Keywords

Summary



Keywords

1 . MEASURES ADOPTED BY THE INSTITUTIONS - ELABORATION PROCEDURE - ECSC SYSTEM OF PRODUCTION QUOTAS - ASSENT OF THE COUNCIL - ESSENTIAL PROCEDURAL REQUIREMENT

( ECSC TREATY , ART . 58 )

2 . ECSC - PRODUCTION - SYSTEM OF QUOTAS - PURPOSE - GUARANTEE OF A MINIMUM LEVEL OF EMPLOYMENT IN THE VARIOUS UNDERTAKINGS - EXCLUDED

( ECSC TREATY , ART . 58 )

3 . ECSC - AIMS - CONSTANT RECONCILIATION

( ECSC TREATY , ARTS 2 , 3 AND 4 )

4 . ECSC - PRODUCTION - SYSTEM OF QUOTAS - PURPOSE - DISTORTIONS OF COMPETITION DUE TO STATE AIDS - TAKING INTO CONSIDERATION - CONDITIONS - CORRECTION - EXCLUDED

( ECSC TREATY , ARTS 4 ( C ) AND 58 )

5 . ECSC - PRODUCTION - SYSTEM OF QUOTAS - TAKING INTO CONSIDERATION OF EXTERNAL TRADE - DISCRETION OF THE COMMISSION - CONDITIONS FOR EXERCISE - PRODUCTION INTENDED FOR EXPORT TO NON-MEMBER COUNTRIES - COMPULSORY EXEMPTION FROM THE SYSTEM OF QUOTAS - NONE

( ECSC TREATY , ART . 58 )

6 . ECSC - PRODUCTION - SYSTEM OF STEEL PRODUCTION QUOTAS - DETERMINATION ON AN EQUITABLE BASIS - TAKING INTO CONSIDERATION OF UNDERTAKINGS ' PRODUCTION - WHETHER PERMISSIBLE

( ECSC TREATY , ART . 58 ( 2 ); DECISION NO 2794/80 , ART . 4 )

7 . ECSC - PRODUCTION - SYSTEM OF STEEL PRODUCTION QUOTAS - DETERMINATION ON AN EQUITABLE BASIS - TAKING INTO CONSIDERATION OF UNDERTAKINGS ' REFERENCE PRODUCTION FIGURES - ADJUSTMENT - CRITERIA - ACTUAL PRODUCTION CAPACITY DURING THE REFERENCE PERIOD

( DECISION NO 2794/80 , ART . 4 )

Summary

1 . THE OBTAINING OF THE ASSENT OF THE COUNCIL BY THE COMMISSION FOR THE PURPOSE OF INTRODUCING A SYSTEM OF PRODUCTION QUOTAS UNDER ARTICLE 58 OF THE ECSC TREATY IS ONE OF THE ESSENTIAL PROCEDURAL REQUIREMENTS LAID DOWN BY THE TREATY , NON-OBSERVANCE OF WHICH LEADS TO NULLITY .

2 . THE GOAL OF A SYSTEM OF PRODUCTION QUOTAS INTRODUCED UNDER ARTICLE 58 OF THE ECSC TREATY IS TO IMPROVE CONDITIONS ON THE MARKET IN STEEL 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 ARTICLE 58 IS TO SPREAD IN THE MOST EQUITABLE MANNER POSSIBLE AMONGST ALL UNDERTAKINGS THE REDUCTIONS REQUIRED BY THE ECONOMIC SITUATION AND NOT TO GUARANTEE UNDERTAKINGS A MINIMUM LEVEL OF EMPLOYMENT PROPORTIONATE TO THEIR CAPACITY .

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

4 . THERE ARE NO GROUNDS FOR ASSUMING THAT WHEN ADOPTING THE MEASURES PROVIDED FOR IN ARTICLE 58 THE COMMISSION IS UNDER THE OBLIGATION TO TAKE ACCOUNT OF DISTORTIONS ON THE STEEL MARKET CAUSED BY THE GRANT OF AIDS WHICH MIGHT BE INCOMPATIBLE WITH THE TREATY . THE PURPOSE OF ARTICLE 58 IS TO ENABLE THE COMMUNITY TO DEAL WITH SERIOUS CRISES CAUSED BY THE DECLINE IN DEMAND . ITS APPLICATION DEMANDS PROMPT ACTION WHICH MUST INEVITABLY BE BASED ON RELATIVELY SIMPLE CRITERIA . IT IS INCOMPATIBLE WITH SUCH ACTION TO TAKE INTO ACCOUNT FACTORS , SUCH AS THE GRANT OF STATE AIDS , THE APPRAISAL OF WHICH INVOLVES PARTICULARLY COMPLEX INVESTIGATIONS . ALTHOUGH IT CANNOT BE DENIED THAT WHEN WORKING OUT THE RULES ON PRODUCTION QUOTAS THE COMMISSION MAY TAKE ACCOUNT OF SITUATIONS WHICH ARE CONTRARY TO ARTICLE 4 ( C ) OF THE ECSC TREATY AND TO THE RULES LAID DOWN BY ITS DECISIONS IN THE FIELD AND WHICH ARE DULY PROVEN TO EXIST IN THE COURSE OF THE RELEVANT PROCEDURES , AS IT ALREADY DOES WHEN MONITORING INVESTMENT , IT IS HOWEVER NOT POSSIBLE TO GO SO FAR AS TO DEMAND THAT THE ANTI-CRISIS MEASURES ENVISAGED BY ARTICLE 58 SHOULD BE USED TO COUNTERACT THE EFFECT OF ILLEGAL AIDS GRANTED BY MEMBER STATES .

5 . THE EXTENT TO WHICH EXTERNAL TRADE MUST BE TAKEN INTO CONSIDERATION IN CONNECTION WITH MEASURES TO BE ADOPTED UNDER ARTICLE 58 OF THE ECSC TREATY IS 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 REQUIRING THE COMMISSION TO EXEMPT FROM THE QUOTA SYSTEM THE PRODUCTION WHICH CERTAIN UNDERTAKINGS MIGHT PREFER TO CHANNEL TOWARDS EXPORT MARKETS .

6 . THERE ARE NO REASONABLE GROUNDS FOR DENYING THAT THE COMMISSION ' S CHOICE OF THE CRITERION BASED ON UNDERTAKINGS ' ACTUAL PRODUCTION FOR THE PURPOSE OF DEFINING THE ' ' EQUITABLE BASIS ' ' FOR THE DETERMINATION OF PRODUCTION QUOTAS WITHIN THE MEANING OF ARTICLE 58 ( 2 ) OF THE ECSC TREATY ACCORDS WITH THAT PROVISION . INDEED , THAT CRITERION , AS ADJUSTED BY ARTICLE 4 OF DECISION NO 2794/80 , CONSTITUTES , IN THE FIRST PLACE , AN OBJECTIVE BASIS OF ASSESSMENT WHICH AVOIDS THE UNCERTAINTIES INHERENT IN DETERMINING A FACTOR WHICH IS PARTLY CONJECTURAL , SUCH AS PRODUCTION CAPACITY ; SECONDLY , IT ENABLES TOTAL PRODUCTION TO BE REDUCED WITHOUT ALTERING THE POSITIONS OF THE UNDERTAKINGS ON THE MARKET AS BETWEEN EACH OTHER .

7 . SINCE DECISION NO 2794/80 FIXES A DEFINITE REFERENCE PERIOD FOR DETERMINING STEEL UNDERTAKINGS ' REFERENCE PRODUCTION FIGURES , ONLY PRODUCTION CAPACITY WHICH ACTUALLY EXISTED IN THAT PERIOD MAY BE TAKEN INTO ACCOUNT .