Resolution of the ECSC Consultative Committee on the continuation of the ECSC readaptation measures under Article 56 of the ECSC Treaty after 2002 and the revision of the Structural Funds (Agenda 2000)
Date: 1998-04-02
Institutions: Consultative Committee of the European Coal and Steel Community
Subjects: ECSC Treaty, European Social Fund, Structural Funds, industrial restructuring, iron and steel industry, job cuts

C  155/14

EN

Official  Journal  of  the  European  Communities

20.5.98

RESOLUTION  OF  THE  ECSC  CONSULTATIVE  COMMITTEE  ON  THE  CONTINUATION  OF
THE  ECSC  READAPTATION  MEASURES  UNDER  ARTICLE  56  OF  THE  ECSC  TREATY  AFTER
2002  AND  THE  REVISION  OF  THE  STRUCTURAL  FUNDS  (AGENDA  2000)

(98/C  155/06)

(Text  with  EEA  relevance)

(adopted  unanimously  during  the  339th  session  of  2  April  1998)

on 

document(cid:216)(˛) 

the  Commission 

Having  taken  note  of  a  number  of  relevant  documents,
including 
the
application  of  the  decision  taken  by  the  European
Council 
in  Amsterdam  concerning  the  use  of  ECSC
reserves,  the  European  Parliament  proposals  relating  in
particular  to  the  application  to  the  CEECs  of  the  restruc(cid:220)
turing  expertise  gained  under  the  ECSC  Treaty(cid:216)(ˇ),  and
the  European
following 
the  Presidency  conclusions 
Employment  Council  held 
in  Luxembourg(cid:216)(—),  THE
CONSULTATIVE  COMMITTEE  OF  THE  EUROPEAN
COAL  AND  STEEL  COMMUNITY  draws  attention  to  the
opinions  it  has  so  far  delivered  in  connection  with  the
in  particular  the
expiry  of  the  ECSC  Treaty,  and 
following:

-(cid:217)its  memorandum  adopted  on  28  June  1995  on
matters  connected  with  the  expiry  of  the  ECSC
Treaty  in  2002(cid:216)((cid:209));

-(cid:217)its  memorandum  of  10  October  1996  on  social
aspects  connected  with  the  expiry  of  the  ECSC
Treaty  in  2002(cid:216)((cid:210)).

A. In  the  past  it  was  possible  to  implement  measures  for
the  socially  defensible  readaptation  of  the  workforce
in  the  European  coal  and  steel  industry  by  granting
readaptation  aid  under  Article  56  of  the  Treaty  and,
as  part  of  the  accompanying  social  policy  measures,
by  granting  low(cid:220)interest  loans  for  the  implementation
of 
creating
replacement  jobs  under  Articles  51,  54  and  56(2)(a)
of  the  ECSC  Treaty,  so  that  even  in  times  of  high
unemployment 
large  extent
unnecessary  to  resort  to  operational  redundancies  in
the  two  sectors.  However,  the  legal  basis  for  all  types
of  aid  which  have  so  far  been  granted  under
readaptation  aid  under
this  Treaty, 

programmes 

to  a  very 

investment 

including 

it  was 

and 

by 

(˛)(cid:217)Doc.  COM(97)  506  final,  entitled  "Expiry  of  the  ECSC

Treaty  -  Financial  activites’.
(ˇ)(cid:217)Schwaiger  report,  ref.  EP  222.651.
(—)(cid:217)Ref.  SN  300/97.
((cid:209))(cid:217)OJ  C  206,  11.8.1995,  p.  7.
((cid:210))(cid:217)OJ  C  334,  8.11.1996,  p.  3.

Article  56(2)(b),  will  cease  with  the  expiry  of  the
ECSC  Treaty  on  23  July  2002.  Nor  will 
the
remaining  assets  of  the  ECSC  still  be  available  for
such  aid  payments,  since  they  are  to  be  used  for
research  purposes  (creation  of  a  financial  mechanism,
for  example  a  foundation,  to  promote  technical  and
social 
the  Commission
stated 
document(cid:216)(˛)  concerning  the  implementation  of  the
decision  taken  on  this  subject  at  the  European
Council  in  Amsterdam.

research)  as 

in 

B. It  will,  however,  be  necessary  to  provide  social
cushioning  for  the  job  losses  which  are  expected  to
occur  in  the  Community  coal  and  steel  industry  in
the  future  and  to  use  public  funds  for  this  purpose.  In
1996  about  16(cid:216)000  steel(cid:220)sector  jobs  were  lost  in  the
European  Union.  In  the  next  few  years  there  will  be
further  readaptation  measures,  since  in  the  course  of
the  further  concentration  of  the  branch  it  is  intended
to  take  full  advantage  of  considerable  synergy  effects
and  to  improve  the  competitiveness  of  undertakings
by  further  cost  reductions.  The  introduction  of  new
technologies  (e.g.  thin  strip  casting)  in  the  steel  sector
will  alone  lead  to  a  considerable  reduction  in  the
workforce.  For  1998  to  2003,  it  can  be  assumed  that
over  30(cid:216)000  more  jobs  will  be  shed.

job  shedding 

For  the  coal  sector,  as  well,  even  more  radical,
overall 
is  planned.  In  1997  alone,
around  6(cid:216)500  jobs  were  lost  in  the  coal  sector.  For
the  period  after  1998,  further  losses  of  around  40(cid:216)000
jobs,  mainly  in  the  German  coal  industry,  as  well  as
several  tens  of  thousands  in  France  and  Spain,  may
be  assumed.

C. Undertakings  will  be  unable  on  their  own  to  bear  the
financial  burdens  of  these  job  losses  without  seriously
undermining  their  international  competitive  position.
Of  the  standard  measures  co(cid:220)financed  by  the  ECSC
and  designed  as  aid 
the  early
retirement  scheme  has  mainly  been  used  in  the  past.
This  is  an  extremely  expensive  measure,  which  it  will
be  impossible  to  finance  in  future  without  public
financial  participation,  and  only  in  so  far  as  this
participation  is  compatible  with  EU  legislation.

for  reinsertion, 

20.5.98

EN

Official  Journal  of  the  European  Communities

C  155/15

this 

taken  of 

D. The  continuing  structural  changes  in  the  coal  and
steel  industries  will  mean  that  efforts  to  restructure
the  regions  affected  must  continue  at  the  same  level.
Appropriate  account  must  be 
in
connection  with  EU  Structural  Fund  assistance.  The
1999  reform  of  the  Structural  Funds  must  not  lead  to
a  situation  where  a  large  part  of  the  coal  and  steel
regions  ceases  to  be  assisted  by  Structural  Funds
when  the  ECSC  Treaty  expires.  In  the  future,  as
well,  the  coal  and  steel  regions  affected  must  be
helped 
Funds
(geographical  objectives  of  readaptation  and  reindus(cid:220)
trialisation) 
their  structural
problems.

the  European 

find  solutions 

Structural 

by 

to 

to 

E. In  the  opinion 

it 

issued  for  the  Committee  on
Budgets,  the  European  Parliament’s  Committee  on
Regional  Policy  reaffirmed  the  importance  of  the
ECSC  instruments  for  the  coal  and  steel  regions  and
for  the  industries  and  their  workers.  It  calls  for  the
bulk  of  the  present  measures,  including  redundancies,
regeneration,  health  and
retraining/readaptation, 
safety  as  well  as  socio  economic  measures,  to  be
prolonged  in  an  appropriate  form  beyond  the  expiry
of 
it  attaches  particular
this, 
the  Structural  Funds,  especially
importance 
Objective  2  and  the  horizontal  Objectives  3  and  4,
whereby 
targeted  adjustment/
extension  to  the  aid  measures  and  objectives  under
the  phasing(cid:220)in  process.

there  must  be  a 

the  Treaty. 

In 

to 

to  be  eligible 

regions  which  cease 

Those 
for
assistance  under  the  European  Structural  Funds  after
1999  must  be  given  transitional  help  for  long  enough
to  enable  them  to  consolidate  the  restructuring  which
they  have  already  successfully  completed.  To  the
same  end,  the  Committee  urges  that  the  Community
initiatives  Rechar  II  and  Resider  II,  which  provide
the  units  of  surplus  manpower  with  the  major  portion
of  their  financing  requirements,  be  continued  and
that  there  be  a  substantial  increase  in  funds  up  to
1999.

F.

in 

the 

likely  to 

foreseeable 

In  addition,  it  will  be  necessary  to  contribute  to  the
solution  of  readaptation  problems  in  those  Central
and  East  European  countries 
join  the
future.  The
European  Union 
Consultative  Committee  considers  expansion  of  the
European  Union  to  be  a  political  opportunity  for
both  the  applicant  countries  and  Europe  as  a  whole.
However,  the  EU  accession  process  must  be  accom(cid:220)
panied  by  extensive  preparation  directed  towards
increasing  the  economic  competitiveness  of  specific
sectors  via  an  effective  restructuring,  upholding  the
legislation,  restructuring
principles  of  competition 
socially  defensible,
that 
regions 
modernising  infrastructures  and  increasing  environ(cid:220)
mental  protection.  The  Consultative  Committee  has
declared  its  willingness  to  support  the  Central  and

in  a  way 

is 

East  European  coal  and  steel  regions  as  partners  in
these  difficult  tasks.

G. In  connection  with  the  assessment  of  the  proven  effi(cid:220)
ciency  of 
the  Rechar  and  Resider  Community
initiatives,  and  the  specific  evaluation  of  the  inte(cid:220)
gration  policy  approach  (integrating  municipalities,
regions,  industrial  partners  and  social  partners),  it  is
essential  that  this  kind  of  Community  initiative  be
continued  or  even  further  developed.  According  to
the  conclusions  of  the  CASTer  conference  and  the
RETI,  a  Community  initiative  is  to  be  set  up  after
1999  to  assist  industrial  changes  in  the  coal  and  steel
regions.  This  Community  initiative  should  provide
assistance  for  the  regions,  economic  operators  and
employees  affected  by  structural  changes.

is 

H. All  these  aspects  should  be  taken  into  account  in  the
discussion  on  the  reform  of  the  European  Structural
Funds  which 
in  any  case  necessary  for  other
reasons.  The  Presidency  conclusions  of  the  special
session  of  the  European  Employment  Council  held  in
Luxembourg  on  20  and  21  November  1997  (points
27  and  28  in  particular)  take  up  and  lend  support  to
this  initiative.

I. Vocational  training  is  an  essential  instrument  to  keep
employees  capable  of  adapting  to  the  new  techno(cid:220)
logies  and  to  the  continuing  structural  changes.  The
the
Consultative  Committee 
Commission 
for
to  provide 
vocational  training  and  to  evaluate  in  this  context  the
phasing(cid:220)in  of  this  ECSC  measure  into  the  European
Social  Fund.

therefore 
sufficient 

invites 
funding 

THE  ECSC  CONSULTATIVE  COMMITTEE

1. HOLDS  THE  VIEW  that  the  European  Social  Fund
and  proven  elements  of  the  Community  initiatives
Rechar  and  Resider  should,  after  the  expiry  of  the
ECSC  Treaty,  be  used  increasingly  to  co(cid:220)finance
the  Community  coal  and  steel
redundancies 
industry.  The  Consultative  Committee  bases 
its
position  on  the  following  assumptions:

in 

-(cid:217)adequate  resources  will  be  allocated  to  current
and  future  funds  and  initiatives  at  least  until
viable  alternatives  take  effect,

-(cid:217)in  this  context,  a  Community  initiative  is  to  be
set  up  to  promote  the  change  in  the  coal  and
structural  policy
steel 
instrument  in  its  own  right  or  to  supplement
other  initiatives  (e.g.  a  new  Community  initiative
to  be  known  as  Restruct),

regions,  either  as  a 

C  155/16

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Official  Journal  of  the  European  Communities

20.5.98

-(cid:217)as  part  of  the  ongoing  evaluation  process  the
existing  13  Community 
initiatives  could  be
merged,  reducing  administration  to  the  benefit  of
real  support  and  creating  greater  efficiency  and
transparency  of  administrative  structures;

granted  according  to  standard  situations  (e.g.  transi(cid:220)
tional  aid, 
"tide(cid:220)over’  allowance)  and  graduated
according  to  the  age  and  length  of  service  of  the
individual  redundant  worker;

2. ASSUMES 

that 

the  problems  of  readapting 

the
workforce  in  the  coal  and  steel  industry  could  most
readily  be  tackled  and  assisted  under  Objective  4  of
the  European  Social  Fund  ("facilitating  the  adap(cid:220)
tation  of  workers  of  either  sex  to  industrial  changes
and  to  changes  in  production  systems’).

involving  advance  retraining 

The  planned  integration  of  the  former  Objective  4
into  a  blanket  Objective  3  should  not  lead  to  the  loss
of  the  approach 
in
preparation  for  structural  changes.  If  Objective  4  is
not  retained  as  a  Structural  Fund  objective  in  its  own
right,  there  should,  rather,  be  a  guarantee  that
sufficient  funds  will  be  retained  for  these  preventive
workforce  and  labour(cid:220)market  policy  measures,  for
the  coal  and  steel  regions  in  particular.

Appropriate  solutions  must  be  found  for  problems
occurring  in  areas  situated  on  the  periphery  of  areas
eligible  for  support;

3. IS  OF  THE  OPINION  that  aid  under  Objective  2  of
the  European  Social  Fund  ("converting  the  regions
seriously  affected  by  industrial  decline’)  applies  to
the  coal  and  steel  industry,  since  the  industry  clearly
meets  the  requirement  of  Article  9(2)  of  framework
Regulation  (EEC)  No  2081/93  that  there  must  have
been  an  observable  fall  in  industrial  employment;

4. PROPOSES  that  the  following  should  be  added  to
the  list  of  European  Social  Fund  activities  set  out  in
Article  3(2)  of  the  Structural  Fund  framework  Regu(cid:220)
lation 
the
re(cid:220)employment  of  redundant  workers’;

the  next  period  of  aid 

"(e) 

for 

5. IS  OF  THE  OPINION  that  the  financial  contribution
of  the  European  Social  Fund  could  take  the  form  of
a  single  payment  replacing  all  individual  aid  so  far

6. THEREFORE  CALLS  ON  THE  COMMISSION,  in  the
light  of  the  revision  of  the  Structural  Funds  by
31  December  1999,  to  amend  the  framework  Regu(cid:220)
lation  on  the  Structural  Funds  in  line  with  the  above
points  in  time  for  this  revision;

the  European  Social  Fund, 

7. HOLDS  THE  VIEW  that,  besides  Objectives  2  and  4
the  Community
of 
initiatives  Rechar  and  Resider  are  also  suitable  for
the  purpose  of  incorporating  sectoral  provisions  for
adaptation  measures 
assisting 
into
since,  although  based  on
European 
regional  criteria,  these  aid  programmes  benefit  only
coal  and  steel  areas,  and  these  vital  branch(cid:220)specific
components  must  be  retained;

structural 
legislation 

8. SEES  A  LINK  between  the  Rechar/Resider  aid  list
and  the  present  readaptation  aid  under  the  ECSC
Treaty  in  point  8(i)  of  the  guidelines,  according  to
which  "re(cid:220)employment  aid  under  Article  56  of  the
ECSC  Treaty’  is  eligible  for  support;

or 

the  above  point 

9. DRAWS  ATTENTION  TO  THE  FACT  that  aid  eligible
under 
for  retraining  measures
intended  to  provide  workers  in  the  coal  and  steel
industries 
formerly
employed  in  these  industries  with  knowledge  which
is  geared  to  market  requirements  and  facilitates  their
integration  into  a  changing  economy,  is  only  a  small
sample  of  the  range  of  re(cid:220)employment  aid  under
Article  56  of  the  ECSC  Treaty;

unemployed  workers 

10. THEREFORE  CONSIDERS  that  in  future,  financial
aid  in  respect  of  payments  to  redundant  workers
should  either  be  incorporated  into  a  new  Community
initiative  with  the  same  objectives  (Restruct)  or
included,  via  an  appropriate  list  of  measures  and
criteria,  in  an  enlarged  Objective  2  or  3.