Memorandum of the ECSC Consultative Committee on matters connected with the expiry of the ECSC Treaty in 2002 (¹)
Date: 1995-06-28
Institutions: Consultative Committee of the European Coal and Steel Community
Subjects: ECSC, ECSC Treaty, ECSC operating budget, economic policy, energy policy, social policy













EUR-Lex - 31995Y0811(03) - EN






Avis juridique important




|



31995Y0811(03)

Memorandum of the ECSC Consultative Committee on matters connected with the expiry of the ECSC Treaty in 2002 (¹)  


Official Journal C 206 , 11/08/1995 P. 0007 - 0012 





MEMORANDUM OF THE ECSCConsultative Committe on  matters connected with the expiry of the ECSC Treaty in 2002(95/C  206/06)(Text with EEA  relevance)(Adopted at the 320th Session of 28 June 1995 with one vote against)The Consultative  Committee of the European Coal and Steel Community recalls the positions it has previously adopted  in the light of the expiry of the ECSC Treaty, in particular: - its memorandum on the future of the ECSC Treaty, adopted on 20 November 1992  (1), - its memorandum on the future of the ECSC financial activities, adopted on 24 March 1994  (2). These two memorandums, which were adopted unanimously, took account of the documents known at the  time, which came from the European Parliament, the Council and the Commission, and more  specifically with regard to the Memorandum of 24 March 1994, the Commission working document of 20  October 1993 updating the communication to the Council on the future of the ECSC Treaty - financial  activities  (1). The Consultative Committee has taken note of the documents on the same subject which have been  published since then by the competent European institutions, namely: - the conclusions of the Council meeting of 22 April 1994 on the future of the ECSC Treaty  (2), - the resolution adopted by the European Parliament on 26 October 1994 on the 1995 draft ECSC  operating budget  (3), - the opinion adopted by the Committee on research, technological development and energy of the  European Parliament on 23 February 1995 on the functioning of the Treaty on European Union with  regard to the 1996 Intergovernmental Conference  (4), - the report adopted by the Committee on Budgetary Control of the European Parliament on 22 March  1995 on granting a discharge to the Commission for the management of the ECSC for 1993  (5), - the annual reports of the European Court of Auditors on the management of the accounts and the  financial management of the European Coal and Steel Community, the most recent of which relates to  1993  (6)Aware, like the European Parliament, of the present need for a more political and more  global approach to the various aspects associated with the expiry of the ECSC Treaty, the  Consultative Committee considers that now is the time to update and coordinate its positions on the  subject, since: - from 1992 to 1994 a grave crisis once again shook the steel industry and highlighted the  permanent need for structural adaptions, which entail major industrial, social and regional  consequences, - the publication by the Commission of a Green Paper entitled 'For a European Union energy policy`   (7) launched a fundamental debate on the long-term future of the coal industry, - the recent enlargement of the European Union to 15 Member States and its extension in the medium  term to include other countries, in particular those of central and eastern Europe, has had and  will continue to have a significant impact on the coal and steel industries. Set up under the ECSC Treaty as a forum for dialogue between those involved in the coal and steel  industries (producers, workers, consumers and dealers) and the Commission and for cross-border  dialogue between these groups, the Consultative Committee regards itself as particularly qualified  and competent to express an opinion on the provisions of the ECSC Treaty and application of these  provisions. It is in a position to assess what effect these provisions provided for by the ECSC  Treaty have had on the profound structural changes in the ECSC industries over the past 40 years  and more and the cyclical trends affecting the steel industry in particular. 1. GENERAL REMARKSThe Consultative Committee reaffirms its previous positions of principal,  namely: 1.1. that the ECSC Treaty should remain in force until 2002 as an autonomous legal instrument and  should be implemented normally until that date, account being taken of the specific remarks below, 1.2. that certain rules in the ECSC Treaty which have proved their worth should be transposed to  the EC Treaty, as provided for in the Commission communication to the Council of 15 March 1991   (8), 1.3. that the Commission should continue to involve the Consultative Committee closely in drawing  up the Union's coal and steel policy and in any discussions on the various aspects associated with  the expiry of the ECSC Treaty in 2002. 2. SPECIFIC REMARKSThe Consultative Committee sets out below its remarks and comments on certain  specific provisions of the ECSC Treaty: 2.1. The Consultative Committee states that the statistical instruments of the ECSC as developed by  the Statistical Office in the industrial, economic, commercial and social fields have proved  successful from the point of view of all the parties involved. In particular, the advance notification of investment programmes and the information on production  capacities make for increased transparency in decisions on investments without any problems of  competition law arising. On the contrary, this transparency is an important aspect of normal  competition, benefits producers, dealers and consumers and is useful for monitoring competition. Drawing up not only short-term but also long-term forecasts and regularly revising them promotes  overall competitiveness and makes it easier to make adjustments to the workforce in a socially  acceptable way in the event ot structural crises. All the statistical instruments and the obligations of undertakings and the Commission to provide  information should be retained not only until the expiry of the ECSC Treaty but also beyond it. 2.2. The Consultative Committee is in favour of a European authority, in this case, the Commission,  with exclusive responsibility for competition, as laid down in the ECSC Treaty. The range of powers and, in particular, the a priori supervision in consultation with the  undertakings concerned, which give those undertakings more legal security, are arrangements which  have proved their worth. If the supranational powers that have hitherto been combined in a single competition authority,  i.e. the Commission, were to be split up, this would be a retrograde step in the context of an  existing common European market. Even after the Treaty has expired, the Commission's powers and the  proven arrangements should be retained. 2.3. The Consultative Committee regards as an extremely useful instrument of the ECSC Treaty the  flexibility with which the European Commission is able to react to crises and thereby, in  particular, to mitigate the consequences for the steel market of setbacks such as falling demand.  There is no need to make any changes in this respect until the Treaty expires. Since the ECSC was set up, the European steel industry has had to survive a number of distinct  economic cycles and will also be subject to marked cyclical fluctuations in future. For such  exceptional situations, an appropriate range of instruments, which should not be used without the  prior consultation of all interested parties, must remain available. Exceptional situations of this kind must also be catered for after the expiry of the ECSC Treaty,  and the means to do so as a Community approach should be retained. 2.4. The Consultative Committee is keen to reaffirm that the principles governing State aid for the  ECSC sectors must continue to be applied. 2.4.1. For the steel industry, this means that the strict ban on aid, in particular investment and  operating subsidies leading to distortions of competition, should be retained even after the expiry  of the Treaty, while at the same time account should be taken of the current aid code, which  permits Sate aid only in specific exceptional cases. After repeated infringements of the ban, the European Commission and the Council have undertaken  not to approve any new exemptions from the ban on subsidies. In this situation it would be  incomprehensible to the Consultative Committee if the present regulatory framework of the ECSC  Treaty in conjunction with the aid code were to be relaxed. The strict ban on subsidies should definitely be retained as a protection from the distorting  effects of favourable treatment for individual undertakings and should also apply to branches of  industry which are in competition with the steel sector. 2.4.2. The situation ragarding coal mining is different. At present, part of European Union coal  production cannot compete with imported coal, and there is no significant intra-Community trade in  coal. The aid granted by the Member States does not therefore effect the operation of the Common  Market. The current rules on aid, stated in Decision No 3632/93/ECSC, are considered to be an  adequate instrument for energy policy beyond their social and regional impact. The Consultative Committee considers that, after the expiry of the ECSC Treaty, this type of aid by  Member States should be expressly permitted. 2.5. The Consultative Committee recalls that the coal and steel sector, and in this connection  mainly coal mining, is the only sector of the energy economy for which specific objectives are laid  down in a European treaty. The Consultative Committee draws particular attention to provisions of  the Treaty in which its opjectives are individually laid down, including the avoidance of  fundamental economic disturbances, regular supply of the Community energy market and improvement of  the Community's production potential, whilst avoiding wasteful mining methods. The Consultative  Committee considers that these very objectives demonstrate that energy policy measures must never  be judged in isolation from the economy as a whole and that they have implications for regional and  social policy. The Consultative Committee stresses that even after the expiry of the ECSC Treaty the Community  will have to take account of these principles, adjusting them to varying backgrounds, particularly  in view of the importance of domestic resources for the Community's regular supplies of energy. In  this connection, application of the principle of subsidiarity will probably play an important role,  with due account being taken of all important interests at Community level. It is also important  for the creation of the new efficient and transparent decision-making structures in the Union that  there should be joint consultations between all parties concerned. After the expiry of the Treaty,  other sectors of the energy economy and the interests of the energy-consuming industries,  particularly the steel sector, should also continue to be taken into consideration. The Consultative Committee wishes to point out that, with its Green Paper on energy policy, the  Commission has ushered in a new approach to European Community energy policy. On 28 June 1995, the Consultative Committee adopted a resolution on this Green Paper. It will  express its opinion on the White Paper as soon as this has been finalized by the Commission. 2.6. The Consultative Committee has no objections to the transfer to the Commission of  responsibility for external trade policy for ECSC products, in accordance with the rules laid down  for this purpose in the EC Treaty. The Committee draws attention to the fact that the Commission should exercise this responsibility  after thorough consultation of the interested parties and taking particular account of the areas of  the European Union which are more sensitive than others to trade with third countries. 2.7. The Consultative Committee recalls that the social dimension of the ECSC Treaty is clearly  laid down. The Treaty stipulates that the Community institutions must work towards improving  worker's living and working conditions. The redundancy aid provided for in the Treaty is particularly important. In the event of  exceptional disturbances resulting in difficulties in re-employing redundant workers, the Community  may grant non-repayable aid in order to help to overcome structural crises (indemnities paid until  re-employment or retirement; retraining of workers, including wage assistance during the retraining  phase). Finally, the Consultative Committee would like particularly to stress that the Community measure,  funded from the ECSC budget, to promote social housing is unique in the Community. Until the expiry of the Treaty in 2002, its provisions should continue to operate in full. To this  end, adequate financial means should be made available each year, as indicated under point 2.9.2,  first indent, below. Initial attempts to phase the redeployment measures, in particular vocational  training, into the EC Treaty have shown that it has not been possible to offer equivalent  arrangements. The Consultative Committee wishes to see a study conducted of the problems  encountered, with a view to finding a suitable solution. After the expiry of the Treaty, the spirit of social policy embodied in the ECSC Treaty must be  transferred to the EC Treaty. The difficult situation on the European employment markets,  especially in the coal and steel regions, which are often dependent on a single industry, makes it  absolutely essential to apply proven instruments of social policy. 2.8. The Consultative Committee recalls that ECSC promotion of research in specific sectors has  produced excellent results in the context of sectoral research pooled between undertakings and  countries. The investments made on this basis have yielded many times more than the initial outlay,  along with a substantial improvement in working conditions. Social research in all its forms (ergonomics, steel-industry environment, health in mining, safety  and industrial medicine) is unique in the EU. The ergonomics programmes in particular have brought  benefits to many branches. Appropriate consultation procedures ensure that, in the field of both  social and technical research, all the groups concerned are involved in the planning and  development of the research and demonstration programmes. This should continue, with appropriate  consultation in each case of workers' representatives. The Consultative Committee stresses that, in view of the special technical features of small and  medium-sized undertakings, until the ECSC Treaty expires in 2002: (a) ECSC research should be given maximum support in the Community's technical and social framework  programmes; (b) in line with indications under point 2.9.2, first indent, below, appropriate funds should be  earmarked annually in the ECSC operating budget for the various research areas, in order to support  those ECSC research activities which cannot be incorporated into the Community framework  programmes. The promotion of Community sectoral research to improve the manufacture and use of steel, the  extraction and use of coal, working conditions and occupational safety must, in the opinion of the  Consultative Committee, be continued after the expiry of the ECSC Treaty. A financial mechanism (e.g. a foundation) should be set up in order to permit the continuation of  this research. This institution should be financed, in accordance with point 2.9.5 below, by  transferring unused ECSC reserves. The size of the reduction in the levy which the Consultative Committee wanted is in direct relation  to the expenditure to be financed and the gradual release of reserves (see point 2.9.4 below). 2.9. With regard to the financial aspects: 2.9.1. The Consultative Committee confirms its position, expressed on a number of occasions, on the  ECSC levy. It notes that this specific and supplementary tax rests only on coal and steel  undertakings in the European Union and does not in any way affect imported ECSC products. The Consultative Committee notes that in the abovementioned Commission working document of 20  October 1993 updating the communication to the Council on the future of the ECSC Treaty - financial  activities, the Commission includes in its illustrative scenario the continued, gradual reduction  of the levy starting in 1991 and its final phasing-out as from 1999. 2.9.2. The Consultative Committee- would like to see, until the expiry of the Treaty in 2002,  adequate resources provided for by the ECSC operating budget to finance the desired social  measures, in accordance with point 2.7 above, and to assist technical and social research in  accordance with 2.8, - emphasizes that conversion loans should be financed as quickly as possible under the EC Treaty, - trusts that the Commission will consult it, as in the past, before drawing up future operating  budgets. 2.9.3. With regard to reserves, the Consultative Committee reiterates the position it has always  adopted, namely that they must be used primarily for the benefit of the undertakings and their  workers, since it is they who, since 1952, have provided the bulk of the funds enabling the  reserves to be constituted. Consequently, the Consultative Committee is of the opinion that the reserves constituted as part of  the financial activities of the ECSC, namely: - the guarantee fund, - the special reserve, - the former pension fundshould be released in step with the reduction and ultimate phasing-out of  the financial activities for which they were constituted and are now being temporarily maintained. The Consultative Committee notes that this development is, moreover, provided for in the Commission  working document referred to in point 2.9.1 above. 2.9.4. The Consultative Committee is in favour of the Commission's illustrative scenario, whereby  the reserves released up to the expiry of the ECSC Treaty in 2002 should contribute to the  financing of the operating budget, the amount of such contribution being determined each year as a  function of the resources available and limited to the priority needs of the workers and  undertakings of the coal and steel sector, on which the Consultative Committee wishes to be  regularly consulted at a sufficiently early stage in the budget preparation process. 2.9.5. The Consultative Committee proposes that the balances of the reserves released until 2002  and not used to finance the operating budget, in accordance with point 2.9.4 above, and the  reserves released later in connection with the progressive reduction and ultimate phasing-out of  the financial activities which justify them, should be allocated to a financial mechanism (e.g. a  foundation), in a form to be determined, the Commission being duly involved in the management of  this mechanism and in the use of its funds. The purpose of this financial mechanism should be to  provide support for the activities which the Consultative Committee regards as being of overriding  importance, even after the expiry of the ECSC Treaty, namely technical coal and steel research and  social research. 2.10. The Consultative Committee considers that the rules, procedures and institutions which  require and make possible, in the sectoral domains, the dialogue between producers, workers,  consumers and dealers on the one hand, and the Commission on the other, have yielded very  satisfactory results. Most particularly, the simultaneous presence of the three categories of  interest represented in the ECSC Consultative Committee has proved very useful. The Consultative Committee would therefore like to see the procedures and institutions provided for  by the ECSC Treaty for the purposes of consultation continuing to be normally applied until the  expiry of the Treaty in 2002. The Consultative Committee also stresses the political importance of these dialogues and their  economic and social effects during the phases of structural readjustment. Consequently, the joint, simultaneous, transparent and sturctured consultation of all interested  parties in the coal and steel sectors must be guaranteed even after the expiry of the ECSC Treaty. (1) OJ No C 14, 20. 1. 1993, p. 5.  (2) OJ No C 116, 27. 4. 1994, p. 4.  (1) Doc. SEC(93) 1596 final.  (2) Council Doc. 6442/94 (Presse 76).  (3) OJ No C 323, 21. 11. 1994, p. 66.  (4) Doc. EP 211.254/final.  (5) Doc. EP 211.584/final.  (6) OJ No C 346, 7. 12. 1994, p. 1.  (7) Doc. COM(94) 659 final of 11. 1. 1995.  (8) Doc. SEC(91) 407 final.