European Parliament resolution on the Commission Report on the implementation in 1998 of Commission Decision No 2496/96/ECSC of 18 December 1996 establishing Community rules for State aid to the steel industry (Steel Aid Code) (COM(1999) 94 — C5-0104/1999 — 1999/2107(COS))
Date: 2000-01-18
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: aid for restructuring, aid to industry, iron and steel industry

C 304/76

Official Journal of the European Communities

EN

24.10.2000

Tuesday 18 January 2000

27.
Is concerned that in certain individual cases aid to maritime transport has been mixed with aid to
shipbuilding, which forms part of manufacturing industry and the limits on which have been laid down in
a separate directive;

Instructs its President to forward this resolution to the Commission, the Council, the Committee of

28.
the Regions and the Economic and Social Committee.

*

*

*

12. Report on state aid to the steel industry (1998)

A5-0073/1999

European Parliament resolution on the Commission Report on the implementation in 1998 of
Commission Decision No 2496/96/ECSC of 18 December 1996 establishing Community rules for
(COM(1999) 94 - C5-0104/1999 - 1999/
State aid to the steel

industry (Steel Aid Code)

2107(COS))

The European Parliament,

$ having regard to the Commission Report (COM(1999) 94 $ C5-0104/1999)),

$ having regard to Article 8 of Decision No 2496/96/ECSC of 18 December 1996 (1),

$ having regard to the Treaty establishing the European Coal and Steel Community, which expires in

2002,

$ having regard to the report of the Committee on Economic and Monetary Affairs (A5-0073/1999),

A. whereas the Commission Report relates to the second year of the sixth Steel Aid Code,

B. whereas efforts should continue to be made in future to eliminate obstacles to competition and serious

distortions of the market balance,

C. whereas under Article 4(c) of the ECSC Treaty, subsidies or aids granted by States to the iron and steel

industry or special charges imposed by States, in any form whatsoever, are prohibited,

D. whereas the rules allow the granting of aid to the steel industry in certain clearly defined cases as an

emergency measure,

1. Welcomes the Commission’s report on the implementation of the Steel Aid Code in 1998; notes,
however, that not all aspects of steel aid are treated;

2.
Stresses that restricting state aid to research and development, environmental protection, plant clo-
sures and special aids for Greece represents a sensible framework for the prevention of distortions of
competition;

Supports the Commission’s decision of 9 December 1998 pursuant to Article 88 of the ECSC Treaty

3.
to initiate a procedure on the basis of Decision No 2496/96/ECSC;

4.

Calls on the Member States to comply with their reporting requirement more promptly in future;

5.
Criticises the Commission because, in spite of the clear wording of the Steel Aid Code, which applies
to all types of aid, it has on several occasions authorised aid for steel undertakings which do not fall within
the categories set out in the Code;

Calls for a thorough assessment of this unequal treatment, inter alia in the light of the judgments of

6.
the European Court of Justice;

(1) OJ L 338, 28.12.1996, p. 42.

24.10.2000

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Official Journal of the European Communities

C 304/77

Tuesday 18 January 2000

7.
Recalls in this context that in its order of 3 May 1996 the Court accepted that the iron and steel
industry is particularly sensitive to disturbances to its competitive operation, the purpose of the system of
aids to this industry being to ensure the survival of successful companies; points out that this rigid aid
system is accurately defined in the current Steel Aid Code and should continue after the ECSC Treaty
expires;

8.

Calls for clarification of whether the Steel Aid Code applies to all aids;

Calls for a number of decisions to be examined as to whether they might require authorisation pur-

9.
suant to Article 95 of the ECSC Treaty;

Calls on the Commission, in its 1999 Report, to detail the active role it plays in the elaboration of

10.
restructuring plans and authorised exceptional cases;

Considers that the Commission must decide justly and equitably when it authorises $ or even itself
11.
suggests $ exceptions to the ban on aid in individual cases, while in others it does not even consider the
application of Article 95 of the ECSC Treaty;

12.

Calls for an expert assessment of aid in connection with the privatisation of state steel undertakings;

13.
Considers a review and amendment of the Steel Aid Code to be desirable in the interests of equal
treatment if the Commission intends to permit aids other than those hitherto referred to at the end of the
Steel Aid Code;

Calls on the Commission to propose amendments to that effect in connection with the regulations

14.
which are to succeed the ECSC Treaty from 2002;

15.
Considers that, after the expiry of the ECSC Treaty, only a Council Regulation can guarantee the
necessary legal certainty and ensure that the strict ban on all types of aid not covered by the Code is
binding;

Calls, therefore, for aids to the steel industry to be governed by a Council Regulation pursuant to

16.
Article 94 of the EC Treaty;

Shares the view of the ECSC Consultative Committee that admissible aids should give the EU’s steel
17.
sector advantages comparable to those enjoyed by other sectors of industry, but that any distortion of
competition among companies in the EU’s steel sector should be avoided, it being understood that the
rules should be sufficiently strict to ensure that aid cannot be used for purposes other than those specified
in the Code;

Instructs its President to forward this resolution to the Council, the Commission and the govern-

18.
ments of the Member States.