Keywords

Summary



Keywords

1 . MEASURES ADOPTED BY THE INSTITUTIONS - METHOD OF PREPARATION - ECSC SYSTEM OF PRODUCTION QUOTAS - ASSENT OF THE COUNCIL - REQUIREMENTS AS TO FORM - JOINT EXAMINATION BY THE COMMISSION AND THE COUNCIL OF A DETAILED DRAFT DECISION - DUTY - NONE

( ECSC TREATY , ART . 58 ( 1 ), FIRST SUBPARA .)

2 . ECSC - PRODUCTION - QUOTA SYSTEM FOR STEEL PRODUCTION - DETERMINATION ON AN EQUITABLE BASIS - TAKING INTO ACCOUNT OF THE ACTUAL PRODUCTION OF UNDERTAKINGS - WHETHER PERMISSIBLE

( ECSC TREATY , ART . 58 ( 2 ); GENERAL DECISION OF THE COMMISSION , DECISION 1831/81 , ART . 6 ( 1 ) ( B ))

3 . ECSC - PRODUCTION - QUOTA SYSTEM - PURPOSE - GUARANTEE OF MINIMUM PRODUCTION FOR A GIVEN UNDERTAKING TO THE DETRIMENT OF OTHERS - DUTY OF THE COMMISSION - NONE

( ECSC TREATY , ART . 58 )

4 . MEASURES ADOPTED BY THE INSTITUTIONS - STATEMENT OF REASONS - DUTY - SCOPE

( ECSC TREATY , ART . 15 , FIRST PARA .)

5 . ECSC - PRODUCTION - QUOTA SYSTEM - PURPOSE - CORRECTION OF THE EFFECT OF ILLEGAL PUBLIC AIDS - RECTIFICATION - DUTY OF THE COMMISSION - NONE

( ECSC TREATY , ART . 58 )

6 . ECSC - PRODUCTION - QUOTA SYSTEM - SCOPE - RESTRICTION OF SALES OPPORTUNITIES ON THE COMMUNITY MARKET - RESTRICTION OF EXPORT OPPORTUNITIES

( ECSC TREATY , ART . 58 )

7 . ECSC - PRODUCTION - QUOTA SYSTEM - TAKING INTO ACCOUNT OF TRADE WITH NON-MEMBER COUNTRIES - DISCRETIONARY POWER OF THE COMMISSION - SCOPE

( ECSC TREATY , ART . 58 )

Summary

1 . THE POWER TO ESTABLISH A SYSTEM OF PRODUCTION QUOTAS IN THE CASE OF A MANIFEST CRISIS LIES , UNDER ARTICLE 58 OF THE ECSC TREATY WITH THE COMMISSION , SUBJECT TO THE CONDITION THAT IT MAY NOT ACT EXCEPT WITH THE ' ' ASSENT ' ' OF THE COUNCIL .

IN LAYING DOWN THAT FORM OF CONSULTATION BETWEEN THE COMMISSION AND THE COUNCIL , ARTICLE 58 DID NOT DETERMINE ITS DETAILED ARRANGEMENTS . IN THOSE CIRCUMSTANCES , IT IS A MATTER FOR THE TWO INSTITUTIONS TO PROVIDE , BY COMMON CONSENT AND IN ACCORDANCE WITH THEIR RESPECTIVE POWERS , FOR THE FORM WHICH THEIR COOPERATION SHALL TAKE . THE REQUIREMENTS OF ARTICLE 58 ARE THUS SATISFIED IF SUCH COOPERATION CULMINATES IN THE COUNCIL ' S ASSENTING TO THE ' ' QUOTA SYSTEM ' ' WHICH THE COMMISSION PROPOSES TO SET UP , WITHOUT ITS BEING NECESSARY TO REQUIRE THE TWO INSTITUTIONS TO EXAMINE A DETAILED DRAFT DECISION .

2 . IT CANNOT REASONABLY BE DENIED THAT IT IS CONSISTENT WITH ARTICLE 58 ( 2 ) OF THE ECSC TREATY THAT THE COMMISSION SHOULD CHOOSE THE CRITERION OF THE ACTUAL PRODUCTION OF UNDERTAKINGS FOR THE PURPOSE OF DEFINING THE ' ' EQUITABLE BASIS ' ' FOR DETERMINING PRODUCTION QUOTAS UNDER THAT PROVISION . UNLIKE THE CRITERION OF PRODUCTIVE CAPACITY , THE APPRAISAL OF WHICH IS BY ITS NATURE UNCERTAIN , REFERENCE TO UNDERTAKINGS ' ACTUAL PRODUCTION HAS THE DOUBLE ADVANTAGE OF AFFORDING AN OBJECTIVE BASIS OF APPRAISAL AND OF ENABLING TOTAL PRODUCTION TO BE REDUCED WITHOUT , HOWEVER , ALTERING THE VARIOUS POSITIONS OF UNDERTAKINGS ON THE MARKET .

3 . IT IS NOT THE PURPOSE OF ARTICLE 58 OF THE ECSC TREATY TO ENABLE UNDER TAKINGS TO EXEMPT THEMSELVES IN A PERIOD OF CRISIS FROM THE CONSEQUENCES OF THEIR EARLIER DECISIONS REGARDING INVESTMENT AND OUTPUT WHEN SUCH DECISIONS HAVE PROVED TO BE ILL-SUITED TO THE TREND OF THE ECONOMY .

WHILST IT IS TRUE THAT MEASURES ADOPTED UNDER ARTICLE 58 MUST ENABLE THE COMMUNITY ' S STEEL INDUSTRY AS A WHOLE TO DEFEND ITSELF , ON A COLLECTIVE BASIS AND BY A COOPERATIVE EFFORT , AGAINST THE CONSEQUENCES OF CRISES OCCURRING WHEN DEMAND DECLINES , THE ARTICLE IN NO WAY PLACES THE COMMISSION UNDER A DUTY TO GUARANTEE TO ANY GIVEN UNDERTAKING , TO THE DETRIMENT OF OTHERS WITHIN THE COMMUNITY , SUCH MINIMUM PRODUCTION AS THAT UNDERTAKING REGARDS AS APPROPRIATE IN ACCORDANCE WITH ITS OWN CRITERIA OF PROFITABILITY AND DEVELOPMENT .

4 . THE STATEMENT OF REASONS ON WHICH COMMUNITY MEASURES ARE BASED MUST BE APPROPRIATE TO THE NATURE OF THE MEASURE IN QUESTION : IT MUST SHOW CLEARLY AND UNEQUIVOCALLY THE REASONING OF THE COMMUNITY AUTHORITY WHICH ISSUED THE MEASURE , SO AS TO ALLOW THOSE CONCERNED TO TAKE COGNIZANCE OF THE JUSTIFICATION FOR THE MEASURE ADOPTED AND TO ENABLE THE COURT TO EXERCISE ITS POWERS OF REVIEW . IN THE CASE OF A MEASURE IN THE NATURE OF A REGULATION , THE STATEMENT OF REASONS CANNOT BE REQUIRED TO SPECIFY THE OFTEN VERY NUMEROUS AND COMPLEX MATTERS OF LAW OR OF FACT CONSTITUTING THE SUBJECT-MATTER OF SUCH INSTRUMENTS , AS LONG AS THOSE MATTERS FALL WITHIN THE FRAMEWORK OF THE WHOLE OF WHICH THEY FORM PART .

5 . WHILST THE COMMISSION IS ENTITLED , IN LAYING DOWN THE SYSTEM OF PRODUCTION QUOTAS , TO TAKE ACCOUNT OF THE EFFECT OF SUBSIDIES THE ILLEGALITY OF WHICH HAS BEEN ESTABLISHED IN CONFORMITY WITH THE APPROPRIATE PROCEDURES , IT IS NEVERTHELESS IMPOSSIBLE TO EXPECT THE MEASURES REFERRED TO IN ARTICLE 58 , WHICH ARE DESIGNED TO DEAL WITH A CRISIS , TO BE USED TO COUNTERACT THE EFFECT OF ILLEGAL AIDS GRANTED BY MEMBER STATES .

6 . OWING TO THE VERY NATURE OF THE MACHINERY ENVISAGED BY ARTICLE 58 OF THE ECSC TREATY , ANY RESTRICTION OF PRODUCTION HAS AN IMPACT BOTH ON OPPORTUNITIES OF SELLING ON THE COMMUNITY MARKET AND ON EXPORT OPPORTUNITIES . THE LAYING DOWN OF PRODUCTION QUOTAS WOULD BE INEFFECTIVE IF UNDERTAKINGS WERE TO REMAIN AT LIBERTY TO EXPORT QUANTITIES WITHOUT ANY SUPERVISION TO NON-MEMBER COUNTRIES , SINCE THE EFFECT OF SUCH EXPORTS MIGHT BE NOT ONLY TO COMPROMISE THE INTERESTS OF THE COMMUNITY IN THOSE MARKETS BUT ALSO TO DEFLECT SOME OF THE GOODS BACK TO THE DOMESTIC MARKET AND TO JEOPARDIZE ITS EQUILIBRIUM .

7 . IT LIES WITHIN THE DISCRETION OF THE COMMISSION TO TAKE TRADE WITH NON-MEMBER COUNTRIES INTO ACCOUNT IN THE CONTEXT OF THE MEASURES TO BE ADOPTED IN PURSUANCE OF ARTICLE 58 OF THE ECSC TREATY . IN THAT RESPECT IT IS , IN FACT , FOR THE COMMISSION TO TAKE ACCOUNT BOTH OF THE NEEDS OF THE COMMON MARKET ITSELF AND OF THE INTERESTS OF THE COMMUNITY IN ITS RELATIONS WITH NON-MEMBER COUNTRIES . WHILST IT IS TRUE THAT ARTICLE 58 EMPOWERS THE COMMISSION , IN PERIODS OF MANIFEST CRISIS , TO TAKE ACTION WITH REGARD TO PRODUCTION WITHOUT REGARD TO TRADE WITH NON-MEMBER COUNTRIES , THE PROVISIONS CANNOT BE INTERPRETED AS MEANING THAT IT PERMITS NO MORE THAN THE ALLOCATION TO EVERY UNDERTAKING OF A COMPREHENSIVE PRODUCTION QUOTA WHICH MAY BE DISPOSED OF EITHER ON THE DOMESTIC MARKET OR ON THE MARKET OF NON-MEMBER COUNTRIES .