ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)711
Vol.1979/0241

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (79)711Final
Brussels .29November 1979
\
DRAFT ECSC OPERATIONAL BUDGET FOR
1980
(Communication from theCommission totheCouncil )
loi V f-Ap| M
:<■'<///
COM (79)711Final

Inthedocuments which theCommission recently forwarded tothe other
bodies concerned bytheproblem offinancing theECSC Operational Budget
for1980 (COM(79)565 of30October 1979 andCOM(79)640 of
8November 1979 )»"t^ieCommission said that itintended tomake specific
proposals forbalancing theBudget .Thepurpose ofthis Communication
istoexplain theCommission 'sproposals toCouncil andParliament .
After contacting some oftheparties concerned andinparticular the
ECSC Consultative Committee ,theCommission hasthoroughly re–examined
itspresent approach tocovering thevarious categories ofcommitments
under theECSC Operational Budget . Asaresult ,theCommission proposes
that ,in19S0 ,therequirements shown intheBudget should befinanced as
indicated belows
(a)Requirements which ,under theTreaty ofParis (oraDecision based on
Article 95oftheTreaty ),aretobefinanced from thelevy resources ,
i.e. requirements relating toadministrative expenditure ,research ,
redeployment andcoking coal will.be covered bythelevy resources or
the cancellation ofprovisions which were established previously from
these resources and arenow nolonger required .
(b)Requirements concerning interest rebates onECSC loans granted tocoal
and steel companies traditionally financed from income from interest
oninvestments and loans granted out ofnon-borrowed .funds will be
entirely covered bytheinterest proceeds ;these requirements will
belimited totheamount entered intheOperational Budget for this
purpose .
(c)Requirements concerning interest rebates onnon-ECSC loans granted
for conversion investments intended tocreate jobs for ex-ECSC
workers will becovered byextraordinary ,receipts .
(d)Requirements concerning newtemporary social aid (theprinciple of
which isthesubject ofdocuments COM(79)''99 of4May1979 and
COM(79)436 of20July 1979 »andthefinancing ofwhich isthesubject
ofdocument COM(79)345 of20June 1979 andChapter 54ofthe
Preliminary Draft General Budget for1980 )will bemetfrom the
General Budget . ' '
Thebasic guidelines set out above entail anumber ofamendments tothe
Draft Budget which are setoutintherevised table attached ,and ,as
aresult ofthem ,theCommission isforced topropose anincrease in
therate oflevy forthefinancial year 1980 .
Inview ofthelower steel production estimates (134million tonnes bf
crude steel instead of140million tonnes )adopted bytheCommission on
7November 1979 »"theexpected yield asregards theresources indicated
insubparagraph (a)above ,without altering therate oflevy ,is
114.3 mEUA (109.3 mEUAbywayoflevies and5mEUAbywayof
cancellations ofprovisions )compared with 125mEUAshown forthe
requirements inquestion (administrative expenditure 5®EUA ,redeployment
67mEUA ,research 47mEUA ,coking coal 6mEUA)intheDraft Budget .
TheCommission therefore proposes toreduce theproposed allocation
forresearch aid (theonly Chapter which does nothave binding force )

to44mEUA,andtoincreasetherateoflevyto0.31$,thereby "balancing
theestimates ofrequirements andtheresources inquestion at122mEUA.
Itshouldhepointedoutinthisrespectthattheproposed increase
of0.02%(7.5mEUA)isnegligible comparedwiththesect0r*stotalannual
turnover ,whichcouldbeintheregionof40000million EUA,andthatthe
annualbenefittothesteelindustryresulting fromtheCommunity steel
policymeasuresiswellinexcessof1000million EUA.
ItshouldalsobenotedthattheECSGConsultative Committee didnotraise
anyobjections onthismatterwhenitwasinformed,on16November 1979»
theCommission 'sintention toincrease therateoflevy.
Asregardstheoriginoftheextraordinary resources tocovertheproposed
conversion aid(43mEUA),theCommission ,havingthoroughly re–examined
thelegalaspectsoftheproblem,proposesthattheseaidsbefinanced by
meansofatransfer fromtheGeneralBudgettotheECSCBudget,atransfer
whichiswarranted bytheimportance oftheaidinquestion fromthepoint
ofviewo'fthegeneral EECeconomy.TheCommission hopesthatthebudgetary
authority willagreetotheprinciple ofsuchatransfer (tobemadeby
meansofaSupplementary Budgetin1980)beforetheendof1979*Atthe
appropriate time,theCommission willpresentadraftDecision (underArticle235oftheEECTreaty)toestablish thelegalbasisforthis
transfer .
Ifagreement isnotgiven,theCommission willbeobligedtoaskthe
MemberStatesonceagainforanadhoccontribution totalling 43mEUA.
Summary
TheCommission proposesforthefinancial year1980s
(a)therevisedDraftOperational Budgetattached
(b)thefixingoftherateoflevyat0.31%
(c)thatCouncilandParliament ,asthetwoarm3ofthebudgetary authority ,
agreebeforetheendof1979 "totheprinciple ofatransferof43mEUA
fromtheGeneralBudgettotheECSCBudgetbymeansofaSupplementary
•Budgetin1980.

ANNEX
DRAFTECSCOPERATIONAL BUDGETFOR1980
(inmEUA)
REQUIREMENTS
OPERATIONS TOBEFBIAW(JEDIj'ROM
RESOURCES FORTHEFINANCIAL YEAR
(NON-REPAYABLE )
1cAdministrative expenditure
ι
2.Aidtaredeployment (Article56)
3»Aidtoresearch (Article55)
3»1steel
3«2coal
3»3social
4«Interest rebates
4.1Investment (Article54)
4*2Conversion (Article56)
Aidtocokingcoalandcokefor
thesteelindustry (Article95)APPLICATIONS PROPOSALS RESOURCES
RESOURCES FORTHEFINANCIAL YEAR
1.Current resources
1.1Proceedsof0.31%levy
(0.01%=3.77mEUA)
1«2Interest oninvestments and
onloansgrantedoutof
non-borrowed funds
1.3Finesandlatepayment
surcharges
1„4Miscellaneous
2«Cancellation ofcommitments which
willprobably notbeimplementedPROPOSALS
OPERATIONS FINANCED WITHLOANS
GRANTED OUTOFNON-BORROWED FUNDS
6»Subsidized housing '5
67.
83,5
116(48.5)
(25)
(10)
(64)
(52)
277.5
105
67
44
66(1?)
(16)
(9)
(23)
i43)
188
10Revaluation ofassetsand'
liabilities3.
Extraordinary receipts
ORIGIN OFNON-BORROWED FUNDS
5.Repayments onloansfor
subsidized housing
6.Specialreserveandformer
ECSCPension Fund117
23
tokenentry
tokenentry
5
tokenentry
43
188