ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)195
Vol.1975/0072

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COMMISSION G?THEEUROEEANCOMMUMTISS
COM(75)195 final
Brussels ,7May1975
Proposal fora
Council Directive onaids
toshipbuilding
(submitted totheCouncil bytheCommission )
C0II(75 )195final

Proposée !.CouncilDirectiveof
onaids-toshipbuilding
THECOUNCILOFTHEEUROPEANCOIMUTIITIES,
HavingregardtotheTreatyestablishingtheEuropeanEconomicCommunityand
inparticularArticles92,section3(d),and113thereof;
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament,
HavingregardtotheopinionoftheEconomicandSocialCommittee
1.WhereastheCouncilDirectiveof20July1972onthegrantofaidsto
shipbuilding tooffsetdistortionsincompetition ontheworldmarket
h?.seffectivelyhelpedtoreduceandharmonizeaidsgrantedto
shipbuilding intheCommunity;whereasthis.Directiveexpireson
30June1975?
2.Whereasthepositionofshipbuilding intheCommunityhasshowna
relativeimprovementsincetheadoptionofthepreviousDirective,asa
resultoftherationalisation andrestructv.ringeffortsofshipyards,
facilitatedbyfavourablemarketdevelopments ;whereasitisnecessary,
inordertoachievetheobjectivesofthecompetitiveness ofenterprises
andtheequilibriumofthesector,tointensifytheseeffortsandto
bringthemtofruition;whereasthisisallthemoreurgentbecauseof
theseriousdifficultiesthreateningthesector;
3.Whereasasoundandcompetitive Communityshipbuildingindustryis
necessarytotheCommunity,andcontributestoitseconomicandsocial
developmentasasubstantial andgrowingmarketforallsectors
inoludingthoseusingadvancedtechnologyandasanemployerincertain
Communityregions;whereasthisisalsothecasewithshipconversion
andshiprepairing;
/■

Whereastheobjectivesofcompetitiveness andequilibriuminthe
shipbuilding industryrequireanappropriateadjustmentofproduction
structuressothattheenterprisesinthesectorareenabledtofollow
generaleconomicdevelopments andeventuallytomeetcompetition onthe
worldmarketwithoutthesupportofintervention bythepublicauthorities
andsothattheinvestmenteffortsofthesectorarecompatiblewitha
Worldequilibrium betweensupplyanddemand;
Whereasdistortionsincompetition ontheworldmarkethavebeenreduced
throughaseriesofunderstandings concludedbythemainshipbuilding
countrieswithintheframeworkoftheOECDwiththeobjectofharmonizing
exportcreditconditionsforships;whereaswithinthisSSJC3organization ,
theprincipalshipbuilding countrieshaveconcludedageneralunderstanding
bywhichtheyarecommittedtoreduceprogressively specificaidmeasures
whichdistortcompetitionintheshipbuilding industry,withaviewtoa
completeabolitionofsuchaidby1November1975»
Whereas,furthermore ,theobjectiveofmakingtheshipbuilding industry
competitiveinarelativelyshorttimerequiresasolutioncoveringall
aidsandinterventions affecting,whetherdirectlyorindirectly,
competition andtradeconditionsonthemarketforthebuilding,
conversionandrepairofships;
Whereasthecontinuedapplication ofaidstooperationshasaconservatory
effectwhichuasjustifiableinthepastbutrvhiohisnotofanaturetoimpro-*
significantly orinthelongtermthecompetitiveness oftheCommunity
shipbuilding industry;whereas-,however,suchaidsmustbeeliminated
graduallysothattheshipyardsmayadapttothenes?conditions ;
Whereasaidstoshipbuilding shouldnothoweveradverselyaffecttrading
conditionstoanextentcontrarytothecommoninterest;

-3-
Hasadopted this Directive :
Article 1
Aidandintervention measures toassist shipbuilding maybeconsidered
compatible with thecommon market ,under thepresent Directive ,provided that
they satisfy theconditions setoutinArticles 2and 3.
Article 2
1.Theprovisions ofArticle 1shall apply toaidandintervention measures
forthebuilding ,inthe 'Community shipyards ,ofmetal-hulled sea-going
vessels ofthefollowing categories :
–merchant vessels ofnotless than 150gross tonnes forthetransport
ofpassengers and/orcargo .}
*. '-fishing vessels ofnotless than 150gross tonnes ; .'
-dredgers ofnotless than 150gross tonnes ;
-tugs ofnotless than $00horse power ,
2.(a)The provisions ofArticle 1shall apply totheaidandintervention
t.
measures referred tomparagraph 1only until 31December 1975 ?
these may consist ofanyform -ofaidandintervention toassist
shipbuilding ,provided that thepresent level ofthese aids isnot
increased . ••-•v
(b)nevertheless ,theprovisions ofArticle 1shall apply inrespect of
anyaidandintervention measures toassist shipbuilding until
'31December 1977 when these aids aregranted :
-inIreland ,andoncondition that these aids aredegressive and
accompanied byarationalization plan ;
–inItaly ,andoncondition thit these aids aredegressive andare
accompanied bytheeffective implementation ofaplan to

rationalize theshipbuilding industrysoastoraiseits
competitiveness toalevelatwhichitwillbeviablewithoutaids;
-inFranoe,intheformofasystemofinsuranceagainst
exceptional priceincreasesandonconditionthattheincidenceof
thatintervention ,calculatedpership,isappreciablydegressive.
3.On1Marchand1SeptemberofeachyeartheMemberStatesshallprovide
theCommissionwithatablegivingthedecisions,takeninthesecondand
firsthalf-yearsrespectively tograntaidsandinterventions under
paragraph 1andthepaymentsmadeineachoftheseperiodsonthebasis
ofearlierdecisionstograntsuchaids.
Article3
TheprovisionsofArticle1shallapplytoaids,intheformofcredit^,to
exportsandtoaidstoallothersales,providedthatsuchloanssatisfythe
conditionslaiddownintheunderstanding onexportcreditforshipscontained
intheOECDCouncilResolutionof18July1974orinagreementsreplacingit.
Theseaidsmaybegrantedunderthesameconditionsfortheconversionof
metal-hulledsea^-goingvesselsofnotlessthan5000grosstonnnes,provided
thattheworkentailsradicalalterations tothehold,thehullorthe
u.~x
propulsionsystemofthevesselsconcerned.
Article4
TheMemberStatesshallnotifytheCommissionoftheirdecisionstograntaid
toshipyardinvestments wheretheseinvestments excede5millionunitsof
account.On1Marchand1SeptemberofeachyeartheMemberStatesshall
providetheCommissionwithatablebasedonthemodelcontainedinAnnexI

inwhichwill"besetoutthedecisionstakeninthesecond,andfirsthalves
ofthecalendaryearrespectively.
Article5
Aidandintervention measuresofaconservatory characterconstituting a
temporarysolutionfortherescueofafirmuntiladefinitivesolutionto
itsproblemsisworkedoutshall "benotifiedindividually totheCommission
inaccordancewiththeproceduressetoutinArticle93oftheEECTreaty,
Article6
TheMemberStatesshallrefrainfromtakinganyintervention measures
favouringthe"building,conversionandrepairwithintheirnati&naJ .
territories ofshipsto"beusedfornavigationorotherpurposesonthesea
andthemanufactureofproductsincorporatedinthem,otherthemthose
providedforinArticles2and3orthoseconsideredcompatibleunder
Articles92and93oftheEECTreaty,
Article7
TheMemberStatesshallinformtheCommissionoftheirrulesandprocedures
forimplementing thevarioussystemsofaidandinterventioninrespectof
thebuilding,conversionandrepairofships,beforesuchrulesandprocedures
enterintoforce.
Article8
TheCouncil,actingbyaqualifiedmajorityonaproposalfromtheCommission,
shallamendthisDirectiveasandwhenappropriate *

Article9
ThisDirectiveshallremaininforceuntil31December1977•
Article10
ThisDirectiveisaddressedtotheMemberStates.

АЖИЕХI
Tableofaidandintervention measuresforinvestmentsinaccordancewithArfcinle4
Îlescriptionof investmentinvestmentPurposeof
investment(l )Arnountof
investmentFormof
assistanceHetsubsidyequivalent 1
infooftheinvestment J
(l)whereapplicable,correctionwithasectoralorregionaldevelopmentprogramme®

ANNEK II
Commission statement
TheCommission ^insubmitting totheCouncil theproposed Third Directive #has
attempted todetermine ,onthebasis oftheanalysis ofthesituation of
Community shipyards made incooperation with experts from theMember States
andtheindustry ,which aids canbeexpected tohelp make Community
Septra !Iding competitive atworld level andtoenable ittofunction without
Member' State intervention .
Itfurthermore considers that the aids which have been determined are
sufficient toachieve thedesired objective .
TheCommission emphasises onthis occasion that theprocedures provided for
intheThird Directive cannot derogate from theprovisions ofArticle 93(3)*
Aids notified totheCommission will beexamined byitasregards their
compatibility with thecommon market under Article 92oftheEECTreaty
taking account oftheprovisions andguidelines contained intheThird
Directive onAids toShipbuilding .