ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79)345
V ol.1979/0124

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)345final
Brussels,20thJune1979
PROPOSAL FORACOUNCILDECISION
ALLOCATING TOTHEEUROPEAN COALANDSTEELCOMMUNITY
(ECSC)ASPECIALFINANCIAL CONTRIBUTION FROMTHE
GENERALBUDGETOFTHEEUROPEAN COMMUNITIES
(submittedtotheCouncilbytheCommission )
,^<y"v>*
COM(79)345final .v>" .

EXPLANATORY MEMORANDUM
Initscommunication Doc,C0M(79)199 final of4May1979 ,theCommission
submitted totheCouncil (forassent )9theParliament andthe
ECSC Consultative Committee adraft decision which itproposed totake under
Article 95oftheECSC Treaty ontheintroduction oftemporary special
payments toassist steelworkers aspart ofthe Cotaniuni i,yrestructuring
programme .
Thetype ofspecial measures proposed andthereasons forthem are setout
indetail inDoc.COM(79)199 »Inparticular ,aids forthefollowing purposes
areproposed :
-extension ofthesystem ofearly retirement ;
-reorganization ofworking time ,inparticular "bymeans ofshort-time
working (shorter working week )andanadditional shift j
-restrictions onovertime .
Inthe same document theCommission stated itsintention toput forward
proposals forfinancing these temporary measures .Itreached theconclusion
that inthis instance theGeneral Budget could andshould "beused .The
Commission hastherefore entered anallocation of100mEUAinanewChapter 54
inthePreliminary Draft General Budget for1980 tocover thecost ofthe
temporary measures "bymaking aspecial contribution totheECSC .
Inorder toauthorize this special contribution ,theCouncil hastotake a
decision under Article 235 "theEECTreaty .Thedraft ofadecision for
this purpose isappended hereto .
Asregards thelegal "basis forthis decision ,itshould beremembered that ,as
ageneral rule ,acontribution from theGeneral Budget totheECSC isruled out
forlegal reasons ;theresources ofthis Budget arereserved fortheobjectives
oftheEuratom Treaty andoftheEEC !Ereaty (seeArticle 199oftheEECTreaty ),
totheexclusion ,therefore ,ofthemeasures provided fortytheECSC Treaty
(Article 232oftheEECTreaty ).However ,this isaspecial measure which is
notprovided forintheECSC Treaty (thefirst paragraph ofArticle 95hadto-
beinvoked )andforwhich thefinancial resources ,also ,arenotprovided
forinthis Treaty .** evident also "that thesocial consequences ofthe

restruct-urirg ofthe iron and .steel induct lyconsiderably ag-yr&vata the
general jmploymant s_.ti-.at ionir < Corinrunity ,Ttistherefor' -extramel ^
important for the coonon^y ©*the Eurcp.iar >Tconoiaio C^minu n-Ay ingeneral that
this operation iscarried out successfully eThis ,jus+-ifie /sv.se offunds from
the General Budget and should enable tha Council toadopt the proposed decision .
Inaccordance with the ECSC'sfinancial system and ,inparticular ,wi+h the
aid-granting decisions whioh the Commission will "becalled upon tomake ,the
contribution of100 uiEUAwill taecr.-aarksd 22ansiLocat-'iof ?-fh Ccmrvnity 's
balance –ohee t »cpcliS .purpose ofcovering financial ^orn.~'5tn ,e"P it's>■*^7"the
temporary special payments toassist the steelworkers 0
Thetotal cofat ofthe aids proposed and the breakdown byty^e of »,idwill
depend onthe applications tobelodged Iqythe Member states® From estimates
made bythe departments ofthe Commission following informal contacts with
the Governments and assuming that tlie v/crkfcrce will becv+by115 000inally
thecost ofthe proposed measures isestimated at110eEUA ,vrM.ch may be
.broken down  asanindicative basis -asfollows :
Proposed measure
(Article 95/ECSC )Humber of
beneficiariesAverage cost per
beneficiaryTotal cost
1.Aid for early
retirement
2,Short –time
working4025 " •(,3.5% ).]
14375 •(12.5% ) |
'•'! • !i ,
(EQA) «;
- ■■■ ;2500 -,
V-.' .- '100/ (EUA)
10062 500
.1437 500
3.Additional shifts14375 (12.5% ) j• 6750 97031 250
4.Abolition of
overtime 17250 (15 %) ■150'
' ,25S7 500 .
Total N
Rounded off to .
Sumtobecharged to"the ECSC in1979
0■v,
..'BET TOTAL •111 118.7 50
.110 oco oco
10000 coo
■10q'000 000
The Commission propose sthat the Council adopt thedraft Decision appended herei

PROPOSAL FOR ACOUNCIL DECISION
allocating totheEuropean Coal andSteel Community (ECSC )aspecial financial
contribution from the General Budget ofthe European Communities *
TheCouncil ofthe European Communities ,
Having regard totheTreaty establishing the European Economic Community ,and
inparticular Article 235thereof ,
Having regard totheproposal from the Commission ,
Having regard tothe Opinion ofthe European Parliament ,
Whereas thedifficulties currently facing the Community 'siron andsteel
industry have made itnecessary toadopt aprogramme fortherestructuring of
this sector under the terms ofthe Treaty establishing the ECSC ;
Whereas this programme consists ofaseries ofmeasures torationalize production
andraise the productivity ofthe sector tothe level where itcan compete onthe
world market ;
Whereas this series ofrestructuring measures necessarily -includes social policy
measures toalleviate the effects onemployment ;whereas ,inthis connection ,it
isadvisable toextend the range ofresettlement aids provided for workers inthe
industry byArticle 56(2 )ofthe ECSC Treaty ;whereas ,tothis
end,the Commission ,acting under Article 95 "this Treaty with the assent of
the Council andafter consulting the Consultative Committee ,has introduced under
the programme certain categories oftemporary special allowances for steelworkers
whose jobs -wi'tt "beaffected "bythe implementation ofthe programme ;

I-5-
Whereas ,inthepresent circumstances ,"thefinancial mean ?provided ,for by
the BGSG Treaty donot provide adequate cover for financing these measures :
Whereas the side –effects ofthis situation ,ifnot remedied ,would beliable
toaggravate considerably the Commurity fsgeneral employment situation andto
impair the harmonious development ofeconomic activities ,,endthis would
undermine the achievement ofone ofthe Community *smain objectives ;
Whereas the ECSC should therefore beallocated aspecial contribution from the
General Budget ofthe European Communities toenable the Commission toimplement
successfully the social measures provided for under the restructuring programme
for thesteel industry ,
HAS DECIDED AS FOLLOWS :
Sole Article
TheEuropean Coal andSteel Community (ECSC )ishereby granted aspecial
contribution of100 000 000 EDA from the General Budget ofthe European Communities
forthefinancial year 1980 inorder tocover the Community 'sfinancing ofthe
special payments provided for byDecision