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COM (80)587
Vol.1980/0187

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)587 final
Brussels ,6October 1980
STEEL :
social provisions
. , vi\ \
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COM (80)587 final

Brussels .6October 1980
STEEL IKDUSTBÏ
Council session ,7October 1980
».0
MrVredelmg recently gave thePermanent Representatives *
Committee theCommission 'sreasons for taking theview that
inits proposal tothe Council for further assistance to
steelworkers under Article 95 "ECSC priority should beaccorded
tothose oftheproposed measures that areofmajor practical
relevance now ,viz .early retirement andshort-time working (see
MrVredeling 'scommunication totheCommittee and theverbal note
totheadhoc ECSC working party with reference tothesocial
measures proposed onthebasis ofArticle 95ECSC ).
• •
TheCommission would emphasize ,however ,that the
applications now put inbytheFrench andBritish Governments
relate invery large part toearly retirement ;the three-year
agreement of1978 between theLuxembourg Government and the
* '*
Commission likewise relates toearly retirement allowances .
\ )
Notwithstanding ,theCommission has felt itpreferable to
base assistance inconnection with early retirement onArticle 95,
inorder tohave asounder legal framework and toallow ofsome
extension oftheaidplanned . v

2
Asconcerns the financial side ,itmust bestressed that the
steel crisis hasalready brought arise intheusual applications
•forthebfenefit ofArticle 56(2)(b )tobegranted tosteelworkers '
becoming redundant .Intheperiod 1973-76 readaptation assistance
applied for inresp'ect ofthesteel industry was running atabout
3-5million u.a .ayear ;i*n1977 thefigure was 11million ,in
1978 30million EUA ,in1979 5^million ,andnowapplications on
thesteel "side inthefirst ten :months of1980 already work out
atmore than theentire Budget appropriation of67million EUA
•forredundant steelworkers (including iron-ore miners )andcoalminers .
Itcanbesaid now that applications inrespect ofall the
ECSC industries together will amount vforthefull financial year 1980
to82million EUA ,ofwhich some 15million cannot possibly be
met from thepresent Budget funds .The 15million will therefore ,have
tobecharged tothe1981 ECSC Budget .Inaddition thpfunds needed
tomeet theordinary applications under theagreements inforce
between the Member States and the Commission will come toatleast
60million EUA ;this canbecovered byECSC Budget monies .
The British and French Governments have furthermore put in ./
extra applications forreadaptation assistance onanexceptional
scale ,over andabove theordinary 1980 applications :they relate
tothedeparture of58,000 workers andinvolve contributions put ,at
1*f0and300million EUArespectively .Their purpose is,firstly ,to
boost theassistance anyhow provided for inthepast agreements
between Britain and France and theCommission ,andsecondly ,to
institute new classes ofassistance tocushion the social impact of
massive redundancies inthesteel industry .
Itismore than likely that theworsening crisis will impel
theMember States to^submit like applications ,inrespect pretty
certainly ofseveral tens ofthousands ofworkers .
Itisnoteasy atthis stage togive anestimate ofthe
Commission 'scontribution tothekkOmillion EUArepresented by
theBritish andFrench Governments *applications ,butgiven the
policy pursued onreadaptation and theproposals putforward

3
under Article 95ECSC the cost tothe Commission over these two
newapplications "could come tosomewhere between 120and 160million
EUA . . • ■»
These figures must beregarded asaguide bracket tothe
funds required ,not definitely committing theCommission at
present . . .
The French and British applications ,then ,can becovered
only byanadditional injection ofBudget funds .Account must be •
taken aswell ofapplications from theother member countries .
Inconclusion ,the Commission requests the Council ,with
respect tothesocial provisions relating tothe steel industry ,
•togive itsunanimous assent under Article 95ECSC tothegranting
tosteelworkers intheimmediate future ofearly retirement and
1short-time working allowances ;
'V *
.atthesame time ,with theobject ofmaking available the
Budget funds ,needed tomeet such applications forallowances ,
totake adecision infavour ofcontributions totheEuropean -
Coal and Steel Community from theGeneral Budget ofthe
Communities ,theamount ofsuch contributions tobedetermined
2inthe Budget procédure .
Doe .COM (79)^36final ,20July 1979-
2DOC.C0M(80)13 ^final ,25March 1980 .