22. 11. 88 Official Journal of the European Communities No C 297/13 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on structural improvements in inland waterway 
transport 
COM(88) 111 final 
(Submitted by the Commission to the Council on 19 May 1988) 
(88/C 297/12) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 75 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas the structural overcapacity manifest for some 
time in the fleets operating on the linked inland 
waterway networks of Belgium, France, Germany, 
Luxembourg and the Netherlands appreciably affects the 
economics of transport services, particularly of the 
carriage of goods by inland waterway in those countries; 
Whereas forecasts show no sign of a sufficient increase 
in demand in this sector to absorb this overcapacity in 
the next few years; whereas in fact the share of the total 
transport market taken by inland waterway transport is 
continuing to decline as a result of progressive changes 
in the basic industries supplied mainly by inland 
waterway; 
Whereas the results of the national vessel-scrapping 
schemes organized by certain Member States, while 
positive, have been insufficient, for want of international 
coordination of these schemes; 
Whereas a common approach, allowing Member States 
to take joint measures to attain the same objective, is a 
sine que non for effectively reducing overcapacity; 
whereas, to this end, scrapping funds should be 
introduced in the Member States particularly concerned 
by inland waterway transport; whereas undertakings 
established in other Member States but providing transport services on the linked inland waterways of the 
Member States concerned must contribute to one of the 
scrapping funds set up; 
Whereas, in view of the present severity of structural 
overcapacity, of the likely lack of financial resources to 
reduce this overcapacity rapidly and of the danger of a 
further decline in demand in the wake of other industrial 
changes, it appears advisable to set up, for an indefinite 
period, the legal, administrative and financial instruments 
needed to remedy this overcapacity; 
Whereas overcapacity generally effects every sector of 
the inland waterway transport market; whereas the 
measures adopted must, therefore, be generally 
applicable and cover all cargo vessels and pusher craft; 
whereas, however, vessels which in no way contribute to 
the overcapacity on the abovementioned network of 
linked inland waterways either because of their size or 
because they are operated solely on closed national 
markets, could be exempted from these measures; 
whereas, by contrast, private fleets performing carriage 
on own account must be included in the system because 
of their impact on transport markets; 
Whereas, in view of the fundamental differences between 
the dry cargo and liquid cargo markets, it is advisable to 
keep separate accounts in each fund for dry cargo 
carriers and tanker vessels; 
Whereas, in the context of an economic , policy 
compatible with the Treaty, responsibility for structural 
improvements in a given sector of the economy lies 
primarily with operators in the sector; whereas, 
therefore, the cost of any system introduced must be 
borne by the inland waterway transport undertakings; 
whereas, in order to launch the system on a fully oper­
ational basis from the outset, arrangements should be 
made, however, for the Member States concerned to pay 
an advance in the form of repayable loans; whereas, in 
view of the difficult economic situation of the under­
takings, these loans should be interest-free; 
No C 297/14 Official Journal of the European Communities 22. 11. 88 
Whereas, in accordance with Article 74 of the Treaty, 
the objectives of the Treaty are to be pursued as regards 
transport within the framework of a common policy: 
whereas, as Article 77 makes clear, this policy may 
include the granting of aids, in particular if they meet the 
needs of coordination of transport; whereas the 
Community's action in this area, including aids, must 
however take into acount the various general objectives 
of Article 3 and in particular that of Article 3 (f), 
concerning competition; whereas, as with all aids subject 
to the rules of Article 92 et seq of the Treaty, it is 
desirable to ensure that the measures provided for in this 
Regulation and their implementation do not distort or 
threaten to distort competition by favouring certain 
undertakings to an extent which is contrary to the 
common interest; whereas, in order to place the enter­
prises concerned in similar conditions of competition, the 
contributions to be paid to the scrapping funds and the 
scrapping premiums should be set at uniform rates; 
whereas likewise the scrapping programmes should be 
started at the same time, be of the same duration and 
subject to the same conditions in all the Member States 
concerned; 
Whereas steps should be taken to prevent the gains from 
the coordinated scrapping scheme being cancelled out by 
extra capacity coming into service at the same time; 
whereas, in cases of serious and persistent overcapacity, 
temporary measures may have to be taken to curb 
investment without, however, totally blocking access to 
the inland waterway market or imposing a quota on the 
national fleets; 
Whereas, as part of the proposed system, social measures 
should be taken to help workers who wish to leave the 
inland waterway industry or to retrain for jobs in 
another sector; 
Whereas, since the system is a Community one, decisions 
on its operation must be taken at Community level after 
consultation with the Member States and the organiz­
ations representing the inland waterway transport 
industry; whereas the requisite power for the adoption of 
those decisions, as well as for ensuring their implemen­
tation and the maintenance of the conditions of compe­
tition laid down in this Regulation, must be conferred on 
the Commission; 
Whereas, in order to prevent distortion of competition 
on the markets in question and to render the proposed 
system more effective, it is desirable for Switzerland to 
adopt similar measures for its fleet on the linked inland 
waterway network of the Member States concerned; 
whereas, as provided for by the Treaty, the Commission 
should therefore open negotiations on this subject with 
Switzerland, on behalf of the Community, HAS ADOPTED THIS REGULATION: 
Article 1 
1. Inland waterway vessels used to carry goods by 
inland waterway in the Member States shall be subject to 
a system for structural improvements in inland waterway 
transport under the conditions laid down hereinafter. 
2. The system shall comprise: 
— measures to reduce structural overcapacity by means 
of scrapping schemes; 
— supporting measures to avoid aggravation of existing 
overcapacity or the emergence of further overca­
pacity. 
Article 2 
1. This Regulation shall apply to cargo-carrying 
vessels and pusher craft providing transport services on 
own account or for hire or reward and registered in a 
Member State or, if not registered, operated by an 
undertaking established in a Member State. 
For the purposes of this Regulation 'undertaking' means 
any natural or legal person exercising an economic 
activity on a non-industrial or industrial scale. 
2. The following shall be exempt from this Regu­
lation : 
(a) vessels sailing exclusively on national waterways not 
linked to other waterways in the Community; 
(b) — pusher craft with a motive power not exceeding 
300 kilowatts; 
— sea-going inland waterway vessels and ship-borne 
barges used exclusively for transport operations 
which include a sea crossing; 
— ferries; 
— vessels providing a non-profit-making public 
service. 
Article 3 
1. Each of the Member States whose inland 
waterways are linked to those of another Member State 
and the tonnage of whose fleet is above 100 000 tonnes, 
hereinafter referred to as 'the Member States concerned', 
shall set up, under its national legislation and with its 
own administrative resources, a Scrapping Fund, here­
inafter referred to as 'the Fund'.' 
22. 11. 88 Official Journal of the European Communities No C 297/15 
2. The competent authorities in the Member State 
concerned shall administer the Fund. Each Member State 
shall involve its national organizations representing 
inland waterway carriers in this administration. 
3. Each Fund shall consist of two separate accounts, 
one for dry cargo carriers, the other for tanker vessels. 
Article 4 
1. For each vessel referred to in Article 2 and not 
exempted from this Regulation the owner shall pay into 
one of the Funds set up under Article 3 a contribution 
fixed in accordance with Article 6. 
2. The contribution for vessels registered in one of the 
Member States concerned or for non-registered vessels 
operated by an undertaking established in one of those 
States shall be paid into the Fund of the Member State 
where the vessel is registered or the undertaking is estab­
lished, respectively. 
3. The contribution for vessels registered in another 
Member State or for non-registered vessels operated by 
an undertaking established in another Member State 
shall be paid into one of the Funds set up in the Member 
States concerned, at the choice of the vessel owner. 
This choice shall be made once only and shall apply to 
all vessels belonging to the same owner or operated by 
the same undertaking. 
Article 5 
1. Any owner scrapping a vessel for which a contri­
bution has been paid shall receive a scrapping premium 
from the Fund to which his vessel belongs in so far as the 
financial means are available, subject to the conditions 
set out in Article 6. This scrapping premium shall be 
granted only in respect of vessels which the owner proves 
form part of his active fleet. 
2. There shall be mutual financial support as between 
the various Funds. It shall come into play where a Fund 
cannot meet requests for scrapping premiums through 
lack of financial resources and where other Funds have 
an excess of liquidity since insufficient requests have 
been made of them. 
Article 6 
1. The Commission shall lay down separately for dry 
cargo carriers, for tankers and for pusher craft: 
— the rate for the annual contributions to the Fund for 
^ each vessel; 
— the rate for the scrapping premiums; 
— the period covered by the scrapping programmes, 
during which scrapping premiums will be paid, and 
the conditions under which they may be obtained; — the adjustment coefficients for each type and 
category of inland waterway vessel. 
2. Rates of contributions and scrapping premiums 
shall be expressed in ECU and shall be the same for each 
Fund. 
3. Contribution rates shall be fixed at a level allowing 
the Funds sufficient financial resources to make an 
effective contribution to reducing the structural 
imbalance between supply and demand in the inland 
waterway transport sector. In addition, they shall be set 
at a level acceptable to inland waterway undertakings in 
a difficult economic position. 
Contributions shall be calculated on the basis of the 
deadweight tonnage and motive power of the vessel. 
They shall be paid annually at the start of the year in 
return for a certificate of payment. From 1 March of the 
year concerned this certificate must be on board the 
vessel or, in the case of unmanned vessels, on board the 
pusher craft. 
In duly proven cases where the vessel has been laid up 
for more than three consecutive months, the contribution 
may be refunded in respect of the period for which the 
vessel was laid up. 
4. The Commission shall lay down the periods during 
which scrapping premiums may be obtained and the 
conditions for granting these premiums on the basis of 
the objectives to be attained, the vessel types or 
categories and the financial resources of the Funds. 
5. The Commission shall lay down detailed rules for 
the mutual financial support referred to in Article 5 (2). 
6. The Commission shall take the decisions referred to 
in paragraphs 1 to 5 after consulting the Member States 
and the organizations representing inland waterway 
carriers at Community level. 
The decisions reached by the Commission shall also take 
account of the results of observation of the transport 
markets in the Community and of any foreseeable 
changes therein, as well as of the need to avoid any 
distortion of competition which is contrary to the 
common interest. 
Article 7 
Without prejudice to the provisions of the Treaty on aids 
and to the rules adopted in implementation thereof, the 
Member States concerned may make advance payments, 
in the form of loans, to the Fund set up in their territory. 
The sums granted in this way shall be repaid, free of 
interest, by the Fund, according to a predetermined 
schedule. 
No C 297/16 Official Journal of the European Communities 22. 11. 88 
Article 8 
1. Throughout the duration of the scrapping schemes 
decided upon by the Commission in accordance with 
Article 6, vessels covered by this Regulation pursuant to 
Article 2 which are newly constructed, imported from a 
third country or exempted under Article 2 (2) (a) may be 
brought into service on inland waterways as referred to 
in Article 3 only where: 
— the owner of the vessel to be brought into service 
scraps a tonnage of carrying capacity equivalent to 
the new vessel without receiving a scrapping 
premium; 
— or, where the owner scraps no vessel, he pays into 
the Fund covering his new vessel or into the Fund 
chosen by him in accordance with Article 4, a special 
contribution equal to the scrapping premium fixed 
for the current scrapping period for a tonnage equal 
to that of the new vessel; 
— or, where the owner- scraps a tonnage smaller than 
that of the new vessel to be brought into service, he 
pays into the Fund in question a special contribution 
equivalent to the scrapping premium corresponding 
at the time to the difference between the tonnage of 
the new vessel and the tonnage scrapped. 
These conditions shall not apply to vessels which the 
owner proves were under construction on the date on 
which the scrapping scheme was instituted. 
2. In cases where serious structural overcapacity is 
expected to persist in the Community inland waterway 
transport sector or on one of its markets, the 
Commission may, after consulting the organizations 
representing inland waterway carriers at Community 
level and with the agreement of the Member States 
concerned, decide to increase to up to double the 
original values the values for the tonnage to be scrapped 
and for the special contributions for bringing new 
capacity into service, as provided for in paragraph 1. 
At the same time the Commission shall lay down the 
period for which this measure is to apply. Article 9 
The Member States shall take measures: 
— to make it easier for inland waterway carriers leaving 
the trade to obtain an early retirement pension or to 
transfer to another economic activity; 
— to grant early retirement pensions to workers leaving 
the inland waterways as a result of scrapping schemes 
and to organize vocational training courses or 
retraining courses. 
Article 10 
The Commission shall negotiate, on behalf of the 
Community, arrangements with Switzerland for the 
latter to apply measures comparable to the Community 
measures adopted under this Regulation. 
Article 11 
1. By 31 October 1988 Member States shall adopt the 
measures necessary to implement this Regulation, after 
consulting the Commission. 
These measures shall provide for, inter alia, permanent 
and effective verification of compliance with the obli­
gations imposed on undertakings by this Regulation, of 
the national provisions adopted in implementation 
thereof and of the appropriate penalties in the event of 
infringement. 
2. Throughout the duration of a scrapping scheme 
Member States shall communicate to the Commission 
every six months all relevant information on progress 
with the current scheme and, in particular, on the 
financial position of the Fund, the number of 
applications to scrap vessels and the tonnage actually 
scrapped. 
3. By 30 November 1988 the Commission shall adopt 
the decisions which it is required to take under Article 6 
and, where appropriate, under Article 8 (2). 
Article 12 
This Regulation shall apply from 1 July 1988. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.