ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 691 
 
 
 
Vol. 1983/0 249 
  
 
Disclaimer  
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  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 691 final
Brussels, 14 november 1983
STEEL POLICY :  SHORT-TERM MEASURES
(Communication from the Commission to the Council)
COM(83) 691 final

COMMISSION COMMUNICATION TO COUNCIL  
STEEL POLICY: SHORT-TERM MEASURES
I. SITUATION
1. The present state of the steel market is gravely disquieting,  
especially as regards flat products and heavy sections, which
are mostly produced by integrated undertakings.
The prices of these have been plummeting in the second  
half-year. At the informal meeting of Industry Ministers at  
Elsinore in the autumn of 1982 the Commission in agreement with  
the Governments concluded that the restructuring of the steel  
sector throughout the Community was bound to cause dire trouble  
unless the steelmakers could count on steady earnings. In agreement  
with the Governments, the steelmakers and the steel consumers, it  
worked out a set of measures to reinforce the system of production  
quotas, and instituted guide prices.
The guide prices for hot-rolled coils, a major product which  
is the reference basis for practically all steel production,  
currently stand at 380 Ecus. Although the list prices are close  
to these, the prices actually being charged are somewhere around  
280 Ecus and still falling: the implications of this parlous state  
of affairs for the steelmakers are such that they are tempted to  
recoup lack of earnings by increasing production, which is aggra­
vating the downward movement in prices still further.
2. The ECSC Treaty requires the Commission to act in a situation  
where there is a definite risk that the Member States no
longer have the will to overcome their difficulties and the  
problems of the market in the framework of a Community policy.
The Commission is accordingly once again doing its duty, by  
strengthening the Community market organization measures, more  
particularly by the introduction of minimum prices and more  
efficient management of trade in steel products within the  
Community and with third countries. It realizes, however, that  
to take these steps it is necessary to restore the indispensable  
climte of cooperation and consensus between the Commission, the  
Governments and the industrialists.

2
II. MARKET ORGANIZATION
First of all, compliance as regards prices involves due
compliance as regards tonnages marketed. In this connection  
it is vital that the Member States take part more actively in  
the quarterly assessment of the steel market. The Commission  
would also stress that the Council's assent is needed as soon as  
possible to the extension of the quota system under Article 58 
ECSC up to the end of 1985 on the basis of the existing system,  
in accordance with its (the Council's) pledge of 25 July.
The Commission would again emphasize that any uncertainty  
as to the Council's political will to extend the application of  
Article 58 would have disastrous consequences for the price level.
The Commission is preparing a speedy updating of the General  
Objectives for steel issued in March 1983· This will show that  
the situation has worsened further in relation to the scenario  
then envisaged.
2. It remains the Commission's aim that, with the cooperation of
the steelmakers and the Governments, the guide prices should  
be the prices actually charged. This is a must if the undertakings  
are to earn the necessary funds to put into the restructuring that  
has to be effected.
But in the present situation of lack of confidence on the part  
of the producers the price slide demands immediate Commission action.  
The Commission has therefore decided to impose minimum prices for  
flat products from 1 December 1983$  that is, prices transactions  
below which will be liable to disciplinary action. Such a decision  
can be meaningful only if effectively organized, and effectiveness  
requires management arrangements in which the Member States are  
involved.
The Commission is requesting that undertakings lodge with  
the Member States at the end of each month a security of ^5 Ecus  
per tonne of flat products sold by them during that month on the  
Community internal market, to be refunded to them by the Member  
State at the end of the following month. Should an undertaking  
be liable to disciplinary action by the Commission, either for  
undercutting or for overproduction, the Member State responsible  
would at the Commission's request withhold from the refund a sum  
equal to the Commission's minimum estimate of the fine for the  
alleged offence, until such time as the Commission made its final  
ruling. Where the Commission decided not to take disciplinary  
action against the undertaking, the portion withheld would of course  
be released forthwith.
This method would speed up the at present very cumbrous  
nrocedures for recovering fines, and thus have a deterrent effect.
Basing itself on the minimum-price and quota data,  the  
Commission would make a critical analysis of the accounts of the  
undertakings concerned.

3
3 · F o r th e  s y s te m  t o  w o rk  e f f e c t i v e l y  i t  i s  a ls o  n e c e s s a ry  to
e n s u re  b e t t e r  p r i c e  m o n it o r in g , b y  s im p le  means n o t in v o lv in g  
e x t r a  b u r e a u c r a t ic  c o m p lic a t io n s . To t h i s  end th e  C om m ission  
w a n ts  t h e r e  t o  b e  a rra n g e m e n ts  f o r  c h e c k in g  in v o ic e s  and paym ent  
f o r  f l a t  p r o d u c ts  in d e p e n d e n t ly  o f  th e  u n d e r t a k in g s . The d e t a i l s  
w o u ld  b e w o rk e d  o u t b e tw e e n  i t  and th e  u n d e r t a k in g s , b u t i t  w a n ts  
th e  s y s te m  to  b e o p e r a t i o n a l  fro m  1 J a n u a ry  198^  and to  e n a b le  i t  to  
a s s e m b le  a l l  i n f o r m a t io n  t h a t  c o u ld  b e o f  h e lp  t o  i t  i n  i t s  w o rk o f  
a c t i n g  a s  w a tc h d o g  on c o m p lia n c e  w it h  C om m unity r u l e s .
I n  v ie w  o f  th e  s p e c i a l  s i t u a t i o n  a s  r e g a r d s  h e a v y  s e c t io n s , th e  
C o m m issio n  p la n s  t h a t  t h e r e  s h o u ld  b e s i m i l a r  a rra n g e m e n ts  f o r  them  
i n  th e  m a t t e r  b o th  o f  m inim um  p r ic e s  and o f  m o n it o r in g .
k. R e la t io n s  a r e  a t  p r e s e n t s t r a i n e d  b e tw e e n  th e  s te e lm a k e r s  and  
th e  Mem ber S t a t e s ,  o w in g  to  a p p re h e n s io n s  l e s t  s i g n i f i c a n t  
c h a n g e s  i n  m a r k e t s h a re s  ta k e  p la c e  u n d e r c o v e r  o f  th e  A r t i c l e  58 
s y s te m .
( a )  I n  th e  C o m m is s io n 's  v ie w  A r t i c l e  58 m ust n o t g iv e  scope f o r ,  
l e t  a lo n e  a s s is t a n c e  t o ,  u p h e a v a ls  i n  in tr a -C o m m u n ity  t r a d e .
E ven th e n  a l i v e  to  th e  p r o b le m , i t  p ro p o s e d  a t  th e  E ls in o r e  m e e tin g  
s te p s  to  m ake th e  s y s te m  m ore t r a n s p a r e n t . A c tio n  m ooted s in c e  th e n  
h a s  in c lu d e d  m o n it o r in g  o f  d e a l e r s ,  p ro p o s e d  i n  D ecem ber 1 9 8 2 , w h ic h  
o w in g  to  o b je c t io n s  b y  some Member S t a t e s  d id  n o t becom e o p e r a t i v e .  
A n o th e r s y s te m , in c l u d i n g  th e  in t r o d u c t i o n  o f  a c c o m p a n y in g  c e r t i f i c a t e s ,  
was p ro p o s e d  a t  th e  b e g in n in g  o f  th e  y e a r .  D is c u s s io n  i s  s t i l l  g o in g  
on i n  th e  C o u n c il m a c h in e ry  d e s p it e  th e  C o u n c il’ s own d e c is io n  on  
2 5  J u ly  to  r e a c h  a s p e e d y  c o n c lu s io n  on th e  m a t t e r .  I n  p o in t  o f  f a c t  
th e  im p le m e n ta tio n  o f  th e  r e l e v a n t  d e c is io n  h in g e s  d i r e c t l y  on when  
th e  C o u n c il g iv e s  i t s  a s s e n t . I t  i s  im p e r a t iv e  t h a t  t h a t  a s s e n t  
s h o u ld  b e fo r th c o m in g  soon f o r  th e  d e c is io n  th e  C om m ission w i l l  be  
t a k i n g  to  come i n t o  e f f e c t  on 1 D ecem ber 1 9 8 3 *
( b )  The i n t r o d u c t i o n  o f  a c c o m p a n y in g  c e r t i f i c a t e s  i s  now c l e a r l y  
n e c e s s a r y , i n  th e  f i r s t  in s t a n c e  to  m o n ito r  th e  l e v e l  o f  
im p o r ts  fro m  t h i r d  c o u n t r ie s  and c h e c k  t h a t  th e y  a r e  i n  ne  
w i t h  t r a d i t i o n a l  t r a d e ;  i n  a d d i t i o n  th e  c e r t i f i c a t e s  w i l l  shov 
up  d e f l e c t i o n s  o f  t r a d e  w i t h i n  th e  C o m m u n ity, an d  a n y  a p p r e c ia b le  
a l t e r a t i o n s  i n  s a l e s ,  w h ic h  th e  q u o ta  s y s te m , 1 “ c o n t^ ’ XS 
c a l c u l a t e d  t o  s t a b i l i z e .  S h o u ld  su ch  an a l t e r a t i o n  e m e rg e , th e  
S e ib e r  S t a t e  c o n c e rn e d  c o u ld  r e p o r t  i t  t o  th e  C om m ission w h ic h  
a f t e r  c o n e u l t i n g ,  i n  p a r t i c u l a r ,  th e  G o v e rn m e n ts  d i r e c t l y  in v o lv e d  
w o u ld  w e ig h  up w h e th e r  s te p e  e h o u ld  b e taken under A r t i c l e  5 
w i t h  r e g a r d  to  C om m unity p r o d u c e r s ' s a l e s .In view of the special situation as regards heavy sections, the  
Commission plans that there should be similar arrangements for them  
in the matter both of minimum prices and of monitoring.
k. Relations are at present strained between the steelmakers and  
the Member States, owing to apprehensions lest significant  
changes in market shares take place under cover of the Article 5°  
system.
( a )  I n  th e  C o m m is s io n 's  v ie w  A r t i c l e  58 m ust n o t g iv e  scope f o r ,  
l e t  a lo n e  a s s is t a n c e  t o ,  u p h e a v a ls  i n  in tr a -C o m m u n ity  t r a d e .
E ven th e n  a l i v e  to  th e  p r o b le m , i t  p ro p o s e d  a t  th e  E ls in o r e  m e e tin g  
s te p s  to  m ake th e  s y s te m  m ore t r a n s p a r e n t . A c tio n  m ooted s in c e  th e n  
h a s  in c lu d e d  m o n it o r in g  o f  d e a l e r s ,  p ro p o s e d  i n  D ecem ber 1 9 8 2 , w h ic h  
o w in g  to  o b je c t io n s  b y  some Member S t a t e s  d id  n o t becom e o p e r a t i v e .  
A n o th e r s y s te m , in c l u d i n g  th e  in t r o d u c t i o n  o f  a c c o m p a n y in g  c e r t i f i c a t e s ,  
was p ro p o s e d  a t  th e  b e g in n in g  o f  th e  y e a r .  D is c u s s io n  i s  s t i l l  g o in g  
on i n  th e  C o u n c il m a c h in e ry  d e s p it e  th e  C o u n c il’ s own d e c is io n  on  
2 5  J u ly  to  r e a c h  a s p e e d y  c o n c lu s io n  on th e  m a t t e r .  I n  p o in t  o f  f a c t  
th e  im p le m e n ta tio n  o f  th e  r e l e v a n t  d e c is io n  h in g e s  d i r e c t l y  on when  
th e  C o u n c il g iv e s  i t s  a s s e n t . I t  i s  im p e r a t iv e  t h a t  t h a t  a s s e n t  
s h o u ld  b e fo r th c o m in g  soon f o r  th e  d e c is io n  th e  C om m ission w i l l  be  
t a k i n g  to  come i n t o  e f f e c t  on 1 D ecem ber 1 9 8 3 *
( b )  The i n t r o d u c t i o n  o f  a c c o m p a n y in g  c e r t i f i c a t e s  i s  now c l e a r  y  
n e c e s s a r y , i n  th e  f i r s t  in s t a n c e  to  m o n ito r  th e  l e v e l  o f  
im p o r ts  fro m  t h i r d  c o u n t r ie s  and c h e c k  t h a t  th e y  a r e  i n  ne  
w i t h  t r a d i t i o n a l  t r a d e ;  i n  a d d i t i o n  th e  c e r t i f i c a t e s  w i l l  shov 
up  d e f l e c t i o n s  o f  t r a d e  w i t h i n  th e  C o m m u n ity, an d  a n y  a p p r e c ia b le  
a l t e r a t i o n s  i n  s a l e s ,  w h ic h  th e  q u o ta  s y s te m , XS
c a l c u l a t e d  t o  s t a b i l i z e .  S h o u ld  su ch  an a l t e r a t i o n  e m e rg e , th e  
S e ib e r  S t a t e  c o n c e rn e d  c o u ld  r e p o r t  i t  t o  th e  C om m ission w h ic h  
a f t e r  c o n s u l t i n g ,  i n  p a r t i c u l a r ,  th e  G o vern m en ts f l e e t l y  i n v o k e d  
w o u ld  w e ig h  up w h e th e r  s te p s  s h o u ld  b e ta k e n  u n d e r A r t i c l e  5  
w i t h  r e g a r d  to  C om m unity p r o d u c e r s ' s a l e s .

k
Accompanying certificates are thus vital to the transparency  
everyone wants to see: they will prevent misunderstandings between  
Member States and temptations to g o it alone. So when a consignment  
crossing a frontier is discovered to be minus certificate, the result  
will be a fine, which if the producer concerned cannot produce the  
certificate subsequently will be comparable to the fine payable for  
exceeding production quotas.
(c) The Commission also plans to step up its consultations with  
the Governments and producers to frame measures for better  
monitoring of seconds and substandard products within the Community.
5. The Commission, after consulting the qircles concerned, will  
at the end of the first quarter of 198^ consider with the  
Council the results achieved by the above measures. While keeping  
to its aims, it will take due account of the experience gained in  
the process and will expand, clarify or amend its proposals if  
appropriate.
III. RELATIONS WITH THIRD COUNTRIES
For I 98A · the Commission has made clearly apelt-out proposals  
to the Member States in order to make sure that the management of  
agreements with third countries is in line with the aims laid  
down by the Council. The Council is to decide on 28 November on  
the task it will assign the Commission.
The aims are:
. the preservation of traditional trade flows taking account  
of the foreseeable movement of steel consumption within the  
Community;
. the necessary solidarity among the Member States, i.e.
first and foremost strict observance of the "triple clause"  
providing for adherence to traditional flows to Member  
States, allocation as among categories of products and  
spreading over a period of time;
. the ability to act promptly in the event of breaches of  
agreements, more particularly in such cases of deflection  
as may be detected by means of the accompanying certificates.  
This necessitates prompter forwarding of statistical data  
by national authorities.
The Commission will inform the third countries of the minimum  
prices and the obligations arising with respect to them.

5
It will also be holding a meeting with experts from the Member  
States at an early date to see what can be done to check more  
effectively on the torrent of products entering the Community  
designated, often improperly, as substandards or seconds, and so  
evading the price rules in force. When, as frequently happens,  
the Commission does not receive the particulars that could alert  
it to possible fraud until the material in question has already  
been processed, it is too late to do any checking. Better  
monitoring of these products can certainly be secured under the  
present policy following the planned consultations. As soon as  
the national authorities have made their views known on the matter,  
the Commission aftqr consulting the quarters concerned will make  
the necessary proposals.
IV. The Commission regrets the necessity to take this action  
and to request the Council to pronounce by 1 December.
It has, however, no option: the seriousness of the situation  
demands quick decisions, but it is apparent that success requires  
the restoration of a climate of confidence and greater cooperation  
by the Governments and steelmakers.
Only if these are forthcoming will the Commission be able  
to get prices steadied, and so play its part in bringing about the  
vitally necessary restructuring measures that are its basic aim.