NoC287/16 OfficialJournaloftheEuropeanCommunities 4.11.92
OpinionontheproposalforaCouncilDirectiveprovidingforchangestotheSeventhCouncil
Directiveonaidtoshipbuildingof21December1990
(92/C287/07)
On2June1992theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity,onthe
abovementioned proposal.
TheSectionforIndustry,Commerce,CraftsandServiceswasinstructedto.preparethe
Committee'sworkonthesubject.TheEconomicandSocialCommitteedecidedtoappoint
MrArenatoactasRapporteur-General .
Atits298thPlenarySession(meetingof1July1992)theEconomicandSocialCommittee
adoptedthefollowingOpinionunanimously .
1.TheCommitteefullyunderstandstheproblems
raisedbythereunificationofGermany,notablyinthe
shipbuildingindustry,andrecognizesthatshipbuilding
iscentraltothedevelopmentofthecoastalareasofthe
formerGermanDemocraticRepublic.3.Asregardsoperatingaid,forwhichaderogation
totheSeventhDirectiveisproposed,itisessentialthat
theaidgrantedfororderssecuredbetweenJuly1990
andDecember1993doesnotdistortcompetitionwithin
theCommunity .
1.1.Thebackwardness ofshipyardsinthesenew
Landernecessitatesurgentandradicalrestructuring ,to
includethegrantingofsubstantialproductionaid.
1.2.TheCommitteethereforeconsidersitessential
fortheCommunitytoapproveinvestmentand
operatingaid(asithasdonefortheotherMember
States)aswellassocialback-upmeasurestocushion
theseriouseffectsonshipyardworkersmaderedundant
orrequiringretraining.3.1.Thisisparticularlyimportantasworlddemand
forshipshasbeenfallingagainsince1991becauseof
thedeteriorationinthefreightmarket.Itistherefore
highlyunlikelythatshipbuildingactivitieswillliveup
totheoptimisticforecasts(a45%increaseoverthe
period1990—95)indicatedintheCommissiondocu­
ment.Togetaclearerideaoftheimpact,itwouldbe
preferabletorefersolelytothemoresophisticated
typesofshipsonwhichtheex-GDRshipyardsareto
concentrate,withparticularreferencetothemarket
sharethatECshipyardscanreasonablyexpect.
2.Inthelightoftheabove,therestructuringplan
andthescaleofoperatingaidgivesomecausefor
concern .
2.1.Withregardtorestructuring ,andtakinginto
accountthoseshipyards(MTW,WWandPW)for
whichactualrestructuringplanshavebeendrawnup
inconjunctionwiththebuyers,thescaleofinvestment
willindeedaffectproductioncapacity.Thesamemay
wellbetruefortheotheryards,forwhichnobuyer
hasyetbeenfound.3.2.Itthereforeseemsdifficulttodismissthepossi­
bilitythatsuchsubstantialoperatingaid(grantedover
threeandahalfyearsandforordersamountingto
300—350000cgtperannum)mayaffectECcompe­
tition,whosesafeguardinghasbeen,andremains,one
ofthemaingoalsoftheDirectives,alongwiththe
reductionofproductioncapacity.
2.2.TheCommitteethereforehasseriousdoubtsas
towhetheritisreallypossibletoreducethecurrent
shipbuildingcapacityof545000tonnesby40%,as
proposed.Moreover,inviewoftheeffortsmadein
recentyearsbythethreelargestshipbuildingareas
(Japan,ECandSouthKorea)torestoremarketbalance
speedily,throughvoluntaryrestraintsonproduction,
theundertakingregardingreductionsshouldbeappli­
cablenotonlytoproductioncapacitybutalsotothe
annualvolumeofshipyardproduction.3.3.IntheCommittee'sview,thisaspectoftheprob­
leminparticularshouldbeconsideredinthelightof
thegeneralsituationoftheECshipbuildingsector.This
meansthatthewidegapbetweenthescaleofaid
grantedtoshipyardsintheformerGDRandthat
grantedtoshipyardselsewhereintheECshouldbe
narrowed.

4.11.92 OfficialJournaloftheEuropeanCommunities NoC287/17
pectsforinfusingfreshmomentumintotheCommunity
shipbuildingindustryasawhole,e.g.inthelightof:
—theCommunication onIndustrialPolicy,[COM(90)
556final.]onwhichtheCommitteehasdelivered
anOpinion(*);3.4.Caremustbetakentoensurethataidgranted
toshipyardsintheformerGDRisnotinsomeway
channelledtoshipyardsintheformerWestGermany
orothercountries .
InviewoftheclosetradecooperationbetweenGDR
andWestGermanshipyardsandtheirsubcontractors ,
constantsupervisionisneededtoseethatmarketprices
arerespectedinthesetransactionsandthatthereisno
questionoftheaidconcernedbeingtransferredtoWest
Germanshipyards.Inthisconnection,stepsmustbe
takentoensurethatWestGermanshipbuildingsubcon­
tractorsdonotbenefitfromthe36%aid.—theCommission'sCommunication on'NewChal­
lengesfortheMaritimeIndustries'[COM(91)335
final.],onwhichtheCommitteedeliveredanOpin­
ionon25May1992(CES639/92);
—theworkcurrentlybeingdonebytheForumon
theMaritimeIndustries,particularlyasregardsa
detailedstudyoftheCommunityshipbuilding
sector.
TheCommitteetakesnoteoftheCommission'swish
toundertakesuchareviewinconjunctionwiththe
fixingofaidceilingsfor1993.4.TheCommitteereiteratesitsfullunderstanding
fortheplantorestructuretheshipyardsconcernedand
welcomesurgentandappropriatemeasurestoavoid
seriousdamagetotheeconomyandunemployment in
theLanderconcerned.However,itconsidersthatthe
transitionalperiodgrantedtotheformerGDRshould
gohandinhandwithanundertakingonthepartof
theCommunitytoreviewthesituationandthepros­{»)OJNoC40,17.2.1992.
DoneatBrussels,1July1992.
TheChairman
oftheEconomicandSocialCommittee
MichaelGEUENICH