A4-0256/95

Resolution on the draft ECSC operating budget for 1996 (SEC(95)0834 - C4-0209/95)

The European Parliament,

- having regard to the draft ECSC operating budget for 1996 drawn up by the Commission (SEC(95)0834),

- having regard to the draft amending ECSC operating budget for 1995 drawn up by the Commission (SEC(95)0761),

- having regard to its resolution of 12 October 1995 on the draft amending ECSC operating budget for 1995 ((Minutes of that Sitting, Part II, Item 9.)),

- having regard to the memorandum of 28 June 1995 of the ECSC Consultative Committee on various aspects connected with the expiry of the ECSC Treaty in 2002 (ECSC 5262/4/95),

- having regard to the report of the Committee on Budgets and the opinion of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0256/95),

A. whereas the draft operating budget of the ECSC for 1996 is being presented by the Commission, in accordance with Parliament's wishes, in time for it to be examined in parallel with the first reading of the draft general budget,

B. whereas this draft ECSC operating budget for 1996 is being presented against the background of the anticipated expiry of the ECSC Treaty in the year 2002,

C. whereas the expiry of the ECSC Treaty does not necessarily imply that there will be no further need for the various activities covered by that Treaty,

D. having regard to the generally positive trend of the economy in 1995 and correspondingly raised expectations for 1996 and to the comparatively favourable effects of this positive trend on the iron and steel industry despite the continuing decline in coal production,

E. whereas, as a result of the general economic recovery, there will be an increase in production in the steel industry of 14 million tonnes in 1995 and probably of a further 2 million tonnes in 1996,

1. Notes that the prospects for the ECSC's activities in 1996 are thoroughly positive in view of the generally favourable economic trends in 1995 and that a GDP growth rate of 3% in real terms is being projected for 1996;

2. Points out that, in the Commission's view, despite the generally positive economic trends in 1995 and 1996, a decline in output from 130 to 127 million tonnes is nevertheless anticipated in the mining sector; notes that the cause of this decline is higher production costs, while the demand for coal has remained at roughly the same level and been met by additional imports;

3. Emphasizes that the further decline in domestic coal production expected over the next few years will necessitate continued recourse to the instruments available under the ECSC Treaty, probably beyond the year 2002;

4. Notes that, as a result of the general economic recovery, there will be an increase in production in the steel industry of 14 million tonnes in 1995 and probably of a further 2 million tonnes in 1996;

5. Notes that the Commission proposes for 1996 an ECSC operating budget of some ECU 241 million, in other words 27% lower than the 1995 budget; this drop in resources results, on the one hand, from the 0.02% decrease in the levy rate, which despite the rise in steel output should only yield ECU 95 million and, on the other hand, from the fact that the anticipated net balance declines from ECU 120 million to ECU 105 million, while the cancellation of commitment appropriations not likely to be implemented drops from ECU 60.3 to 39 million;

6. Notes that, on the expenditure side, the Commission intends to make a disproportionately large cut in redeployment aid under Article 56 from ECU 135 million to ECU 80 million, increase conversion aid under Article 56 from ECU 35 million to ECU 50 million (contrary to the trend of the budget as a whole) and reduce by over half the social measures connected with restructuring the coal and steel industries; notes, moreover, that the already low level of aid for research anticipated for 1995 is set to stagnate at ECU 60 million;

7. Calls on the Commission to submit, together with the 1997 preliminary draft budget, a plan to give proper substance to ECSC social research, involving all the relevant Commission departments;

8. Further suggests reconsidering the imposition of a comprehensive levy on all ECSC products throughout the Union to avoid placing its own products in a less favourable competitive position in relation to imported products;

9. Proposes that expenditure be amended in accordance with the attached table, which would reduce the cut in redeployment aid, maintain research aid at a functional level and reapportion the social measures in favour of restructuring in the coal industry;

10. Urges the Commission to ensure that the granting of conversion aid for the re-employment of unemployed ECSC workers is subject to strict criteria to ensure that in future these funds directly benefit those for whom they are intended;

11. Calls on the Commission, in addition to tackling purely budgetary questions, to draw up and, if necessary, introduce measures in the 1996 budgetary year to enable the activities covered by the ECSC Treaty to be continued beyond the year 2002;

12. Calls on the Commission once again to finalize its proposals for the period after the year 2002, to be more specific regarding the financial surplus available on that date and to clarify the legal uncertainties regarding the availability thereof;

13. Instructs its President to forward to the Commission this resolution and its decisions on the setting of the levy rate and the drawing up of the ECSC operating budget for 1996.

ANNEXDRAFT ECSC OPERATING BUDGET FOR 1996

PARLIAMENT'S PROPOSALS

m ECU

>TABLE>

(1) Aid for projects with a specific impact on the environment: Headings 3.1: Steel projects specifically related to the environment will come under the framework programme

3. 2: ECU 12m