A4-0322/96

Resolution on the draft ECSC operating budget for 1997 (SEC(96)0981 - C4- 0359/96)

The European Parliament,

- having regard to the draft ECSC operating budget for 1997 presented by the Commission (SEC(96)0981 - C4-0359/96),

- having regard to the draft general budget of the European Union (C4- 0350/96),

- having regard to the memorandum of 28 June 1995 of the ECSC Consultative Committee on various aspects connected with the expiry of the ECSC Treaty in 2002 (ECSC 5262/4/95),

- having regard to its resolution of 18 July 1996 on the communication from the Commission to the Council and the European Parliament on a fresh impetus for restructuring the steel industry in the Community ((Minutes of that Sitting, Part II, Item 7.)),

- having regard to the report of the Committee on Budgets and the opinions of the Committee on Economic and Monetary Affairs and Industrial Policy and the Committee on Social Affairs and Employment (A4-0322/96),

A. whereas the draft ECSC operating budget has been presented by the Commission, as requested by Parliament, in sufficient time for it to be examined in parallel with the first reading of the general budget,

B. whereas the draft ECSC operating budget for 1977 has been presented against the background of the expiry of the ECSC Treaty on 23 July 2002,

C. whereas the Commission is shortly due to adopt a communication on the financial aspects relating to expiry of this Treaty and, in particular, on the level of probable reserves in 2002,

D. whereas the expiry of the ECSC Treaty does not automatically imply that there will be no further need for the various activities carried out under this Treaty and, consequently, the phasing in of ECSC activities into the general budget must be the subject of an overall appraisal and of specific proposals concurrently with phasing out,

E. whereas the coal and steel industries remain dependent on cyclical market trends which, in turn, broadly reflect European and world economic fluctuations and whereas, consequently, it cannot be ruled out that they will need to confront difficult new economic circumstances,

F. whereas it is in large part due to the financial and budgetary provisions laid down in the ECSC Treaty that it has been possible to cushion the severe social consequences of the far-reaching restructurings experienced by these two industrial sectors,

G. whereas, despite the Commission's relatively optimistic forecasts of a general economic recovery,

- ECSC activities should be seen against a background of real growth in Community GDP of 2.4% (as against 1.5% in 1996),

- steel production, after recording an increase of 2.6% in 1995 over 1994, is likely to fall by 1.7% in 1996 compared with 1995 and settle approximately at the level of 1995 in 1997 with the probable loss of 9000 jobs in this sector,

- coal production is likely to continue its downward trend to record an estimated reduction of 5% mainly as a result of imports which, in 1995, for the first time outstripped internal production (139 million tonnes as against 137.5 million tonnes). Production is due to drop from 128.4 to 122 million tonnes, entailing the loss of some 7000 jobs and once again requiring implementation of the measures laid down in the ECSC Treaty,

1. Notes that, for 1997, the Commission is proposing an ECSC operating budget totalling ECU 265.5 million, i.e. an increase of ECU 24.5 million over the 1996 budget, which is inconsistent with the rundown of activities implied by phasing out;

2. Notes that the real requirement is ECU 172 million and not ECU 265.5 million and that, consequently, the Commission has entered the surplus revenue appropriations separately as a provision totalling ECU 93.5 million or almost the total sum of resources deriving from the levy, which is ECU 95.4 million;

3. Notes that all the spending items have been cut while, in parallel, the revenue items have been increased, in particular, the item for cancelled commitments amounting to ECU 53.5 million as against ECU 39 million in 1996 and the item for resources not used from the previous financial year which, added to the net balance for 1996, exceeds ECU 110 million, i.e. more than the resources entered against the main item represented by the levy yield for 1997;

4. Believes that the Commission must undertake to extend to 1997 and until 2002 previously committed and profitable programmes and not seek to justify a reduction in requirements on the grounds that a number of measures have been completed in the meantime;

5. Notes that, in the area of expenditure, the Commission is proposing reductions to all items with the sole exception of aid for research, where the largest increase goes to research in the steel sector, research in the coal sector sees a moderate increase and a token entry is proposed for research in the social sector;

6. Takes the view that a draft budget of this nature is not in line with the often reiterated requests of Parliament concerning, in particular, ECSC aid for redeployment and restructuring at a time when the economic context which the Commission takes as its base would justify continued spending in these areas;

7. Is also of the opinion that the draft budget presented by the Commission shows an imbalance between resources and requirements and that the provision for subsequent financing runs counter to the principle of budgetary annuality, particularly since the Commission has not so far been in a position to make specific proposals for phasing in;

8. Approves the table annexed to this resolution which:

(a) following its previous decision to accept the Commission's proposal for a progressive reduction, accepts the levy rate of 0.17% set by the Commission;

(b) proposes to modify the breakdown of expenditure as shown in the following table;

(c) proposes the creation of a new line for expenditure, funded from the appropriations for the reserves, for the creation of a successor body to administer the research activities after the year 2002; it makes sense to create the successor body now, so that phasing in will be possible;

(d) suggests that the remainder of the reserve be set aside as start-up funding for the establishment of a body subject to the political and budgetary control of the Community institutions and which would inherit in 2002 the residual assets of the ECSC;

9. Recalls that, in a statement to Parliament, the Commission undertook to accept the binding nature of the opinions delivered by Parliament on the operating budget and, in particular, the levy;

10. Asks the Commission therefore to accept the above proposals in this spirit;

11. Instructs its President to forward to the Commission this resolution and its decisions setting the levy rate and establishing the ECSC operating budget for 1997.

XXXDRAFT ECSC OPERATING BUDGET FOR 1997

Parliament's proposals

(ECU millions)

>TABLE>