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COM (84) 032 
 
 
 
Vol. 1984/0 010 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
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COMMISSION OF T H E  EUROPEAN COMMUNITIES
C O M (8 4 ) 3 2  final
Brussels, 26th January 1984
EXTENSION OF THE SYSTEM OF PRODUCTION QUOTAS ESTABLISHED 
UNDER ARTICLE 58 OF THE ECSC TREATY
(Communication from the Commission to the Council)
C O M (84) 3 2  final

EXTENSION OF THE SYSTEM OF PRODUCTION QUOTAS ESTABLISHED 
UNDER ARTICLE 58 OF THE ECSC TREATY
(Communication from the Commission to the Council)
I. On 25 July 1983, at its 869th meeting, the Council examined the 
problems besetting the steel industry and approved the following conclu­
sions :
1. All the Member States recognized that the Article 58 system had to 
be applied for two-and-a-half years in conjunction with the restruc­
turing programme decided on by the Commission on 29 June 1983.
2. The Council gave the Commission its assent to applying the 
Article 58 system until 31 January 1984.
3. The Council undertook to assent by that date to the application of the 
Article 58 system for the remainder of the period mentioned in point 1.
II. The Commission reminds the Council of these conclusions, which are 
still equally justified today. In essence the critical problems facing the 
steel industry have remained unchanged :
1. Despite the capacity reduction targets which the Commission set the 
Member States to achieve by the end of 1985 (but only partly achieved 
so far) the substantial overcapacity on the production side remains a 
heavy burden on the whole of the industry.
2. In 1983 steel consumption was even lower than in 1982. Although there is 
no sign of further deterioration in 1984, the average capacity utilization 
rate will remain extremely low.
3. Worldwide, there is still the same marked imbalance between supply 
and demand ; the market remains depressed and holds out no hope of any 
significant growth in the Community's steel exports.
Consequently, the state of manifest crisis persists.

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III. What is more, the sharp deterioration over the second half of 1983 forced
the Commission to take further restrictive measures in order to reinforce  
the discipline of the undertakings.
At its 901st meeting - on 22 December 1983 - the Council was consulted on  
the introduction of minimum prices for strip and plate and for heavy sections  
and beams, under Article 61 of the ECSC Treaty. After consulting the Consul­
tative Committee, the Council gave its unanimous assent, as required by Article 95,  
to two Decisions :
- requiring all steel undertakings producing goods subject to the minimum  
prices system to lodge a guarantee, which would not be repaid if the Commission  
had prima facie evidence that the undertaking had infringed the price rules
or exceeded its quota ;
- introducing an accompanying document to give a clearer picture of the tradi­
tional pattern of trade in steel within the Community. This Decision should  
create the more transparent market called for by all Member States alike  
and prevent undertakings from radically changing their traditional pattern  
of deliveries.
However, there will be no foundation for the package of measures adopted by the  
Commission on 23 December 1983 CD unless the existing production quota system  
is extended. Moreover, the Commission has made it clear that if the system is  
not prolonged, the measures adopted on 23 December will be repealed immediately.
IV. The Commission therefore requests the Council to give its assent, as required  
by Article 58 of the ECSC Treaty, to extend the existing system of production quotas.  
It proposes to uphold all the measures in force since 30 June 1983 (2) without  
substantial amendments until the end of 1985, in line with the decisions taken by  
the Council on 25 Jdly and 22 December 1983.
It also intends to apply them in the same spirit.
Exercising the powers conferred on it by the decisions taken in December the  
Commission will keep an even stricter watch than hitherto that the undertakings  
abide by the production quota system and by the price rules.
(1) Commission Decisions No 3715/83/ECSC, No 3716/83/ECSC and No 3717/83/ECSC  
of 23 December 1983, 0J L 373, 31.12.1983, pp. 1, 5 and 9.
(2) Commission Decision No 2177/83/ECSC of 28 July 1983, 0J L 208, 31.7.1983.

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It will also investigate the grounds for any complaints received from the  
Member States of disruption of traditional patterns of delivery and take the  
appropriate steps should its investigations reveal that an undertaking pro­
tected by the quota system has changed its pattern of deliveries, contrary  
to the principles of solidarity upheld by the Council. In the specific case  
of the highly sensitive products on which the Commission has had to impose  
minimum prices, a rule will be added to the quota system to empower the  
Commission to take the necessary corrective measures should an undertaking  
prove unwilling to restore the balance which it has upset.
At the same time the Commission will strengthen the link with restructuring,  
which undertakings must be urged to achieve without delay.
V. In this way, the package of measures taken by the Commission to manage  
the manifest crisis will be even more tightly-knit.
In addition to the above-mentioned measures on minimum prices and to monitor  
quantities and the pattern of deliveries, measures have also been adopted on :
- price rules for distributive undertakings ;
- periodic publication of guidance prices ;
- statistical monitoring of deliveries by producers ;
- the arrangements concluded with the leading third countries which  
export steel to the Community, which are now being renewed for 1984 ;
- establishment and publication of basic prices for imports >
- the arrangement concerning exports from the Community to the USA.

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VI. This set of rules should create an orderly framework, within which  
the undertakings can complete the essential restructuring.
Needless to say, the Council must also adopt the Commission's proposals for  
social legislation to soften the social impact of this restructuring. In  
this way, it can emphasize that the measures to restore the competitiveness  
of the European steel industry and the conversion policy designed to create  
new jobs in the steel-making regions must go hand-in-hand with a social  
policy to facilitate the recruitment of ex-ECSC workers for these new jobs  
and the adjustment needed in individual cases.
Clearly, however, it will only be possible to restore the competitiveness
of the steel industry if the governments and the undertakings fully support
all the measures which the Commission has taken to help the undertakings adjust
to the new structure of industry and cooperate in implementing them, starting with
the extension of the system of production quotas, the cornerstone of the
plan.