Keywords

Summary



Keywords

1 . ECSC - PRODUCTION - PRODUCTION QUOTA SYSTEM - INCLUSION OF EXTERNAL TRADE - COMMISSION ' S POWER TO DECIDE - CONDITIONS FOR EXERCISE OF SUCH POWER - PRODUCTION INTENDED FOR EXPORT TO NON-MEMBER COUNTRIES - NO OBLIGATION TO EXEMPT FROM QUOTA SYSTEM

( ECSC TREATY , ART . 58 )

2 . ECSC - PRODUCTION - STEEL PRODUCTION QUOTA SYSTEM - DECISION NO 2794/80 - RETROACTIVE EFFECT - LIMITS

3 . MEASURES ADOPTED BY THE INSTITUTIONS - APPLICATION RATIONE TEMPORIS - PRINCIPLE OF ABSENCE OF RETROACTIVE EFFECT - EXCEPTIONS - CONDITIONS

4 . ECSC - PRODUCTION - PRODUCTION QUOTA SYSTEM - PURPOSE - GUARANTEE OF A MINIMUM LEVEL OF PRODUCTION AND A MINIMUM LEVEL OF EMPLOYMENT FOR EACH UNDERTAKING - DUTY IMPOSED ON THE COMMISSION - ABSENCE

( ECSC TREATY , ART . 58 )

5 . ECSC - AIMS - CONSTANT RECONCILIATION

( ECSC TREATY , ARTS 2 , 3 AND 4 )

6 . ECSC - PRODUCTION - STEEL PRODUCTION QUOTA SYSTEM - UNDERTAKING ' S PRODUCTION IN EXCESS OF ITS QUOTA - EMERGENCY - EMERGENCY DUE TO UNDERTAKING ' S SERIOUS ECONOMIC DIFFICULTIES - PRINCIPLE NOT APPLICABLE

( ECSC TREATY , ART . 58 ; DECISION NO 2794/80 )

Summary

1 . THE EXTENT TO WHICH EXTERNAL TRADE IS TO BE TAKEN INTO CONSIDERATION IN RELATION TO MEASURES ADOPTED UNDER ARTICLE 58 OF THE ECSC TREATY IS A MATTER FOR THE COMMISSION TO DECIDE , AND IN ARRIVING AT THAT DECISION IT MUST TAKE ACCOUNT OF THE COMMUNITY STEEL INDUSTRY ' S OWN NEEDS AND THE COMMUNITY ' S INTERESTS IN ITS RELATIONS WITH NON-MEMBER COUNTRIES . THEREFORE IT IS NOT POSSIBLE TO INFER FROM ARTICLE 58 ANY OBLIGATION ON THE COMMISSION TO EXEMPT FROM THE QUOTA SYSTEM THE PRODUCTION WHICH CERTAIN UNDERTAKINGS MIGHT PREFER TO DIRECT TOWARDS EXPORT MARKETS .

2 . ALTHOUGH THE GENERAL DECISION , DECISION NO 2794/80 , PROVIDED FOR PRODUCTION QUOTAS FOR THE STEEL INDUSTRY FROM 1 OCTOBER 1980 WHEREAS IT ONLY CAME INTO FORCE ON 31 OCTOBER 1980 , IT DID NOT HAVE GENUINE RETROACTIVE EFFECT SINCE THE UNDERTAKINGS AFFECTED WERE ABLE TO ADJUST THEIR PRODUCTION IN NOVEMBER AND DECEMBER TO TAKE ACCOUNT OF THEIR QUOTAS FOR THE QUARTER AND THEREBY AVOID ANY INFRINGEMENT .

3 . ALTHOUGH IN GENERAL THE PRINCIPLE OF LEGAL CERTAINTY PRECLUDES A COMMUNITY MEASURE FROM TAKING EFFECT FROM A POINT IN TIME BEFORE ITS PUBLICATION , IT MAY EXCEPTIONALLY BE OTHERWISE WHERE THE PURPOSE TO BE ACHIEVED SO DEMANDS AND WHERE THE LEGITIMATE EXPECTATIONS OF THOSE CONCERNED ARE DULY RESPECTED .

4 . THE GOAL OF THE STEEL PRODUCTION QUOTA SYSTEM INTRODUCED UNDER ARTICLE 58 OF THE ECSC TREATY IS TO IMPROVE MARKET CONDITIONS SO AS TO ENABLE THE PROFITABILITY OF UNDERTAKINGS TO BE MAINTAINED OR RESTORED IN THE LONG TERM AND THEREBY ENABLE THE JOBS WHICH DEPEND ON IT TO BE PRESERVED AS FAR AS POSSIBLE . HOWEVER , ARTICLE 58 DOES NOT IN ANY WAY REQUIRE THE COMMISSION TO GUARANTEE EACH INDIVIDUAL UNDERTAKING A MINIMUM LEVEL OF PRODUCTION DETERMINED IN ACCORDANCE WITH THE UNDERTAKING ' S OWN CRITERIA OF PROFITABILITY AND DEVELOPMENT . THE AIM OF THAT ARTICLE IS TO SPREAD IN THE MOST EQUITABLE MANNER POSSIBLE AMONGST ALL UNDERTAKINGS THE REDUCTIONS REQUIRED BY THE ECONOMIC SITUATION , NOT TO GUARANTEE UNDERTAKINGS A MINIMUM LEVEL OF EMPLOYMENT PROPORTIONATE TO THEIR CAPACITY .

5 . THE GENERAL AIMS SET OUT IN ARTICLES 2 , 3 AND 4 OF THE ECSC TREATY MUST CONSTANTLY BE RECONCILED WITH ONE ANOTHER IN THE LIGHT OF THE ECONOMIC CIRCUMSTANCES AND THEREFORE PRIORITY MAY NOT BE GIVEN TO ONE OF THOSE AIMS TO THE DETRIMENT OF THE OTHERS .

6 . THE PRODUCTION QUOTA SYSTEM ESTABLISHED BY DECISION NO 2794/80 WOULD BE GRAVELY COMPROMISED OR EVEN DESTROYED IF EVERY UNDERTAKING WERE ABLE , BY PLEADING EMERGENCY DUE TO SERIOUS ECONOMIC DIFFICULTIES , TO EXCUSE ITSELF FROM OBSERVANCE OF THE RESTRICTIONS AND TO EXCEED AT WILL THE PRODUCTION QUOTA ALLOCATED TO IT . THE CHAIN REACTION THEREBY RELEASED WOULD CULMINATE IN THE COLLAPSE OF THE SYSTEM , SO THAT ARTICLE 58 OF THE ECSC TREATY WOULD BECOME A DEAD LETTER .