion :ofcompetition resulting fromthem.Italsosoughttoencourage theCommunity industryto
undertake thenecessary structural changestoenableittosurvive
inthecurrent andforeseeable futuremarketconditions .Over
recentyearsconsiderable restructuring hasinfacttakenhlacein
theCommunity merchant shipbuilding industry .Therehavebeen
reductions inemployment andoutput :between 1975andtheendof
1979employment fellby35%andoutputbyover40%.Thepaceof
restructuring hasvariedindifferent MemberStates,andalthough
somearewelladvancedintheirrestructuring programmes,othershavestillasignificant waytogo(insomecasesprogressishindered by
political difficulties ).
1.2.Thesituation ontheworldmarketremainsoneofcrisis,withdemand
stilldepressed,priceslowandcontinuing severecompetition for
theordersthatareavailable .Theslightimprovement inordersthat
wasobservable in1979wasprobably duetotemporary factorsand
cannotberegardedasthebeginning ofapermanent upturninthe
market.Forecasts offuturedemanddiffer,butitseemsreasonable
tosupposethatthevolumeofneworderswonbyCommunityshipyards
overthenextfewyearswillremainfairlycomparable tothatachieved
intherecentpast.Therearethusnogroundsforhopethatan
upsurgeinorderswillbringaspeedyendtothecrisisintheindustry.
Further,prices.cannotbeexpectedtoshowanymarkedimprovement
forsometimetocome,sinceseverepricecompetition ,especially
fromtheFarEast,islikelytocontinueand,inaddition,theanti­
cipatedtraderecessionwillkeepfreightrateslow.

-2-
1.3.Itisthusclearthattheprocessofadaptation undertaken byMember
States,andgivenaframework bythe4thDirective,willnelllto'be
pursuedandthattheshipbuilding industry intheCommunity willcon­
tinuetoneedaidforafurtherperiod,thoughnotnecessarily ata
uniformrateforthewholeoftheperiod.
Inthesecircumstances ,theinternaldiscipline in
respectofaidsmustalsobecontinued,toensurethatMemberStates
sharetheburdenofthecrisisequitably anddonotcontribute tothe
prolongation ofthecrisisbyallowing excessive capacitytoexistor
pricestobekeptartificially depressed byunreasonable levelsof
subsidy. '
1.4.TheexpertsoftheMemberStatesareagreedthatthereisneedfor
anewDirective tocomeintoforceonexpiry ofthepresentone.
Theyagreealsothattherecommendations oftheCouncilResolution
(1)of19.9.1978 onthereorganisation oftheshipbuilding industry remain
valid.The 5thDirective nowsubmitted hasbeenelaborated with
thebenefitofdetailed discussions withtheexperts onthecourseof
multi-lateral meetings anditbroadlyfollowsthelinesofthe4th
Directive .Insomerespects,however,itgoesfurtherthanthe
4thDirective andbringswithinthediscipline formsofaidnot
previously covered.Itisproposedtohaveadurationof2years.
V
2.General Approach oftheDirective
2.1.Asinthe4thDirective,production aid,whichisthetypeofaid
havingthemostdirectanddistorting effectoncompetition andthe
:market,isregarded asacceptable onlyasameansofdealingwith
thecrisisfacingtheindustry .ItspurposeistoenableCommunity
yardstoofferpricescomparable tothoseofcompetition inthird
countries anditshouldnotresultinthedisplacing ofordersfrom
otherCommunity yards.Itisacondition ofthegrantofsuch
aidthatitshouldbelinkedwitharestructuring programme andit
shouldnoteffecttradetoanextentcontrarytothecommoninterest.
Theprinciple ofprogressive reduction oftheaidisalsoretained .
./.
(1)OJC229of27.9.1978 .

4'
2.2.Underthe4thDirective,MemberStateswererequiredtosubmitreports
onthegrantofaidtoshipowners .Thepurposeofthisrequirement
wastoenabletheCommission toconsider whethershipowners aidwas
havinganyappreciable effectontheplacingofshipbuilding orders.
Theinformation received hasshownthataidtoshipowners tendsat
leastinpresentcircumstances toresultalmostexclusively inorders
forhomeyardsandtherefore tohaveaeffectsimilartothatofaids
toshipbuilding .Sinceitisnotequitable thattheseaidsshould
escapethediscipline appliedtootheraidswhichhavesimilareffects,
thenewDirective enablestheCommission toexaminetheposition and
takeactionifaidstoshipowners areendangering thecommondiscipline
orareobstructing theobjectives oftheDirective,notablyasregards
restructuring .
2.3.TheDirective alsocontainsprovisions forthecontrolofaidgiven
intheformofcompensation forlossesincurredbyship­
buildingundertakings .Aidprovided bythismeanslackstransparency ,
andgivesrisei:o.concernamongotherMemberStatesthat,ineffect,
itmaybeameans'/ofproviding excessive production aid(forexample,
ifaproduction aidatthemaximumrateof25%isgrantedfora
particular contractandsubsequently anadditional lossof10%_is
incurred,then,effectively ,aproduction aidof35%hasbeengiven).
TheCommission isalsoconcerned thatthispractice mayweakenthe
yards'incentivetoreducelossesbyrestructuring andbecomingmore
competitive .

4"
2.4.Thenew ■Directive therefore maintains thepressure towards
re-organisation andincreased efficiency intheCommunity industry -v
i
withaviewmaking'itabletoexistultimately withoutstateaid.
\
Itretainsthetwoaspectswhichalsocharacterized the4thDirective,
asaninstrument ofcontrol andaninstrument forstimulation of
necessary industrial change.
2.5.TheCommission recognises thatinsomeMemberStatesextensive
restructuring hastakenplaceandthatscopeforfurtherreductions
incapacity islimited.Itisnecessary howevertoretainthe
restructuring criterion forthegranting ofaidsandtheseMember
Stateswilltherefore continue tohavetoshowthataidproposed
islinkedwithrestructuring plans.
.Inthesecircumstances itwillbeappropriate tointerpret thenotion
ofrestructuring moreflexibly underthe5thDirective andtoplace
theemphasis onmodernisation andrationalisation ratherthanon
purereduction ofteapacity asinthepast.
./.

3=Elements oftheDirective
3.1.Creditfacilities (Article 2)
The Directive providesforMemberStatestograntcreditfaci­
litiesforthesaleorconversion ofshipsprovidedtheyrespectthe
termsoftheOECDUnderstanding .Somedifferences indefinition which
existedbetweentheOECDUnderstanding andthe4thDirective inthis
respect havebeeneliminated inthenewdraft.
i
3.2.Investment Aid(Article 3)
ThisArticle,identical withArticle 4ofthe4thDirective,provides
thattheCommission benotified inadvanceofanyinvestment aid
whichwouldresultinanincrease intheproduction capacity ofa
MemberState.Inaddition,reportsshowingallinvestments inexcess
of5million EUAaretobesubmitted at6-monthintervals .Although
verylittleinvestment fallingwithinthisArticlehastakenplace
duringthecurrencyofthe4thDirective,itisnecessary toretain
theArticleasasafeguard andasourceofinformation forthe
Commission .
3.3.Aidstorescueanundertaking (Article 4)
UnderthisArticle,aidgiventorescueashipbuilding ,ship-repair
orshipconversion undertaking pendingalongertermsolutionof
theundertaking 'sproblems maybeconsidered compatible withthe
commonmarket.Thenewdraftismoreexplicit thanitspredecessor
inthe4thDirective inprohibiting cumulation ofrescueaidand
production aidinthesameform.Itspecifiesthatrescueaidshall
nottaketheformofgrantsforproduction providedforinArticle6.
Thisisintendedtodealwithaproblemwhichhasarisenunderthe
4thDirective whenMemberStates,proposing tograntaproduction
aidinexcessofthenormalmaximumhavearguedthattheadditional
amounthasthecharacter ofarescueaidandtherefore shouldbe
authorized underthisArticle.Toacceptthiswouldmaketheconcept
ofaproduction aidlimitpractically valueless;hencetherevised
draft. " .
. --Λ. ./. ■■

3.4.Aidtodealwiththesocialandregionaleffectsofrestructuring
.(Article 5)
ThisisanewArticle.Itisprompted bythefactthatshipyards are
oftenlocatedinolderindustrial areasalreadyexperiencing severe
regional andsocialproblems/whichthreaten tobeseriously aggra­
vatedbylossesinshipbuilding employment .TheArticleprovides
forMemberStatesandtheCommission tocooperate inthisrespect :
theunderlying thoughtisthatsomeRegional AidFundmoniesmaybe
specifically allocated tothisproblem.Thisisaverypositive
elementoftheDirective andisimportant asanindicator ofthe
Community'sconcernforthehumanproblemscreatedbytheshipbuilding
crisis. '
3.5.CrisisAid(Article 6)
ThisArticlecontinues thegeneralapproach ofitscounterpart inthe
4thDirective .Itprovidesthatproduction aidmaybeconsidered
compatible withtheCommonmarketifitislinkedtorestructuring ,
isdegressive anddpesnotaffecttradingconditions toanextent
contrary tothecommoninterest.
%
Ininterpreting theconceptofdegressivity ,theCommission willtake
specialaccountofthedevelopment ofthecompetition situation at
worldleveland.ofpossible worsening oftheregional problems in
certainpartsoftheCommunity .
Thenewelementinthisarticleisthat,inassessing aMember
State'sproposals forsuchaids,theCommission willtakeinto
accountothertypesofaidwhichbenefitshipbuilding inthatState.
Thisapproach isintendedtoensurethataccumulation ofaidsof
different typesdoesnotbuilduptounacceptable totals.
-" f
/• * *

-7-
3.6.CostEscalation Insurance (Article 7)
UnderthisArticleaidintheformofinsurance againstinflationary
costincreases maybeconsidered compatible /provideditsatisfies
thecriteria foraidsunderArticle 6.
3.7.AidtoShipowners (Article 8)
Asmentioned above(para2.2),aidtoshipowners hasbeenseen,under
the4thDirective,tooperatetosomeextentasaninstrument of
supportfortheshipbuiIdingindustry ofcertain MemberStates.
ThisArticletherefore proposestosubjecttheseaidstothegeneral
discipline ,bydeclaring thattheyshallnotendanger theobjectives
oftheDirective (notablyastorestructuring )andshallnotdiscri­
minateagainstshipyards inotherMemberStates.IftheCommission
concludes thattheseeffectsareoccurring,itmayintervene and
examinethewholeaidsystemoftheMemberStateforthebuilding,
saleandacquisition ofships.
3.8.Otherfinancial measures (Article 9) '-
Thisisanewarticle,intendedtodealwiththeproblemoutlined
inparagraph 2.3above.Becauseofthedifficulty inidentifying
thepreciseeffectsofcertainfinancial measures (inparticular
losscompensation ,capitalreorganisation ,non-repayable grants)
onindividual ordersoronprogress withrestructuring ,theArticte
adoptsabroadformulation whichleavesthe Commission scopefor
exercise ofdiscretion .Itgoeswithoutsayingthatsuchaidshould
notobstructthediscipline ofArticle 6(seepara3.5above)orthe
generalobjectives oftheDirective,notablyasregardsthenecessary
restructuring ofthesector.
3.9.Non-Discrimination inmarineequipment (Artide 10)
ThisArticleprovidesthatmarineequipment shouldnotbesubject
torestrictive practices asbetween MemberStates.

COUNCIL DIRECTIVE
onaid toshipbuilding
The Council oftheEuropean Communities ,
having regard totheTreaty establishing theEuropean Economic Community
andinparticular Articles 92(3)(d )and 113thereof ,
having regard totheproposal from theCommission ,
having regard totheopinion oftheEuropean Parliament ,
having regard totheopinion oftheEconomic andSocial Committee ;
1.Whereas thesituation oftheshipbuilding industry hascontinued tobe
unfavourable during theperiod ofoperation ofDireotive 78/338/EECon
aid toshipbuilding ;whereas this situation has inparticular taken theproduction
form ofanimbalance between the/capacity oftheindustry anddemand ,
leading tolowprice levels ;
2.Whereas shipbuilding undertakings intheCommunity have therefore been
obliged todraw frequently ontheir financial reserves totake orders ,
thus reducing their chance ofimplementing thestructural adaptations
needed toface theprevailing market conditions inthe longer term ;/
« • *
i /
concerning3.Whereas theResolution oftheCouncil ofMinisters of19 -September 1978 /
thereorganisation oftheshipbuilding industry intheCommunity stressed
theneed tomaintain within the Community ahealthy andcompetitive ship­
building industry whose scale ofactivity should beconsistent with the
size oftheCommunity 'ssea-borne trade andrespect itseconomic ,social
andstrategic importance ;
4.Whereas acompetitive shipbui Iding ^industry isofvital interest tothe
* ,Community andcontributes toitseconomic andsocial development by
providing asubstantial market for arange ofindustries ,including those
using advanced technology ;whereas itcontributes also tothemaintenance
ofemployment inanumber ofregions ,including some which arealready
suffering ahigh rate ofunemployment ;whereas this isalso true of
ship-conversion arishiprepair ;

-2-
5.Whereas ,ifthesituation intheindustry were normal ,thecontinuation
ofoperating aidcould notbejustified ,since ,itseffect being mainly
that ofconservation ,1itisnotlikely tobring about anylasting impro­
vement intheCommunity shipbuilding industry 'scompetitiveness ;
6.Whereas ,however ,thecontinuation ofthecrisis forafurther period has
serious consequences fortheshipbuilding industry which make theimme­
diate abolition ofsuch aidimpossible ;whereas itisnecessary toallow
adaptation ofthestructures oftheindustry totheprevai ling market
conditions totake place gradually ;
7.Whereas ,tothis end,operating aidshould betemporary anddiminishing ,
soastoencourage theundertakings tomake thenecessary effort tobe­
'come competitive ,atleast intime ;whereas such aidshould besubject
tocontinuous control inorder toavoid distortions ofcompetition within
theCommunity ;whereas thegranting ofsuch aidshould belinked tothe
achievement ofrestructuring objectives ;whereas inthis context the
restructuring effort isnotconfined toreduction ofproduction ,employ­
ment andproduction capacity ,butincludes allother measures enabling
theshipbuilding industry tobecome competitive ;whereas inassessing
thereduction ofproduction capacity itisappropriate totake account
oftheeffort already made ;
8.Whereas ,inorder todeal with thepresent difficulties facing thein­
dustry ,andinparticular thedistortions of .competition which areoc-
curing ,themember countries oftheOECD arecontinuing their efforts to
remedy theserious structural disequilibrium existing inthis industry
byreducing world shipbuilding production capacity ;whereas
this reduction incapacity should beachieved intheleast damaging and
most equitable waypossible ;whereas these .. countries have
adapted certain conditions oftheOECD Council Resolution on
credit facilities ,inorder tobring itmore into line with the current
trend ofthemarket ; ,
9.Whereas Council Directive 78/338/EECof4April 1978 onaidtoship­
building has,during itsperiod ofoperation ,helped toreduce distortion ,
ofcompetition between Member States ;whereas this ,Directive hasalso
enabled theCommunity toadopt acommon position indiscussions with
other shipbuilding countries ;

-3-
10.Whereas production structures should beprogressively adjusted tothe
newmarket conditions insuch awaythat undertakings intheindustry
maybecome capable offollowing general economic developments andof
masting competition ontheworld market without the support ofinter­
vention bypublic authorities ;whereas this progressive adjustment of
production structures should beaccompanied bymeasures tofacilitate
adjustments inemployment andonasocial level ;
11.Whereas ,furthermore ,effective action toeliminate distorsions of
competition requires asolution covering allaiddirectly orindirectly
affecting competition andtracing conditions ontheshipbuilding ,ship-
conversion and ship»»repair market ;
12.Whereas itisnecessary todefine aidintended asatemporary solution
for therescue ofashipbuilding ,ehip^-conversion orship*»repa.ir under­
taking inorder todeal with acute social problems ;
13.Whereas ,inview ofthecontinuing crisis intheshipbuilding industry ,
itisappropriate toprovide foraid tofacilitate the conversion or
clos\ire ofshipyards under themost equitable social conditions ;
whereas this aidmay provide for theretraining oftheworkforce or
facilitate early retirement ;
14.Whereas aidgranted tonational shipowners fortheacquisition ofnew
ships should notlead todistortions ofcompetition between national
shipyards andthose ofother Member States ;
15.Whereas anyaidIncluded indirect orindirect financing measures taken
byMember States ,inrespect ofprivate orpublicly-owned shipyards ,
should also meet therequirements laid down under this Directive ;
Hadadopted this Directive 1

Article 1
ForthepurposesofArticles 3to11ofthisDirective,thefollowing
definitions shallapply:
(a)Shipbuilding meanstheconstruction intheCommunity ofthefollowing
metal-hulled sea-going vessels;
-merchantshipsforthecarriage ofpassengers and/orcargo,ofnot
lessthan150grt;
-fishingvesselsofnotlessthan150grt;
-dredgersorshipsforotherworkatsea,ofnotless-than150grt,
excluding drilling platforms ;
-tugsofnotlessthan365KW;
(b).-Shi^-conversion meanstheconversion ofmetal-hulled sea-going vessels
ofnotlessthan1,000grt, Noncondition thatconversion operations
entailradicalalterations tothecargoplan,thehullorthepropulsion
system;
.Cc)Shi^rega irmeanstherepairofthevesselsreferredtounder(a)above;
(d)Salejneans allsalesofvesselsreferredtounder(a)above;
meaning
(e)AidmeansStateaidwithinthe/ofArticles92 and93ofthi-Treaty^
including both -aidgrantedbytheStcteitself
andthatgranted byregional orlocalauthorities .
Article 2
Aidintheformofcreditfacilities forallsalesorconversion ofvessels
maybeconsidered compatible withthecommonmarketprovidedthatitcom­
plies withthe0ECDCouncilResolution of5February 19o0orwithany
agreements replaoing theResolution .

-5-
Article 5
MemberStatesshallnotgrantsectoral aidforthecreation ofnewshipyards
orforinvestment inexisting yardsifsuchaidwouldbeliabletoincrease
theMemberState'sbuilding capacity .
«
Inapplying generalorregional investment aidschemestotheshipbuilding
sector,MemberStatesshalltakeallstepstoensurethataidedinvestment
doesnotleadeithertoincrease inthecapacity ofthesectorinaMember
State,ortothecreation ofemployment whichisnotofastablenature.
Tothisend,plansforsuchapplication ofgeneralorregionalaidschemes
leadingtoincreases inshipbuilding capacity inaMemberStatemustbe
communicated totheCommission notlessthan30workingdaysbeforethey
areputintoeffect .
MemberStatesshallinformtheCommission oftheirdecisions tograntaid
forinvestments inshipbuilding ,shiprepairorshipconversion yardswhere
theamountofsuchinvestment isinexcessof5millionEuropeanunitsof
account.Thisinformation shallbeprovided inaccordance withthepro­
cedureprovided forinArticle 11.
Article 4
Rescueaidintended tomaintain ashipbuilding ,ship-conversion orship-
repairundertaking pendingadefinitive solutionoftheproblems con-•-
fronting theundertaking concerned,inorder

todealwithacutesocialproblemsandtheregionaleffectswhichmayarise,
maybeconsidered compatible withthecommonmarketunderthepresent
Directive.Rescueaidmaynottaketheformofproduction aidmoreparti­
cularlyprovided forinArticle 6.
Article5- •
r
^2^_ï2_^£§i_yiï!l_i!îË„§2£iâi„âDd=.£ê2i2D§i;_£2Q§f2y£D££S ofrestructurinq
TheMemberStatesandtheCommission shallcooperate todeal,sofaras
possible,withthesocialandregionalconsequences oftherestructuring of
theshipbuilding andshiprepairindustries ,andtothisendMemberStates
shallinformtheCommission assoonaspossible ofproposals forconversion
andclosureofshipbuilding andshiprepair undertakings .
Aidintendedtocoverthenormalcostsarisingfromtheconversion andthe
partialortotalclosureofashipbuilding orshiprepair yardmaybeconsi­
deredcompatible with^hecommonmarket.
Article 6
i i
Crisisaid
Production aidinfavourofshipbuilding 'maybeconsidered compatible
withthecommonmarketifitisgrantedtodealwiththeeffectsofa
crisis characterised byapoorordersituation leadingtosubstantial
under-uti lization ofthemeansofproduction *
Suchaidshallbeprogressively reduced;itshailbegrantedonlyiflin­
kedtotheattainment ofindustrial restructuring objectives whichwill
ultimately
maketheindustry competitive andable/tooperatewithoutaid.

-7-
When assessing thecompatibility ofsuchmeasures with thecommon market ,
andinparticular thelevel ofaid.,th©ConimiEnsion shall psyparticular
attention tothesituation onthemarket ,thegravity ofthecrisis in
terms ofthebalance oftheworkload remaining available toshipyards andthe
need foradaptation oftheshipbuilding industry totheconditions andcon­
straints prevailing onthemarket® Xnaddition ,theCommission shall examine
thebudgetary resources allocated forcrisis aidinorder toverify that the
programme ofadaptation oftheindustry iscomparable with those carried out
intheother Member States oftheCommunity ,,
This examination shall take account ofallaidprovided bytheMember State
concerned fortheconstruction ,sale andacquisition ofships .
TheCommission shall assess themaximum level ofaidwhich maybegranted
fortheapplication ofthevarious aid schemes ,,Authorization toexceed
this level maybegiven only asanexceptional measure ,after theCommission
hasbeen notified .Such exceptions maynotbeputinto effect unless the
Commission hasgiven itsagreement .TheCommission shall adopt aposition
assoon aspossible ,having regard totheurgency ofeach individual case ,
andinanycase notlater than thirty working days after notification .
Indetermining themanner inwhich themaximum level ofaid istobepro­
gressively reduced ,theCommission will take account oftheexisting maxi­
mum level and ofthe acuteness ofthe crisis inthe Member State concerned .
TheCommission shall begiven prior notification ofanyproposed individual
aidunder themeasures referred tointhefirst paragraph where such proposal
isincompetition with atender from another Member State ,Such proposals
maynotbeimplemented before theCommission hasgiven itsagreement .The
Commission shall verify that such aiddoes notaffect trading conditions to
anextent contrary tothecommon interest .
/•

MemberStatesshallsupplytheCommission withatable/foritsexclusive
use settingoutthedecisions ontheaidreferred toin
paragraph 1andanestimate oftheireffects.
Thisinformation shallbeprovided inaccordance withtheprocedure set
outinArticle 11.
*
TheCommission shallverify,onthebasisoftheinformation referred to
inthefirstandsecond paragraphs ,andoftheordersituation inthe
MemberStateconcerned,whethereffortstoattainindustrial restructu-thesecondringobjectives mentioned in/paragraph andthecrisismeasures which
havebeenappliedarecontributing genuinely andinanequitable manner
totheadaptation oftheindustry tothenewconditions ontheworldship
building market.
Article 7
Aidandintervention intheformofcost-escalation insurance maybecon­
sideredcompatible withthecommonmarketunderthisDirective,subject
totheconditions setoufcinArticle 6.
Article 8 ■:-v" ;>v
Aidgrantedtoshipowners inaMemberStatelinkedtotheaocjmsition
ofnewshipsmaynotleadtodistortions ofcompetition betweennatio­
nalshipyards andshipyards inotherMeraberStatesintheplacingof
contracts . ■

-9-
Aidtoshipowners linkedtotheacquisition ofnewshipsmaynotendanger
thediscipline established byArticle 6inparticular,northeobjectives
pursued bythepresentDirective ,especially inregardtotheadaptation
oftheshipbuilding industry toprevailing marketconditions .
IftheCommission observesthatoneoftheseeffectsislikelytooccur,'
itshallexaminethewholeoftheaidprovided byaMemberStateforthe
building,saleandacquisition ofships.
Theseprovisions areentirely withoutprejudice toanyfutureCommunity
rulesonaidtoshipowners .
Whenaidisgrantedtonational shipowners onaselective basis.Member
Statesshalldrawupareport.Thisreportshallcontaininformation onthethe
totaltonnageofordersreceiving aidandjshare ofthistotalwhichhas
beenplacedinnational yards.Thevolumeofaidshallbeshownineach
case.
Thisinformation shall?beprovidedinaccordance withtheprocedureset
1
outinArticle 11.TheCommission shallatregularintervals drawup
overallreportssummarising theinformation supplied toit.
Thesereportsshallbediscussed withMemberStatesinordertoensurethat
thereisnodiscimination intheshipbuilding industry asaresultof
suchaid.
Article9
indirect
Axxyelementsofaidincludedindirector/financing measurestakenby
MemberStatesinrespectofshipbuilding andshiprepairundertakings ,
whetherprivateorpiiblicly-owned , maybeconsidered com­
patiblewiththecommonmarketprovidedthattheycomplywiththecriteria
forderogation contained inthisDirective .

-10-
Article 10
NoaidsgrantedpursuanttothisDirective maybeconditional upondis­
criminatory praoticesastoproductsoriginating inotherMemberStates.
Article 11
Subjecttothespecificprovisions ofthisDirective ,,theprovisions
ofArticies 92and93oftheTreatyshallbefullyapplicable toshipbuil­
ding,ship-conversion andship-repair . "
AidsplannedbyMemberStatesunderArticles 2to9shallbenotifiedto
theCommission beforetheyareputintoeffect.Theymaynotbeputinto
effectbeforetheCommission hasgivenitsagreement.
Information tobesuppliedperiodically byMemberStatesunderArticles 3,
6,7and8shallbeprovidedhalf-yearly on1Marchinrespectofdecisions
takenduringthesecondhalfofthepreviouscalendarfand 1Septemberin
respectofdecisionstakenduringthefirsthalfol^currentcalendaryear.
Onthebasisoftheinformation communicated toit-theCommission shalla*intervalsregular/drawupanoverallreporttoserveasabasisofdiscussion with
nationalexperts.Thisreportshallstate,interalia,themaximumlevel
ofaidobtaining ineachMemberStateduringtheperiodinquestion .
TheMemberStatesshallatregularintervals providetheCommission witha
reportontheattainment ofshipbuiIdingrestructuring objectives .The
Commission shalldetermine theduedateofthisreportforeachMember
State.Thereportshallshowtheresultsobtained throughtheapplication
oftheaidreferred toinArticles 3~to7.
Article 12
ThisDirective shallapplyuntil31December 1982.