OPINION OF THE EUROPEAN COAL AND STEEL COMMUNITY CONSULTATIVE COMMITTEE on the revised General Objectives for Steel for 1985 (adopted with one vote against at the 232nd session of 18 February 1983)

THE CONSULTATIVE COMMITTEE,

After

- examining the draft memorandum of the Commission of the European Communities revising the General Objectives for Steel for 1985,

- hearing the report of the Subcommittee for General Objectives,

- noting the explanations given by the representative of the Commission of the European Communities,

1. acknowledges that the General Objectives should be based on a realistic analysis both of the present situation and of the outlook for the future, and accepts as a possible scenario the macro-economic background against which this document is set;

2. stresses that, in accordance with Article 46 of the ECSC Treaty, this document should provide guidance on the course of action to be followed by all concerned, and determine that of the Commission of the European Communities. It would therefore like to see a more dynamic presentation, particularly by taking into account positive factors, such as:

(a) the integration of the steel sector into the overall industrial policy as drawn up by the Commission itself;

(b) the impact on steel demand of the productive investment drive advocated by the Commission;

(c) the effects to be expected on external trade from greater competitiveness, but also of overall policy on imports and exports;

3. agrees with the Commission on the need to boost the competitiveness of Community entreprises under a system of normal market competition, but:

(a) questions the value of comparisons based on averages and unsound criteria;

(b) this being the case, wonders whether it is wise to widely disseminate conclusions which are debatable and calls upon the Commission of the European Communities to draw up the chapter on competitiveness on the basis of a purely qualitative analysis;

(c) hopes that the Commission makes its intention to combat unfair competition explicit;

4. reiterates the need to pursue restructuring of the steel sector and the reduction of production capacity, but:

(a) regrets that the efforts already accomplished have not been given greater emphasis;

(b) expresses reservations concerning the calculation of excess capacity per product, particularly as this excess capacity was calculated on the basis of a survey conducted in 1981 and makes no allowances for the closures scheduled in the restructuring plans;

5. acknowledges that competition on the world market will become increasingly keen, but feels that the restructuring under way should increase, rather than decrease, the share of the Community steel sector, particularly as regards the more specialized products;

6. regrets that the Commission has not been able to present to the Consultative Committee an up-to-date version of the General Objectives for Steel for 1985 taking into account the remarks and reserves made previously in the Subcommittee for General Objectives, in particular as concerns comparative competitiveness and its consequence, and requests the Commission to establish for the future a procedure which will allow the Consultative Committee to organize its work on the basis of up-to-date data.