ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(76)545
Vol.1976/0167

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (76)545final
Brussels ,25October1976
AIDE-MEMOIRE
onthefixingoftheECSCleviesandon
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thedrawing-up oftheoperational budgetfor1977
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COM (76)545final

SUMMARY
SMÈ .
Preface 1
I. Gi'ÎJERA LINTRODUCTION • 3
A. ECONOMIC ASPECTS 3
1.The economic outlook for 1976snd1977 3
2.Prospects inthscoal Bector 6
3.Prospects inthe steel sector 8
B. THE POLICY COETEXT 12
1.Guidelines forcoal policy 13
2.Guidelines foriron andsteel policy 14
3.Guidelines for social policy 17
4.Borrowing nndlending operations since 31Deo,1975 19
5.The ECSC operational budget 20
/
C. FIMM2IAL C0KTEXT 21
II.ANALYSIS OPEXPECTED EXPENDITURE AND POSSIBLE
RESOURCES IFTHEFINANCIAL YEAR 1977 23
A. EXPECTED EXPENDITURE IN1977 24
1.Ordinary requirement s 24
2.Requirement snotincluded inthebudget –
loans forfinancing subsidized housing 38
3.Exceptional requirements ~Friull 40
4-Summary ofrequirements putforward 40

Page
S.POSSIBLE BESOHBCB3 41
1.Resources forthefinancial year 41
2.Covering ofrequirements notenteredinthe
budget 45
3.Summaryofpossible resources for1977i 45
III.DRAFTOFSRATIOWAL BUDGET FOR1977 46
A.RATSOPLEVYTOBEADOPTED 46
B.DRAFTBUDGET 47
ANNEXES
A.Implementation oftheEGSGoperational budget
for1975
B.Poreoastimplementation oftheECSCoperational
budgetfor1976
C.Breakdown ofloansforthefirstsixmonthsof1976
B«.DraftECSCoperational budgetfor1977i

AIDE-MEMOIRE
onthefixingof"-.heECSCleviesandon
thedrawing-ur ofoperational budgetfor1977
Following theusualpractice,theviewsoftheEuropean Parliament are
beingrequested beforetheCommission takesadecision onthelevies?r"i
theoperational :ud^stoftheECSCforthefinancial year19TT-
Thisaide-memoire fcrmsthebasisfortheconsultation ofParliament -
Itisdividedintothefollowing sections *
I.Introduction
II..Analysisofrequests submitted andpossibleresources forthe197?
financial year
III.Draftoperational budgetoftheECSCfor1977*
Thepresentation ofthedocument hasbeenchangedasfollowssincelast
year: ,
–thematerialinChapterIconcerning theeconomic ,political and
financial settinghasbeendealtwithingreaterdetail,part-calar1/
asconcernsthepolitical guidelines adop+edbytheCommissinin
respectofthecoalandsteelsector,inaccordance withtherequest by
theParliament satoutinpoint3ofitsResolution of18December 1^75
theannexesincludefurtherinformation requested "bythePii*]iamenton
trendsinbanking activities andthecollection ofthe.Tarriesduring
ihacurrentfinancial year,or,addedbytheCommission regards .
thefinalexecution ofthe1975budget.

-2-
Thedetailed reasoris fortheCommission proposal concerning the 1977
levies isgiven inChapter III.TheCommission nowrequests
Parliament toapprove theproposal that theQ.2<$ rate already in
force should continue to "beapplied in1977 *
o
o 0
The aide-memoire has also heen sent tothe ECSC Consultative Committee
for information .

I. GENERAL INTRODUCTION
ThiB chapter summarizes thefactors necessary forappreciating theeconomic ,
political andfinancial "background tothedraft operational "budget ofthe
ECSC for 1977 .
A. Economic aspects
1.Theeconomic outlook for1976 and 1977
Following thestrong phase ofexpansion atthe "beginning oftheyear and
theless firm progress noted during theSummer ,economic growth inthe
Community islikely tocontinue inthecoming months atamoderate pace .
Theoverall increase inGross Domestic Product fortheyear 1976 could
amount toclose on5/°inreal terms .For 1977 »"theprovisional forecasts
derived inparticular from theguidelines adopted uptothepresent in
economic policy suggest arate ofincrease oftheorder ofAc/o.Most
member States should experience aslowing ineconomic growth over theyear
asawhole .Only theFederal Republic ofGermany islikely toexperience
arate ofadvance significantly above theCommunity average .
Theexpected development inproduction during 1977 will probably only
lead tolimited improvement inemployment ;there isstill surplus
capacity inmost member States andadditional capacity created will add
tothesurplus . Inallprobability ,therate ofunemployment in
theCommunity could beintheneighbourhood of4%oftheworking popul­
ation ,which amounts toaless than satisfactory degree ofimprovement
formost member States ,Thenumber ofwholly unemployed intheCommunity
islikely tobeatleast ashigh asin1975 *

Intrar-Cc nmunity trade will continue toplay itspart inunifying the
markets ^asin1976 ,there will beaconsiderable increase in
Community internal' trade in1977 «Inmost member States ,investment
byfirms will show alimited degree ofexpansion with marked differences
between sectors .Thelevel ofpublic investment anddomestic housing
construction should notbevery different from theyear 1976 .Private
consumption will continue toincrease involume terms ,particularly in
those member States inwhich theimprovement inconsumer confidence is
reflected byalower propensity tosave .
Thefuture course ofinflation will depend essentially ontheoutcome
ofeconomic policies andtheattitude displayed byunions andemployers .
Short ofvigorous action bymember States ,such ashasalready been
undertaken insome cases ,there aregrounds forfearing that ,forthe
Community asawhole ,consumer prices will continue toincrease atan
over–rapid rate .Present trends could indeed beworsened asaresult
oftheeffects ofthedrought onagriculture ,thelatest currency
depreciations andworld price increases .Theunderlying rate of
inflation could notbeallowed tocontinue atthis level .Itwould
notonly place injeopardy theCommunity 'srecovery from economio
depression ,itwould also threaten itseconomio cohesion andgive a
lasting character tothedivergent price andcost trends ,asbetween
member States .
Continuance oftheeconomic recovery ,along with aworsening inthe
terms oftrade andthelonger term effects ofthe1976 drought (such
asimports offeeding stuffs )will bereflected byaprolongation into
1977 oftheCommunity 'scurrent balance ofpayments defioit .This is

notlikely tobeless than thedeficit fortheprevious year unless
import demand indeficit countries diminishes while world–wide demand
remains firm .The "balance ofpayments surplus ofthe OPEC countries
islikely toincrease in1977 »while thedeficits ofnon-petroleum
exporting developing countries andthose ofstate trading countries will
tend toreduce .The efforts applied bymost member countries to
reducing their balance ofpayments deficits will only beable tomeet
with success ,therefore ,iftheremaining countries intheCommunity
reduce their surpluses andifnon–member industrialised countries ,
notably theU.S.A. andJapan ,accept aworsening intheir current
balance ofPayments .
Thefollowing tables gives thetrend figures for theCommunity 'sGDP
during theperiod 1974 to1976 .
GROSS NATIONAL PRODUCT INVOLUME TERMS
($variation ascompared with theprevious year )
1974I ")
1975 1976
ι
Belgium 3.9 -0.8 3.5
IDenraark j1.6 -1.0 5.0
JFed.Rep.ofGermany 0.6 -3.5 6.0
IFrance I3.9 -2.0 5.0
IIreland 0.4 -0.5 3.5
Italy 3.4 -3.7 4.5
ILuxembourg 4.4 -7.7 3.0
INetherlands 2.9 -0.9 3.5
IUnited Kingdom0.3 -1.6 3.0
Community 2.0 -2.5 5.0
Source :Commission estimates

_6-
2.Prospects inthecoalsector
Astheeconomicrecoveryobservedin1976isexpectedtocontinue,energy -
consumption islikelytoincreasein1977compared with1976,hutitis
verydifficult topredictwhattherateofincreasewillhe,sinceitis
impossible toknowatpresentwhetherornotthesectorswithahighenergy
inputwillexpandtothesameextentastheeconomyasawhole.
Withtheincreaseinthegeneral demandforenergy,thedemandforcoalwill
alsohedecisively influenced in1977bythetrendincertainsectorssuchas
thesteelindustry andtheelectricity sector.
Community steelproduction willbehigherin1977thaninI976simplybecause
ofthegeneraleconomicsituation ,butbecauseitisimpossible toforecast
theeffectofadditional economicfactorspeculiartothesteelindustryit
isdifficult tomakereliable estimates abouttheexpansion ofsteel
production .Bearinginmindthattheconsumption ofcoalandcokeinthe
steelindustryisbeingrationalized ,thebestthatcanbeexpected in1977
isaslightincrease inthedemandfortheseproducts.
Intheelectricity industry ,however ,thedemandforooalislikelytopickup
slightly more.!Byvirtueofthelevelofeconomicactivity therateof
increase intotalelectricity production willprobably beclosetothenormal
annualrateofabout7f0.Itcanbeconcluded that,asaresultofthe
specialaidmeasures toboosttheuseofcoalinpowerstations andthegreat
droughtof1976(affecting thegeneration ofelectricity inhydro-electric
powerstations),coalwillhelptoincreasetotalelectricity production in

-7-
1977tthoughitmustnotbeforgotten thatthepotential demandforcoal
isdetermined toalargeextent "bythecommissioning ofnewnuclearpower
stations orotherpowerstations .
Therateofextraction ,pit-head stocksandimports fromnon-member
countries willbeadequate tocover1977requirements ,butitisdifficult
toevaluate theproportion inwhichthesethreesourcesofsupplies will
beused.CoalimportsfromoutsidetheCommunity willprobably bemuch
thesamein1977asin1976",thiswouldmeanthatincreases indemand
couldbesatisfied byCommunity coal.However ,theinternal arrangements
madebythefirmswilldetermine whether andtowhatextentitisstocks
orextraction whichwillbecalledon.Lengthyexperience leadsoneto
supposethattherateofextraction willremainstableandthatextra
demandwillbecoveredbystocklifting.
Allinall,itcanbeassumedthattheCommunity coalmarketwillnot
differappreciably in1977from1976.Consequently ,atbesttotal
production in1977couldbebetween 250and255millionextracted tonnes
comparedwith257milliontonnesin1975 250milliontonnes(estimate )
in1976.
Asregardsthefinancial situation oftheundertakings ,thecoal
industryisatpresentrunningintoliquidity problems.Largestocks
areblocking liquidassetsworth2000million EUAandareaffecting

-8-
theimplementation ofinvestment programmes .Even asmall reduction
instocks could improve matters .Thehigh cost ofhank loans are
having anunfavourable effect oncosts .
Asregards revenue ,acertain amount offluctuation must beexpected
in1977 .Production costs will certainly continue togouphut itis
uncertain whether these increases incosts canheoffset byprice rises .
Thetrend inoilprices andworld coking coal prices will determine
whether themarket canabsorb price increases in1977 without sales
being affected .There aresigns that prices might beraised ,andif
theincrease inproduction costs cannot befully offset byprice rises
more State aidwill beneeded forthelong-term maintenance ofproduction
capacities intheCommunity .
3.Prospects inthe steel sector
I
Inthefirst five months of1976 thegeneral economic recovery ,the
first signs ofwhich were seen intheMember States oftheCommunity
inautumn 1975 ,hasclearly consolidated andinfact inanumber of
Member States afresh injection ofconfidence hasresulted ina
speeding-up oftheincrease inthelevel ofdemand andproduction .
However ,sofartherecovery intheCommunity hasbeen limited toa
large extent tothesectors producing semi-finished products and
consumer goods while activity inthecapital goods industries andin
thefield ofexports ,although starting topiok up,isstill sluggish
inmost oftheMember States .

~9-
Therecovery intheCommunity staexindustry which "beganarou/id
October 1975continued inthefirstquarterof1976.Theneworders
forordinarysteelreceived bytheindustry inthefirstquarts-show
anincreaseofalmost31^>overtheordersrecorded whenthtcrisi3was
atitsworst,i.e. .,inthethirdquarterof1?75«Despiteihisbig
increase ,thenewordersreceivedinthefirstquarterof1976arestillmarkedlyluvier(by<ibout13$)thanattheendof1973an-i.c'uring
thefirstmonil.^n?1974® Themainfeatureoftherecovery i.norder
booksinwinterandspring1975/1976isthatitwasconfinedsolelyto
theCommunity market,sinceexportorderscontinued tostagnate atthe
lowleveltowhichtheyhadfalleninthesumcerof1975.aresxilt
theordersplacedwithCommunity producers byCommunity usersinthefirstquarterof1976areabout8folowerthattheaveragel3"el'f
ordersrecorded inthepeakperiodofthelastquarterif1973andthe
firstsixmonthsof1974»Comparing exportordersontheFamebasis,
thefalling-off wasabout4C$«
Monthly crudesteelproduction intheCommunity brokethe11million
tonnebarrierinMarch1976,havingfallento10millior -te^iesduring
thecrisisperiodin1975*Inthefirstmonthsofthesurtinoritr'nched
12millions tonnes *Production isthusstillWellbelowtherecordle­
vels(betjween13and14milliontonnespermonth)of1974»largelybe­
causeofthereduction of1to2milliontonnespermonthinnetexports
compared with1974»I"tshouldalsobenotedthatevenwithapreduction
levelof12milliontonnestheaverageutilization ofoapacitj^s inthe

10-
Community willnot"bemuchmorethanlOfo,compared ,itistruewith
thefigureoflessthan60foduringthelastcrisis.Thereduction
inthelevelofproduction compared with1974ismoreespecially
markedintheBLEUandtheFederalRepublic ofGermany,thecountries
hardesthitbythefallinexports.
Theupwardtrendhasnotcontinued inthesecondhalfof1976.Since
Apriltheordersreceived bytheCommunity steelindustry havestagnated
tosomeextent. T.
Thepricesofrolledproducts havecontinued toconsolidate onthe
Community marketsincetheendoflastyear.Theriseinlisted
pricescontinues tobemoreaccentuated forcertainproducts suchas
cold-rolled products ,coilsand-morerecently –hoopandwirerod.
Priceshave,risenlessmarkedly forconcrete reinforcing barBand
heavyplate.However,thebasicpricesfordeliveries madeuptothe
endofthesecondquarterof1976arestillbelowthehighlevelsof
1974.
Theeffectofthisincrease inpricesistobringreturnstothelevel
ofcostswhichhavecontinued torisesince1974.Ingeneralthesteel
industryisnowbeginning toshowaprofit,albeitanextremely ,mo&'eEt
die,aftermorethanayearofmassivelosses..
Thereisnoappreciable increaseinthepricesofexportstonon-member
countries .Quotations haveremained atthelevelsoftheendoflast
year,theonlyfavourable factorbeingthestability ofthedollarfor
salesmadeinthiscurrency.InAprilandMay1976theonlynet
increase inpricesobtained bythecompanies wasforsalesofhoopand
cold-rolled sections .

Therehasbeenamarkedincrease mimportsinrecentmonths.
Becauseofthecontinued sluggishness oftheworldmarket,exportsarestillabout40$belowthepeakreachedin1974*
Asregards employment ,short–time workingintheCommunity steel
industry hasbeenconsiderably reduced,atleastintermsofthe
numberofworkersaffected bythirtypeofunemployment ,Forecas+s
prepared bythefirmsfor May1976showlessthan40000workers on
short-timecompared with107000inMarch1976and223000inDecember
1975*Afurtherfallwasregistered inthethirdquarterof1976.How­
ever,someshort–timeworkingremainsattheendofthequarterincer­
tainsub-sectors ,becauseofthelowdemandforcertainproducts.Du­
ringthefourthquarter,short–timeworking mayagainincrease ,parti­
cularlyinthelongproducts andthickplatesectors.
In1976production ofcrudesteelisexpected tobeabout134million
tonnescompared with125milliontonnesin1975»Aftertherecordto­
talof156milliontonnesin1974»theproduction estimated £or1976
wouldmeanthatonlyathirdofthereduction in1975 beenmade
good.Theinitialestimates ofthegeneraleconomictrendpointto
continued economic expansion in1977•Ifthisturnsouttobecorrect,
steelproduction couldalsocontinuetoincrease toaround145million
tonnes.Thisestimateisratherunreliable astheprospects forthe
exportofsteelproducts ,likethoseforindustrial products,arestill
verydifficult topredict.Thesameappliestoinvestment ,onwhich
mostofthesteelproduction depends *

B,Thepolicycontext
Thegeneralobjectives oftheECSCarepermanently established inArticles
1to5oftheTreatyofParis.
AsprovidedforinArticle46oftheTreaty,theCommission periodically
laysdowngeneralobjectives forthefuturedevelopment oftheECSCcoal
andsteelindustries afterconsulting thevariouspartiesconcerned ,includ­
ingtheECSCConsultative Committee .Although theseobjectives areinno
waybinding,theygivegeneralguidance asabasisfordecisions which
affectthefutureexpansion oftheproduction capacities .Theyalsoinclude
asection onmanpower problemsintheseindustries ;thisexplains theback­
groundforthevariousbranches ofsocialpolicywhichcomeundertheHigh
Authority/Commission tyvirtueoftheprovisions oftheTreaty.Theseob­
jectives alsodepictthespecial economic environment withinwhichthe
Community pursuesitstaskoffinancing ECSCinvestments .Thisinformation
isfurthersupplemented bytwoyearlyreportspublished bytheECSC,oneon
theresultsoftheinvestment surveyintheCommunity coalandsteelindus­
triesandtheotherafinancial reportontheborrowing andlendingactivities
oftheECSC.TheCommission hasalsoatParliament 'srequestsentitareport
ontheborrowing andlendingpolicyoftheCommunities ,inMarch1976.
?heremarkswhichfollow ,arenotintendedtosummarize ortoreplacethe
policyguidelines referredtoabove.Theywillbeconfined ratherto"cer­
tainkeypointsorrecenteventsthattheCommission feelsshouldbehigh­
lightedasbeingofrelevance tothedraftoperational budgetoftheECSC
for1977.Theseremarkstherefore dealwiththeindustries ,thesocialpo­
liciesoftheECSCandthefinancial activities ofthecurrentyear.Some
oomments arealsoaddedontheoperational budgetandrelatedprocedures .

-13-
1.Guidelines for coal policy
Itgoes without saying that theguidelines laid down bytheCommission
forthecoal industry come under theCommunity 'senergy policy .
Initscommunication totheCouncil inJanuary 1976 onthe "implementation
oftheenergy policy ^ui-Aeline® ?drawn upbytheEuropean Council atits
meeting inRome ou iand 2December 1975"»theCommission setoutgeneral
outlines forfurther proposals onCommunity energy policy .Ithoped that
theCouncil would hold adiscussion inprinciple onthematter before
approving thedraft resolution .Although this hope proved unfounded ,the
Commission nevertheless considers that theproposals putforward forthe
coal industry atLhat time arestill valid andarestill just aspressing .
First ofall ,theCommission feels that thecoal-mining industry should
berelieved ofpart ofthefinancial burden involved byreason ofthe
increase instocks held .This stock-piling isdesigned toimprove
elasticity ofsupply intheindustry andtohelp achieve theCommunity
objeotive ofmaintaining production ,thus increasing security ofsupply .
Asavery rough estimate ,theCommission feels that amaximum of
50million u.a .should beallocated yearly from theGeneral Budget towards
achieving this objective .Because oftheuncertainties ofthepresent
Bituation theCommission hassettled foranewtoken entiy (Article 322)
initsdraft budgut for 1977 *

Secondly ,"theCommission haaproposedextending thepresent Bystemof
aidforcokingcoaluntil19^5»soastoincludethewholeofthe
periodcoveredbytheCouncilresolutions onobjectives forCommunity energy
policyandbytbsCommission'scommunication on"Medium-term
guidelines forooal1975-85"•annualcontribution fromtheECSC
"budgettothisfinancing operation iscurrently runningat6millionu.a.
Thirdly,theCommission intendstosuismittotheCouncilaproposalto
encourage theuseofcoalfromallsourcesinthermal powerstations .
Thismeasureisdesigned tosupplement thedirectives adoptedbythe
Councilin1975onlimiting theuseofnaturalgasandpetroleum
products inelectricity powerstations .TheCommission feelsthatthe
appropriations required toencourage theuseofcoalinelectricity
powerstations shouldalsocomefromoutsidetheECSCbudget.TheECSC
id11alsomaintainitsexisting policytinderArticle54oftheTreaty
forthegrantofloanstoassistinvestment fortheconstruction ofther­
malpowerstations.
2.Guidelines forironandsteelpolicy
TheCommission sketchedthebroadoutlinesforCommunity steelpolicy
inyearstocomeinitsrecentdocumententitled "Generalobjectivesforsteel1980/85"•Thisdocument showsthatsteeldemandand''
Community steelproduction willnotincrease aarapidlyoverthenext
fewyearsastheyhavedoneinprevious years.Thistrendaccountsfor
themainproblemsanticipated infuturesteelpolicy.

-15-
Whereas formerly theaccent hasbeen placed onthethree following objectives
increase ofproduction capacity ,reduction ofproduction costs andimprovement
inproduct quality ,inthefuture thetwo last ofthese points which directly
relate tothecompetitivity oftheindustry must hetaken aspriorities .
Thethree determinant factors forincreasing productivity are :
–tosecure supplies ofrawmaterials onthetest possible terms
–tomake full use ofanypossible scope forrationalization within
theiron and steel industry
–tostrengthen research effort .
Asthepresent supply situation forrawmaterials issomewhat difficult ,it
falls totheCommission ,under Article 54ofthe ECSC Treaty ,todoall itcan
tofacilitate thecarrying out ofinvestment inthis field .Asregards improv­
ingcompetitivity and steel quality ,only asustained technical research drive
canmeet these needs .The same consideration applies with regard tothe
rationalisation ofthe steel industry .That iswhytheCommission forsees a
considerable increase inlending activities .
Astothequalitative improvement oftheproducts andreduction incost price
asustained development oftechnical research could well meet theneeds .
Technical research must also look into other problems like therational
reutilization andrecycling ofrawmaterials andenergy ;thedevelopment ofnew
production processes lending tolower-cost production and less harmful tothe
environment than thetraditional methods and ,lastly .

-16-
theimprovesntofmeasuring andanalysistechniques ,bothforqualitycontrol
andfortheautomation ofplants.TheCommission oughttomakethewidest
possibleuseofthisfieldoftheprovisionsinArticle55oftheTreatyof
Parisonthepromotion ofresearch.
InJulytheCommission adoptedtheguidelines concerning short-term policyintheironandsteelsectorthatitintendstofollowtocopewiththe
problemofmanagingthissectorwhichoccurredintheperiodofeconomiccrisis.Theaimistosetupmachinerytohelprestoreproperfunctioning of
themarketandtoallowtheundertakings tooveroomstheirdifficulties in
timesofcrisis.

-17-
3.Guidelines for social policy
Asageneral rule ,social policy carried outunder -theTreaty ofParis is
notdissimilar 'tothepolicies later developed bytheEuropean Economio
Community .ECSC aid toresettlement andretraining thus hasaims and
methods •which largely reappear intheregime ofthesocial fund ,,
while ECSC redevelopment .aidclearly falls under thesame heading as
theregional fund but this operates inabroader context .
However ,legal differences andesoecially thefact that ECSC aid isfinanced
.bythe industries result ,inamore robust aid system .'Payment is
mandatory ,axleast forworker retraining ,because ofthebilateral
agreements between theHigh Authority /Commission andtheMember States .
Theredevelopment aid system ,likewise ensures that this aidwill create
jobs whioh will bereserved primarily lorworkers from theECSC
industries .Furthermore ,since 1955 »"theECSC has pursued apolicy
ofaidfor theconstruction ofhousing forworkers inthese industries .
InJune 1976 ,theHigh Authority /Commission informed theConsultative
Committee ofitsposition regarding theapplication ofinstruments of
social policy which areavailable toitunder theTreaty ofParis to
social aspects oftheproblems ofstructural and teohnologioal
unemployment which have arisen asaresult ofpresent trends inECSC
industries ,particularly theiron and steel industry .Itmade three
points :
–TheCommission recognizes thefundamental importance ofmaking
comprehensive studies ofthose regions affected byiron and steel
problems with aview todefining clearly thespecific difficulties
which canbeanticipated .This work could beincluded with that
ofworking outregional development programmes which theMember
States have already began inaccordance with therules governing the

-18-
regional development fund,astheareasaffected bystructural changes
intheironandsteelindustry aremainlycoveredbytheareaseligible
foraidfromtheregional fund'.TheCommission alsoseekstopromotestudiesundertheTreatyofParis(Article46),invitingthecooperation
ofMemberStatesindispensable tothisendundertheprocedures stipulated
inthisArticle ;
-theComiiiission feelsthatArticle 56oftheTreatyofParisstillremains
asoundinstrument permitting it,theCommission ,tofindthebestres­
ponsepossibletotheproblems ofstructural employment whichcanbeex­
pectedintheECSCindustries }
–inviewofthestructural changesintheironandsteelindustry whichare
anticipated inthecomingyears,theCommission intendstoextendits
activitydirectedtothefinancing ofinvestment likelytocreateemploy­
ment–forwhichitcangrantloansatreducedratesofinterestwithin
thelimitoftheinterestarisingfromthesumsnotborrowed-inorderto
takeaccountbothoftheconsequences ofrationalizing andmodernizing
theseindustries andofthoseofmarketchanges.Thefirstparagraph of
Article5603SG(rationalization )wouldhenoeforth applywhereverpossible sofarasfundspermit.Hitherto ,infact,onlytfiesecondparagraph (changes
inmarketconditions )hasbeenapplied.
Lastly,itshouldberecalledthatbecauseofthe20orsoironandsteelfirms
situatedthere,theCommunity solidarity actionadoptedbytheCommission in
June1976following theearthquake whichaffectedthePriuliregioninItaly
includesacontribution fromtheECSC.Infact,ithasdecidedtograntloans
atreducedratesuptoamaximumamountof6million BtJAforrebuilding homesand5
million EUAforrebuilding factories.Applications beingconsidered atpresent
represent atotalof5million EUAforhousingand3millionHJAforfactory
investment .

-19-
4.Borrowing andlending operations since 31December 1975
TheECSC financial report No21summarizes the "borrowing andlending
activity oftheCommunity over the1975 financial year andpresents
analytical andcumulative statistics forthewhole ofsuch activity
since the "beginning .
The total amount ofborrowings raised in1975 was 731million EUA .
Thetotal amount ofloans onlent over the same period was
805million EUA.Thetotal amount ofborrowings andlendinge since
thevery "beginning thus rose to2&J2mEUAand 2908mEUA
respectively (including 152mEUAinloans from non–'borrowed funds ).
Thetotal amount of "borrowings outstanding at31December 1975 reached
2391mEUA .
During the1976 financial year ,thefinancial activities oftheBCSC
have continued todevelop inorder tomeet thedemand from undertakings .
Inthefirst half oftheyear ,thetotal amount ofborrowings raised
was668mEUAandtheamount ofloans onlent 766 mEUA.Thetotal
amount of "borrowings outstanding thus Blightly topped 3000mEUA
at30June 1976 .
TheECSC has oontinued toobtain favourable conditions onthe capital
market .Themost significant borrowings ,namely 75million USdollars
over 8years and$100 million over 20years were raised onthe
New York market under the most favourable conditions sofar obtained
onthis market this year .
Twoloans have been granted forinvestments outside theCommunity ,
designed toconsolidate thesuDoly ofrawmaterials totheCommunity
iron and steel industry *
Given thedemand tobemet ,ECSC financial activity over thecoming
months canbeexpected tocontinue atafairly .intensive level .
"Thetable shown inAnnex Ctothis memorandum gives abreak–down of
theloans onlent inthefirst half ofthe1976 financial year »

-20-
5.The ECf'J operational "bud /ret
Within the ';iven economic ^ndpolitical setting ,which represents more
anindirec :than adetermining constraint inthepreparation ofthe
"budget andtheconsequent deoision to "betaken onlevy rates ,the
budgetary procedures andthecategories ofaction andfinancial
operations tobecarried outviatheoperational budget have ,for
some time ,been quite firmly established either bytheTreaties
orbypractices accepted bythebodies concerned forseveral years .
However ,inanattempt tocodify this practice andtoupdate itto
take account ofthenewbudgetary guidelines already applied tothe
General Budget ,theCommiRsion Adopted on2An*rust 1976 anumber of
"Internal Rules fordrawing-up andimplementation oftheECSC
operational budget ",thereby bringing -together inasingle document
provisions comparable tothose applying totheGeneral Budget .
During theyear theCommission hasacted ontworecommendations set
out iffPoints 6andfoftheAesoJhition adopted bytheParliament
on18December 1975 concerning thefixing oftherate oflevies
andthedrawing-^up oftheoperational budget for1976 s '
-byvirtue ofDeoision 755/76/ECSC of31March 1976 (OJNoL89of
2April 1976),theCommission deoided topostpone bytwomonths
thedate onwhich thelevy onsteel production forthemonths of
March-December 1976 ispayable ,
-byDecision No2239/76/ECSC of15September 1976 (OJNoL252>of
16September 1976 )theCommission hastaken steps torestrict the
increase intheaverage values used tooaloulate levies ifa
falling-off ineoonomic activity points toaooming drop inaverage
values incomparison with thevalues recorded over thereferenoe
period .

Duringl?76/77ftheEGSCfi.ia-cesare-havingto"bearunexpectedsocialoasisinviewofthesectoralaidalreadyreferredto
aboveandapprovedbytheConwnii;;??onforthevitalreconstruction
workfollowing theearthquake avfciohbittheFriculirsgioa.The
aidisintheformofreduced -rat®loans-
CeFINANCIAL CONTENT
Asregardsthefinancial back ,groundtothepreparation ofthe1977
opei'ational "budget ,it.naybenotedthat:
–riseinpricescontinuestolieanImportantfactorinassessi.ijfore­
casts.Sparing the1976and1977financial years,itmayhe
assumedthatcostswillincrease "by9or1C$;• '
–iirfceresferatsscontinuetoreachafairlyhighaveragelevel?
this?:r.reststhatdespitethsCommission'sdecisiontopostponethedas.o£whichleviesforthemonthsofMarch-December 1976
aredue,thereturnonliquidassetsforthecurrentyearwillenaole
apig?:4*sa.ntcontribution tobemadetothecurrentresources
oftheoperational budgetfor1977®

»22-
Following Commission Decision No3289/75/B3SCof18December 1975
introducing theadoption bytheECSGontheEuropean Unitof
Account (SUA)jthiaunitofaccount Twhichisbasedonabasket
ofComnrunity currencies ,hasbeenneedinallcperations underthe
operational budgetsince1January1976#Theimplementing
procedures forthevaxiousfieldshavebeenapproved bytha
Commission ai5.c".incorporated intotheinternal budgetary rules
whichwereadoptedon2August1976®
Whereastherehavebeennoinsurmountable problems sofarover
sheintroduction oftheEUAsystem–tinderwhichalldebtsand
claims -andanincreasing numberofpayments issuedbytheCommunity
havetobeexpressed iaEUA–itsintroduction hascalledrora
speciallearningeffortbothonthepartoftheCommission's
administrative departments and"bythosepaying -thelevyorexe­
cutingECSOcontracts.TheCommission ispleasedthatthiswork
hasbeensuccessfully completed#

-23-
*1•ANALYSISOFEXPECTED EXPENDITURE AM?"POSSIBLE RESOURCES INTHE
FINANCIAL YEAR1977
Article49oftheTreatyestablishing theEuropean CoalandSteelCommunity
authorizes theCommission toprocurethsfundsitrequires tocarryoutthe
activities laiddowninthatTreatybyijiposing leviesontheproduction of
coalanasteel.Pursuant toAiviil?50,theseleviesareassessed annually
onthevariousproductsaccording ;othair"averagevalue",butthe"rate"may
notexceed1$unlesspreviously authorized bytheCouncil.
Forthepurposeoffilingthisrate,itisnecessaryfirsttoestimate
finalising "'requirement s;aitithentoseehowfartheycan'bemetfromresources -otr.erthantil®levies,inparticular interest oninvestments andonloans
financed outofCP-J5.V.Asourcesandalsoprovision cancellations *Inthis
way,theamounttocoveredbytheleviescanbedetermined .
Inaddition,~onthe "basin\fapreliminary assessment oftheaveragevalueofthevariousproducts andgiventhelikelyvolumeofoutputduringtheyear,theprobableyieldf-.-omonelevy"point",i»e.,fromarateof0.1$,is
calculated .Thiscalculation ,therefore ,hingesonanestimateofoutput
whichisdifficult topakeowingtotheextremesensitivity oftheindustries
concerned toanysuddenchangeinbusinessconditions .
Itis.f^enneoir'sary todetermine to-what-ExtenttheCommunity /.-skouldforego
financing theertixetyofthe .requirementsreport ed-whidxeome wellasoveresourcespicicadbythepresentrate.;orto%:haiextenttherateshould
berevised ttyfardssordownwards .
Since1972,shoratehasbeenfixedat0.29%

-24-
Thefollowing presentation ofexpected expenditure andforeseeable resources has
•;enrearranged andismodelled on.thesystematic analysis ofthedataonthe
different budgetheadings intheGeneralBudget,aashowninPartIIofthe
GeneralIntroduction tothePreliminary DraftGeneral Budgetforthe
financial Year1977*Itcontains anumberofminoramendments tothe
nomenclature usedmadenecessary bytheinternal budgetrules.Aswiththe
CeneralBudget,thispresentation listsseparately themainfeatures ofeach
chapter(legalbasisanddescription ofoperation ^typeandbre&Kdown of
jxpenditure ,explanation )..To"permitabetterassessment theexplanations rtiven
fornon-compulsory expenditure (research a&dinterest "subsidies )as»emore
fullthanfortheotherchapters *-
1,.EXPECTED EXPENDITURE IN1977
1-OHJIMBY HEQraHE KEHTS
CHAPTER31-PUMHIM ?COSTSiADI-IIMSTRATIVE EXPENDITURE
!.Legalbasisanddescription ofoperation
Legalbasis:
-Article 50oftheECSCTreaty.
–Article 20oftheMergerTreaty. /
ECSCcontribution totheCommission 'soperating expenditure .
2.Typeandbreakdown ofexpenditure
Annuallump-sum payment madein12equalmonthlyinstalments .
3»Explanation
Theamountof18millionu.a«(unitsofaccountoftheGeneralBudget)
laiddownintheMergerTreatyisstillapplicable .

basiss
–Ar+.ioL&a 5®art^5* -<'reaT'y
.. &^«®bv.r:~ccuclucsd betweenth«3HighAuthority/COBB:'.«A
*:v:'tisegov^iw^nta ??theMemberStates®
TUsHighAu+herity/oooraiinsion providesnon-repayable aidtovards:
-tb«.paymentoftideoverallowances ■t.oworkers ?
-t".i9paymentofresettlement allowances toworkers }
-"6hafinancing ofvocational trainingforworkershavingtochanget-
employment®
1-hegranto'-"th®aidisconditional uponpaymentbytheState eonce~-
^cor-'-itionofnotlessthantheamountofthataid*/unless «*
e-ro-jptiOiv .:^at.'iorized ayt-hsCouncil,aoting "byatwo-thirds majoi-.it
2»'l^/pa,&,''-i.-3s.:>dowKofexpend!ture
iir.rK;r.I:ir fundsintendedtosubsidize ybymeans'-ofa5"^re3.1uou.r -9
meiiiyc"''-.--.ittireincurredIsy.tUego^&mrnents within *the'«o7••*•cf+-.'.£•■
a^roeip -;-;.■;signed.'

-26-
'i'hebreakdown byproductandbycountryoftheexpenditure estimates made
"bythegovernments isasfollows :.
mEUA
Country Coal Ironandsteel
ironoreTotalper
country
|FederalRepublio
|ofGermany 5.5 3 8.5
IBelgium 1.5 1 2.5
jPrance1 4.5 5.5
UnitedKingdom 3-5 2.5 6
Other 0.5 ,2 2.5
Totalperindustry 12 13 25
Thesocialrepercussions ofthepresentsituation arestilldiffioult to
predictanditistobenotedthattheforwardfiguresaxehighlyunreliable .
3.Explanation
Thecoalindustry'sforeseeable expenditure isdownon197°,mainlyas
aresuitoftheprogress madeinrationalizing theindustry intheFederal
Republic ofGermany.Bycontrast,foreseeable expenditure intheiron
andsteelindustry hasrisenowingtothegradualrationalization and
restructuration oftheindustry.Onbalance,thelevelofexpected
expenditure inthetwoindustries isstill,therefore ,relatively stable
(25mEUAfor1976andfor1977)*representing aslightfallinrealterms
onceprioeinflation istakenintoaccount.

-27-
CHAPTER B3–AID TORESEARCH
1.Legal basis anddescription oftheoperation
Legal basis :Articles 50and55oftheECSC Treaty
TheHigh Authority /Commission grants nonrepayable aidtofinance
technical andeconomic researoh relating totheproduction andincreased use
ofcoal and steel andtooccupational safety inthe coal and steel industries .
2.Type and "breakdown ofexpenditure
Earmarking ofthe amounts intended forpart subsidies which take the
form oftherepayment ofaproportion oftheactual costs ofresearch
projects approved bytheHigh Authority /Commission inaccordance with
theprocedures provided forintheTreaty ;these cover ,inparticular ,
theconsultation oftheECSC Consultative Committee andthereceipt of
theCouncil 'sassent .Inmost cases theaidgranted amounts to60$of
the estimated and justified costs .
/
Theapplications canbebroken down asfollows :
mEUA
Heading Sector Aid requested
Β3.1 Steel 44.5
Β3.2 Coal 32
Β3.3 Social and medical 9.3
TOTAL 85.8

-28-
3„Ebcplanatior
Steel research .
Thegeneral orientation oftechnological progress within theCommunity
andthemeasures to "betaken toachieve these goals uptotheendof
thepresent decade arecontained inthe "General Objectives forSteel
1975-80® *.Inoutlining thespecific strategy to "beapplied in
connection with theresearch programme to "beadopted in1977 ,itis
first neoessary toexamine certain aspects ofthecurrent situation
within theCommunity 'ssteel industry .
Following theserious drop indemand forsteel in1975 andtheconsequent
very lowlevel ofutilization ofproduction capacity intheCommunity ,the
industry hasdevoted considerable efforts -byimproving efficiency and
productivity -tominimizing theimpact ofthis recession ?these
operations have demonstrated thevitally important contribution that
newtechnology ismaking andwill continue tomake towards achieving
improved manufacturing methods andreductions inproduction costs .
Indeed ,such measures areessential toensure thelong-term competitivity
oftheindustry .
Furthermore ,theprevailing economic climate within theindustry'
continues toexert considerable pressure onthefunds available for
research anddevelopment .Thus ,thecontribution being made bythe
ECSC totechnological progress inthesteel sector isofincreasing
importance fortheindustrial laboratories ,theresearch institutes
andtheuniversities participating inthis collaborative research
effort .

-29-
Inaddition totheproblems resulting from alowlevel ofdemand and
theweak export markets ,anexamination ofthefuture pattern of
development ofthesteel industry indicates that international
competition -already severe -will intensify further .This
competition ,which will range from differences inproduct quality
andsophistication tostraightforward price differentials ,will oome
both from the established steel-producing nations and from the
rapidly-expanding steel industry ofthedeveloping world .Further
technological progress andinnovation bytheCommunity 'ssteel
industry will beessential ifitistocontinue tomeet this challenge ;
this will beachieved only iftherequisite long-term research and
development work isundertaken ;theimplications fortheECSC
programme areobvious .
Oneofthemost important aspects ofthefuture developnant ofthe
Community 'ssteel industry concerns therawmaterials (particularly
energy )forwhich theCommunity 'ssteel producers areheavily dependent
onexternal sources ofsupply .These materials notonly represent the
largest single itemofcost insteel production (approximately
55to60$oftotal costs ,ofwhich energy represents onehalf ;but
they aretoday international commodities subjected toworld fluctuations
inprice anddemand .There areenormous pressures ,therefore ,to
utilize rawmaterials more efficiently andtohave ,thecapability of
substitution ,e.g. replacing ooke byoilorreducing gases intheblast
furnace orscrap bysponge iron insteelmaking ,asdictated by
availability oreconomic factors .While theECSC hasalready made a
significant contribution totechnological developments inthis field ,
further Community research will beessential toensure greater
flexibility andeconomy intheuseofrawmaterials .

-30-
Tomeet spec ,fioneeds within theCommunity 'ssteel industry ,priority
vd.ll hegive :,tothefollowing areas ofresearch :
-energy utilization (reduced consumption ,improved effioienoy and
flexibility );
-casting (conventional andcontinuous )andprocessing ofsteel (to
increase productivity andtoenhance thequality ofsemi-finished
andfinished products )}
-properties ofsteel (particularly weldahility ,resistance tocorrosion
andwear ,toachieve further improvements inservice performance
andthereby extend the"useful life"ofsteel structures )?
-utilization ofsteel (toexpand markets andthus demand .This will
include farther support forthedevelopment andapplication of
steels toexploit available energy resources e.g. off-shore
structures ,steel gasandoilpipelines ,etc.);
/
-measurement andmonitoring (tofarther advance automation and
mechanization ofproduction processes iniron-andsteelworks ){
–basic research (ranging from iron–andsteelmaking tophysical
metallurgy ;essential toprovide thenecessary background for
future technological development inferrous metallurgy ).

Coal research
Thecoal research requirements areclosely based ontheCommunity 's
energy policy objectives ,particularly theobjective laid down bythe
Commission andCounoil ofmaintaining theproduction level at250mtee
peryear upto1985 *Ifthese productivity andproduction targets
aretobeachieved ,research must bestepped up.Thefirst effects
arealready being felt *
Thetechnical research targets adopted bytheCommission andpublished
on30January 1975 (OJNoC22,30January 1975 )advocated ,in
particular ,thegrant ofannual aidtocoal research ,totalling sane
15-20 mEUA ,topromote research projeots intheextraction and
upgrading ofcoal *
Furthermore ,inview oftheinadequate coking coal reserves andtheir
high price ,additional efforts must bemade todevelop alternatives ,
such asformed coke .Theapplication ofsuch alternative processes
will produce favourable results from twoviewpoints :theupgrading of
Community coal anditsuse ascoke fortheiron andsteel industry at
lower oosts .
Finally ,within theframework oftheenergy policy ,ECSC aidmust be
granted tocertain projects ofapreliminary andfundamental nature in
thefield oftheconversion ofsolid fuels into hydrooarbons .

-32-
Theapplination8whiohhavealreadybeensubmitted ornotified conoern
thefollovingresearch projects :
Undergrerjnd
-preparatory work
-firedamp ,ventilation ,atmosphere and
stratapressure
-winning andworking
-generalfacilities underground
-automation andeconomios ofoperations
Upgrading
coking
coalpreparation
Conversion intohydrocarbons
-gasification
-coalliquefaction

Social and medical research
Thesocial research requirements relate mainly toworking conditions ,
safety atwork ,environmental protection andtheprotection ofworkers *
health inthe ECSC countries .
Theundertakings andtheir technical departments still urgently require
solutions toproblems arising inthefields listed above .Theproblems
ofprevention aredirectly linked with thefunctioning ofthe
enterprises ,andrequire tobere-examined with each newtechnical
development introduced into theindustrial processes .
Theredefined medium-term objectives forcoal andsteel respectively
specify that theprevention andproduction must bedealt with atall
stages inthedevelopment oftechnical research .
Therequirements stated above arealways pressing andreal .Forexample ,
itmust berealized that inthe coal industry theproblem ofmeasures
against pneumoconiosis isanever-present worry tothe industry inspite
oftheundeniable progress made .Henoe ,atthebeginning of1977 »the
Commission intends tostart upanewresearch programme ,the"Fourth
Health inMines Programme ".
Theoutline Mine Safety programme launched bytheCommission will get
under wayin1977 *Therate atwhich applications Eirebeing received likewi
confirms thesteel industry 'sinterest inreducing those sources of
pollution forwhich itisresponsible andincleaning uptheatmosphere
atitssites .Themedioal research activities begun under thevarious
programmes andcovering chronic respiratory diseases ,ergonomics and
rehabilitation arecontinuing .

-34-
Inabroadercontext,itshould "beremembered that,inaverygeneral
wayfworks:shaveforsera©timenowtendedtorefusespecialpaymente
fordanger -us,unpleasant orarduousworkandareinsisting ,during
negotiations ,ontheremovalofthedangerandofthecausssof
unpleasant andnoxiousconditions .TheCommission musttherefore
encourage research-suchasergonomio research onspecific jobs–
whichcouldleadtoimprovements inworkingconditions *
Tomeettheknownrequirements ,theCommission planstocontinuewith
theoutlineprogrammes alreadyadoptedorbeingprepared covering
thefollowing fields:
-prevention andtreatment ofchronicrespiratory diseases,
-ergonomics andretraining ,
-pollution controlinthesteelindustry.
-industrial healthinmines,
-minesafety.
CHAPTER B4-AIDIffTHEPOMOPINTEREST RATESUBSIDIES
1.Legalbasisanddescription ofoperation
4
Legalbasis:Articles 54(investments )and56(redevelopment oftheECSC
Treaty.Decisions oftheHighAuthority andtheCommission
TheECSCmayuseitsresources inownfundstoprovideinterestrate
subsidies oncertaintypesofloans.Theamountofthesubsidyis
calculated inEUAonthetermslaiddown.TajtheCommission .Currently ,
thecalculations arebasedonaninterestratesubsidyof3%overa
periodoffiveyears.

2.Typeandbreakdown ofexpenditure
Earmarking thestunsintended tocoverpartoftheinterest dueonloans
madebytheECSC,inaccordance withinterestratesubsidycontracts drawn
upbetweentheCommission andthebeneficiaries thereof.
Thedetailsofrequests received areasfollows :
inEUA
Title SectorAids
requested
Β4·1
Β4°2Investments
Redevelopment8.5
15
TOTAL 23.5
3.Explanation
Investments
Intheinvestment field,thechiefaimofsubsidized interest leansis
toimproveandreorganize thestructure oftheindustries formingpart
oftheECSC.Theconditions forreceiving interestratesubsidies relate
tothefollowing categories :
environment :expenditure onenvironmental protection represents
approximately 15%oftheexpenditure oftheECSCindustries When
dealingwiththisexpenditure ,theCommission hashadtobeselective
inspending thereduced amountavailable forinterest subsidies .The
selection criteria aresetoutintheOfficial Journal of
25November 1974?inshort,thesubsidyisrestricted toexceptionsilly
highinvestments onexistinginstallations aadtoinnovates -yinvestanta

-36-
-theeliminaionofbottlenecks stodatethesubsidies inthissector
havebeenlxmitedtoinvestments likelytoremedytheshortageof
cokingcoalTheinvestment surveysetsouttheinvestments incoking
plants,a1urgeproportion ofwhichcouldsatisfytheinterestsubsidycriteria.Othershortages ofcapacity maybeconsidered forBubsidy:
-research andvocational trainingcentres ?theCommission attachesa
highprioritytoinvestment ofthistype,whiohhasadetermining
influence onthefutureoftheEC3Cindustries .
Redeve1opment
Subsidized loansaregrantedforanyredevelopment whichwillhelptomaintain
jobsinthoseregionsaffected bytherunningdownorclosingdownofany
industrial activity comingundertheECSCTreaty.TheCommission grants
theseloanstoundertakings whichabsorbcoalorsteelworkers whohavebecome
redundant orwhich–bymeansofeconomically soundactivities –maintainthelevel,ofemployment previously providedwithininthosesectorsintheregionsinquestion.Theundertaking *concerned benefitirontg,reducedinterestrate
totheextentthattheyundertaketocreatenewjobsintheseregionsand
giveformerworkersoftheECSCindustries firstrefusalofazgrVacancies .
Therequestsforaidinthissectorareontheincrease,particularly asa
resultofstructural changesinthesteelindustry.Workonthis
restructuring canonlycontinue onsociallyacceptable "terms'ifthenecessary
measures aretakenwithregardtomaintaining jobsforthe.workersdirectly
affected . !
TheCommission isalsoaskingnational Governments toenvisage requesting
thattheERDFshouldcontribute bywayofreducedratesofinterest onloans
grantedaccording toArticle56ICSCandbyapplyingArticle4(2)-(a),thirdparagraph ,ofRegulation Ho724/75incaseswherethepromoter
undertakes toaccelerate hisinvestment programme orlocatehiBproject
inaregionwithespecially difficult employment problems andprovided
thatthisconforms withCommunity rulesonregional aids*
s

-37-
CHAPTERB5-SUBSIDIES BASEDONARTICLE 95OFTHEBCSOTREATY
(COKINGCOALAMDCOKEFORTHESTEELINDUSTRY)
1.Legalbasisanddescription ofoperation
Legalbasis:
–Artiole 95oftheECSCTreaty;
–Commission Decision No287/73/ECSCof25July1973
(OJNoL259of15September 1973).
TheECSCtransfers acontribution tothespecialfundmanaged
bytheCommission andsetasideforsubsidizing theintra–
Community marketing ofcokingandcoaloriginating inthe
Community andintendedfortheironandsteelindustry .
Inaccordance withDeoision No287/73/ECSCof15July1973»
thefinancing ofthefundissharedbetweentheCommunity ,
theMemberStatesandthesteelindustry . '
2.Typeandbreakdown ofexpenditure
Earmarking ofalumpsumcontribution of6mHJAIPthe
fund,whosetotalhasbeenfixedatamaximumof25.6mEUA
for1977.Thesubsidies duearedetermined onthebasisof
thesupplied tonnageeligibleforaiduptoamaximumof
15milliontonnesperyear.
3.Explanation
Theaimofthespecialsystemofaidtocokingcoaland
coke,dealtwithinDecision 287/73/EfiSGof15July1973.is
tohelpmaintain production ofcoalintended rbobesup­
pliedtotheCommunity steelindustry'sblastfurnaces
andtosubsidize themarketing ofthecoalandthe
cokeBanufactured fromitatJ>ricesreflecting those
ontheworldmarket *'
InthisfieldtheCommission felttheneedtomaintain a
certainproduction capaoity as?wsilastherequisite

-38~
labourfortstomanthatcapacity inthebestpossible conditions and
thatitwouldtherefore bedesirable tohaveatitsdisposal asuit­
ablesysteirofaidastheproblemoftheCommunity'sproduction of
cokingcoa".isofinterest toalltheMemberStates,particularly since
thereisaconsiderable tradeincokingcoalwithintheCommunity .
Proposals tomodifyboththelevelofthesubsidies andtheECSCcon­
tribution arebeingexamined ,thismightleadtoachangeinrequire­
ments,eithertomakeupfortheeffectofapplying theEUAtothis
systemofsubsidies ,orinordertoreviewaridcontinuethesubsidy
systemwhichwouldotherwise endattheendof1978.
2.REQUIREMENTS NOTINCLUDED INTHEBUDGET-LOANSFORFINANCING
SUBSIDIZED HOUSING
Totherequirements fornon-repayable financetobefoundfromthe
year'sresources ,shouldbeaddedareference totheECSC's"below-the-
line"intervention whichithasbeenproviding since1956tofinancesocial
housing.Forecasts forthisprogramme areincludedinthisaide-memoire
inordertocompletethepictureofoverall ECSCinterventions provided
forParliament andtheConsultative Committee .Forthesakeofconvenience
theyhavebeenprovidedinthesameanalytical formatasfortherequire­
mentsalreadydescribed .
1.Legalbasisanddescriptions ofoperation
Legalbasis:Art.54 andDecisionsbytheHighAuthority/Commissionassigningf>ruse
onhousingprogrammes thewspecialreserve"fundedbyinterest oninvest­
mentsandloansfromnon–borrowed funds.
TheECSCintervention takestheformofreducedinterest loans,andhelps
toeasethecostoffinancing housingbycombining thefundsmadeavailable
bytheCommunity withothernationally provided resources .
2.Typeandbreakdown ofexpenditure
Grantoflong-term 1$interestrateloanstotheresponsible' national
bodies.
«

-39-
Thesecondphaseoftheeighthsubsidised housingbuilding
programme (1975-78)waaohispi&xmedfor1977and1978willrequireasumof30n.mkspreadoverthefinanoiel
years1977and1$78fdepending onf\mdsavailable,Allocations tothevariousinterested partiesinthe
ninecountriestd.llbedecidedbytheCoraasission >ihenthe
roundofpriorconsultations h&abeencomplyfeed.
3.Explanation
Themainreasonforproposingtosetaside30mEUA
thesecondphase(1977–79)ascompared withthe25mHJAforphaseone(1975–7^)istheincreaseinconstruction
costSoAlso,therequirements putforwardfarexceed
thelimitsoftheaidavailable .
Thisprojectisinidnddd "tosubsidizethefollowingprojects ?
■»housingforlabouremployedinthenewcoastalsteelworks f
steelworks ;
–housinglinkedwithindustrial restructurationinthetraditional steelcentresandinthoseooal
fieldsv&ereproduction istobeincreased }
specificsolutionsforimmigrant workers;
–hu.rdngtobemodernized aspartofthensovetorenovate
eteelandminingurbancentres.
T-j,aprojectistherefore intheinterests ofth%*«ojt-acors,
&,.rweitallaviatestheeffectsofpriceincrease 3and
highinterestrates,andofbenefittotheindustryfcisoeitindirectly facilitates restructuration®

-40-
3.EXCEPTIONAL REQUIHEMEWTS-FRIULI
Thereducedinterest loansof11mEUAwhichtheCommission decidedto
grantastheEC3C4sshareinCommunity aidtotheFriuliearthquake victims
couldwellbeclassified as"belowtheline"expenditure ,whichwouldnot
figureintheOperational Budget,sincethesearenotnon-repayable grants.
Nevertheless ,theCommission initsconcernforclarityardbudgetary
transparency ,hasdecidedtoaddaspecialchapter "AidtoFriulivictims
(allocation tothereserves)"to theECSC'sbudgetary nomenclature andto
enteragainstittheamountsconcerned ,i.e.6mEUAin1976and5aEUAin
1977.
Thefinancing ofthe6mEUAin1976willbecoveredbyreoourseto
thebudgetcontingency reserveof3mEUAcreatedlastyearandby
allocating tothereserves theBurplusoveralevyyieldof90mEUAas
providedintheCommission'soriginalbudget(seetheamending ECSC
Operational Budgetfor1976tAnnexB,below).Asimilarallocation of
5mEUAisneededinthe1977Operational Budget.
4.SUMMARY OFREQUIREMENTS PUTFORWARD
Totalrequirements putforwardtherefore amountto163.3mEUAto
befinanced undertheoperational budget,plus15»EUAintheformof
below-the–lineloansatlowinterestratesforthebuilding ofsubsidized
housing.Thefiguresforrequirements putforwardaresummarized in
AnnexD,inthe"requests"column.

41-
B.POSSIBLE RESOURCES
1.RESOURCES FORTHEFINANCIAL TEAR
CHAPTER R1-CURRENT RESOURCES
1.LegalbasiBanddescription
Legalbasis:
–Articles 49and50oftheECSCTreaty
–Decisions No2/52and3/52of23December 1952
Theleviesarecalculated onthebasisofafixedscalepertonne
whichisdecidedeachfinancialyear "bytheHighAuthority/Commission
andpublished intheOfficial Journal.
Resources frominterest oninvestments andloansfromnon–borrowed
fundswillbefinallydetermined whentheCommission olosesthe
aocounts on31Deoember 1973*Pursuant tothedecisionitadopted
on30April1975»"theCommission willenterthe-interestavailable
fromthepreviousfinancial yearinthebudgetofthecurrentyear.
2*Typeandbreakdown
Levyresources areclaimsidentified inrespectofleviesdueon
production inthe1977financial yearandquantified onthebasis
oftheproduction declarations madebyundertakings .
Interestwillbecredited Inaccordance withthe^llooations deoided
bytheCommission whenitcloses "theaocounts op31,December 1976.
Abreakdown offoreoastresources –according tothelatest
estimates –isgivenbelow*

-42
Title R1»1 ?LevyMW-lMH -TO– IIIwr!■II I>1H
Tonnage sttbjeqt ,tothe levy ,andyield ofone "point "oflevy (<*•yield
atarate of0.1^)
*
ProductProduction serving
asabasis for cal–
culation ofthelevy
inmillion tonnesr
Onelevy
"point "
inmU.A.
Brown-coal briquettes and
serai-coke 4.4 0.08
Alitypes ofhard coal 216.0|7.56
Total for coal 7.64
Pigiron other than that
required forthemanufacture
of ingots 5.8 0.51
Steel iningots 143-0 16.77
Finished products 102.9 5.77
Total for steel 23.05
GRAND TOTAL 30.69
Other Titles
Titles Heading mEUA
R1.2 Interest oninvestments and
loans from non-borrowed funds 16
H ,1.3 Fines and inoreasad interest
fordelay inpayment token entry
R1.4 Miscellaneous revenue token entry

-43-
3,Explanation
Thelatestestimates oftheaveragevalueswhichserveasa'basis
forcalculation oftheleviesrevealthatthefiguresforthe
1977financial yearwhichconcernthereference periodfrom
1July1975to30June1976will "be15$higherinthecaseof
coaland10-12%lowerforsteelcomparedtothosefortheprevious
financial year.
Itshouldbenotedthatthereisanappreciable marginofuncertainty
inthesefigures,becausethedepartments concerned axenotyetin
possession ofallthenecessary dataandforecasting production in
thepresentshort-term economic conditions isveryuncertain *
Theamountofrevenue frominterest isbasedonanadvanceesti­
mateoftheresources whichtheCommission willbeinapositiontoallocate whenitclocestheaccounts on31December1§76»
CHAPTER R2-CANCELLATIONS OFCOMMITMENTS WHICHWILLPROBABLY NOT
BEUSED
laLegalbasisanddescription
/
Theallocation' offundsearmarked onthestrength ofCommission and
decisions mustbeconfirmed withinareasonable timelimitbythe
contracting oflegalcommitments .
TheCommission 'sinternal rulesonthedrawing-up andimplementation
oftheECSCoperational budgettherefore providethatintheevent
{exceptional asitmaybe)ofunduedelayatthisstagetheearmarked
fundswillbecancelled .
Theyalsoprovidethatonoeallpartieshavedischarged theirobliga­
tionsunderalegalcontract fanyunusedallocation earmarked for
thatitemwilllikewise becancelled .

-44-
Theamountsthusreleased becomeavailable againasresources for
thecurrentfinancial year*
2.Natureandbreakdown
Saveinthecrceptional caseswheredecisions ontheearmarking of
fundsarenowfollowed upwithinareasonable periodoftimeby
legalcommitments ,anycancellation ofearmarked fundsnormally
indicates complete discharge ofthecontract ,agreedwith-the
contracting partyconcerned .
Theestimateof6IDEUABhowninthischapterrelates,inessence,to
cancellations ofallocations forresettlement aid.Onlyatokenentry
wouldbeneededfortheotheritemswhichcouldbeinvolved (cancellat­
ionsofbalances remaining inrespectofcontracts whichhavebeen
performed in.full,delayedlegalcommitments ,etc.).
3.Explanation
Itisdifficult toestimate therateofcancellation arisingfrom
resettlement programmes asitdepends onthenegotiations tobe
heldwiththegovernments concerned .Theestimated figursof
6mEUAtakesintoaccountthefactthatsomemajorclosureswill
becompleted in1977*
CHAPTER H3-REVALUATION OPASSETS ANDLIABILITIES
Thisohapter,underwhicha"tokenentry"hasbeenentered,will
bringtoaccounttheneteffectofthechangesinratesofconversion
duringthefinancial year.
CHAPTER R4-UNUSEDRESOURCES FROMTHEFINANCIAL TSAR1976 -■
Thischapter,-underwhicha"tokenentry"hasbeenentered,
willenableanybalanceremaining fromtjaefundsofthe
previousfinancial yeartoBeen-£er-©dasre?sourcesforthscurrent
financial year.

-4}-
2»COVERING OFREQUIREMENTS WOT ENTERED INTHEBUDGET
Provision hasbeen made for "thefollowing resourcep tocover
requirements fortheconstruction ofsubsidised ,housing ;
–repayments onearlier loans \7mEUA)j
–apart ofthespecial reserve andoftheformer ECSC pension
fund (3mEUA).
3.SUMMART 'OFPOSSIBLE RESOURCES FOR 1977
Theestimates ofresources other than levies amount to22mEUA (inte­
rest available –16mEUA {cancellations –6mEUA).Astheyield
from levies hasbeen estimated at30.69 mEUA ,theresources
obtained from levies can "beestimated at89mEUAonthebasis
oftherates currently applied .Anyvariation of0.01$ inthe
rate would alter theamount bysane 3mEUA»Theestimated
resources are summarized inAnnex Dinthe section on"resources' 1*

-46-
III.BRAFPOPERATIONALBUDGET FOR1977
A.RATEOFLEVYTOBEADOPTED
Theinformation setoutaboveandsummarized inAnnexDrevealsthat
thetotalrequirements to"beoovered fromtheresources ofthe
financial yearamountto163*3mEUA,whilsttheamountofresources
available onthe'basisofthecurrently-applicable rateoflevyof
0.29$wouldbeonly111mEUA.Tomeetallrequirements infull,therateoflevywouldhaveto"befixedat0,46
However,theCommission considersitinadvisable toimposesuoha
highrateoflevyontheECSCcountries .
TheCommission would,however,drawattention tothefaotthat,
fundingrequestsfor1977:exceedthe137mEUAsoughtfor1976
bysubstantially morethat.the1Q$>whichmightbetheforeseeable
priceincrease betweenthetwoyears.Bycontrast,rearnestsareup
by19°/o»Evento.maintain therealvalueoftheinitialoperatidnal
budgetfor1976wouldcallforaratecTG",31"$•>
Nevertheless ,theCommission wouldpointoutthatithastriedinitslevypolicytomaintainstability ,tosavethosesubjecttothe
paymentofleviesfromthedisadvantages ofarateoflevywhioh
varieseveryyear.Furthermore ,initscapacityasHighAuthority
oftheECSC,theCommission isobligedtotakefullyintoconsi­
deration ofthefinancial position oftheindustries whopay
thelevy.Beingawareofthedifficulties mentioned above,whica
wereinherited fromtheeconomiccrisis,andoonscious ofthe
psychological effectwhichanincreaseintheratecouldhaveat
atimewhenaotivity,especially intheCommunity'sironandsteel
industry,should "bereviving,theCommission hasdecidednottoincreasetherateandisproposes *thattherateof0.29%whioh
hasalreadybeeninforcesince1972shouldbemaintained in1977*

-47-
Theresult ofthis decision isthat theoperational budget for1277
will besubject toexceptionally stringent financial restrictions ,
since the estimated resources are lower inreal terms than those
available inthebudget fortheprevious financial year ,whilst
therequirements sure farhigher *
Theconsequences oftheapplication ofarate of0.29$ inrespect
ofsatisfying requirements forthefinancial year 1977 are setout
below *
B. DRAFT BUDGET
The draft budget drawn bytheCommission forthefinancial
year1977 isset outinAnnex D*
Since resources arelimited' to111mEU&,itisnecessary to
review priorities#
Among therequirements tobesatisfied ,three areunavoidable i.e. s
–thecontribution tothe "administrative expehditure "'t18mEUA
/
–the amounts tobeallooated for "aid toresettlement "
estimated ati 25mEUA
–"aidtoooking ooal Mî 6mEUA
i.e .49mEUA
Furthermore ,priority must begiven totheprovision ofthe
5mEUA earmarked forintervention tohelp victims of
the Friuli disaster .
Consequently thesumof57n>EUA .remains fordistribution amongst
non–compulsory expenditure .Taking into account theconsiderations
setoutabove ,theCommission proposes toallocate 42nEUAfor
research and 15mEQA for interest rate subsidies *

-46-
Consequently ,despiteinflation andthebigincreaseinapplications ,
theamountsassigned totheseohapters remainasshowninthebudget
fortheourrentfinancial year.'
TheCommission proposes thefollowing allocation withinthesechapters t
«
Research (42mEUA):
Thesumof9nEUAassigned in1976hasbeenmaintained forsooialand
medicalresearch,leaving 33mEUAfortechnioal researoh,sharedequally
between steelandcoal.
Interestsubsidies (15mEUA):
TheCommission proposestoallot9oEUAtoredevelopment operations inview
•ftheirgrowingimportance .Theremaining 6mEUAwillbeallocated tointerest subsidies forinvestment *
Thebreakdown ofthesefundsisshowninAnnexC. •'
TheCommission therefore asksParliament toagreethatthelevyfor
1977shouldbesetat0.2956.

ΑΝΝΕΧΑ
MPLEME2TTATI0TT OPTHEECSCOPERATIONAL BUDGETFOR1975
Thisyear,forthefirsttime,theCommission isincluding thefinal
figuresfortheimplementation ofthebudgetfortheyearendedasan
Annextotheannualaide-memoire ontheECSCoperational budget.
Until1968thefiguresfortheimplementation ofthebudgetforeach
yearusedtobepublished inanECSCcommunication ,the"GeneralStatement
ontheCommunity'sfinancial position"•Asthiswasdiscontinued on
themergeroftheexecutives ,theCommission thoughtitappropriate to
includethefinalfiguresfortheimplementation oflastyear'sbudget
inthisyear'saide-memoire toprovidemorebudgetary information for
thebodiesconcerned ,i.e.,theEuropean Parliament andtheECSC
Consultative Committee .
T^eamendingoperational budgetfor1975*totalling 98mu.a.,was
presented asAnnexItolastyear'saide-memoire (SEC(75)3239 final
of29October1975)andpublished inOJL295of14November 1975.
Thefiguresfortheimplementation ofthisbudgetasat3'December 1975
areshowninthetablebelow.Thefinalbudgettotalwas99«5®u.a.
Consequently ,requirements exceedtheestimates oftheamending budget
by1.5mu.a.becauseofthecommitments foraidtoresettlement whichis
mandatory expenditure pursuanttoArticle 56oftheECSCTreaty.
Thisrisewouldhavebeenoffsetbymiscellaneous resources of0.6mu.a.
andanincrease from11to13*5®u.a.inthecancellation ofcommitments ,
hadlevyincomenotfallenshort2.8mtua.(70mu.a*insteadof
73mu.a.)becausesteelproduction wasevenlowerthanforecastinthe
amending budget.Theresulting deficitis1»5-0.6-2.5+2J3-1.2mu.a.
Thisdeficitistobechargedtothebudgetforthefollowing yearwhenthisisamended(seeAnnexB).

-2-
IMPLEMENTATION OFTHEECSGOPERATIONAL BUDGETFOR (inmu.a.)
ΛώΦϋΙΗΕΜΕΝΤ 5BUDGET^1^
FIGURESFINAL
FIGURES–––– '" –I– »ww^–
RESOURCESBUDGET^
FlGurCo j'/
?IML
j.'•.„ %
OPERATIONS TOBEFINANCED FROMCURRENT
RESOURCES (NON-REPAYABLE )CURRENT RESOURCES
1.Administrative expenditure |18 18 1.Levyyield 73 70*2
2.Aidtoresettlement
(Art.56)26 27.52.Interest oninvestments andon I
loansfromnoi>-borrowed funds
I14 14
3«Aidtoresearch(Art.55) J35 35 3*Miscellaneous!toktsnentryI0,6
(a)steel
(b)coal
(c)social(16.3
(13.4
(5.3(16.3
(13.4
(5.3
4.Aidtocokingcoal
(Art.95)6 64.Cancellation ofcommitments which
willnotnow"beimplemented 11 13.5
5.InterestsubsidiesI
13 135.Unusedresources carriedoverfrom
thefinancial year1974 tokenentry
fa)Article54-Investment(b)Article56-Bedevelopment(6.4
(6.6(2)6.Déficit 1.2
9899.5 98 99.5
OPERATIONS FINANCED WITHLOANSFROMΓ ORIGIN OFNON-BORROWED FUNDS
JNON-BORROWED FUNDS
6.Socialhousing12.5 12.57.Repayments onloansforsocial
housing
8.PartoftheformerECSCPension
Fundorofthespecialreserve6*4
6.15.3
7.2
'QJL295of14November1975»page43(amendingbudgat).
coveredintheamendingbudgetforthefinai.sialyear1976.

ΑίϊΕΕΧΒ
FORECAST IMPLEMENTATION OFTHEEGSCOPERATIONAL BUfrlET?QR19?6
Theforecast giveninthetable "belowshowsanincrease inlevissof
3mEUA,partlybecauseofariseintheaveragevaluefigures *forsteel
finallyadoptedcompared withtheprovisional figuresusedxntheinitial
calculation andpartlybecausethedifference betweentheoldu.a.and
thenewEUA,thisdifference beingsomewhat biggerthanwasallowedfor.
Theforecast forthecancellation ofcommitments alsoshowsariseof
1.6mEUA(3.6mEUAinsteadof2mEUA)duemainlytothecancellation
ofconditional commitments forsteelresearch becauseofdelaysinthe
negotiation ofaoontract .
Inaddition,following theFriuliearthquake disaster ,theCommission has
decidedtousethe3mEUAallocation setasidelastyearforbudgetary
contingencies .
Thisbringsthebudgettotalfrom106mEUAto113.6mEUA
(106+3+1.6+3-113.6).
Initsamending budgettheCommission uphelditsdecision ,ascontained
inthefootnote totheinitialbudget,toassignanysurplusfromthe
leviestoreserves .
Thisalongwiththecontingency allocation willfacilitate inparticular
thefinancing ofaidsintheformofloans(11mEUA)decided'onbythe
Commission inJunetohelpFriulidisastervictims.Tobringthisspeoial
aidintothebudgetittherefore addedanextraitemfor"AidtoFriuli
viotims(allocation toreserves)ntotheforeoastrequirements .

ThisV'LXIat-(la-the tosatisfythewishoftheEuropean Farlis>B»at
whichst.&lei..apo.'.ri;5ofitsResolution ofISDecember 1975thatit
"considers "i1imot®e&v.-.aabl *tousea»ysrrrplusfromthelevyyieldinthe
•-on»1ngyearifpcapi"bleforfur-llicrexpenditure inthesocialfield".
.-'hedetailedestia'atsa ofreqairemau.ishovebeenamendedasfollowsl
adtosi-ilrefcearoh
-Interest subsidies ?
investments
–AidtoFriulivictims
(allocation toreserves )
–Deficit fromtheprevious
financial year17=4m1UAinsteadof16mEUA
(theadditional 1.4®EUAwill
eaab.l®thedelayedcontract of
tb.apreviousyeartobefinanced)
6mSUAinsteadof7aEUA(this
reduction willfinancethedefioit
fromthepreviousyear)
newohaptertowhich6mEUAallocated
(seeremarksabove)
newchaptertowhich1.2aEUAallocated
(seeAnnexAabove)
Allthefiguresintheamendingoperational budgetareshows ,inthetable
below(page4)« ',

"3–
Information .relating tolevies
InitsResolution of18December '^75 ontheoperational budget for1976 .,the
European Parliament aBked theCommission tosupplement this aida–mluoira by
anup-to-date account ofproduction *:ndofthelavy yield forthecurrent
financial year .Thelatest availabx --.information isgiven below s
Levy yield +heperiod from January too>xne 1976
Products
Brown-coal briquettes andsemi-coke
Alltypes ofhard coal
Total for coal
Pigiron other than that required
for themanufacture ofingots
Steel ingots
Finished products
Total for steel
GRAND TOTALProduction . |
serving asa !
basis for the
calculation of
thelevy
inmillion tonnes
1.9
97.7
2.4
66*0
49.1
(l)information available 15October 1976Levy yield
inmEUA
0.1
8.6
8.7
0.8
27.5
9-1
37.4
46.1u
/

AMENDING ECSCOPERATIONAL BUDGET FOR1976\
(inmEUA)"
REQUIREMENTSESTIMATES
initial 'amendedRESOURCESESTIMATES
initial ameinded
OPERATIONS TOBEFINANCED .FROM ..
CUREENIRESOURCES (HON-RjJ?iiIiBLE )
1•Administrative expenditure
2.Aidtoresettlement (Article56)
3.Aidtoresearch (Article55)
(a)steel
(b)eoal
(c)social
4«Aidtocokingcoal(Artiole95)
5.Interest subsidies
(a)Investment (Article54)
(b)Redevelopment(Artiole 56)
6.AidtoFriulivictims \
(allocation toreserves)^'
1%Defioitfrom1975financial year
OPERATIONS FINANCED WITHLOANSFROM
NON–BORROWED FUNDS
8.Socialhousing18
25
42
6
15
106
12.5(16
(17
(9
(7
(818
25
43.4
6
14
6
1.2
113.6(17.4
(17
(9
(6
(8
12.5CURRENT RESOURCES
1.Levyyield
2*Interest oninvestments
andonloansfromnor>-
borrowed funds
3*Miscellaneous
6.Cancellation ofcommit­
mentswhichwillnotnow
beimplemented
Unusedresources carried
overfromthefinancial
year1975
Drawingofallocation for
budgetary contingencies
ORIGINOFNON-BORROWED FUNDS
7.Repayments onloansforsocialhousing
8.Specialreserveandpart
oftheformerECSC
PensionFund90
14
tokenentry
tokenentry(1)
93
14
tokenentry
3.6
106 113.6
Thesurpluslevyyieldover90mEUAisallocatedtothereservesasenvisagedintheinitialbudget.6.4
6.16*4
6.1

Α1ΓΝΕΧ Ο
BREAKDOWN OPLOANSFORTHEFIRSTSIXMONTHS OF1976
(inmEUA)
SeotorFédéral
Republio
GermanyBelgium Denmark PranceItalyNether­
landsLuxembourgUnited
KingdomIreland Community
ICoalindustry
Ironandsteelindustry 86.95 1.9227.95
42.26117.42 35.4958.83
348.3686.78
632.40
IIIndustrial redevelopment
IIISocialhousing 4.85 0.9217.24
1.2513.86
0.29 0U7 0.077*19
0.050.55
0.1638.84I
7.7'I
J
GRANDTOTAL 91.80 2.84 88.70131.57 35.66!
0.07
1414.43 0.71765-7l'!
ThistablehasbeenaddedattherequestoftheEuropeanParliament foranup-to-«iateaccountofassetandloanactivities '^ee
point3ofitsResolution of18December 1975onthefixingoftheECSCleviesaridonthedrawin#~up oftheoperational budgetfor1976).Itsupplements theinformation giveninthisconnection onpage19oftheAide-memoire .

DRAFTECSCOPERATIONAL BUDGET FOR1977AWFXD
(lamEUA)
hzquireí*:I:T3 APPLICATIONS FRCPOSALS RESOURCES PROPOSA LS
OPERATIC!' !3TOBEFINANCED FRCW
CUTUiiLKTicioUU-tu^s (fc'ON-fi&PA YABLE)I
I
IRESOURCES FORTHEFINANCIAL YEAR
1.Administrative expenditure 18 18 1.Current resources
2.Aidtoresettlement (Article56)25 25 1.1Levyyieldat0.29$ 89
3.Aidtoresearch (Artiole55)
3.1steel85.8
(44.542
(16.5 i1.2Interest oninvestments and
onleansfromnon-borrowed
funds 16
3*2coal
3*3social(32
(9.3(16.5
(91.3
1.4Finesandinterest leviedf.
delayedpayment
Miscellaneoustoken;entry
tokenentry
4*Interest subsidies
4.1Investment (Article54)
4.2Redevelopmeni (Article56)23.5
(8.5
(1515
(6
C92.Cancellation ofcommitments
whichwillprobably not"be
implemented 6
5.Aidtocokingcoalandmetall­
urgicalcoke(Article95)
6.AidtoFriulivictims
(allocation ioreserves)6
56
53.
4.Re'valuation ofassetsand
liabilities
Unusedresources carried
overfromthe1976financial
yeartokenentry
tokenentry
OPERATIONS FENCED WITHLOANSFROM
NON-BORROWED FUNDS163.3 111
ORIGIN OF1T0N-B0RR0VED FUNDS1Î1
)5.Repayments onloansfor
soaial'housing I-
Socialhousing
j'15 15 6.-Specialreserveandpart
oftheformer XCSCpension
FundS