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DOCUMENTS "COM"
COM(81)318
Vol.1981/0103

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COMMISSION OFTHELURQPEAHCOMMUNITIES
COM(81)318 final
Strasbourg ,17jane 1961
SOCIAL MEASURES INTHE STEEL SECTOR
(Communication ofthe Commission tothe Council )
\
C0M(8l )318final

COMMISSION
OFTHE
EUROPEANCOMMUNiTSES
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
. SOCIALMEASURES INTHESTEELSECTOR
TheCommissionwelcomesthereadinessexpressedbytheCouncilatitsmeetingon4Junetotakepositivedecisionsonadditional socialmeasuresinthesteelsectoratits
forthcoming meetingon24Juneonthebasisofproposals
submittedbytheCommissionin1980.Italsowelcomesthe
Council'sinterestinthenewideasoutlinedbythe
Commissioninitscommunication of22May(COM(81)277Final)
andwillpresentassoonaspossible amoredetailed
-accountoftheseideasasabasisfordiscussion inthe
Council.
2.TheCommissionrecallsthattheproposalsit i
submittedin1980concerntheextensionofexistingsocial
aidsgrantedbythe12CSCtoincludeallowancesforearlyretirement andshort-timeworking.TheCommissionhasindicatedthatitwouldbepreparedtograntsuchaidsonthe-basisofArticle56(2)(b)oftheECSCTreatyprovidedthattherewereaconsensusintheCouncil ,infavourofan
extensiveinterpretation ofthatArticle.
3oTheCommissionproposesthatapplications forearlyretirementallowancesshouldbeacceptedifthe}?relateto
retirementstakingplacebeforetheendof1984.Sofar I
asshort-timeworkingisconcerned 9itispx-oposed -thatthisjallowanceshouldbepaidonlyfortheperiodupto30June I
;1982, _ !
4.Applications forsuchaids3ifagreed3havesofar
beenreceivedfromBe].giums<FrancesItalyand.theUnitedKingdom »Thebulkoftheaidsappliedforwouldbeinsupportofearlyretirement.TheCommissionhaspreviouslyinformedtheCouncilthatmeetingtheBelgiansFrenchandBritishapplications fortheaidsreferredtoabovewouldrequireexpenditureof112mioecuin1981.TheCommissionisnotyetinapositiontoputafirmfigureontheapplication
,....,recentlyreceivedfromtheItalianGovernment.Itisproposed 9however3thatthesimof112mioecuforl981shouldberetainedandthatanypaymentstoItalyrequiredthisyearshouldbeaccommodated byslightlyrescheduling paymentstotheotherapplicantGovernments ..Asofnow,theCommission jestimatesthatfurtherpaymentsoflOQm.ioecunilIberequired !tomeetexistingapplications ,overthethreeyears1982-84. 1
'-v -••v. * (
' 5.AstheCommissionhaspreviously madeclearitisnot
possibletofinanceadditionalaidstotheextentof
112wioecufromtheECSCbudget.Indeedsin1981nopartofthissumcanbefoundwithinthaibudgetwhichwillbe
■_i&xhausted
dvisiodq;addrtrsatRuedelaLoi200,B-1049Gru*fiold–Telephony7350040/7358040–Tolooraphteaddreui0COMEURBruisci*#–
Telex:'21077COMEUB'

-2-
exhausted bytheVOIUTO cfexisting demands being made intheECSC budget .
6. TheCommission has therefore proposed that an
appropriate sumshould betransferred from theEECbudget tothe
ECSC budget ,aninnovation which would befully justified by
theexceptional situation caused bytherestructuring ofthe
steel industry .Theheavy loss ofjobs inthe sector over a
number ofyears hasgenerated extremely high demand for social
aids .Demand isnot likely torise anyfurther butwill '
probably continue atthepresent level foranother year and
then begin tofall away .Inorder tomeet this exceptional
demand ,itisopen tothe Council tochoose the alternative
ofspecial adhoccontributions totheECSC budget ,but the
Commission continues toprefer theproposed transfer from the
EEC budget and itisthis option which ispursued .inthe
following paragraphs .
7. The Commission considers that the transfer would
require twodifferent types ofacts :
(i)ADecision oftheCouncil under Article 235ofthe
EEC Treaty .Aproposal tothis effect was tabled
bytheCommission on25March 1980 (1)
andwaswelcomed bytheEuropean Parliament inits
resolution of11July 1980(2 ).This proposal needs tobe
modified inthe light ofdevelopments inthe
discussion since then and anew text issubmitted
asanannex tothepresent communication .
(ii)Adecision ordecisions under theannual budgetary
procedure once the Council hasacted inaccordance
with 8(iii ). TheCommission intends topropose
animmediate virement of30mio ecu tobemade from the
Social Fund .This will provide afirst tranche
offunds for the measures outlined above .The
Commission will make further proposals with aview toproviding
the ,balance of82mio ECU later inthe year bythemost appro­
priate means .
8. The Commission considers it essential
that the Council should take decisions on
additional social measures at its meeting on
24June inparallel with itsdecisions onother aspects ofthesteel
dossier ,infulfilment oftheCouncil 'sowncommitment tothis
.effect made on26/27March and asademonstration of
Council 'srecognition oftheinseparability ofsocial concerns
from industrial restructuring strategy .TheCommission thus
calls onthe Council totake decisions asfollows :
(i)toagree that theECSC should contribute
toallowances forearly retirement andshort -time
working ; ,
(ii)torecord aconsensus view ofthelegal base for
such measures ;
/(iii ) '
» . S
, ' ' A
(1)OJMoC118 of13May1980 ,page 6 j
(2)OJNoC197of4August 1980 ,page 60. .

(iii )toadopt formally adecision based onArticle
235oftheEEC Treaty which wuld enable the transfer
offunds from theEECbudget totheECSC budget ;
(iv)toendorse theCommission 'sintention subsequently to
propose avirement of30Mio Ecu from the Social Fund to
Chapter 54ofthe EECBudget foptransfer totheECSC Budget ;
Γ .
(v)toagree that afurther sumof82Mio ECU should be
• • ,
provided later intheyear bythemost appropriate means .

ANNEX
COMl81)318
AMENIEDPROPOSAL FORACOUNCILDECISION
withregardtocontributions tobegrantedtotheEuropeanCoal
andSteelCommunityoutofthegeneralbudgetoftheEuropean
Communities
(presentedbytheCommissiontotheCouncilinaccordancewith
thesecondparagraphofArticle149oftheEECTreaty)
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomic
CommunityandinparticularArticle235thereof.
1HavingregardtotheproposalfromtheCommission,
2HavingregardtotheopinionoftheEuropeanParliament,
Whereasdifficulties currentlyfacingtheCommunity'sironand
steelindustryhavemadeitnecessarytoadoptaprogrammefor
therestructuring ofthissectorunderthetermsoftheECSCTreaty;
Whereas,inlinewiththegeneralobjective?forsteelwithinthe
meaningcfArticle46oftheECSCTreaty,thisprogrammeconsists
ofaseriesofmeasurestorationalize production andraisethe
productivity ofthesectortothelevelwhereitcancompeteon
theworldmarket;
Whereasthisseriesofrestructuring measuresnecessarily includes
socialpolicymeasurestoalleviatetheeffectsonemployment ;
whereas,inthisconnection ,itisadvisabletomakefulluseof
therangeofresettlement aidsprovidedforworkersintheindustry
byArticle56(2)oftheECSCTreaty;
Whereasinitsresolutionof26/27March1981onsteelrecovery
policytheCouncilstatedonceagainthatitwasdesirabletomake
useofsuchmeasures :
Whereasinthepresentcircumstances thefinancialmeansprovidedfor
bytheECSCTreatydonotprovideadequatecoverforfinancingthese
measures ;
©/••

Whereasthesecondaryeffectsofthissituation,ifnotremedied,
would'beliabletoaggravateconsiderably theCommunity *ageneral
employmentsituationandtoimpairtheharmoniousdevelopmentof
economoactivities,andthiswouldunderminetheachievement
ofoneoftheCommunity *smainobjectives ;
WhereastheE03Gshouldthereforebegrantedcontributions charged
tothegeneral "budgetoftheGoflaaanltiestoallowtheGo!umiss?.on
toimplementsuccessfullythesooialmeasureswidert/^eresfcrnctuxiflg
programmeforthesteelindustryandtodealwiththeeffectsof
theintroduction of'productionquotaarrangements , •,
HASBBCIBRDASFOLLOWS? -
Article 1 -.■.-
Contributions n?ay"begrantedtotheEuropeanCoalandofceelGo&smni^j
(ECSC)outofthegeneralbudgetoftheEuropeanCommunitiesinorder
tocoverthe.Cownsxnity*sfinancingofthespecial'paymentsto
woi'lcersinCommunityironandsteelundertakings .whosejobsareclose
awaywithorthreatened,directlyorindirectly,astheresultof
arestruo'fcurirgpla."iadopted "bythexua&sr^akivig ,,thegrocipo*-
undertakingsorthepublic'authoritiesinaccordancewiththegeneral
objectivesforsteel*,
Article2
TheamountofthecontributionsprovidedforintheforegoingJLrtxcle
shallbedeterminedunderthebudgetaryprocedure-.
cWNoC-118,13MayI980?P*6
20-J'SoC197,4August1980,p.60

DRAFT EXPLANATORY MEMORANDUM REF
TRANSFER TOBEPROPOSED WHEN COUNCIL
HAS TAKEN NECESSARY PRELIMINARY DECISIONS
Rationale
TheCouncil atitssession on2*fJune 1981 agreed that in
the framework ofthe European Coal and Steel Community certain
social supporting measures inrespect oftherestructuring of
the steel industry should beinstituted ,part-financed from
ECSC funds .
ByDecision /81theCouncil further decided inprinciple
that themeasures should .befinanced byatransfer from the
General Budget totheECSC .sThe Decision provides that the
amounts tobetransferred are tobefixed bythe Budget procedure ,
and tothis end the Budgeting Authority has already entered inthe
1981 General Budget aChapter 5^»"Contribution toECSC forsocial
measures inconnection with steel restructuring ,"with atoken entry .
The estimated cost ofthemeasures tobefinanced in1981 is
112million Ecus .Inorder that astart may bemade right away ,
theCommission proposes that afirst tranche of30million Ecus
beprovided bytransfer .These being high-priority social measures ,
itproposes that the transfer should befrom the Social Fund
appropriations (15million Ecus from Article 501 ,"Measures for
young people ,"and 15million from Article 510 »"Measures to
improve theemployment situation incertain regions ,economic
sectors adapting totechnical progress ,orgroups ofcompanies ").
The Commission will make proposals for theremainder ofthefinancing
induecourse bytheappropriate Budget channel .