ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM ( 83) 464 
 
 
 
Vol. 19 83/0176 
  
 
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 opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic 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), t his file 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 1983 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)  464  final 
Brussels, 19 august  1983 
AIDE-MEMOIRE 
ON THE  FIXING  OF THE  ECSC  LEVY  RATE 
AND ON THE  DRAWING  UP OF THE 
ECSC  OPERATING BUDGET  FOR  1984 
COM(83)  464  final 

- 2 -
Page 
Preamble 
I. GENERAL  INTRODUCTION * 
A. ECONOMIC  CONTEXT  4 
1. The economic outlook for 1983 and 1984 4 
2. Outlook for the coal industry 9 
3. Outlook for the steel industry 10 
B. POLICY  CONTEXT  14 
1. Coal  policy guidelines 15 
2. Steel policy guidelines 17 
3. Social  and employment policy guidelines 19 
4. Financial activities 24 
II. DRAFT  ECSC  OPERATING  BUDGET  FOR 1984 28 
A. COMMISSION  APPROACH  28 
B. FINANCING  PROPOSALS  30 
C. DRAFT  BUDGET  30 
ANNEXES 
A. Outturn of the  ECSC  operating budget for 1982 31 
B. Forecast  outturn  of the  ECSC  operating budget for 1983 32 
C. ECSC  balance sheet at 31 December 1982 34 
D. Analysis of requirements reported and resources available 
for the financial year 1984 35 
I. REQUIREMENTS  REPORTED  FOR 1984 36 
1. Ordinary requirements 36 
2. Requirements not entered in the budget: 
loans  for financing subsidized housing 59 
II. RESOURCES  AVAILABLE  60 
1. Resources for the financial year 60 
2. Covering of requirements not entered in the 
budget 72 
3. Summary of resources available for 1984 72 
E. Draft  ECSC  operating budget for 1984 73 

- 3 -
AIDE-MEMOIRE 
on the fixing of the  ECSC  Levy rate and on 
the establishment of the  ECSC  operating budget for 1984 
As usual, the views of Parliament will be sought before the Commission 
takes  a decision on the levy rate and the  ECSC  operating budget for the 
financial year 1984. 
This  aide-memoire forms the basis for the consultation of Parliament. 
It is divided  into  the following chapters: 
I. General introduction. 
II. Draft operating budget. 
Specific  factors affecting the covering of budgetary requirements for 
1984 are described in Chapter II. 
The aide-memoire will also be sent to the  ECSC  Consultative Committee 
for information. 
On 11 April 1983 the Commission took a decision amending Article 8 of the 
Internal  Rules for the drawing up and implementation of the operating 
budget of the  ECSC,  with  a view to making 1 September the date for the 
implementation of the aide-memoire. The aim of this amendment is to 
harmonize the date of submission of the  draft  operating budget of the 
ECSC  with  that  of the general EEC budget. 
In addition, the presentation of Annex D, giving an analysis of 
requirements reported and resources available, has been changed in order 
to bring it more closely  into  line  with  that  used for the preliminary 
draft  general budget. 
These  changes were made in response to the wishes expressed by Parliament 
in its Resolution of 14 December 1982 (1). 
(1) OJ C 13, 17 January 1983, p. 36. 

- 4 -
I. GENERAL  INTRODUCTION 
This  chapter summarizes the information needed to set the  draft  ECSC 
operating budget for 1984 in its economic and policy context. 
A. ECONOMIC  CONTEXT 
1. The economic outlook for 1983 and 1984 
A number of negative factors cloud the horizon of the Community economy in 
1983.  Interest  rates, despite falls in nominal levels in 1982, remain very 
high in real terms and continue to hold back investment. 
There  is very  little  room for manoeuvre in financial policy, although 
built-in stabilizers are having some expansionist effect. The high and 
rising rate of unemployment will probably mean  that  consumers will 
continue to be cautious in their spending, since their real incomes have 
in many  cases  been cut. Export  sales,  especially to the least developed 
countries,  will probably stay very low. 
However,  there are also a number of positive factors at work. The 
general  international outlook appears a  little  less  gloomy. Recovery 
would seem to have started in the United States.  Inflation  is still 
falling in the Community, and this factor for greater stability could 
well restore confidence amongst consumers and investors. The low level 
of investment and of consumption of durables, over the past few years, 
will in due course cause an increase in replacement demand which could 
be stimulated by any  further  falls in interest rates. Similarly, 
stocks  have fallen appreciably and will have to be rebuilt once recovery 
is under way. Lastly, the recent fall in oil prices ought to have a 
beneficial  effect on both inflation and growth in the Community. 

- 5 -
The final, slightly encouraging sign is one which emerged from the 
Commission  survey of business, industry and consumers. The economic 
satisfaction indicator (a very broad indicator of expected economic 
performance in the Community, based on surveys and share prices) 
showed a vast improvement during the early months of 1983. 
All things considered, it is  felt  that  the positive factors will 
gradually gain the ascendancy and  that  growth in activity in the 
Community will slowly resume in 1983. Yeai—on-year growth in 1983 
will probably remain very slight as a result of the drop in production 
during the seconu six months of 1982 which means  that  an increase of 
only 0.5% is expected for the whole year. 
Of the components of demand in the Community, private consumption ought 
to increase slightly during 1983,  since,  despite the fall in inflation 
rates, real disposable incomes will remain much the same and there will 
be only a small drop in the household savings ratio, whilst at the same 
time the situation on the labour market will continue to be  difficult. 
Public  sector current expenditure in real terms will hardly increase 
either and will not do much to boost growth in demand. Following a 
very marked decline in 1981 and 1982, fixed investment ought to level 
off during the  first  six months of 1983 and then begin to increase 
slowly. If the whole of 1983 is compared to 1982, the level of fixed 
investment in real terms will change  little. 

- 6-
The gradual recovery expected in world trade should enable Community 
exports to expand; although fairly slow at  first,  this movement 
should  gradually gather pace throughout 1983. Several Community 
countries may  further  improve export market shares somewhat, but 
not in the same proportion as in 1981 and 1982 when Community export 
prices  were becoming increasingly more competitive because of the 
appreciation of the dollar. An increase in Community imports will 
probably follow any upturn in internal activity. 
Unemployment in the Community continued to rise during 1982 and in the early 
months of 1983. In April the number of unemployed (in the Nine) had reached 
the seasonally-adjusted figure of 12 million, representing 10,8% of the 
working population. The outlook for the labour market in 1983 is 
still gloomy, despite the expected gradual recovery in activity. The 
total  number of employed persons in the Community will probably fall 
for the  fourth  consecutive year in 1983 and be approximately 3%  less  than 
that in 1979. Given  that  the working population will continue to 
increase,  unemployment will too, although more slowly than in 1981 and 
1982.  The number of unemployed in the whole Community in 1983 will 
probably exceed 12 million and the unemployment rate will rise even 
higher during the second half of the year. 
During 1982 considerable progress was made in reducing inflation in 
the Community. The fall in commodity prices reined in the increase 
in import prices, even though the dollar has continued to strengthen 
against Community currencies during almost all of 1982. The decline 

- 7 -
in economic activity  within  the Community has brought downward pressure 
on collective bargaining agreements and  profit  margins. The rate of 
consumer  price increases for the whole Community fell from 10,1% in 
1981 to 8,8% in 1982. The above factors should help to reduce inflation 
further  in 1983. The increase should be around 6,4% in 1983. The spread 
between inflation rates in the Community will probably narrow too, but 
the differences remain marked in 1983  with  forecasts ranging from 2,7% 
for the Netherlands and 3% for Germany to 10,5% for Ireland, 14,3% 
for Italy  and 21,5% for  Greece. 
Progress  has also been made in restoring balance in the external trade 
position.  After showing a marked deficit in 1980 because of the increase 
in oil prices, the Community trade balance has been constantly improving 
since  then and this process should continue in 1983 when some improvements 
in the volume and terms of trade should be observed. The Community deficit 
on current transactions should likewise improve and be almost totally 
eliminated in 1983 compared  with  a deficit equalling 1,3% of gross 
domestic  product in 1980. 
The slight increase in GDP noted in 1983 should continue  into  1984 
although it will continue to be weak. GDP should rise from one year 
to the next by 1,6%, a figure equal to an underlying growth rate of 
approximately 2% over the year. 
In view of reduced inflation and a slight increase in disposable income, 
private consumption should rise in real terms slightly faster than in 
1983  and investment growth should gather momentum as the recovery grows 
st ronger. 
Inflation  will probably continue to fall. Unemployment will no doubt 
remain the major problem. It is likely  that  employment will stabilize, 
but if no specific new measures are taken for the labour market, the 
number of unemployed will increase  further,  in view of the growth in 
the working population. 

- 8 -
The table below summarizes  growth  in GDP on the basis of forecasts 
drawn up by Commission departments in May/June 1983. 
GROSS  DOMESTIC  PRODUCT,  AT  CONSTANT  PRICES  I 
(Percentage change over previous year) 
1981 I 
1982  1983 (1) 
Belgium " 1,8 - 0,2 " 0,7 
Denmark 0,1 3,4 1,4 
Germany 0,2 - 1,0 0,6 
Greece - 0,7 0, 0 0,9 
France 0,2 1,8 - 0,8 
Ireland 1,1 1,5 0,5 
Italy " 0,2 " 0,3 0,1 
Luxembourg ~ 1/8 - 1,6 - 1,4' 
Netherlands " 1,2 " 1,6 - 0,4 
United Kingdom - 2,0 1,4 2,4 
EEC - 0,4 0,3 0,5 
(1) Commission  staff  forecasts. 
Source : Commission of the European Communities 
Directorate-General for Economic and Financial Affairs. 

- 9 -
2. Outlook for the coal industry 
For the  third  successive  year gross domestic energy consumption in the 
Community fell appreciably in 1982 (-4%) to 872 million TOE. This is 
the lowest level since 1975. The proportion of solid fuels remained 
the same as the previous year at 20,5% for hard coal and 3,7% for 
brown coal and peat. 
Total hard coal consumption in 1982 was only slightly lower than in 
1981 at 302 million tonnes. The main characteristic of the market was 
the drastic fall in coke consumption by the steel industry. This fall 
mainly affected deliveries of Community coking coal and coke. 
Sales  of steam  coal,  however, continued to increase  (1,7%)  and on the 
market for other industries, the increase was as high as 20% 
(17,5 million tonnes for coal and 4 million tonnes for coke). For 
house  coal,  on the contrary, the trend was still downwards. 
For 1983, although economic activity in general will still be 
sluggish,  total  coal consumption can be expected to rise  further  to 
approximately 360 million tonnes. It is not possible at present to 
make forecasts for 1984. 
Supply  fell slightly in 1982. The quantities mined in the Community 
were 241 million tonnes. The overall import figure remained unchanged 
at approximately 70 million tonnes, but this masked differences 
between countries. For 1983 lower figures can be expected for both 
the above items, while forecasts cannot yet be made for 1984. 

- 10 -
Unsold  coal and coke stocks continued to increase in 1982, reaching 
138 million tonnes at the end of the year, or the average  total 
consumption for 164 calendar days. 
On the whole, the common market in coal in 1982 was a net purchaser, 
particularly during the second six months of the year when prices 
fell drastically. Although this trend is far from delighting coal 
suppliers,  it can still be hoped  that  it will boost coal consumption. 
If the Community economy can manage to beat the  recession,  an increase 
in the volume of  sales  and a bolstering of prices can be expected in 
1984. 
3. Outlook for the steel industry 
The cautious optimism expressed by the industry during the  first 
quarter of 1982, when consumption and production rose to 
32 million tonnes, was not borne out. The hope of seeing a gradual 
and widespread expansion of industrial activity in the Community and 
in the rest of the world did not materialize in the figures for the 
second  half of 1982. 
In 1982 the Community produced a  total  of 111.4 million tonnes of 
crude  steel,  14.6 million tonnes  (-11,6%)  down on 1981. The 
utilization rate fell by around 6,9%, from 62,6% to 55,7%. As a 
result of the persistent economic recession in the Community, demand 
shrank even more in 1982 particularly during the second six months 
compared  with  what was already a depressed situation in 1980  that 
had worsened in 1981. 
The Community's economic outlook, which was hardly encouraging 
at the end of 1982, appears slightly more hopeful in the medium 
term. 

- 11 -
However, even if this trend should be confirmed, it is unlikely to 
work through to demand for steel before the  fourth  quarter of the 
year, because of the normal cycle of orders, stock levels and 
consumption, unless there is an unexpected and rapid rise in demand 
for stockbuiIding purposes. The effect of capital goods on demand 
will definitely be negligible this year and hardly significant before 
the beginning of 1984. 
Most  Western industrialized economies, such as those of the Member 
States,  seem to be "stuck" in a growth vacuum accentuated by 
stagnation in the major steel-consuming sectors. Monetary policies 
based  on macroeconomic and budget considerations and interest rate 
levels  - which, although they have fallen in nominal terms, have not 
always decreased in real terms - are continuing to place a  firm  brake 
on fresh investment and are hampering any stimulation of demand in 
most of the main steel-consuming sectors. 
Surveys  carried out in the main consumer sectors highlight the same 
depressed  level of activity for the  first  quarter of 1983 as in the 
fourth  quarter of 1982. They lead us to expect the same level of 
production for the second quarter of 1983. However, there are signs 
of a slight rise in mechanical engineering and the motor industry 
together  with  a small but helpful upturn in the building industry 
helped by seasonal factors. 
In addition, during the  first  six months of 1983, some stock-building 
is likely given  that  dealers have not been buying in large quantities 
since  autumn 1982. 
Estimates  put  total  annual production for 1983 at 106 million tonnes, 
compared  with  111,4 million tonnes in 1982, which represents a  further 
annual decrease of 5,4 million tonnes or 5,1%. 

- 12 -
Prices  for most steeL products feLL at the beginning of summer 1982, and 
in autumn they declined even  further.  Reinforcement bar and wire rod 
prices  were particularly seriously affected. These  further  falls in 
income led producers once more to have doubts about their  future 
viability. 
The Commission  felt  that  the prices applied were too distant  from  the 
objectives set in its communication of November 1981 (1) on the aims of 
pricing policy and for 1 January 1983 published guide prices (2) for 
the main steel products in order to encourage producers to bring the 
prices  of their deliveries back to levels commensurate  with  the pricing 
policy pursued by the Commission and the Member States  with  a view 
to achieving the restructuring of the steel industry. 
The general  trend  in the market towards the end of the  first  quarter 
of 1983 does not give much cause to expect a rapid improvement in the 
situation. At best, there are some signs  that  activity is above the 
normal seasonal  level;  this can also be detected among stockholders. 
Under  these circumstances it is essential  that  output  remain very closely 
in line  with  demand. 
In order to offset the effects of the exchange rate changes made in 
the European Monetary System on 21 March 1983, the Commission, which 
had already revised a number of guide prices at the beginning of 
April (3) , decided to increase guide prices by 2,6 to 3,2% according to 
the product  from  15 May and invited producers to compile price lists at 
least corresponding to the newly published guide prices. 
(1) OJ C 294, 14 November 1981, p. 3. 
(2) OJ L 370, 29 December 1982, p. 15. 
(3) OJ C 92, 7 April 1983, p. 8. 

- 13 -
On the external  front,  the Commission renewed for 1983 the steel 
arrangements (in the  case  of Brazil for pig-iron) concluded in 1978 
and extended annually  with  the fourteen non-member countries which are 
the major exporters of steel to the Community, and is negotiating 
arrangements  with  South Africa and (for steel products)  with  Brazil. 
For non-member countries  without  an arrangement, the  basic  external prices 
sti 11 apply. 
The pricing discipline laid down in the arrangements was tightened in 
the light  of the policy of boosting domestic prices established at 
the end of 1981 and for which monitoring has been intensified since the 
latter  half of 1982. 
Where  steel products subject to  basic  prices have been imported under 
conditions amounting to unfair competition, definitive or provisional 
anti-dumping duties have been imposed. 
In 1983 exports  will  continue to suffer  from  the world recession and 
restrictions on  access  to the markets of a number of non-Community 
countries.  The developing countries still lack the necessary  cash  to 
finance investment projects using large quantities of  steel.  The 
arrangement on steel products concluded between the United States and 
the European Community on 21 October 1982 is being applied. This 
arrangement links Community exports to developments on the American 
market; this appears unlikely to lead to a great deal of new activity 
before the  third  quarter of 1983. 
Leaving  aside the sluggish demand, international steel prices are so 
low that  exports have become  less  and  less  profitable for Community 
producers.  As a result, export figures have been estimated at 
approximately 5,5 million tonnes for  both  the  first  and second quarters 
of 1983. These figures are roughly the same as those for the 
corresponding quarters of 1982, whilst the figures for the  third  and 
fourth  quarters of 1981 were respectively 8,3 and 7,4 million tonnes. 
Imports  during the  first  and second quarter of 1983 amounted to 
approximately 2,2 million tonnes, a figure which reflects the new set of 
arrangements  with  non-member countries. The Commission's objective has 
been  to prompt  countries providing imports to adjust their level of 
market penetration in the Community to the low level of economic 
activity on the internal market. 

- 14 -
Recent  estimates show a 1,6% rise in GDP in 1984 compared  with  0,4% in 
1983. 
However, it is always extremely  difficult  to make any link between overall 
demand and demand for steel. The steel-consuming industries of today account 
for only a small share of Community economic activity. But the steel industry 
should nevertheless derive some benefit from this improvement in the general 
economic  situation, initially as demand from the consumer goods industry picks 
up and later - in view of the long production cycle -  with  demand from the 
capital goods industry. But as matters stand, and in the absence of any 
accurate pointers to the outlook for the situation in 1984, it would seem 
wise to keep the same figure as for 1983, i.e. 106 million tonnes 
B. POLICY  CONTEXT 
The general objectives of the  ECSC  are determined for all time by 
Articles 1 to 5 of the Treaty of  Paris. 
For both coal and steel, the Commission at intervals initiates 
proposals  and presents general objectives of guidelines bearing on 
the future  development of the  ECSC  industries.  Coal  is also one of the 
particular items covered by general papers put out by the Commission on 
the subject of Community energy policy. These documents also cover 
manpower questions, indicating  that  the social dimension forms an 
integral part of the Community policies conducted by the Commission/ 
High Authority pursuant to the Treaty. In two annual reports - the 
Report on the Results of the Survey on Investment in the Community 
Coal  and Steel  Industry  and the Financial Report on  ECSC  Financial 
Activity - the  ECSC  publishes facts and figures on the recent and 
foreseeable  trend of investments and what the Community is doing to 
finance them. 

- 15 -
The following remarks are not intended to take the place of the data in those 
reports, but are simply concerned  with  certain key points or recent developments 
which the Commission wants to highlight in establishing its  draft  ECSC  operating 
budget for  1984.  The industries themselves, the  ECSC's  social policy and the 
Community's financial operations are dealt  with  in turn. 
1. Coal  policy guidelines 
Under  its common energy strategy, the Commission has constantly stressed the 
part  which coal and other solid fuels  (brown  coal and peat) can play in 
restructuring energy supply  from  sources other than oil. The council endorsed 
this approach on  13 July  1982  when it accepted  that  there could be no 
diversification before the end of the century  without  turning  to solid fuels 
and nuclear energy. 
An informal meeting of Energy Ministers held in Copenhagen on  16 December  1982 
agreed  that  the Community should pursue an overall balanced policy in the field 
of solid fuels. 
In response to the ministers' request, in February  1983  the Commission sent to 
the Council a "Working programme on solid fuels"  (1)  in which it presented or 
analysed  what  it considered needed to be done. The Council expressed its 
opinion, although  without  taking a binding decision, on  21 April. 
(1) C0M(83)54 final. 

- 16 -
The Commission started by emphasizing once again how  important  it is  that  the 
Member  States should have a policy designed to encourage the use of solid 
fuels.  In April the Council adopted two recommendations to the Member States 
designed  to encourage the conversion of oil-fired plant to solid fuel in 
industry, public buildings and district heating systems. 
For its  part,  the Commission decided at the end of 1982 to  grant  subsidized 
ECSC  loans to investment projects designed to increase the consumption of 
Community  coal.  A similar EEC project to encourage investment in the rational 
utilization of energy, including the conversion of oil-fired plant, is still 
being discussed in the  Council* 
The Commission has presented proposals for regulations on coking coal for the 
steel industry. These are the last ones to cover a five-year period and they 
will  replace the present system  with  effect  from  1984. 
The Commission has repeatedly drawn  attention  to the lack of competitiveness 
of Community coal - notably in C0M(82)31 and C0M(83)54. This can only be 
remedied by a considerable  effort  to modernize and rationalize production. 
The Commission sent the Council a communication entitled "Proposals for a 
balanced  solid fuels policy" (1) presenting measures to encourage investment, 
aid to reduce surplus stocks and a contribution to the resolution of the 
inevitable social problems which the desired  shift  will  entail. 
Both encouragement of investment and aid for reducing stocks require the 
Commission's  prior approval of firms' programmes for modernization and 
restructuring. In the  case  of investments, Community aid would be spread 
over five years and in the  case  of stock reductions over three years. On 
(1) C0M(83)309 final, 10 June 1983 

- 17 -
the social  side,  the likely operating  losses  of a number of mines will mean 
that  existing measures must be given greater resources and wider scope and 
that  new ones will probably have to be introduced as well, mainly to cope 
with  the youngest workers who will no longer, as in the past, find alternative 
employment in the coal industry. 
The Community will continue its work in the field of research, development 
and demonstration projects. Technical research in the coal sector, which 
comes  under Article 55 of the  ECSC  Treaty, will continue in 1983 as part of 
a programme for which the Commission has made available 19#5 million ECU in 
the ECSC  budget. The general budget of the Community carries 24 million ECU 
for demonstration projects on the gasification and liquefaction of solid fuels. 
A further  20 million ECU will be spent on demonstration projects concerned 
with  the burning, transport and handling of solid fuels and waste disposal 
processes.  The environmental problems raised by the use of such fuels will 
not, of course, be neglected in these projects. As part of its proposal for 
a research and development programme in the field of non-nuclear energy (1), 
the Commission has presented a sub-programme on the utilization of solid fuels, 
for which it has requested 63 million ECU for the period from 1983 to 1987. 
2. Steel policy guidelines 
£2E!Di§§l°Q_!5£§§yE£§_2Q_£!]£L2£££i_E§Jl!S££ 
The Commission's main action in this field in 1983 is the proposal - to be 
presented to the Council on 25 July - to extend the anti-crisis measures 
(originally introduced in October 1980 and renewed in July 1981 and July 1982) 
under Article 58 of the Treaty for a  further  two-and-a-half years from 
1 July 1983 to 31 December 1985. The objectives during this additional 
period will be to tackle the continuing crisis, to bring supply  into  line  with 
reduced  demand and to assist firms to adapt to the changed economic conditions 
by undertaking or continuing the appropriate restructuring process.  Since 
its introduction the quota system has been amended on a number of  occasions, 
in the  light  of changed circumstances and experience, to make market monitoring 
more effective. 
(1) C0M(83)311 of 16 June 1983. 

- 18 -
Mandatory quotas were imposed for most  flat  and Long products and,  from 
1 July 1983, heavy plate and sections were included in these arrangements, 
whereas previously they had been subject only to monitoring and voluntary 
production  limitation  agreements. 
Further deterioration in the market has led to very severe abatement rates 
for all products,  with  the exception of coated sheet, for the second and 
third  quarters of 1983. The Commission reinforced its monitoring and 
surveillance of producers' prices to implement the provisions of Article 60 
of the Treaty. Responsibility for merchants' prices was handed over as 
planned on 1 January and it is now Member States' own administrations which 
ensure  that  merchants adhere to the price rules of Article 60. 
Steel  in external relations 
The external anti-crisis measures were designed to accompany the internal 
measures.  The external measures have been in existence since 1978 and have 
been  renewed  from  year to year on the Council's  authority.  They  will 
probably be renewed again for 1984 in more or  less  the same  form  as at present. 
Community solutions to structural problems 
Since  the difficulties facing the steel markets are continuing - or even 
worsening - the  success  of Community policies depends  first  and foremost on 
the consistency and efficiency of the specific anti-crisis instruments, the 
quota system and the code of aids, which should serve the restructuring 
objective for 1985. 
This  objective is conditional on several factors: 
- the maintenance and development of Community solidarity. The  unity  of 
the internal market must be preserved as a precondition for the adjustment 
process  and Community cohesion should be used offensively and no longer 
defensively in trade negotiations; 

- 19 -
- reinforcement of efforts to adjust the production apparatus to demand 
both quantitatively and qualitatively. The stage of short-term 
assessment  must be completed and decisions made from a medium-term 
structural angle; 
- choice of suitable reference parameters for competitiveness. An accurate 
assessment  must be made of the leeway to be made up on competitors, which 
is a major factor for ensuring the viability of the industry; 
- establishment of links between steel strategy and general industrial 
strategy. The steel industry must notbeviewed in isolation, but its 
future  must be seen together  with  that  of all levels of the metal industry 
and manufacturing industry as a whole; 
- extension of accompanying measures, in particular as regards conversion. 
An effective industrial redeployment guideline should be adopted, combining 
the need for alternative employment and the promotion of growth industries. 
Halfway  into  the period set for completing the structural adjustments, the 
Community  measures have already had some positive results. However, the 
conclusions  of the General Objectives for Steel for 1985 show  that  with  the 
market still offering no growth, the over-capacity problem will continue 
unless  surplus plant is drastically pruned. Efforts must therefore be 
redoubled  and a new coordinated attack launched by firms, governments and 
the Commission. 
The examination of all the restructuring plans in the  light  of the prospects 
and guidelines of the General Objectives for Steel will be the crucial stage 
in the Community plan for improving the production structu.e of the steel 
industry. 
3. Social  and employment policy guidelines 
The social and employment policies conducted by the High Authority/Commission 
use a number of financial instruments provided by Articles 54 to 56 of the 
ECSC  Treaty. 

- 20 -
In the  case  of the coal and steel industries, the Commission can 
- grant  low-interest loans  from  own funds to assist workers' housing under 
Article 54  ECSC; 
- finance research projects on occupational safety under Article 55  ECSC. 
These  measures  will  continue on the basis of the principles outlined in 
Chapter  II of this aide-memoire. 
Whereas  these aids enable the Commission to help improve the working and 
living conditions of workers employed in the  ECSC  sector, Article 56 of 
the Treaty enables it to help workers who have lost their jobs, are forced 
to change jobs or are threatened by unemployment as a result of technological 
change  or fundamental changes in market conditions in the coal or steel 
industries. 
The Commission's operations in this sector have been considerably stepped 
up in recent years because of the structural and cyclical crisis and 
technology changes affecting the steel industry in particular and the 
greater needs caused by the rationalization of coal mining. These needs 
have grown considerably as the result of multiannual modernization and 
restructuring programmes. 
The aids granted by the Commission under this article take two forms: 
- under paragraph 2(a) loans may be granted to help create jobs likely to 
reabsorb steel and coal workers  into  the labour market. These loans carry 
an interest subsidy. Although this aid comes primarily under the heading 
of ECSC  social policy, it is also an  important  regional policy instrument 
because  it provides new opportunities for the economies of coalmining 
and steelmaking  areas; 

- 21 -
- under paragraphs 1(c) and 2(b) non-repayable aid for the redeployment of 
workers is granted in the form of  tideover  allowances and contributions 
to the resettlement or vocational retraining of workers in accordance 
with  conventions or agreements reached  with  the Governments of the Member 
States. 
The importance of these two types of aid from the High Authority can be 
gauged  when it is considered  that,  between  1974  and April  1983  the 
Community steel industry, not counting  Greece,  lost more than  36%  of its 
labour force as 2y0.000 workers were made redundant. The number of jobs 
lost in  1980, 1981  and  1983  was  71.000, 49.000  and  39.000  respectively, 
making up more than half of the jobs lost over the last ten years. 
Between  1975  and  1982, 38.000  face-workers lost their jobs in the coal 
industry. 
Because  of the simultaneous decline of most other branches of industry, and 
the increase in the number of unemployed, particularly young people, 
redundant steelworkers have found it increasingly  difficult,  especially 
since  1979,  to get a new job. This is illustrated by the unemployment 
statistics since  1978:  the annual average in  1978  and  1979  remained at 
6 million and then rose to  6/8  million in  1980,  to 9 r0 million in  1981  and 
to 10,6  million in  1982.  In February  1983,  total  unemployment in the ten 
Member  States stood at  12.477.500. 
Although  1984  is expected to see some initial signs of economic recovery and 
a levelling-off or even a reduction in unemployment in certain countries, 
it is unlikely  that  there will be a corresponding improvement in the 
unemployment situation throughout the Community. 
In view of this situation, the Commission has for some time emphasized the 
need  to develop policies and actions which will result in the creation of 
new jobs. Conversion loans, which carry an interest subsidy, may contribute 
greatly to the creation of jobs from which the  first  beneficiaries will be 
unemployed workers in the  ECSC  industries. Although greater than in the 
past,  the amount of appropriations requested and the capacity of new, 
economically  sound firms to use them have meant  that  loans can only be 

- 22 -
granted to cover a small number of the jobs lost in the steel industry. 
It should be noted  that  the financing of these subsidies by the non-quota 
section  of the Regional Fund is currently underdiscussion in the  Council. 
It should also be observed  that  existing firms often develop  without  taking 
on substantial numbers of new staff through improved productivity and 
greater use of automation (robots and computers). Even though a large 
number of new firms are being set up, the number closing down, mainly 
through bankruptcy, has risen sharply. 
These  policies and actions do not remove the need for appropriate 
redeployment measures.  ECSC  redeployment aid has constituted and still 
constitutes an important means of providing acceptable conditions in which 
redundant workers may make a new start immediately after dismissal. They 
assist  the new employer to allow a redeployed worker a period of adaptation 
and assist the worker to acquire new skills and, if necessary, move house. 
If the worker cannot find a new job, he may receive income support after his 
dismissal  to ease the difficulties of being out of work. 
The particularly  difficult  situation in the steel industry has necessitated 
the adoption by the Commission of special measures. As long ago as 1979, 
the Commission drew up proposals for temporary aid which extend to the 
end of 1984. In June 1981 the Council approved Community financial aid 
for early retirment and short-term working. A  total  of 212 million ECU 
was provided, partly by national budgets and partly by transfers from 
the Community general budget to the  ECSC  budget. 
The Commission's General Objectives for Steel 1985 and a series of 
appropriate measures are designed to cope  with  the continuing manifest 
crisis  in the steel industry and the need to continue restructuring 
of the industry at a faster pace so  that  by the end of 1985 it will 
once  again be economically sound  with  a production capacity in line 
with  the probable volume of sales of profitable products. 

- 23 -
Since  these measures will involve  further  job  losses,  in January  1983  the 
Commission  adopted a  "Social  support scheme for restructuring in the steel 
areas  of the Community"  (1),  which includes not only the measures adopted 
to deal  with  social aspects but also three other measures to assist  ECSC 
workers to find new jobs or jobs of a different type. These include aid 
to enable steelmakers to retain a certain number of jobs by reducing 
working hours for all workers and aid to redundant workers to assist 
them in finding work in other industries. 
A third  new measure should assist in the coordination of local and regional 
efforts, particularly from the point of view of employment forecasts. 
The Commission has proposed to the Council  that  330  million ECU should 
be transferred from the EEC budget to the  ECSC  budget  (2)  to cover these 
measures  in 1984, 1985  and  1986. 
The decline in coal mining activity has continued  with  some increase in 
closures  during the last two years. The economic crisis has involved a 
reduction in energy consumption which, despite some conversion of 
oil-fired plant to  coal,  has meant  that  coal stocks have grown considerably. 
The Commission's recommended balanced policy for solid fuels includes 
assisting  the development of the most profitable mines, opening up new 
workings and investing to restore to profitability mines which are making 
only a slight loss so  that  coal can be produced in the near  future  at a 
price which is competitive  with  that  of other forms of energy. The 
modernization and restructuring programmes are expected to last for 
five years. 
These  programmes will involve speeding up the closure of obviously 
unprofitable mines and in some areas this will involve considerable job 
losses  among workers who, in the past, had been spared final dismissal. 
(1) SEC(83)127 final. 
(2) C0M(83)158 final of  13  April  1983. 

- 24 -
This  means  that  redeployment aid will have to be extended by changes in 
either their level or their period of application. In particular,  further 
assistance  will have to be given to the retraining of workers too young for 
early retirement and hence Community conversion loans will be required here, 
as in the steelmaking  areas. 
All these social measures wi11 undoubtedly impose considerable demands on the 
Community budget for 1984 and subsequent years. 
4. Financial activities 
ECSC  Financial Report No 28, outlining the Community's borrowing and lending 
operations and financial aid in 1982 will be published shortly. 
Borrowings contracted in 1982 totalled 712,0 million ECU, compared  with 
325,4 million ECU in 1981 and  1.004,1  million ECU in 1980. 
Industrial loans (1) amounted to 559,7 million ECU in 1982 compared  with 
287,0 million ECU in 1981 and 756,8 million ECU in 1980; conversion loans (2) 
to 162,8 million ECU, compared  with  86,0 million ECU and 266,1 million ECU, 
and subsidized housing loans (3) to 18,0 million ECU, compared  with 
14,7 million ECU and 7,9 million ECU. (See the tables below). 
Total borrowing and lending since the inception of the  ECSC  is thus brought 
to 9.787,5 million ECU and 9.655,2 million ECU respectively (including 
260,4 million ECU in loans from own funds). The balance outstanding at 
31 December 1982 was 6.177,2 million ECU. 
In 1983 loans raised at 30 March amounted to 165,0 million ECU and loans 
paid out were at a corresponding  level. 
(1) Article 54  ECSC. 
(2) Article 56  ECSC. 
(3) Loans under Article 54  ECSC  paid from  ECSC  special reserve funds and 
part of the former  ECSC  pension fund. 

- 25 -
The prospects for a revival of activity over the coming months will 
depend  on whether investments planned by steel firms are brought  into 
line with  Community restructuring policy and on the availability of funds 
for interest subsidies for  priority  investments, particularly conversion 
projects. 
The same will apply for 1984 when the  ECSC  will have to pursue an 
active policy of aid for investments in these  priority  sectors and, as 
far as possible, for increased productivity in the coal sector, for which a 
multiannual rationalization programme will be prepared. 
Latest  estimates used to gauge the likely demand for loans suggest  that 
the coal industry, after investing some 1.800 million ECU in 1982, will 
invest between 1.700 million ECU and 1.900 million ECU in 1983 and 1984. 
The problems caused by the crisis and restructuring make it particularly 
difficult  to estimate steel industry investment but it seems  that 
expenditure in 1984 may well be in  excess  of the 2.500 million ECU 
invested in 1981. 
If the active policies envisaged above can be implemented, the High 
Authority proposes borrowing by the  ECSC  which could amount to about 
850 million ECU in 1984 provided  that  market conditions work to the 
advantage of the undertakings concerned. 

- 26 -
ECSC  - BORROWING  AND LENDING  OPERATIONS  WITH  BORROWED  FUNDS 
AMOUNTS  RECEIVABLE 
Million ECU 
HEADING Forecast 
1984 Forecast 
1983 Outturn 
1982 
1 .0. Loans  raised 850 1.000 712,3 
1 .1. Redemption of Loans 
granted 750 750 788,5 
1 .2. Interest  payments to 
the ECSC 620 600 580,5 
1 .3. Repayment of costs 
involved in borrowing 
and lending operations 10 10 8,5 
AMOUNTS  PAYABLE 
Million ECU 
HEADING Forecast 
1984 Forecast 
1983 Outturn 
1982 
2.0. Loans  granted 850 1.000 724,5 
2.1. Redemption of loans 
raised 750 750 767,8 
2.2. Interest  payments 600 580 557,8 
2.3. Payment  of costs 
involved in borrowing 
and lending operations 30 30 22,6 

LOANS  FOR  WORKERS'  HOUSING 
million  ECU 
Total loans New loans 
in 1982 (1) Situation at 31 December 198Z 
paid at 
31 December 1981 (1) New loans 
in 1982 (1) Total 
loans paid Amount 
outstanding 
Belgium 35,4 1,0 36,4 8,2 
Denmark 1,4 0,1 1,5 0,9 
FR of Germany 160,0 5,0 165,0 87,7 
Greece - 0,4 0,4 0,4 
France 38,0 3,7 41,7 22,7 
Ireland 0,6 0,1 0,7 0,6 
Italy 32,5 2,3 34,8 25,3 
Luxembourg ' 6,2 0,3 6,5 2,9 
Netherlands 15,8 16,2 7,3 
United Kingdom 11,7 4,7 16,4 12,5 
Community 301,6 18,0 319,6 168,5 
(1) After allowing for new rates for the conversion of national currencies  into  ECU. 

- 28 -
II. DRAFT  ECSC  OPERATING  BUDGET  FOR 1984 
A. COMMISSION  APPROAC H 
For the purposes of evaluating the  draft  budget for 1984, the Commission 
considers  that  a price increase of 7,0% should be taken  into  account 
to compare the figures for 1983 and those for 1984. 
The main financial problem faced when preparing the  ECSC  budget 
for 1984 was again  that  of balancing the budget in view of the 
unprecedented  difficulties currently affecting the industries. In 
addition to the major problems which have affected the Community steel 
industry for several years,  with  the result  that  a large proportion 
of resources has had to be devoted to this industry's requirements, 
there are the growing difficulties faced by the coal industry, leading 
to a restructuring programme covering a number of years. 1 
At budget  level,  the requests for traditional aids under the steel 
restructuring programme, mainly for redeployment and the conversion 
of areas hit by a high level of job  losses,  have been covered from 
ordinary resources. Only the additional social aid considered necessary to 
accompany  restructuring (Article 220 of the budget) has been financed 
from another source - the transfer of funds from Chapter 65 of the general 
budget to the  ECSC.  In its preliminary  draft  budget for 1984 the 
Commission  proposes a transfer of 110 million ECU next year. The 
Council  has  until  the end of the year to take the decision (Article 235 EEC) 
needed  to authorize the continuation of these transfers for the period 
1984-86  (1). 
(1)C0M(83)  158  transmitted to the Council on  18 April  1983. 

- 29 -
Since  the  priority  requirements resulting  from  the steel crisis 
(notably redeployment aid) have to be paid for  from  ordinary resources 
which are steadily falling in real terms because of the poor economic 
situation (these resources mainly consist of the production levy), the 
Commission  has already been forced to fix the appropriations for research 
and interest subsidies at a level far lower than the applications made. 
The increased requirements which are expected to arise in the coal 
industry in 1984 as a result of restructuring, covering the whole range 
of ECSC  aids (redeployment, interest subsidies for conversion and 
modernization,  technical research), thus rule out the possibility of 
balancing  the budget at the current levy rate. 
In its capacity as the High Authority of the  ECSC,  the Commission has 
the power to adopt a higher levy rate to provide sufficient cover for 
next year's requirements. However, it considers  that  no such increase 
can be made in the current economic situation. 
At the current rate, ordinary resources for 1984 are estimated at 
209 million ECU, of which 131 million ECU  will  come  from  levies and 
78 million ECU  from  interest and other sources. 
The Commission proposes  that  these resources should be increased by 
transferring the following amounts  from  the general budget to the 
ECSC: 
- for  steel:  110 million ECU 
- for  coal:  _ .60 million ECU. 
In its preliminary  draft  budget for 1984 the Commission has already 
earmarked the abovementioned 60 million ECU in  Item  7027 
(Restructuring of the Community's coal industry). It has also 
presented to the Council a proposal fro a decision under Article 235 
of the EEC Treaty authorizing this transfer  from  the general budget 
to the  ECSC.  This decision must be taken by the end of the year. 
The provision of these appropriations would enable the  ECSC  to balance 
requirements and resources at a level which would allow the Community 
to play its proper role in the reorganization of the coal and steel 
industries and to cover the requirements of 379 million ECU set out 
in Annex D. 

- 30 -
B. FINANCING  PROPOSALS 
The Commission's proposals for the 1984  ECSC  operating budget are tabulated 
in Annex E and are based on the following factors: 
- total  resources of 379 million ECU, including special resources of 
110 million ECU to cover the special social measures for steel and 
60 million ECU from the general budget for the restructuring of the 
coal  industry; 
- requirements to be covered by the non-allocated resources of 
269 million ECU: 
5 million ECU for administrative expenditure; 
. 140 million ECU for redeployment aid; 
65 million ECU for research expenditure; 
59 million ECU for interest subsidies. 
From  the research appropriations, it is proposed  that  28,5 million ECU 
be devoted to steel (23 million ECU in 1983), 24 million ECU to coal 
(19,5 million ECU in 1983) and 12,5 million ECU to social research 
(11,5 million ECU in 1983). 
As regards interest subsidies, the Commission proposes  that 
47 million ECU should go to conversion as direct aid for the creation 
of new jobs (44 million ECU in 1983) and 12 Million ECU to investments 
(9 million ECU in 1983). 
By way of conclusion, the Commission proposes  that  the 1984  ECSC 
operating budget be adopted at a  total  amount of 379 million ECU, 
broken down as shown in Annex E. 
It therefore proposes  that  the levy rate be set at 0,31%. 
C. DRAFT  BUDGET 
The draft  budget established by the Commission and amounting to 
379 million ECU is presented in Annex E. 

OUTTURN  OF THE  ECSC  OPERATING  BUDGET  FOR 1982 ANNEX  A 
(million  ECU) 
REQUIREMENTS BUDGET 
FIGURES 1 OUTTURN RESOURCES BUDGET 
FIGURES 1 OUTTURN 
1. Administrative expenditure 
2. Social expenditure 
2.1 Aid for redeployment  (Art.56) 
2.2 Social measures connected  with 
restructuring of steel industry 
3. Aid for research (Article 55) 
3.1 Steel 
3.2 Coal 
3.3 Social 
4. Interest  subsidies 
4.1 Investment (Art. 54) 
4.2 Conversion (Art. 56) 
5. Aid for coking coal and 
metallurgical coke (Article 95) 
6. Revaluation of assets and 
liabilities. 
Sub-total 
Surplus 
BUDGET  TOTAL 
OPERATIONS  FINANCED BY  LOANS  FROM 
NON-BORROWED  FUNDS 
7. Subsidized housing 5 
230,4 117 
1li2i 
50 
22 
17 
11 
50 
7 
43 
6 
341,4 
341,4 
15 5 
228,4 
115 
113,4 
50 
22 
17 
11 
45,9 7 
38,9 
6 
1,8 
337,1 
337,1 
15 1. Current resources 
1.1 Yield  from  levy at 0.31X 
1.2 Interest  on investments 
and on loans  from  non-
borrowed funds 
1.3 Fines and surcharges for 
Late payment 
1.4 Miscellaneous 
2. Cancellation of commitments 
unlikely to be implemented 
3. Unused resources  carried 
over from  the previous year 
4. Exceptional revenue 
5. Drawings on contingency 
reserve 
Sub-total 
Deficit 
BUDGET  TOTAL 
ORIGIN  OF NON-BORROWED  FUNDS 
6. Special reserve and former 
ECSC Pension Fund 121 
75 
5,5 
63,4 
50 
26,5 
341,4 
341,4 
15 117,3 
75 
(3) 
2,4 
63,4 
50 
29 
337,1 
337,1 
15 
1 
2 
3| Commission's  forecasts at 27 October 1982. 
63,4 million ECU carried over  from  1981 plus 50 million ECU for 1982. _ _ 
Mot including 43,6 million ECU entered in the balance sheet as the  total  fines imposed by the Commission. 

FORECAST  OUTTURN  OF THE  ECSC  OPERATING  BUDGET  FOR 1983 ANNEX  B 
(miLLion ECU) 
REQUIREMENTS BUDGET FORECAST RESOURCES BUDGET FORECAST 
FIGURE OUTTURN FIGURE OUTTURN 
OPERATIONS  TO BE FINANCED  FROM  CURRENT RESOURCES  FOR THE  FINANCIAL  YEAR 
RESOURCES  (NON-REPAYABLE) 
1. Administrative expenditure 5 5 1. Current resources 
2. Social expenditure 150 175 1.1 Yield  from  levy at  0.31% 128 128 
2.1 Aid for redeployment (Art.  56) 100 125 1.2 Interest  on investments 
2.2 Social measures connected  with and on loans  from  non-
restructuring of steel industry 50 50 borrowed funds 80 80 
3. Aid for research (Art.  55) 54 54 1.3 Fines and surcharges for 
3.1 Steel 23 23 late payment 5 5 
3.2 Coal 19,5 19,5 1.4 Miscellaneous p.m. p.m. 
3.3 Social 11,5 11,5 2. Cancellation of commitments 
4. Interest  subsidies 53 53 unlikely to be implemented 5 5 
4.1 Investment (Art.  54) 9 9 3. Revaluation of assets and 
4.2 Conversion (Art.  56) 44 44 liabilities p.m. p.m. 
5. Aid for coking coal and 4. Unused  resources carried 
metallurgical coke (Art.  95) 6 6 over from  1982 p.m. p.m. 
5. Exceptional revenue 50 50 
6. Drawings on contingency - 25 
reserve 
BUDGET  TOTAL 268 293 BUDGET  TOTAL 268 293 
OPERATIONS  FINANCED BY  LOANS  FROM ORIGIN  OF NON-BORROWED  FUNDS 
6. Subsidized housing 15 15 7 . Special reserve and former 6. Subsidized housing 
I ECSC Pension Fund 15 15 

-33 -
Information  relating to levies 
The latest available information on production and the levy yield for the 
current financial year is given below: 
Levy yield for the period from January to March 1983 (provisional estimate) 
Production 
Product serving  as a 
basis  for the 
calculation 
of the levy 
in miIlion 
tonnes Yield 
per tonne 
at 0.31% 
levy rate Levy yield 
million ECU 
(1) (2) (3) 
Brown-coal  briquettes and 
semi-coke 0,9 0,14449 0,1 
All types of hard coal 48,4 0,21911 10,6 
COAL - TOTAL 10,7 
Pig-iron  other than  that 
required for the manufacture of 
ingots 0,6 0,36416 0,2 
Steel  ingots 26,3 0,63633 16,7 
Finished  products 21,0 0,29430 6,2 
STEEL  - TOTAL 23,1 
GRAND  TOTAL 33,8 
3 = (1)  x (2) 

ECSC  BALANCE  SHEET  AT  30 DECEMBER 1982 ANNEX C 
(million  ECU) 
ASSETS LIABILITIES 
1 . Cash in hand and  balances with 
central banks 3,7 1. Bonds and coupons due but not yet 
presented  for payment 48,4 
2. Claims on credit  institutions 
- repayable  on demand 
- with agreed  maturity  dates or 
periods of notice 798,1 
21,5 
776,6 2. Long-term  and medium-term  debts 6.116,4 
3. Debt securities  held in portfolio 365,1 3. Other liabilities 11,4 
4. Loans outstanding 6.257,6 4. Accruals  and deferred  income 288,8 
5. Recoverable  issuing  costs and 
redemption  premiums 51,7 5. Commitments for  ECSC operating 
budget 788,9 
6. Bank deposits  for bonds and coupons 
due but not yet  presented  for payment 48,5 6. Reserves 
- Guarantee  fund 
Special  reserve 
Former pension fund 540,2 
340,0 
156,5 
43,7 
7. Land and buildings 7. Surplus not allocated 0,1 
8. Other assets 63,5 
9. Accruals  and deferred  income 205,6 
7.794,2 7.794,2 

- 35 -
ANNEX D 
ANALYSIS  OF REQUIREMENTS REPORTED AND RESOURCES  AVAILABLE  FOR THE 
FINANCIAL  YEAR 1984 
In response  to the  wishes  expressed  by Parliament  in its  Resolution 
of 14 December  1982 (1), the  presentation  of requirements reported 
and foreseeable resources  which  follows  is modelled  on the  systematic 
analysis  of the  data for the  various  budget  headings  in the  general 
budget.  As with the general  budget  this presentation  lists the 
main features  of each heading (references  and description  of the 
operation, type  of expenditure  and explanation).  Two categories 
of expenditure  are unavoidable  in that they derive from decisions 
already taken (administrative expenditure)  or from framework  agreements 
with the Member  States  (aid for  redeployment). 
(1) OJ No C 13, 17  January  1983, p. 36. 

1. ORDINARY REQUIREMENTS - 36 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori zed' Outturn 
1982 
110 CHAPTER 10 
ADMINISTRATIVE  EXPENDITURE 
CHAPTER 10 - TOTAL 5 5 5 
5. 5 5 
210 CHAPTER 20 SOCIAL MEASURES 
AID FOR REDEPLOYMENT 
(Article  56 ECSC) 140 100 115 

- 37 -
REQUIREMENTS 
Art. Remarks 
110 1. References  and description  of operation 
- Article  50 of the  ECSC Treaty; 
- Article  20 of the  Merger  Treaty; 
- Council Decision  of 21 November  1977 (0J L 306, 30  November  1977, p. 28); 
- ECSC contr"'bution  to the  Commission's  administrative expenditure. 
2. Type  of expenditure. 
Annual payment  in four equal quarterly instalments. 
3. Explanation 
The Council  has set the  annual amount  of the  payment  at 5  million  ECU. 
Percentage  change  1983-84:  0%. 
210 1. References  and description  of operation 
- Articles  50 and 56 of the  ECSC Treaty; 
- Bilateral  agreements  concluded  between  the High Authority/Commission  and 
the Governments  of the Member  States. 
The High Authority/Commission provides non-repayable  aid  towards: 
(i) the payment  of tideover allowances  to workers; 
(ii) the payment  of resettlement allowances  to workers; 
(iii) the financing  of vocational  retraining  for workers  having  to change 
their employment. 
The grant  of the aid is  conditional  upon payment  by the  State concerned  of a 
special  contribution  of not  less than the amount  of that"aid, unless  an 
exception  is authorized  by the  Council, acting  by a two-thirds majority. 
2. Type  of expenditure 
Provision  to subsidize  the expenditure  on redeployment incurred  by the Member 
States according  to the  procedure  set out in the  agreements  signed. 

- 38 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori zed Outturn 
1982 
220 SOCIAL MEASURES IN CONNECTION WITH 
110 50 113,4 220 
THE RESTRUCTURING OF THE  STEEL 
110 50 113,4 220 
INDUSTRY 110 50 113,4 

- 39 -
Art. Remarks REQUIREMENTS 
220 3. Explanation 
Over the past two years,  the coal industry's requirements  have been fairly 
high, at approximately  40 million  ECU,  after being lower than  15 million  ECU 
over the prevics three years.  The  coal industry restructuring  programme 
will lead in the  coming years  to even higher expenditure, given that 
streamlining  is likely to affect  categories  of workers which  have hitherto 
been spared  final  redundancy decisions  or will make it necessary  to adjust 
the level of aid. The  requirements  for 1984 are  estimated  at 60  million  ECU. 
The gradual closure  of iron ore mines  will continue  as long-term supply 
contracts  expire.  In relative  terms,  however,  the requirements  of this 
sector are small. 
For the steel industry, expenditure  on redeployment  will remain very high,  as 
a result  of the  major job losses  to be  expected  (at least 150.000  over the 
period 1983-86). There  will,  however,  probably  be a redistribution'between 
applications  for aid  from the various  Member  States,  as a result  of the  sharp 
decrease expected  in applications from  the United  Kingdom.  After  rising  to 
almost 74 million  ECU in 1982 and  probably  to 80  million  ECU in 1983, it is 
expected that  commitments  of appropriations  for the  redeployment  of 
steelworkers  will remain  in 1984 at the  level expected  for 1983 or  even be 
slightly  lower. 
Overall the total requirement  for traditional  aids.for  1984 may  therefore  be 
estimated  at approximately  140 million  ECU. 
Percentage  change  1983-84:  + 40%. 
1. References  and description  of operation 
On 13 April 1983, the  Commission forwarded  to the  Council proposals  relating 
to a contribution  to the  ECSC, under  Article  56(2)(b)  of the  Treaty,  for the 
implementation  of a  social  support  scheme  for restructuring  in the  steel 
areas of the  Community  over the period  1983-86  (C0M(83)158  final). 

- 40 
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori  zed Outturn 
1982 
220 SOCIAL MEASURES  IN CONNECTION WITH 
THE RESTRUCTURING  OF THE  STEEL 
INDUSTRY  (cont'd) 

- 41 -
REQUIREMENTS 
Art. Remarks 
The measures  recommended  in this action  programme  are aimed  at: 
- continuing aid for early retirement and short-time working, authorized  under 
the 1981  social  arrangements; 
- financing  measures  to maintain  employment  through reducing working time; 
- bringing in a new type of aid to  facilitate  the reintegration of former 
steelworkers in other areas of  activity; 
- supporting  local  or regional  efforts  to improve  the forward  management  of 
the labour  market. 
These measures  supplement  operations authorized  under  Article  56(2)(b) for 
traditional  ECSC redeployment aid. The appropriations  will be committed  in 
successive instalments. The  total  estimate for the  Community  contribution 
is 330 million  ECU for the four years involved. 
2. Type of expenditure 
Aid consisting of  partial  refund of costs  borne  by the  Member  States- The 
actual aid procedures  will be determined for each  Member  State according to 
the common  criteria  for granting aid  drawn  up for the  whole  Community. 
3. Explan3t  ion 
The Commission  considers that 330  million  ECU will be needed  to supplement  the 
programme  of social  measures  to support  steel  industry restructuring  under the 
General Objectives for Steel. This estimate is based on the assumption of 
150.000  job losses during the  1983-86  period. It is expected that 
approximately half  this number  will take early retirement or  their  jobs will 
be maintained as a  result  of reductions in working time, whilst the other half 
will have to seek  employment  in other sectors of the  economy. 
The cost of the  measures  for early retirement or cuts in working time 
(including  short-time  working)  is estimated at 195  million  ECU,and  for 
measures  for reintegration in the labour  market  at 135  million  ECU, giving 
a total  of 330  million  ECU. 
The above  330 million  ECU is in addition to the  measures  already  announced 
under the 1981  social  arrangements. 

- 42 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori zed Outturn 
1982 
CHAPTER 20 - TOTAL 250 150 228,4 
CHAPTER 30 AID FOR RESEARCH -
310 STEEL RESEARCH 28,5 23 22 

- 43 -
REQUIREMENTS 
Art. Remarks 
The 110 million  ECU to be  allocated  for 1984  will cover the action  programmes 
to be submitted  to the  Commission  during that year  and the  requests  which  will 
have been made in 1983. 
Percentage chanf/j  1983-84:  + 120%. 
30 1.  References  and description  of operation  
Articles  50 and 55 of the  ECSC Treaty 
The High Authority/Commission  is required  to encourage  technical  and economic 
research into  the production  and increased  use of  coal and steel and 
occupational safety  in the  coal and steel industries.  To this end it  grants 
aid to finance research after receiving  the Council's assent. 
2. Type of expenditure 
Provisions  to cover part-subsidies  which  take the form of the  repayment  of a 
proportion  of the  actual costs  of research projects  approved  by the , 
High Authority/Commission  in accordance with  the procedures provided  for in 
the Treaty (consultation  of the  ECSC Consultative  Committee  and the  receipt 
of the Council's assent). 
In most cases,  the aid  granted  amounts  to 60% of the  estimated  and 
substantiated costs. 
3. Explanation 
The 65 million  ECU proposed  in total aid for  research  is 20% up on the 
appropriations authorized  in 1983. The  grounds  for the aid  proposed  for 
each of the  research categories  (steel,  coal and social)  are explained  in 
the-following  paragraphs. 
310 | The  General Objectives  for Steel 1985 (1)  describe  the essential contribution 
that research  and technological progress  must make towards  improving  the 
competitiveness  and ensuring  the future  development  of the  steel industry  in 
the Community  and also highlight  the effects  of the  present  financial 
situation  on the  industry's  ability  to sustain  an adequate  level of research 
and development. 
(1) C0M(83)239. 

- 44 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori  zed Outturn 
1982 
310 STEEL RESEARCH  (cont'd) 
• 

- 45 -
REQUIREMENTS 
Art. Remarks 
It is clear that the  European  steel  industry is undergoing a new period of 
development  typified  by slower  economic  growth,  a change  in consumer  demand, 
intense  competition for saLes and  changes  in international trade flows. 
In order to adapt to  this changing environment, it is  becoming  essential to 
increase  competiLiveness  and, in order to achieve this,-the  development  and 
marketing of improved technologies and products is of increasing importance. 
The framework  programme  1984-87  for a  European  scientific  and technical 
strategy  drawn  up by the  Commission  (1) stressed the  need to promote 
industrial  competitiveness by boosting research  efforts  and increasing the 
number of pilot  and demonstration projects. 
The current research  programme  which  the Commission  is supporting continues 
to play a  major  and acknowledged  role in meeting  common  requirements in the 
steel sector, in accordance with the  medium-term  orientation for the period 
1981-85  (2). 
In order to continue incentives towards, technologicaI progress and to 
supplement  these  efforts,  a new  parallel  programme  of pilot  and demonstration 
projects  (3) has been implemented  in order to  meet the increasing  need to 
boost and speed up the transfer of the  results  of laboratory research to the 
industrial  and/or commercial stage. 
The two  programmes  share the following  overall  objectives: 
- reduction in production and operating costs 
- higher product quality 
- improvement  of product performance and increase in the range o* product 
appli cations. 
In 1984, the two  programmes  will cover the following technical  fields: 
- sintering  and pelletizing, 
- use of coal and its by-products in the  steel  industry, 
- blast furnace and  direct  reduction technology, 
* 
(1) C0M(82)865  final,  December  1982. 
(2) OJ C 99, 2  May 1981. 
(3) OJ C 81, 24  March  1983. 

- 46 -
REQUIREMENTS 
Heading 1984 Approps 1983 Approps Outturn 
Art. Heading proposed authori zed 1982 
320 COAL RESEARCH 24,0 19,5 • 17 
j 
• 

- 47 -
REQUIREMENTS 
Art. Remarks 
320 - oxygen  and electric  steelmaking, 
- casting and  solidification, 
- processing and treatment of  steel, 
- properties and  utilization  of steel. 
Percentage increase  1983-84:  + 24%. 
The Commission  has stressed on a  number  of occasions the importance of coal 
research as one of the  ways of achieving the  Community's  energy  goals and, 
in particular, reducing its  dependence  on oil. In its  communication  "The 
role for coal in  Community  energy  strategy" (1) the  Commission  urged increased 
coal research and  emphasized  the active role  which  the Community  should play 
as a promoter  of RSD  activities  (production,beneficiation and mining safety) 
which the Community  should play. Furthermore, the  Community  should attempt 
to maintain and, if possible, increase research aids to raise  mine 
productivity  and upgrade  the products of the coal industry. 
The Commission  considers that RSD on the production and beneficiation of coal 
should remain  part of the present  ECSC programme  and be integrated in a 
coherent way into the  Commission's  framework  programme  (1984-87)  (2). At 
their meeting  in Copenhagen  on 16 December  1982, Community  energy  ministers 
considered the role of  solid  fuels in a  Community  energy  strategy from the 
point of view of promoting  diversification  of energy  supply and the rational 
utilization  of energy  and stressed the importance of developing  joint  RSD 
programmes  on the production,beneficiationand  utilization  of solid  fuels. 
That is why, in the  working  programme  on solid  fuels (3) it sent to the 
Council,  the Commission  also  laid emphasis  on RSD in coal. 
(1) OJ C 105, 26  April  1982. 
(2) C0M(82)865  final,  21 December  1982. 
(3) C0M(83)54  final. 

- 48 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori zed Outturn 
1982 
320 COAL RESEARCH  (cont'd) 
-

- 49 -
REQUIREMENTS 
Art. Remarks 
The Medium-term  Guidelines for Technical Coal Research  (1981-85)  (1), which 
are still  fully  relevant, set out  priorities  and the  criteria  for selecting 
projects. 
The increasir.gly  high level  of investment in mining techniques  means  that 
technologies  and procedures designed to increase the  utilization  rate of 
machines  remain the centre of gravity in all sectors.  Modern  techniques 
of managing  workings are increasingly important and the use of microprocessors 
and sophisticated electronic techniques is spreading. The  fight  against 
mining accidents is  still important in view of the increasing depth of 
workings. 
Mechanical coal preparation should enable the industry to maintain and improve 
the quality  of its products, which  will contain increasing quantities of 
water and  fines  as the  result  of mechanization. 
Research into new techniques of  utilization  and in  particular  conversion and 
combustion  will enable coal increasingly to replace other  fuels  in industry. 
The coking of coal remains one of the  main ways in which coal can be upgraded. 
The importance of research in  this sector rests mainly on the  fact that the 
cost and quality  of blast  furnace coke are factors of the  first  importance 
for the production of pig-iron and  hence  for the competitiveness of the  steel 
industry. 
The coal research  programme  for 1984  will concentrate on the -fallowing  fields: 
Mining engineering 
Development  work 
Ventilation,  firedamp,  mine climate 
Rock pressure and supports 
Coal-getting  techniques 
Outbye operations underground 
Modern management  techniques 
(1) OJ C 94, 17  April  1980. 

- 50 -
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori zed Outturn 
1982 
330 SOCIAL RESEARCH 12,5 11,5 11 
CHAPTER 30 - TOTAL 65 54 50 

- 51 " 
REQUIREMENTS 
Art. Remarks 
Utilization  and beneficiation 
Coal preparation 
Coking 
Combustion 
Beneficiation  and new products 
Percentage  change  1983-84:  + 23%. 
330 The success of previous  programmes  justifies  the continuation and  development 
of the current  programmes. 
The various sectors of the industries concerned,  management  and workers  and 
the research  institutes  are all concerned to see the  development  of research 
projects  aimed  at improving  working  conditions. 
Clearly,  the most important subjects  must be identified  and selected for 
coordination at  Community  level,  with care being taken to avoid duplication 
of work being done at national  level. 
For these reasons  Community  research is of benefit to all those concerned 
with health and safety at  work.  Since the  ECSC social  research  programme 
is the only one at  Community  level  concerned with health and safety at  work, 
the various sectors covered by multiannual research  programmes  are: 
- the effect  on workers'  health of occupational hazards and physical 
conditions at  their  place of  work 
- ergonomics 
- mine safety: the second  programme  was adopted by the  Commission  in 
July 1982 
- industrial  health in coal  mines  (measures  against dust and harmful  gases 
in mines) 
- technical  measures  to combat  pollution at the place of  work and near to 
steel works 
- safety in the  steel  industry. 
Percentage  change  1983-84:  + 9%. 

- 52 " 
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authori  zed Outturn 
1982 
CHAPTER  40 AIDS  IN THE FORM OF 
INTEREST  SUBSIDIES 
410 INVESTMENTS 12 9 7 

- 53-
REQUIREMENTS 
Art. Remarks 
40 1. References  and description  of the  operation 
Articles  54 (investment)  and 56  (conversion)  of the  ECSC Treaty,  and Decisions 
of the High Authority/Commission. 
The ECSC may uzs its own  resources  to provide interest  relief  on certain types 
of loan. The  subsidy  is calculated  in ECU at a  rate and for a  term fixed  by 
I 
] the Commission.  It  currently stands  at 3% for  five years. the Commission.  It  currently stands  at 3% for  five years. 
2. Type of expenditure 
Provision  for offsetting  part of the  interest  due on  loans disbursed  by the 
ECSC, in accordance with  the contracts  drawn up between  the Commission  and the 
beneficiaries. 
3. Explanation 
ECSC loans with interest subsidies  are the  principal  financial  instrument  for 
promoting  priority  investments  to meet the requirements  for the  coal and steel 
industries  and to  create jobs  for former ECSC workers. 
The grounds  for the  aids proposed  for each category  of loan (investment  and 
conversion)  are explained  in the  following paragraphs. 
In the investment  field,  the aim of  interest subsidies  is to  encourage  certain 
types of investment  in the  ECSC industries.  The Commission's  current  criteria 
for granting subsidies  are as  follows: 
- research  and training centres,  and the  elimination  of bottlenecks 
(0J C 73, 18  June 1970); 
- stabilization  of coal production: subsidies  are limited  to investment  in 
shafts,  underground workings  and haulage  and winding  equipment 
(0J C 79, 29  March 1980); 
- promoting  the consumption  of Community  coal (0J C 343, 31  December  1982). 410 

- 54-
REQUIREMENTS 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authorized Outturn 
1982 
420 CONVERSION 47 44 38,9 
J 

- 55 -
REQUIREMENTS 
Art. Remarks 
420 The Commission reserves the  right  to apply and adapt these criteria in the 
Light both of its assessment of current priorities and of the appropriations 
available. 
On the other hand, apart from certain  cases  where interest subsidies are already 
being given, it confirms  that  it is not planning to give this form of support 
for steel restructuring. 
Percentage  change 1983-84: + 332. 
Conversion  loans  with  interest subsidies are granted to firms or public bodies 
which encourage investments creating new jobs in regions hit by declining 
economic  activity in the coal and steel industries. 
The guidelines drawn up by the Commission for granting conversion Loans are 
published  in 0J C 178, 27 July 1977. They have since been changed slightly 
(0J C 82, 29 March 1979, p. 8) to improve and clarify the terms of global 
Loans,  which have proved a very effective instrument for creating new jobs in 
small  and medium-sized undertakings. 
The maximum loan eligible for interest relief at the rate of 3% for 5 years -
5% for global loans - at the moment is 20.000 ECU per new job, equivalent to 
maximum non-repayable aid of 3.000 to 5.000 ECU per job. When recruiting, 
the recipients undertake to give  priority  to former  ECSC  workers. 
Apart from the continuing conversion requirements in the steel industry, there 
are additional requirements in 1984 resulting from redundancies in the coal 
industry, sometimes in the same  areas,  due to the restructuring programme. 

- 56 " 
REQUIREMENTS 
Art. Heading 198A Approps 
proposed 1983 Approps 
authorized Outturn 
1982 
CHAPTER  AO -  TOTAL 59 53 45,9 
500 CHAPTER 50 AIDS UNDER ARTICLE  95 OF 
THE ECSC TREATY (COKING COAL  AND COKE 
FOR THE STEEL INDUSTRY) -6 6 
CHAPTER  50 -  TOTAL - 6 6 
REQUIREMENTS  - TOTAL 379 268 335,3 
• 

- 57 -
REQUIREMENTS 
Art. Remarks 
It should also be noted  that both  the non-quota and quota sections  of the 
European  Regional Development Fund help to create jobs in regions hit by the 
steel crisis. 
Percentage  change 1983-84: + 7%. 
500 The Commission has proposed  that the aids to coking coal be transferred to the 
general budget (1). The Council is currently examining this proposal. The 
aim of this transfer would be to incorporate coking coal policy in the 
'. Community's general energy strategy. 
(1) C0M(83)174 final, 5 April 1983. 

- 59 -
2. REQUIRE MENTS  NOT  ENTERED  IN THE  BUDGET:  LOANS  FOR  FINANCING  SUBSIDIZED  
HOUSING 
In addition to the requirements to be financed by non-repayable grants 
from the year's resources, there is the  ECSC  housing subsidy scheme, 
which has been in operation since 1955. Forecasts for this programme 
are included in this aide-memoire to complete the picture of all  ECSC 
operations for Parliament and the Consultative Committee. 
1. References and description of the operation 
Article 54 and D-cisions of the High Authority/Commission assigning to 
the housing programmes the funds from the "special reserve" constituted 
by interest from investments and from loans against own funds. 
ECSC  intervention takes the form of reduced-interest loans, and  eases 
the cost of financing housing by adding the funds lent by the Community 
to resources provided nationally. 
2. Type of expenditure 
Grant  of long-term loans at 1% interest to the responsible national 
bodies  or other financial institutions. 
A tenth  programme covering a five-year period (1984-88) should be 
introduced. An appropriation of 12 million ECU must therefore be 
e'ntered for 1984, of which some 10 million ECU will come from the 
redemption of current loans. 
3. Explanation 
This  scheme has the  twin  aim of: . 
- complementing Community policy in the coal and steel industries; and 
- improving living conditions for workers in these industries. 
The criteria for the granting of the loans are described in detail on 
pages  2 and 3 of OJ C 299, 30 November 1979. 
The scheme is both in the interest of workers, since it allevia'.tjs the 
effects of price increases and high interest rates, and of benefit to 
the industry, since it facilitates reorganization. 
The number of dwellings subsidized by means of  ECSC  Loans at 
1 January 1983 stood at 178.735. 
The loans granted are broken down by country on page 27. 

- 60 -
1. RESOURCES  FOR THE FINANCIAL YEAR 
RESOURCES 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authorized Outturn 
1982 
CHAPTER  10  GENERAL RESOURCES 
110 LEVIES 131 (1) 128 117,3 
• • 
(1) Assuming  that  the  current  0,31%  rate  is renewed. 

- 61 -
RESOURCES 
Art. Remarks 
110 1. References and description 
- Articles 49 and 50 of the  ECSC  Treaty 
- Decisions 2/52 and 3/52 of 23 December 1952. 
The levies are calculated on the basis of a fixed scale per tonne which is 
decided  each financial year by the Commission and published in the Official 
Journal. 
In its Decision of 11 April 1983 (1) the Commission brought forward the reference 
period used for calculating the average values for calculating the levy  base.  For 
1984 this period  will  be the 1982 calendar year. The aim of this change is to 
harmonize the date for presenting the  draft  ECSC  operating budget  with  that  for 
the general budget of the European Communities. 
2. Type of resource 
Levy  resources are duly established entitlements in the  form  of levies payable 
on output  in the 1984 financial year and calculated on the basis of the 
production declarations made by the undertakings. 
3. Explanation 
The latest estimates of the average values which serve as the basis for 
calculating the levies suggest  that  the figures for the 1984 financial year, 
which relate to the reference period  from  1 January to 31 December 1982,  will 
be some 4% higher in the  case  of coal and roughly 5% lower for steel than the 
figures for 1983. 
It should be noted  that  there is an appreciable margin of uncertainty in these 
figures; this is because all the requisite data are not yet available, and 
forecasting production in present economic conditions is a very uncertain 
exercise. 
Levy  rate: 0,31%. 
Percentage  change 1983-84:+ 2%. 
(1) 0J C 101, 14 April 1983, p'age 4. 

- 62 -
RESOURCES 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authorized Outturn 
1982 
120 INTEREST ON INVESTMENTS AND LOANS 
AGAINST  NON-BORROWED FUNDS 70 80 75 

- 63 -
RESOURCES 
Art. Remarks 
120 Tonnage subject to the levy, and yield from a rate of Levy of 0,01%. 
Product 
Brown coaL briquettes and 
semi-coke  derived from 
brown coal 
Hard coal of all categories 
Coal  - total 
Pig iron other than  that 
used  for making ingots 
Steel  in ingots 
Finished  products 
Steel  - total 
GRAND  TOTAL Production forecasts 
on which the levy is 
calculated 
(million tonnes) Yield  from levy 
rate of 0,01% 
(million ECU) 
4,1 
191,6 
3,2 
106,0 (1) 
81,3 0,02 
1,40 
1,42 
0,03 
2,06 
0,73 
2,82 
4,24 
1. References and description 
Under  its Decision of 30 April 1975, the Commission enters in the budget the 
interest available from the previous financial year. 
2. Type of resource 
Resources  deriving from income on investments and on loans against non-borrowed 
funds will be determined'when the Commission adopts the baldnce sheet at 
31 December 1983. 
3. Explanation 
The figure for interest revenue is based on an estimate of the resources which 
the Commission will be in a position to release when it adopts the balance 
sheet at 31 December 1983. 
Percentage  change 1983-84: - 12%. 
(1) Cautious estimate in view of the uncertainty currently surrounding the 
steel industry. 

- 64 -
RESOURCES 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authorized-Outturn 
1982 
130 FINES  AND SURCHARGES FOR LATE 
PAYMENT 5 
j 5 
CHAPTER  10 - TOTAL 206 213 192,3 
CHAPTER  20 CANCELLATIONS OF 
COMMITMENTS  WHICH  WILL  PROBABLY 
NOT BE IMPLEMENTED 3 5 2,4 

- 65 -
RESOURCES 
Art. Remarks 
130 1. References and description 
Articles 47, 58 and 60 of the  ECSC  Treaty (mainly). The Commission may 
impose fines on undertakings contravening the current price and quota systems. 
2. Type of resource 
From  an accounting point of view, revenue from the fines imposed by the 
Commission  under Article 58 of the  ECSC  Treaty should be regarded to a certain 
extent as deferred resources, in view of the appeals made to the Court of 
Justice. 
3. Explanation 
It is very  difficult  to forecast the amount which will be collected in 1984, 
especially  since the legal proceedings in disputed  cases  are likely to go on 
for one or two years. It is proposed  that  only those  cases  where recovery 
is in progress should be taken  into  consideration. On the basis of the 
information currently available, it is proposed  that  5 million ECU be entered 
under this heading. 
Percentage  change 1983-84: 0%. 
200 1. References and description 
Provisions  based on Commission aid decisions must be given tangible form 
within  a reasonable period of time by the contracting of legal commitments. 
The Commission's  Internal  Rules  for the drawing up and implementation of the 
ECSC  operating budget therefore provide  that  in the exceptional event of 
undue delay at this stage the provisions will be cancelled. 
The  Rules  also provide  that  once all parties have discharged their obligations 
under the legal commitment, any remaining part of the provision will likewise 
be cancelled. 
The amounts thus released become available again as resources for the current 
financial year. 

- 66 -
RESOURCES 
Art. Heading 1984  Approps 
proposed 1983  Approps 
authorized Outturn 
1982 
CHAPTER 20 -  TOTAL 3 5 2,4 
CHAPTER 30 REVALUATION OF ASSETS 
AND LIABILITIES p.m. p.m. " 1,8 
CHAPTER 30 -  TOTAL p.m. p.m. 00 II 
N II 
1 II 
CHAPTER 40 UNUSED RESOURCES FROM 
THE.  FINANCIAL  YEAR 1983 p.m. p.m. 63,4 
CHAPTER 40 -  TOTAL p.m. p.m. 63,4 
CHAPTER 50 EXCEPTIONAL REVENUE 
510 SOCIAL MEASURES IN CONNECTION  WITH 
THE RESTRUCTURING OF THE STEEL 
INDUSTRY 110 50 50 

- 67 -
RESOURCES 
Art-. Remarks 
2. Type of resource 
Save  in the exceptional  cases  where decisions constituting provisions are not 
followed up  within  a reasonable period of  time  by legal commitments, any 
cancellation of provisions normally indicates complete discharge of the 
contract, agreed  with  the other contracting party. 
The estimate of 3 million ECU shown in this chapter relates, in  essence, 
to cancellations of allocations for conversion and resettlement aid. Only 
a token  entry  would be needed for the other items which  might  be involved 
(cancellations of balances remaining in respect of contracts which have been 
performed in full, delayed legal commitments, etc.). 
3. Explanation 
It is  difficult  to estimate the rate of cancellation as it depends on 
several  factors such as negotiations  with  the governments concerned. The 
estimated figure of 3 million ECU for 1984 is based on an average rate. 
Percentage  change 1983-84: - 40X. 
300 This  chapter, carrying a token entry, is to record the net effect of changes 
in exchange rates during the financial year. 
400 This  chapter, carrying a token entry, records any balance remaining  from  the 
previous financial year as resources for the current financia' year. 
510 1. References and description 
- Conclusions of the 717th Council meeting of 24 June 1981, 
- Article 235 of the EEC Treaty, 
- Commission proposal to the Council of 13 April 1983 (C0M(83)158 final). 

- 68 ~ 
RESOURCES 
Art. Heading 1984  Approps 
proposed 1983  Approps 
authorized Outturn 
1982 
520 CONTRIBUTION FROM THE GENERAL 
BUDGET IN CONNECTION  WITH  THE 
RESTRUCTURING OF THE COAL INDUSTRY 60 
CHAPTER  50 - TOTAL 170 50 50 

- 69 -
RESOURCES 
Art. Remarks 
2. Type of resource 
This  chapter records the additional resources intended solely for financing 
social  measures in connection  with  the restructuring of the steel industry 
(article B.2.2)- The Commission proposes  that  this temporary measure should 
be continued by means of a transfer  from  the general budget to the  ECSC  budget 
on the basis of a decision to be taken pursuant to Article 235 EEC. 
3. Explanation 
In its preliminary  draft  budget for 1984 the Commission has proposed a transfer 
of 110 million ECU. 
Percentage  change 1983-84: + 120%. 
520 1. References and description 
- Article 235 of the EEC Treaty, 
- Commission proposal to the Council of (C0M(83) final). 
2. Type of resource 
Transfer to the  ECSC  of the appropriation entered in  Item  7027 of the 
general budget. 
3. Explanation 
The increased requirements resulting  from  coal restructuring measures in 1984 
and covering the whole range of  ECSC  aid (redeployment, interest subsidies 
for conversion and modernization, technical research) rule out the possibility 
of balancing the budget at the current levy rate which, because of the 
critical situation of the coal and steel industries, cannot be increased above 
the current 0,31%. Provision therefore has to be made for a temporary 
subsidy.from the general budget. 
Percentage  change 1983-84: new operation. 

- 70 -
RESOURCES 
Art. Heading 1984 Approps 
proposed 1983 Approps 
authorized Outturn 
1982 
600 CHAPTER  60  CONTINGENCY  RESERVE p.m. p.m. 29 
CHAPTER  60 -  TOTAL p.m. p.m. 29 
TOTAL  RESOURCES • 379 268 355,3 
-

- 71 -
RESOURCES 
Art. Remarks 
600 This  chapter has been given a token entry so  that  an appropriate amount may 
be entered if necessary to cover any deficit arising in 1984. The amount 
available for the contingency reserve will be fixed when the Commission 
adopts the balance sheet at 31 December 1983. 

- 72 -
2- COVERING  OF  REQUIREMENTS  NOT  ENTERED  IN THE  BUDGET 
Funds  to cover requirements for the construction of subsidized 
housing are obtained from: 
the resources made available for this in the former  ECSC  pension 
fund; 
the resources in the special reserve. 
These  resources are made up of the repayments of loans already 
made and fresh appropriations allocated to the special reserve. 
The decision on the allocation to the special reserve of the 
additional resources required  will  be taken when the Commission 
adopts the balance sheet at 31 December 1983. 
3. SUMMARY  OF  RESOURCES AVAILABLE  FOR 1984 
The estimates of traditional resources other than levies amount 
to 78 million ECU  (interest  available: 70 million ECU; fines: 5 million ECU; 
cancellations: 3 million ECU). As the yield  from  a levy 
rate of 0^01% has been estimated at 4,24 million ECU, the yield 
obtained  from  levies can be estimated at 131 million ECU, assuming 
that  the current rate of 0^31% is maintained. The  total  ordinary 
resources available for 1984, assuming  that  the levy rate remains 
unchanged, is thus estimated at 209  m'llion  ECU. 

ANNEX  E 
(miLLion ECU) DRAFT  ECSC  OPERATING  BUDGET  FOR 1984 
REQUIREMENTS PROPOSALS RESOURCES PROPOSALS 
OPERATIONS  TO BE  FINANCED  FROM  CURRENT RESOURCES FOR THE FINANCIAL  YEAR 
RESOURCES  (NON-REPAYABLE) 
1. Administrative expenditure 5 1. Current resources 
2. Social  expenditure 250 1.1 Yield  from levy at 0.31% 131 
2.1 Aid for redeployment (Art. 56) 140 1.2 Interest  on investments and 
2.2 Social  measures connected  with on Loans from non-borrowed 
restructuring of steel industry 110 funds 70 
3. Aid for research (Art. 55) 65 1.3 Fines  and surcharges for 
3.1 Steel 28,5 Late payment 5 
3.2 Coal 24,0 1.4 Miscellaneous p.m. 
3.3 Social 12,5 2. Cancellation  of commitments 
4. Interest  subsidies 59 unlikely to be implemented 3 
I 4.1 Investment (Art. 54) 12 3. Revaluation  of assets and 
I 4.2 Conversion (Art. 56) 47 liabilities p.m. 
i 4. Unused  resources carried over I I from 1983 p.m. 
I 5. Exceptional  revenue 
5.1 Social  measures connected 
with restructuring of steel 
industry 110 
5.2 Contribution from general 
budget for restructuring of 
coal industry 60 
379 379 
OPERATIONS  FINANCED  BY LOANS  FROM ORIGIN  OF NON-BORROWED  FUNDS 
NON-BORROWED  FUNDS 6. Special  reserve and former 
5. Subsidized housing 12 ECSC Pension Fund 12