C 226/50 EN 8.8.2000 Official Journal of the European Communities
Opinion of the Committee of the Regions of 13 April 2000 on the ‘Expiry of the ECSC Treaty’
(2000/C 226/14)
THE COMMITTEE OF THE REGIONS,
having regard to the decision taken by the COR Bureau on 15 September 1999, under the fifth paragraph
of Article 265 of the Treaty establishing the European Community, to issue an opinion on the expiry of
the ECSC Treaty and to instruct its Commission 1 — Regional Policy, Structural Funds, Economic and
Social Cohesion and Cross-border and Inter-regional Cooperation — to prepare the opinion;
having regard to the draft opinion adopted by Commission 1 (CdR 489/99 rev. 1) on 2 February 2000
(Rapporteurs: Mr Mernizka, member of the Assembly of the Land of North Rhine-Westphalia (D, PSE),
and Mr Collignon, minister for the Budget, Culture and Sport, Government of the French-speakingCommunity in Belgium, (B, PSE));
having regard to the resolution on growth and employment adopted by the European Council in
Amsterdam on 16 and 17 June 1997; in its resolution the European Council called upon the EuropeanCommission to put forward appropriate proposals to enable the reserves outstanding after the expiry of
the ECSC Treaty in 2002 to be used to establish a research fund for the benefit of the sectors linked to
the coal and steel industries;
having regard to the European Commission’s communication of 10 October 1997 on the expiry of the
ECSC Treaty — financial activities (COM(97) 506 final);
having regard to the resolution adopted by the Council and the representatives of the governments of the
Member States meeting in the Council on 20 July 1998 on the expiry of the Treaty establishing the
European Coal and Steel Community (ECSC) (
1);
having regard to the resolution adopted by the Council and the representatives of the governments of the
Member States meeting in the Council on 21 June 1999 on the expiry of the Treaty establishing the
European Coal and Steel Community (2);
having regard to the European Parliament’s report on the draft ECSC operating budget for 2000
(SEK(1999) 0803-C5-9917/1999);
having regard to the resolutions of the ECSC Consultative Committee on the expiry of the ECSC Treaty,
in particular the resolutions dated 25 March 1999, 2 April 1998, 10 October 1997, 8 November 1996
and 28 May 1995,
adopted the opinion set out below at its 33rd plenary session held on 12 and 13 April 2000 (meeting of
13 April).
1.Introduction to bringing about and consolidating peace in Europe and
promoting political and economic integration, thereby laying
the foundations for further progress towards European unifi- 1.1. The Treaty establishing the European Coal and Steel
cation. The ECSC Treaty provided a statutory framework for Community (ECSC Treaty), which came into force on 23 July
structural change in the coal and steel industry and has 1952, represented the first step towards the political and
continued to this day to prove its worth by offering a flexible, economic unification of Europe, ultimately leading, via the
effective tool for shaping the economic and social aspects of introduction of the subsequent treaties and their expansion, to
structural change in the coal and steel industries and regions the European Union which we know today. In signing the
of the Union; it has done so even though a number of the ECSC Treaty, the founder countries sought to end the rivalries
economic policy instruments provided for under the Treaty which had divided them for centuries, to establish and
have not been used for a long time. In some respects the level consolidate lasting peace in Europe and to enhance the
of integration provided for under the ECSC Treaty is sharply prosperity of its people. The European coal and steel industries
in advance of that set out under the EC Treaty. thus played a pioneering role in the European integration
process.
1.2. The European Coal and Steel Community has fully
accomplished this task. It has made a key contribution1.3. The ECSC Treaty established a framework for dialogue
and cooperation geared to securing consensus between
employers, workers and consumers on decisions on economic (1) OJ C 247, 7.8.1998, p. 5.
(2) OJ C 190, 7.7.1999, p. 1. and social matters affecting the coal and steel industries. This
8.8.2000 EN C 226/51 Official Journal of the European Communities
enabled the difficult sectoral and regional adjustment processes 2.1.2. The Amsterdam European Council, held on 16 and
17 June 1997, called upon the European Commission to put to be largely implemented on a socially acceptable basis. The
ECSC Treaty thus also, to a certain extent, paved the way for forward appropriate proposals to enable the ECSC reserves
to be used to establish a research fund following the expiry the European economic model.
of the ECSC Treaty in 2000; the research fund would assistancillary sectors of the coal and steel industry. In its1.4. All 15 EU Member States have coal and steel enterprisesresolution of 20 July 1998, the Council of Ministerswhich are subject to the ECSC Treaty; the relative importanceproposed that the ECSC assets should be transferred to aof these enterprises in the respective Member States variesseparate EU fund, administered by the European Commissionwidely. The majority of the applicant states have relativelyand used specifically to fund a research programme for thelarge coal and steel industries.coal and steel industry and ancillary sectors. In a working
document of 16 November 1998, the European Commission
assessed the legal and financial implications of the Council 1.5. The coal industry and the iron and steel industries have
proposal and also considered the question of future for many years been in the throes of a radical restructuring
involvement of the applicant states, who had not made any process which has proved particularly painful for their work-
contribution to the ECSC assets. In a further resolution forces. This process will continue over the next few years and
adopted on 21 June 1999, the Council of Ministers be intensified by the accession of new Member States from the
reaffirmed that the ECSC assets and liabilities were to be CEEC; the process will assume dramatic proportions in the
transferred to the other Communities but to be managed accession states. The necessary radical changes in the coal and
separately from other EU funding and to be devoted steel industries in these states will represent a particularly
specifically to research in the coal and steel industries. The serious challenge for the EU.
results of this research should be made accessible to the coal
and steel industries in the CEEC (technology transfer).1.6. Coal mining and the iron and steel industries are
heavily concentrated in particular regions. The entire economic
development of the regions concerned depends largely on thestructural adjustment processes to be carried out in these two
industries. By virtue of the instruments which it has deployed
for providing social and regional support, the ECSC hasrecognised the tremendous responsibility for regional develop-
ment. For this reason, the COR, too, should address the
impending expiry of the ECSC Treaty and the attendant 2.1.3. The COR is pleased that the Council plan will
consequences for the regions. ensure that the ECSC assets, raised by levies on coal and
steel enterprises, will benefit these industries. The ECSC levyplaced a sustained financial burden on these enterprises and
they are therefore entitled to ECSC assets once the Treaty
2.Unresolved issues linked to the expiry of the ECSC has expired.
Treaty
The ECSC Treaty, which came into force in 1952, was limited
to 50 years, expiring on 23 July 2002. From this date, EU coal,
iron and steel industries will, in principle, be subject to theprovisions of the EC Treaty. Although a number of problems
relating to the expiry of the ECSC Treaty and the application
of the EC Treaty to the coal and iron and steel industries have2.1.4. The European Commission should however, ensurebeen solved or nearly solved, unresolved issues remain in otheroptimal transparency about the scale of ECSC assets whenareas.the Treaty expires and draw up a final balance sheet of all
the ECSC’s assets and liabilities; this document would alsoconstitute an initial balance sheet for the special fund to be
managed by the European Commission. The assets must not2.1. Use of the ECSC reserve fundingbe spent on funding routine expenditure up to expiry of the
Treaty to the extent that the special fund is no longer able
to fulfil its intended role. Furthermore, this expenditure will 2.1.1. The ECSC established a reserve to secure its loans
and lending activities; it now has considerable assets and a have to be regarded as non-compulsory and will have to be
charged to the budget without regard for the budgetary decision will have to be taken on the use of these resources
once the ECSC Treaty has expired. The reserve was established stabilisation principle laid down at the Berlin European
Council in 1999. It is also essential to define clearly the via a levy on steel and mining enterprises, geared to turnover.
The levy was reduced to zero on 1 January 1998. Precise ancillary sectors to be assisted from ECSC assets; it is
important to ensure that appropriate use of the funding for calculations of these assets — and in particular, the total
amount in hand in 2002 — are not available. The European the coal and steel industry is not undermined. It is also
essential to lay down precise limits for the allocation of Commission currently calculates that when the ECSC Treaty
expires, outstanding assets will total some EUR 1.25 bn. The ECSC assets, in terms of the nature and objectives of the
proposed projects. A fair solution also has to be found for final sum involved will also depend upon the measures to be
funded by the ECSC from own resources before 2002. inclusion of the applicant states.
C 226/52 EN 8.8.2000 Official Journal of the European Communities
2.2. Promoting research 2.3.2. The payment of subsidies is, in principle, banned
under the ECSC Treaty. Aid to the coal and steel industry issubject to derogations under Article 95 of the ECSC Treaty.
2.2.1. ECSC efforts to promote research go back much When the ECSC Treaty expires the coal and steel industries
further than those of the EC itself (cf. the framework pro- will be wholly subject to the general provisions on financial
grammes for research); there are also considerable differences aid set out in the EC Treaty. The Treaty provisions do, in
between the research work carried out by the two Communi- principle, provide an appropriate basis for granting financial
ties in terms of objectives and management. ECSC activities aid to the coal and steel industries. Enterprises, trade unions
are not exclusively geared to cutting-edge research; they cover and the Member States concerned have however long been
a much broader range of subjects. The fact that funding from highlighting the need to establish, in good time, satisfactory,
the ECSC accounts for some 10-15 % of overall expenditure binding follow-up instruments based on the EC Treaty pro-
on research in EU coal and steel industries makes it more visions, which are in tune with the conditions governing the
significant for this sector than EU work in promoting research coal and steel industries.
in other sectors. ECSC work in promoting research into mining
technology is of much greater significance. ECSC work in thesefields has thus made a tremendous contribution to improving 2.3.3. The European Commission has provided the frame-
the technological competitiveness of the EU coal and steel work for such derogations for the coal industry, thereby
industries. This more applied and more market-orientated kind making it possible to grant state aid. These measures were
of research should continue after ECSC Treaty expiry and not provided for under a number of decisions, which received
be hindered by EU competition policy. unanimous Council approval; the most recent one dated
28 December 1993, covered the period 1 January 1994 to
23 July 2002. By making these decisions, the European
2.2.2. The decision to use ECSC assets to promote research Commission has recognised the need for the coal industry to
in the coal and steel industries does, in principle, pave the way continue to ensure that the EU enjoys security of supply in
for further efforts to promote research in these two industries. energy products and to help curtail the EU’s growing depen-
It is essential to ensure that the tried and trusted processes for dence on fuel imports. This can, however, only be achieved
allocating funding are retained. As has been the case up to through subsidies.
now, back-up research in the social field — including research
into industrial safety in the coal and steel industry and researchinto environmental aspects and measures to rehabilitate pol- 2.3.4. The Committee of the Regions believes that the case
luted industrial sites — should also be continued. Research in for reviewing the aid arrangements provided for under the EC
this field should, however, be linked as closely as possible to Treaty should be discussed, with a view to including a specific
technical research. The procedures for allocating funds for reference to the coal industry. Even without such revision,
research should be coherent with the principles underlying the however, there is an urgent need to take the requisite steps to
environmental policies of the EU. Research in the coal and establish a specific framework, via a Council Regulation issued
steel sector funded by the EU must contribute to the aim of under Article 89, for aid to the coal industry. The European
improved environmental protection. Commission has, however, so far failed to table such a
regulation. The COR believes that it is essential for such a
proposal to be submitted without delay — or at least well
2.2.3. The coal and steel industries have the same right as before the ECSC Treaty expires — in order to enable enterprises
all other industries to participate in the framework pro- to plan ahead.
grammes for research funded from general EU resources. The
fact that a special fund has been established through levies on
the coal and steel industries of the EU, and that this fund is to 2.3.5. The iron and steel industry is facing a different
provide special support for research in these fields, does not situation as regards competition. In the past countries fre-
warrant any discrimination under the framework programme quently sought to outbid each other in providing disastrous
for research. The COR also supports the suggestions of the levels of subsidies. In order to counteract this phenomenon,
Commission to direct a part of the EU funds towards RES the Council of Ministers, acting on a proposal from the
research. European Commission, some time ago adopted a code of
practice governing aid to the steel industry. The ECSC Treaty
was the legal basis for this proposal. This code authorises
subsidies in the fields of research and development, theenvironment, and social issues. It will now have to be brought 2.3. Provisions on financial aid
into line with the EC Treaty provisions on competition.
2.3.1. The coal and steel industries are both subject to
special conditions of competition in view of the particular 2.3.6. To this end, the Commission has since put forward a
proposal, in the form of a Community framework measure, characteristics of their products and the specific conditions
governing the market (the steel industry is a cyclical industry governing state aid to the iron and steel industries. This
proposal essentially extends the strict rules on subsidies set out producing uniform products in a market hallmarked by highly
volatile prices and world-wide overcapacity; the coal industry, in the existing code of practice on aid to the steel industry; a
number of adjustments are, however, made to bring it into for its part, helps to supply the energy market with indigenous
sources of energy under unfavourable conditions of cost). line with the EC Treaty measures for the supervision of
financial aid. Consideration should be given in this respect to These particular conditions of competition require aid pro-
visions geared to the specific needs of each industry. drawing up a Council Regulation based on Article 89.
8.8.2000 EN C 226/53 Official Journal of the European Communities
2.4. Regulatory instruments 2.6. Supporting social-policy measures
2.4.1. The ECSC Treaty comprises a large number of2.6.1. The structural adjustment process in the coal andregulatory instruments designed to ensure the smooth-oper-steel industries will also go on after the ECSC Treaty expires ination of the markets in coal and steel; some aspects of these2002 and will accelerate with the accession of the new Memberinstruments differ sharply from their counterparts under theStates. Up to now resources have been available from theEC Treaty. They reflect, to a certain extent, the particularECSC budget for adjustment, training and retraining measures.market conditions governing the coal and steel industries, suchOnce the ECSC Treaty is wound up, this legal basis will noas short-term economic volatility; they do, however, in somelonger be available. As a result the continued availability ofcases also reflect a different basic approach to economic policysocial adjustment aid — a prerequisite for socially-acceptablewhich was in vogue when the EC Treaty was signed. With therestructuring of the coal and steel industries after 2002 — willexpiry of the ECSC Treaty, it will be necessary to bring the coalbe in jeopardy. The central and eastern European applicantand steel industries in the EU under the regulatory instrumentsstates (CEEC) will have no prospect of receiving comparableenshrined in the EC Treaty.aid to enable them to carry through the much more radical
changes with which their coal and steel industries have to
contend.2.4.2. In this context, the Committee of the Regions calls
for the retention of the ECSC instruments which have provedtheir worth in the past and will continue to be required to
ensure the optimal, smoothest operation of the coal and steel
markets. Take for example the special statistical information2.7. Supporting measures in the field of regional policyinstruments, which are on a different scale of importance in
sectors which produce uniform products; these instruments
could also be retained as a back-up for Eurostat’s current work.A further example is the possibility of introducing voluntary 2.7.1. In order to support regional-policy measures, the
ECSC for a long period provided soft loans to promote job crisis-management measures in the coal and steel industries.
The necessary measures should be taken under EU law to creation in industries outside coal and steel. These loans ceased
from 1 January 1997. A large part of the regions in which the enable the abovementioned instruments to be retained. Steps
should be taken to prevent any cut-back in the more far- European coal-mining and steel industries are located is eligible
for assistance under Objective 1 or Objective 2 of the ESF. EU reaching provisions of EU law (the ‘acquis communautaire’)
applying to the coal and steel industries in those areas in which aid can therefore be used in these areas to support measures
geared to restructuring the coal and steel industries and they have proved their worth. It should also be emphasised in
this context that full account should be taken of developments creating jobs in other industries. As a result of the reduction in
the number of eligible areas and the expiry of Resider and in the WTO and in the European Union’s trade relations with
the United States. Rechar on 31 December 1999, a sizeable number of coal and
steel-producing areas have, however, lost their entitlement to
EU regional aid. These areas, too, may have to undergo major
restructuring in the next few years.
2.5. Energy policy objectives
2.7.2. The European Commission should therefore show2.5.1. It is in the EU’s interests to maintain a coal-miningflexibility — within the framework of the population ceilingsindustry which is justifiable in macro-economic terms and canestablished for Objective 1 and Objective 2 — in respondinghelp curtail the EU’s current growing dependence on importedto such developments and should, where appropriate, correctenergy.the lists of eligible areas. The European Commission should
also promote cooperation between coal and steel-producing
areas — inter alia under strand C of the Interreg programme2.5.2. Community energy policy measures must also take— for example in regard to exchange of information on bestaccount of coal. To date preliminary steps only have beenpractice. Regions not eligible for assistance under Objectives 1taken in pursuing such an approach. What we need is aand 2 should also be eligible for these measures.positive Community strategy for the entire coal industry which
underlines the future benefits of sustainable coal-mining and
coal-use in Europe and highlights the global importance of
modern European coal technology. Such a policy is alsonecessary against the background of enlargement.2.8. Social dialogue
2.5.3. Without wishing to re-open the debate on the
creation of a legal basis for an EU energy policy — a matter 2.8.1. One of the key features of the ECSC Treaty is
the institutional social dialogue between representatives of which was raised in the negotiations on the Maastricht and
Amsterdam Treaties — the Committee takes the view when industry, workers and consumers, within the ‘Consultative
Committee’. This committee has been, and continues to be, the coal industry is brought under the EC Treaty, this will
provide an opportunity for recognising the legitimacy of more than just an effective consultation tool for the European
Commission; it has also promoted a readiness to cooperate including the objective of security of supply in the EC Treaty.
C 226/54 EN 8.8.2000 Official Journal of the European Communities
and helped to create a particular spirit of consensus within the 2.11. Institutional aspects
coal and steel industries; this may serve as an example, aboveall to the CEEC, in the light of the structural adjustment
processes with which they will soon have to contend. In termsThe Committee of the Regions believes there is a need toof optimum partnership, the involvement in the social dialogueconsider the precise changes which would have to be made toof the regional authorities concerned could represent addedthe EC Treaty in order to accommodate the sectors currentlyvalue.governed by the ECSC Treaty. Consideration should be given
to the possible introduction of interim measures. The changes
2.8.2. The COR believes that this dialogue should be made should, at all events, reflect a number of specific aspects
continued in an appropriate, institutionalised form. With this of the coal and steel sector, such as the financial arrangements,
aim in view, it is essential to provide for mandatory consul- the need for security of supply, aid schemes, and, possibly, the
tation of the consultative committee and for it to have a retention of a number of powers vested in the Commission.
right of initiative in matters relating to coal and steel. The
Commission should submit a proposal for establishing an
appropriate legal basis for these measures, in consultation with
the coal and steel industries.
3.Conclusions
2.9. Coal and steel industries in the CEEC
3.1. The COR highlights the ECSC’s key contribution 2.9.1. At about the time the ECSC Treaty expires, the
towards achieving and safeguarding peace in Europe, promot- European Union will be faced with a particular challenge as a
ing political and economic integration and raising the level of result of the impending radical changes in the coal and steel
prosperity; the ECSC has therefore fully accomplished its industries of the applicant CEEC. For this reason the pace of
original objectives. In particular, it has substantially facilitated restructuring within the coal and steel industries must be
structural change in the coal and steel industries and helped to considerably stepped up. Enterprises and trade unions within
shape this change in a socially acceptable way. the coal and steel industries are prepared — as are also the
coal and steel-producing regions of the current EU Member
States — to support the states and regions concerned, and the
European Commission, in carrying out this difficult task.3.2. The COR believes that, in view of the ongoing
tremendous pressure for restructuring, the expiry of the ECSCTreaty on 23 July 2002 will trigger serious economic and 2.9.2. In the context of the enlargement process, there is a
social problems for the coal and steel industries and the EU need to consider precisely what aspects of existing EU law on
regions concerned. These issues will need to be resolved. coal and steel must be adopted forthwith by the applicant
states. A clear position should be adopted, before specificnegotiations get underway with the applicant states on this
issue; this position should set out the terms of the exemptions3.3. The COR notes that the special ECSC Treaty arrange-which could be granted to the applicant states in the area ofments are scheduled to expire definitively, with the coal andcompetition.steel industries then coming under the EC Treaties. The
Committee takes the view that in those areas where the higher
2.9.3. The COR calls upon the Commission, the Council level of integration provided for under the ECSC Treaty than
and the European Parliament to make provision, in the under the EC Treaty has proved its worth, the requisite
programmes for assisting the CEEC and preparing for their provisions should be retained in respect of coal and steel, and
accession to the EU, for adequate assistance for back-up an appropriate legal basis should accordingly be established
measures to cushion the process of structural change in coal under the EC Treaty; in line with EU energy policy objectives,
and steel. Account should also be taken of the need for such lignite should be included as well as coal.
assistance in (a) the administrative aid to the CEEC (b)
programmes for promoting regional cooperation, such as
strand C of Interreg III and (c) the Instrument for Structural
3.4. The COR welcomes the proposed transfer of ECSC Policies for Pre-Accession (ISPA).
assets to a special fund to be administered by the European
Commission; this fund is to be used to finance (a) research
projects for the benefit of coal and steel enterprises and2.10. Environmental Protection(b) research into supporting scientific, technical, environmen-
tal and social measures. In the Committee’s view, steps should
be taken to ensure maximum transparency in the very near The coal and steel industries have traditionally been a source
of major environmental pollution. They also create large-scale future as regards the actual scale of the ECSC’s assets; to this
end, the Committee proposes that a final balance sheet be emissions of CO
2. Standards have been adopted under the EC
Treaty for the purpose of protecting the environment and, in drawn up which would at the same time constitute an initial
balance sheet for the special fund. The tasks funded by the particular, of limiting greenhouse gas emissions. The Com-
mittee takes the view that these standards should be extended ECSC in the run-up to expiry must not absorb such a large
amount of the ECSC assets as to prevent the special fund from to include the coal and steel sectors once they are brought
under the EC Treaty. fulfilling its intended tasks.
8.8.2000 EN C 226/55 Official Journal of the European Communities
3.5. As well as benefiting from special aid for research Committee calls upon the Commission to formulate an
appropriate legal basis for such action under the EC Treaty, in funded from ECSC assets, the coal and steel industries are also
entitled to participate fully in the EU’s framework research consultation with the coal and steel industries.
programme. The Committee of the Regions feels that research
3.10. The expiry of the ECSC Treaty will remove the legal for the coal and steel industries funded by the EU should be
basis for funding social adjustment measures under Article 56. compatible with other EU policy aims, notably in the area of
This also constituted a key provision for funding redundancy environmental protection. The general EU research funds
programmes in the coal and steel industries. The COR therefore should also be (partly) directed towards renewable energy
urges the Commission and the Member States to provide for sources.
appropriate supporting measures for social adjustment in the
coal and steel industries, when planning ESF activities for 3.6. The COR believes that the EC Treaty provisions for
2000-2006. Similar support for CEEC in advance of enlarge- supervising state aid do in principle provide an appropriate
ment is also in urgent need. basis for establishing follow-up instruments for aid arrange-
ments for the mining and iron and steel industries. Would a
3.11. The COR is concerned that the scaling-down of theCouncil regulation adopted under Article 89 provide anareas eligible for assistance under Objectives 1 and 2 of theappropriate legal basis for such measures?Structural Funds, coupled with the expiry of Resider and
Rechar on 31 December 1999, has meant that a number of3.7. The COR broadly welcomes the Commission proposalcoal-mining and steel areas will in future no longer receive EUthat a new code be introduced in respect of aid to the steelregional aid.industry, under the EC Treaty; the code would continue to
provide for a strict ban on aid, in line with the specific situation3.12. Social dialogue within the ECSC consultative com-applying to this industry, in order to prevent countries out-mittee is, the COR thinks, an exemplary way of promotingbidding each other in offering disastrous levels of subsidies.cooperation between representatives of industry, employees
and consumers; the COR requests the European Commission
3.8. The COR also calls upon the Commission to submit, to submit a proposal for the continued operation of the
well before 2002, a proposal setting out viable provisions for consultative committee and providing for mandatory consul-
aid, to cover the coal industry, taking account of the fact that tation of this committee.
it is in the EU’s interest to maintain a vigorous coal-mining
industry. The Committee of the Regions urges the Commission 3.13. The incorporation of the CEEC and the dramatic
to present a communication on the situation with regard to changes which enlargement will entail for the coal and steel
aid arrangements for the coal sector, and — where necessary industries will, in the Committee’s view, constitute a special
— proposals for amendments to the arrangements. challenge for the entire EU. The Committee believes that
account should be taken of the experience gained by coal and
steel producing regions in the current EU Member States, when 3.9. The ECSC Treaty instruments which have ensured
smooth, optimal operation of the coal and steel markets should implementing the structural adjustment process. The requisite
provisions should be incorporated in the programmes for be maintained; these include the statistical data instrument
arrangements for voluntary crisis-management measures. The preparing the applicant states for EU membership.
Brussels, 13 April 2000.
The President
of the Committee of the Regions
Jos CHABERT