Keywords

Summary



Keywords

ECSC - PRODUCTION - STEEL PRODUCTION QUOTA SYSTEM - ALLOCATION OF ADDITIONAL QUOTAS - CONDITIONS - REDUCTIONS IN PRODUCTION CAPACITY EFFECTED AFTER THE REFERENCE DATE IN ACCORDANCE WITH A RESTRUCTURING PLAN OR AS REQUIRED BY THE COMMISSION IN ITS DECISIONS CONCERNING AID TO THE STEEL INDUSTRY - REFERENCE CRITERIA - ARBITRARY OR DISCRIMINATORY NATURE - NONE

( ECSC TREATY , ART . 58 ; DECISION NO 2177/83 , ART . 14 B , AND DECISION NO 234/84 , ART . 14 B )

Summary

BY PROVIDING THAT THE COMMISSION MAY ALLOCATE , WITHIN THE FRAMEWORK OF THE SYSTEM OF STEEL PRODUCTION QUOTAS , ADDITIONAL QUOTAS TO AN UNDERTAKING IF THAT UNDERTAKING HAS , SINCE 1 JANUARY 1980 , EFFECTED THE REDUCTION IN ITS PRODUCTION CAPACITY PROVIDED FOR IN ITS RESTRUCTURING PLAN OR REQUIRED BY THE COMMISSION IN ITS DECISIONS CONCERNING AID TO THE STEEL INDUSTRY , ARTICLE 14 B OF DECISION NO 2177/83 , AS AMENDED BY DECISION NO 3280/83 , AND ARTICLE 14 B OF DECISION NO 234/84 DO NOT LAY DOWN ARBITRARY OR DISCRIMINATORY CRITERIA .

IN THE FIRST PLACE , THE CHOICE OF THE REFERENCE DATE IS NEITHER ARBITRARY NOR DISCRIMINATORY . IT FORMS PART OF A SET OF RULES COMPRISING SEVERAL ELEMENTS , RELATING IN PARTICULAR TO THE LIMITATION OF PRODUCTION AND THE REDUCTION OF PRODUCTION CAPACITY IN THE STEEL SECTOR , AND IT IS IN HARMONY WITH THE OTHER ELEMENTS OF THOSE RULES , WHICH THEMSELVES FORM PART OF THE STEEL POLICY GRADUALLY DEVELOPED BY THE COMMISSION AND THE COUNCIL . THE FACT THAT THE COMMISSION MADE IT POSSIBLE TO INCREASE THE REFERENCE PRODUCTION FIGURES IN ORDER TO TAKE ACCOUNT OF RESTRUCTURING EFFORTS COMPLETED BEFORE 1980 AND THE FACT THAT IT PROVIDED FOR THE ALLOCATION OF ADDITIONAL QUOTAS IN ORDER TO COMPENSATE FOR CAPACITY REDUCTIONS EFFECTED SINCE THE BEGINNING OF 1980 CLEARLY INDICATE THAT THE COMMISSION DID NOT SEEK TO FAVOUR CERTAIN UNDERTAKINGS OR CATEGORIES OF UNDERTAKING ; THAT VIEW IS , MOREOVER , CONFIRMED BY THE MANNER IN WHICH THE SYSTEM HAS BEEN APPLIED .

IN THE SECOND PLACE , WITH REGARD TO THE REQUIREMENT OF A RESTRUCTURING PLAN , IT MUST BE ACKNOWLEDGED THAT THE COMMISSION IS QUITE CORRECT , IN VIEW OF THE SERIOUSNESS OF THE CRISIS IN THE STEEL INDUSTRY AND OF THE MEASURES NEEDED TO OVERCOME IT , TO REGULATE THE PROCESS OF RESTRUCTURING BY A SERIES OF MEASURES OF WHICH THE QUOTA SYSTEM FORMS PART . CONSEQUENTLY , IT IS NOT ARBITRARY TO REQUIRE THAT THE CAPACITY REDUCTIONS CONFERRING THE RIGHT TO THE ALLOCATION OF ADDITIONAL QUOTAS SHOULD FORM A COHERENT WHOLE AND BE IN CONFORMITY WITH THE REQUIREMENTS LAID DOWN BY THE COMMISSION IN ITS DECISIONS CONCERNING AID TO THE STEEL INDUSTRY OR WITH A RESTRUCTURING PLAN WHICH WAS ADOPTED BY THE UNDERTAKING BUT WHICH IS COMPATIBLE WITH THE GENERAL RESTRUCTURING OBJECTIVES LAID DOWN BY THE COMMUNITY INSTITUTIONS .

FINALLY , THERE ARE NO GROUNDS FOR OBJECTING TO THE INCLUSION IN THE SYSTEM OF PRODUCTION QUOTAS OF CRITERIA WHICH FORM PART OF THE SYSTEM OF AID TO THE STEEL INDUSTRY , SINCE THE OBJECTIVE OF BOTH SYSTEMS , DESPITE THE DIFFERENCES IN THEIR LEGAL BASIS AND THE CRITERIA FOR THEIR APPLICATION , IS RESTRUCTURING . IT IS THEREFORE NEITHER ARBITRARY NOR DISCRIMINATORY IF FACTORS RESULTING FROM THE APPLICATION OF ONE OF THE SYSTEMS ARE USED AS A POINT OF REFERENCE IN THE OTHER .