31. 12.83 Official Journal of the European Communities No C 358/13 
3.12. Financial record 
3.12.1. The financial record attached to the propo­
sal shows that the Regulation is necessary because 
the funds for infrastructure projects of Community 
interest are classified as non-obligatory expenditure. 
Because the funds fall into this category 'the imple­
mentation of appropriations entered for significant 
new Community action shall require a basic Regula-
tion'O-
(') OJ No C 194, 28. 7. 1982, p. 3 (Joint declaration by the 
European Parliament, the Council and the Commis­
sion on various measures to improve the budgetary 
procedure. Brussels, 30 June 1982). 
Done at Brussels, 26 October 1983. 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 198 thereof, 
Having regard to the request made by the Council 
of the European Communities on 5 May 1983 for an 3.12.2. The Commission also expresses the view in 
its financial record that 'the progress in the exami­
nation of the problems linked with the development 
of a communication network of Community interest 
should enable the selection of a range of projects 
which, in the first place, could be eligible for finan­
cial support'. 
4. Conclusions 
In conclusion and subject to the foregoing remarks, 
the Committee is very favourably disposed towards 
the Commission proposal. 
The Chairman 
of the Economic and Social Committee 
Francois CEYRAC 
opinion on the communication from the Commis­
sion to the Council entitled 'The new system for 
coking coal and coke for the iron and steel industry 
in the Community ('), 
(') OJ No C 132, 19. 5. 1983. Opinion on the communication from the Commission to the Council entitled 'The new 
system for coking coal and coke for the iron and steel industry in the Community' 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 132 of 19 May 1983, page 4. 
A. LEGAL BASIS FOR THE OPINION 
On 5 May 1983 the Council referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Article 198 of the Treaty establishing the 
European Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
21 lth plenary session held in Brussels on 26 and 27 October 1983. 
The full text of the opinion is as follows: 
No C 358/14 Official Journal of the European Communities 31. 12. 83 
i—: 
Having regard to the decision taken by its Bureau 
on 31 May 1983 to instruct the Section for Energy 
and Nuclear Questions to draw up an opinion on 
the matter, 
Having regard to the opinion adopted by the above 
Section at its 83rd meeting held on 7 October 1983, 
Having regard to the oral report given by the rappor­
teur, Mr Bornard, 
Having regard to the discussions on 26 October 
1983, during its 211th plenary session held on 26 
and 27 October 1983, 
HAS ADOPTED THE FOLLOWING OPINION 
by a majority, with four votes against and 14 absten­
tions: 
1. Preliminary remarks 
1.1. The Committee has noted the new system for 
coking coal and coke for the iron and steel industry 
of the Community proposed by the Commission in 
its communication to the Council. The Committee 
has analyzed the proposal in the light of, on the one 
hand, the development and the effectiveness of the 
Community aid granted since 1965 and, on the other 
hand, the general economic and social situation of 
the coal-mining and iron and steel industries in the 
Community. 
1.2. Since 1965 the need to streamline the coal­
mining industry and the need to ensure supplies — 
in particular of coking coal — for the iron and steel 
industry have lead to a number of decisions being 
taken under Article 95 of the ECSC Treaty with a 
view to preventing divergent measures being taken 
by the Member States and promoting intra-Com-
munity trade. 
1.3. These decisions concern Community arrange­
ments for the coal-mining industry in general and a 
specific Community system for coking coal. The 
measures which have been taken reflect the chang­
ing energy situation; initially most attention was 
paid to rationalization measures but the energy cri­
sis of 1974 shifted the accent more towards mea­
sures to achieve security of supplies. 2. Community system for coking coal 
2.1. The Community system applicable to coking 
coal was initiated in 1967, although measures to ass­
ist the coal-mining industry in general were introd­
uced in 1965. In 1967 the Member States took into 
consideration: 
— active competition from products originating in 
non-member States, 
— the importance of intra-Community trade. 
They decided to establish: 
— a special system of aids for coal undertakings, 
and 
— a system of compensation of costs relating to 
intra-Community trade. 
In 1970 a new system was introduced which also 
allowed for production aids financed by the produc­
ing Member State. The system has been renewed a 
number of times since and is due to expire on 31 
December 1983. 
3. The new features of the Commission's proposals 
3.1. The proposed new system differs from the one 
currently in operation in seeking to phase out EC 
intervention gradually over a five-year period. 
3.2. The Committee notes that the Commission is 
introducing a policy shift with regard to four major 
points: 
— the Commission considers that the iron and 
steel industry's reduced requirements for coking 
coal and the abundance of supplies of this coal 
in the world mean that the problems of security 
of supply are no longer as critical as they used 
to be, 
— it further considers that the major problem 
affecting the coal-mining industry in the Com­
munity is coming to be one of competitiveness. 
The emphasis should therefore be on aiding 
investment in those mines which can be com­
petitive rather than on subsidizing mines whose 
production costs are getting more and more out 
of step with the international norm, 
— the Commission considers that the complexity 
of the aid systems has reached a point where 
simplification is required, 
31.12.83 Official Journal of the European Communities No C 358/15 
— lastly it considers that the scale of the invest­
ment needed, together with the large amount of 
reconversion work to be carried out, make it 
necessary to have recourse to the general Com­
munity budget rather than the funds at the dis­
posal of the ECSC. 
The Commission consequently proposes that: 
— consideration be given to discontinuing specific 
national production grants for coking coal. Such 
aid would then only be available under Deci­
sion No 528/76/EEC, which could be amplified 
to cover coking coal, 
— there be a phased reduction in the sales aids 
provided by the Community. The rate of the aid 
would first of all be increased to an average 
figure of 6 ECU/tonne (8 ECU/tonne for plants 
in coastal areas and 5 ECU/tonne for inland 
plants). This aid would be made available in 
respect of 10 million tonnes in 1984; the pro­
duction level eligible for aid would then be 
reduced by 2 million tonnes each year until 
1988. (In 1983 the amount of sales aid allocated 
was 4,7 ECU/tonne for plants in coastal areas 
and 2,8 ECU/tonne for plants in other areas.) 
— companies be prohibited from aligning their 
prices at levels lower than the target prices for 
imports set by the Commission, 
— consideration be given to funding sales aid from 
the general budget. 
4. General comments 
4.1. The Committee supports certain of the Com­
mission's aims but considers that the proposals put 
forward are too radical and dangerous. 
4.2. It agrees with the Commission's objectives of: 
— maintaining coking coal production capacity 
and coking capacity in the Community at prof­
itable or marginally unprofitable levels, 
— ensuring the rational operation of all the coking 
plants in the Community, 
— enabling the iron and steel industry in the Com­
munity to have guaranteed supplies on reasona­
ble and non-discriminatory conditions. 
4.3. The Committee does, however, consider that 
the current uncertainties are too great to envisage 
the introduction of measures as radical as those pro­
posed by the Commission. 4.4. Whilst it is recognized that the iron and steel 
industry is facing a serious crisis — which is cer­
tainly not due exclusively to economic reasons — 
and although the stocks of coking coal currently 
available in the world appear to be improved, there 
is no denying that the current low price of imported 
coking coal is partly due to the present general 
depression and the exceptionally low freight 
charges. We cannot count on the continuation of so 
wide a gap in the long term. It is well known that 
coal prices are sensitive and excessive dependence 
on external supplies of coking coal would be dan­
gerous from the point of view of both stocks and 
prices. 
4.5. Careful consideration should also be given to 
the practical consequences which the discontinuing 
of sales aid would have on the balance of the 
regions. The production of coking coal is frequently 
linked in the mines to the production of steam coal 
and the profitability of a mine often depends on its 
overall production. Mines are also frequently linked 
to iron and steelmaking activities and if one or other 
of these activities ceases, this may bring about a 
series of grave consequences for the economic vital­
ity of an area and its employment level. 
4.6. Finally, although there is no denying the fact 
. that the long-term survival of an area depends upon 
its ability to develop competitive industries, the 
changes and the redevelopment which may prove 
necessary must be subject to very serious evaluation 
and preparation. Failure to do this will mean that 
the reduction in levels of activity resulting from the 
cancellation of certain aid will have the effect, 
purely and simply, of increasing unemployment. 
5. Proposals put forward by the Committee 
5.1. Whilst sharing the Commission's view that the 
provision of public aid must not serve to postpone 
decisions with regard to industrial change made 
necessary by economic developments, the Com­
mittee proposes that the new system operate only 
until 31 December 1985 and be applicable to a maxi­
mum of: 
— 10 million tonnes for 1984, 
— 9 million tonnes for 1985. 
5.2. The Committee would point out that the entire 
system of national aid for coal-mines will cease to 
be applicable from the beginning of 1986 and urges 
that this transitional period be used to prepare with 
the utmost speed for the complete overhaul of the 
coal aid system. 
No C 358/16 Official Journal of the European Communities 31. 12.83 
5.3. The Committee proposes that the two-year-
period covered by its own proposals be used: 
— to make a vigorous start on implementing the 
proposed investment policy with a view to 
increasing the competitiveness of the best mines 
and coking plants and to carry out intensive 
research work directed towards achieving this 
goal, 
— to make a more thorough study of the possible 
consequences which a subsequent reduction in 
aid would have on individual mines, the situa­
tion of mining and iron and steel-making com­
plexes in the regions and, in particular, on 
employment. 
Done at Brussels, 26 October 1983. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the Euro­
pean Economic Community, and in particular 
Article 198 thereof, 
Having regard to the request made by the Council 
of the European Communities on 24 June 1983 for 5.4. The Committee takes note of the Com­
mission's recent proposals for a balanced solid fuels 
policy. These proposals could take effect on 1 Janu­
ary 1984 and are the subject of a separate opinion. 
The proposals to be put forward must take account 
of the economic and social consequences which a 
sharp and rapid reduction in the production of cok­
ing coal would have upon the Community regions 
concerned. 
5.5. More specifically, the Committee recognizes 
the difficulties arising in connection with the current 
system of financing and approves the Commission's 
proposal that the costs be met by the Community's 
general budget rather than solely from the funds 
available to the ECSC. 
The Chairman 
of the Economic and Social Committee 
Francis CEYRAC 
an opinion on the proposal for a Council Decision 
empowering the Commission to help finance inno­
vation within the Community, 
Having regard to the decision taken by its Bureau 
on 5 July 1983 instructing the Section for Industry, Opinion on the proposal for a Council Decision empowering the Commission to help 
finance innovation within the Community 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 178 of 5 July 1983, page 4. 
A. LEGAL BASIS FOR THE OPINION 
On 24 June 1983 the Council referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Article 198 of the Treaty establishing the 
European Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
21 lth plenary session held in Brussels on 26 and 27 October 1983.