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DOCUMENTS "COM"
COM(80)134
Vol.1980/0043

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)134 final
Brussels /25March 1980
NA*V-> X­V/v,x^W#
Proposal for a
COUNCIL DECISION
with regard tocontributions tobegranted totheEuropean Coal
andSteel Community outoftheGeneral Budget oftheEuropean
Communities
(submitted totheCouncil bytheCommission )
C0M(80 )134 final

EXPLANATORY NOTE
Indocuments numbers C0M(79)199 final of4.5.79 and C0M(79)436 final
of20.7 .79,theCommission hassubmi tted toCounci I(forassent ),Parliament
and the ECSC Consultative Committee adraft Commission decision founded on
article 95/ECSC concerning the introduction ofspecial temporary allowances
tohelp ,iron andsteel workers intheframework oftheCommunity Restructuring
programme . '
Thenature andjustification oftheintended special measures are
explained indetai Iinthedocuments mentioned above .They involve grants
inrespect ofearly retirement andadjustments inworking arrangements and
' J. • ~
inthepumber ofhours worked , x
Inaparallel communication (C0M(79)345 final of20.6.79 )theCommission
'made proposals forfinancing these temporary measures byatransfer of100MEUA
from the general budget tothe ECSC .Such atransfer would need asitsbasis
aCouncil decision founded onarticle 235/EEC . N .
TheCommission entered the100MEUA referred tointhepreliminary
draft budget for1980 (chapter 54^andParliament on7.11.79 ,byits
amendment n°36^restored this appropriation ,which hadnotbeen retained
inthedraft budget ,with figures of100MEUA commitment appropriations
and 30MEUA payment appropriations .

TheCommission isready toadopt thesuggestion ofeffecting the
transfer tothe ECSC byannual slices ^ofamagnitude tobedetermined by
thebudgetary process ,but itstill holds tothe view that one must have
asalegal basis for theopperation aCouncil decision under article 235/EEC .
Asregards theprovision tobemade inchapter 54for 1980 under this new
concept ,theCommission considers ,after taking into account the amount of
progress made intheCouncil 'sdiscussions onthis matter ,that the
appropriation of30MEUA proposed byParliament will suffice .But inview of
theoperation being astraight payment totheECSC tofinance operations
which will becarried out inaccordance with procedures germane
ofthetreaty ofParis ,theCommission sees nopoint inproviding here for
atwo-part (dissociated )appropriation .
"The Commission 'snew budget proposal for1980 follows theapproach
outlined above initshandling ofchapter 54." ;
The Commission accordingly withdraws theproposed decision set out
indocument COM<79)345 and instead proposes totheCouncil totake adecision
inthe terms ofthe draft submitted herewith .

PROPOSAL FOR ACOUNCIL DECISION
* ■>
*
with regard tocontributions tobegranted tothe ,European Coal andSteel
Community °utof ■theGeneral Budget oftheEuropean Communities .
TheCouncil oftheEuropean Commumtes ,
Having regard totheTreaty establishing theEuropean Economic Community and
inparticular Article 235thereof ,
Having regard totheproposal from theCommission ,
Having regard totheOpinion oftheEuropean Parliament ,
.Whereas thedifficulties currently facing the Community 's iron'and' steel
industry have made itnecessary toadopt aprogramme fortherestructuring of
this sector under theterms ofthe ECSC Treaty ; ,
Whereas this programme consists ofaseries ofmeasures torationalize
production and raise theproductivity ofthe sector tothe level where it
cancompete ontheworld market ;.
Whereas this series ofrestructuring measures necessarily includes social
policy measures toalleviate theeffects onemployment ;whereas ,inthis
connection ,itisadvisable ,toextend the range ofresettlement aids provided
forworkers inthe industry byArticle 56(2 )ofthe ECSC
Treaty ;whereas tothis end,theCommission ,acting under Article 95ofthis
Treaty with theassent oftheCouncil andafter consulting theConsultative
Committee ,hasintroduced under theprogramme certain categories oftemporary
special allowances forsteelworkers whose jobs will beaffected bythe
implementation oftheprogramme ;' ^

Whereas inthepresent circumstances thefinancial means provided forby
the ECSC Treaty donotprovide adequate cover forfinancing these measures ;
Whereas the secondary effects ofthis situation ,ifnotremedied ,would beliable
toaggravate considerably theCommunity 's'general employment situation and
toimpair theharmonious development ofeconomic activities ,andthis would
undermine theachievement ofoneoftheCommunity 'smain objectives ;
Whereas theECSC should therefore begranted contributions charged tothe
General Budg?t oftheCommunities toallow theCommission toimplement
successfully the social measures under therestructuring programme forthe
steel industry ,
HAS DECIDED ASFOLLOWS :
Article 1
Contributions maybegranted totheEuropean Coal and Steel Community (ECSC )
outoftheGeneral Budget oftheEuropean Communities inorder tocover the
Community 'sfinancing ofthe special payments provided forbyDecision .......
' . ■ '
Article 2
Theamount ofthecontributions provided for intheforegoing Article shall
bedetermined under the annual budgetary procedure .