Communication from the Commission, to the Council, the European Parliament, the Economic and Social Committee, the ECSC Consultative Committee and the Committee of the Regions - "The future of structured dialogue after the expiry of the ECSC Treaty"
Date: 2000-09-27
Institutions: European Commission
Subjects: ECSC Treaty, EU institution, European political cooperation, application of EU law, enlargement of the Union

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.9.2000
COM(2000) 588 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL, THE EUROPEAN PARLIAMENT,
THE ECONOMIC AND SOCIAL COMMITTEE,
THE ECSC CONSULTATIVE COMMITTEE AND
THE COMMITTEE OF THE REGIONS

"The future of structured dialogue after the expiry of the ECSC Treaty"

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL, THE EUROPEAN PARLIAMENT,
THE ECONOMIC AND SOCIAL COMMITTEE,
THE ECSC CONSULTATIVE COMMITTEE AND
THE COMMITTEE OF THE REGIONS

"The future of structured dialogue after the expiry of the ECSC Treaty"

BACKGROUND

The ECSC Treaty expires on 23 July 2002, resulting in the ipso jure termination of the ECSC
legal regime and procedures and the dissolution of the Consultative Committee established by
that Treaty.1 It is now necessary to establish new consultative arrangements for the sectors
concerned. In addition to answers on matters of principle, we need to devise practical and
procedural arrangements for the chosen solutions.

It should be noted that, in line with the wishes of the Member States, the Commission was
primarily required to submit proposals on the financial repercussions of expiry, covering in
particular the devolution of ECSC assets to the European Community, management of those
assets and the funding of research activities in the coal and steel sectors. The Commission
adopted a package of proposals for that purpose on 6 September 2000.

However, although the Commission is not legally bound to do so, the Member States have
recently asked it to present its ideas on the future of structured dialogue as well2.

The objective of this communication is therefore to analyse the issues at stake, to put forward
a solution and to produce recommendations for its implementation.

THE POSSIBLE OPTIONS

The starting-point of any analysis must be the willingness of the Member States not to extend
the life of the ECSC regime and bodies beyond the time-limit
laid down in the treaty.
However, there is no denying the importance of the experience acquired by the ECSC in
facilitating labour/management dialogue and consultation. The Committee's accrued
experience, and the unique way in which it reconciles often conflicting interests suggest that
the results of fifty years of tripartite consultation should be preserved and enhanced. The
Commission has therefore prepared an inventory and analysis of the various structured
dialogue options available after 2002. The following possibilities have been considered:

– Creation of an ad hoc structure similar to the current system: at its extraordinary
meeting on 11 May 2000, the ECSC Consultative Committee suggested setting up

1

2

See Annex 1 for the Consultative Committee's membership and terms of reference.
See conclusions of the Industry Council of 18 May 2000 on the Commission Communication on the
state of the competitiveness of the steel industry in the EU.

2

an ad hoc structure comprising 54 members appointed by the Council with the
right of initiative, a permanent secretariat, a dedicated budget line, etc.

– Creation of a round table, which would meet periodically at the Commission's
instigation and would bring together the coal and steel sectors in a tripartite
format. General policy documents and research projects
funded by the
Commission with ECSC resources would be submitted to participants for an
opinion.

– Creation of a committee directly answerable to the Commission, which would be
appointed by that body and attached to one of its departments. This committee
would be comparable to the various existing scientific and technical committees
but its mandate could be extended to include certain general policy issues of
concern to the coal and steel sectors.

– Lastly, responsibility for the coal and steel sectors could be transferred to the

Economic and Social Committee (ESC).

The last option soon came to be seen as the most viable and the other possibilities were
discarded either because they did not reflect the impending expiry of the treaty and its
consequences for all the ECSC structures or because they entailed the setting-up of sui
generis structures with an ill-defined status, this being hard to justify for two sectors no longer
deemed by the Member States as requiring special treatment and which will henceforth be
governed by ordinary law.

THE CHOSEN APPROACH: ECONOMIC AND SOCIAL COMMITTEE TO ASSUME RESPONSIBILITY

The ESC's remit is to be extended to include the coal and steel sectors, and to make it the
consultative body with ordinary competence for
in line with the
arrangements for the other economic and social sectors.

those two sectors,

In addition to gaining greater powers, the ESC will acquire the Consultative Committee's
expertise and experience in structured dialogue. That experience could be used to enhance the
ESC's ability to deal with industrial conversion issues, particularly in the light of enlargement.

Some thought therefore needs to be given to the best way for the ESC to take over certain
advisory functions and working methods from the Consultative Committee. However, there
can be no question of simply transferring members of the ECSC Consultative Committee or
responsibilities vested by the Treaty in that body which, by definition, will have ceased to
exist in 2002.

The most harmonious way forward would seem to be for the ESC to take over some of the
ECSC Consultative Committee's advisory functions given that
the ESC was originally
designed as the natural consultation body for the Community, and its creation by the
EEC Treaty in 1957 makes it the "natural" successor to the ECSC Consultative Committee,
which was established in 1952. Indeed, the Member States considered the possibility of
merging the two bodies when their two executives were replaced by a single executive in
1965.

A transfer of activities to the ESC also reflects the fact that, as from July 2002, coal and steel
will be subject to the ordinary law regime of the EC Treaty. The creation of a parallel between
the legal arrangements and the consultative mechanisms places the sectors concerned in an

3

identical position to the other economic and social sectors. It also reflects the Member States'
decision not to extend the ECSC Treaty, procedures and bodies beyond the time-limit laid
down in the Treaty, and not to re-establish special arrangements for coal and steel.

80 million;

the budgetary authority could also consider a limited adjustment

At institutional level, this solution appears flexible and less costly than the other options,
merely entailing a marginal increase in the ESC's budget resources, which are currently set at
€
in
administrative back-up for the ESC's new consultative activities, along the lines of what is
currently offered to the ECSC Consultative Committee. Unlike all the other options, this
approach avoids setting up a new structure with an ill-defined status which is difficult to
justify vis-à-vis the other institutions and economic and social sectors.

It should be noted that, as in the other economic sectors, the ESC's general responsibility for
coal and steel does not constitute an obstacle to the specific role played by the Commission in
the bipartite social dialogue conducted by labour and management within sectoral dialogue
committees organised by DG EMPL. Committees of that type set up at the request of
labour/management in the sectors concerned, and for which the Commission provides a
secretariat, already exist for 25 sectors3 and could if necessary be set up in the coal and steel
sectors. These sectoral social dialogue committees enable the social partners in the sectors
concerned to pursue an autonomous social dialogue. At the same time they constitute forums
for information and consultation on the sectoral policies.

Lastly, the ESC's general responsibility for coal and steel would not prevent the Commission
from consulting committees representing those sectors in connection with the funding of
research activities after 2002. The Member States want those committees to be involved in
research programmes funded by ECSC resources after the time-limit expires and such
involvement facilitates the continuity of current ECSC programmes.4

A FAVOURABLE CLIMATE

Apart from the expiry of the ECSC Treaty and the future of structured dialogue as currently
conducted under the aegis of the Consultative Committee, several factors tend to favour the
transfer of responsibilities to the ESC and a changing role for that institution:

–

3

4

5

Like all the other institutions and organs, the ESC is aware of the need to adjust its
role and modernise its structures and operations. It has launched a discussion process
and taken measures with a view to strengthening its contribution to the various
Community policies. This work is backed by the European Parliament and the
Commission. In its opinion to the IGC entitled "Adapting the institutions to make a
success of enlargement",5 the Commission argued that
the Conference "should
re-examine the role of the Committee and adapt its composition and tasks. In the
future, the Economic and Social Committee will have to establish itself as the
framework for the consultation between the social and economic partners. (...) The

See Annex 2 for further information on this subject.
See "Proposal for a Council decision laying down the multiannual technical guidelines for the research
programme of the Coal and Steel Research Fund", adopted by the Commission on…
COM(2000)34, 26 January 2000.

4

–

–

–

–

–

reformed Economic and Social Committee could act as a relay vis-à-vis civil
society."

it

is essential for political

Against a background characterised by globalisation and increased interdependence
initiatives and decisions to be
of economic factors,
understood by civil society and to reflect its concerns. This has been underlined by
several recent events, and developments in public opinion suggest that there is a need
for the ESC to play to the full its role as a bridge between Europe and organised civil
society and as a permanent, structured forum for dialogue and consultation at
Community level.

These concerns have already met with a response on the part of the ESC, which is
currently examining the possibility of setting up an "Observatory of Civil Society":
indeed, it organised a convention on that topic in October 1999.

The debate currently taking place throughout society on the ultimate objectives and
nature of the European project is leading in the same direction and has generated
discussion of new interrelationships between the different levels of government. The
Commission has announced the publication of a White Paper on Governance in
2001. Community decisions must be underpinned by a more solid socio-economic
basis. This need to create new ways of interacting between the Community
institutions, national authorities, regional and local authorities and civil society also
suggests that thought will have to be given to the role of the ESC as a forum for
dialogue and consultation.

The conclusions of the Lisbon summit on the modernisation of the European
economy, and in particular on the need to take economic and social dimensions into
account, also tend to favour a new role for the ESC. The Committee has a role to
play in combining a culture of macro-economic stability with a spirit of enterprise
and a specifically European social culture. This project will be successful only if all
parties are actively involved and jointly responsible. These are also arguments in
favour of a consultation forum in which all social groups and interests, including the
voluntary sector, are represented. If they are to be successful, future reforms will
inevitably have to take account of environmental
issues, consumers' needs,
sustainable development, ongoing education and training, etc.

The Commission's determination to examine the development of ECSC structured
dialogue in a firmly future-based perspective; what is important for the ESC is to
derive maximum benefit from the ECSC's unique experience in labour/management
dialogue and technical expertise. In line with the conclusions of the Lisbon European
Council, the ESC intends to capitalise on this know-how and make it work for all the
Community's other areas of economic activity. This experience - notably in the fields
of social consensus, industrial restructuring and research - will enhance the ESC's
ability to play an active role in modernising the European economy and making it
more competitive.

STRENGTHS OF THE ECSC CONSULTATIVE COMMITTEE: POSSIBLE ELEMENTS OF A
TRANSFER TO THE ESC

Leaving aside the general responsibility of the ESC as from 2002, if we wish to preserve the
ECSC's experience and know-how in the field of structured dialogue, we need to examine the

5

elements which contributed to the efficiency and prestige of the Consultative Committee and
which could enrich the ESC. These elements can be summarised as follows:

1. Top-level technical expertise

This expertise contributed to the Committee's authority and the quality of its
opinions. It is based on several factors. First, the in-depth knowledge that committee
members have of their respective fields. Second, the constant efforts made by
members to promote the harmonious development of the coal and steel sectors.
Third, the high level of representation of members; who occupy leading positions
within their organisations and have the necessary authority to take decisions. Lastly,
the particular way in which the Committee's work is organised to ensure interaction
between "technical" or "sectoral" dimensions and more "horizontal" aspects. This
approach ensures that all opinions, which are prepared by study groups in which
specialist knowledge is given full rein, are underpinned by excellent technical work;
it also provides a kind of democratic filter in the more general standing committees,
thus enabling most of the Committee's opinions to be adopted unanimously, which
reflects a particular approach to achieving social consensus.

The ESC has three possible ways of maintaining this top-level expertise:

The number of ESC members

The number of ESC members is currently set at 222 by Article 258 of the Treaty. In
its aforementioned opinion on the IGC, the Commission took the view, by analogy
with the European Parliament, "that the total number of Committee members should
be set at a level which would allow it to continue to operate effectively [which]
supposes a freeze on the number of the members around its current level."

When it examines the total number of ESC members, the IGC will also have to take
on board the need to provide for adequate representation of the coal and steel sectors
within the ESC. The objective basis for this adjustment must be the expected
increase in the ESC's workload in connection with coal and steel and its broader
responsibilities in the industrial conversion field.

In view of the current levels of activity of the ECSC Consultative Committee and the
integration of coal and steel into the broader framework of an operating structure
within the ESC geared to industrial conversions, the number of members concerned
by all industrial conversion issues will in future be around 25-30.

A unique appointment procedure

ESC members are directly appointed by the Council, voting unanimously, on the
basis of proposals from the Member States. Their term of office is four years. The
Treaty states that the Committee membership must take account of the need to ensure
adequate representation for the various economic and social groups. The members of
the Consultative Committee are appointed by a similar procedure, with the difference
that the Council designates in advance the organisations deemed suitable to submit
candidates.

In its aforementioned opinion of 26 January, the Commission expressed the view that
"the Committee should be more representative of the various components of civil
society of the European Union as a whole and of its different geographical aspects.

6

This supposes that one has to reflect on the representation of civil society and on the
means to supplement the representation by category referred to in the Treaty (Article
257). One should also examine the designation of representatives by the Member
States."

Whatever the appointment procedure eventually chosen by the IGC, it is this unique
procedure which will apply to the representatives of the coal and steel sectors.

In addition, one of the strengths of the ECSC Consultative Committee lay in the very
high level of representation of its members, as a result of which the opinions it issued
were of a very high quality and the decisions taken received the backing of the
sectors concerned. In particular,
the
Consultative Committee's activities were focused on two sectors, whereas the ESC's
remit is far broader.

this was made possible by the fact

that

This problem, which is closely related to the expiry of the ECSC and the need to
capitalise on the experience acquired by the Consultative Committee, was not
addressed by the Commission in its opinion of 26 January. However, in order to
reconcile the need for a high level of expertise and representation with the broader
remit of the ESC, the conference could provide for full members and alternate
members to be appointed. This would ensure, at no extra cost, a very high level of
representation of full members to examine sensitive or more political issues, while
guaranteeing that more technical matters were handled with the requisite degree of
specialisation by alternate members. It would also provide the ESC with a broader
base and make it more representative.

The budgetary repercussions of this change will have to be looked at closely. As in
the Committee of the Regions, where this method is used, the appointment of
alternate members to the ESC should entail no more than a minimal increase in
operating expenses.

Changes to the internal organisation of the ESC:

The way in which the ECSC Consultative Committee works ensures that its analysis
of problems draws on a specialist knowledge of the industries concerned while at the
same time expressing the views of the whole Committee. This is achieved by
interaction between the sectoral or technical level and the horizontal or political
level. The Committee's opinions, resolutions and declarations are usually drawn up
by a working party consisting of an equal number of members from each category,
chosen for
the subject. The working party's
deliberations result in a text which is sent to the appropriate horizontal committee,
before being presented to the plenary for adoption. This three-stage procedure allows
the concerns of the members to be taken into account without distorting the text
prepared by the working group.

thorough knowledge of

their

are produced by the

The system is slightly different in the ESC, which has a wider remit: members are
divided into three groups ("Employers", "Workers" and "Various Interests");
opinions
case of
sections
multidimensional subjects, by sub-committees. The rules of procedure provide for
the constitution of at least six sections. These sections may set up study groups to
help them prepare opinions. Unless authorised by the Bureau, the study groups are
temporary, have no more than 15 members and may enlist the services of experts.

and sometimes,

in the

7

Finally, the rules allow the ESC to set up "observatories", if the nature, scope and
specific characteristics of the subject under discussion demand particular flexibility
in terms of the working methods, procedures and instruments to be used. These
observatories are permanent and attached to a particular section. The only example at
present is the Single Market Observatory.

There might be a case for reorganising the internal structures and working practices
of the ESC to ensure permanent interaction between an initial level, where full use
was made of sectoral expertise, an intermediate level, where the matter would be
debated in a wider context, and finally the plenary assembly itself. Whatever the
formula or terminology adopted, the important thing is that the new structure should
be permanent, that it can be used by each of the sections as required, and that it
should be explicitly involved in the preparation of opinions, albeit at a preliminary
stage and without prejudice to the horizontal powers subsequently exercised by the
sections. Finally it must be adequately represented in the political bodies of the ESC.

This would require an amendment to the ESC Rules of Procedure, which govern
internal organisation, in accordance with Article 260 of the Treaty.

2. The three groups

The ECSC Consultative Committee consists of representatives of producers, workers
and consumers/dealers in the coal and steel sectors. This structure has made possible
a productive debate between groups with often conflicting opinions, and has
engendered a very valuable culture of consensus at times of difficult decisions and
industrial restructuring.

The ESC also has a tripartite structure, although the nature of the third group is
different ("Various interests"). The three groups are not all the same size and
membership of a group is a matter of individual choice.

The demands of the ECSC sectors could probably be satisfied within the current ESC
framework, in that consumers/dealers are already represented in the ESC's Groups I
and II ("Employers" and "Workers"). This is true for example for the car industry,
shipbuilding, electricity producers, transport and primary processing industries.

3. Extended right of initiative

The Treaty bestows on the Consultative Committee the right to debate any issue of
interest to the industries concerned and to deliver an opinion or recommendation on
the matter.

The ESC has effectively enjoyed a similar right since 1974, and this was formalised
by the Treaty of Maastricht.

As things currently stand, therefore, the two regimes are compatible and do not
require amendment.

4. Mandatory consultation

Many provisions of the ECSC Treaty require mandatory consultation of the
Consultative Committee. However, custom and practice, and changes in the sectors
concerned have allowed many of these provisions to fall into disuse. Consultation

8

now remains mandatory only for measures taken under Article 95 (exceptional
measures proposed by the Commission after consulting the Consultative Committee
and adopted unanimously by the Council: special state aid, trade agreements) and
Article 55(2)(c) (proposals to fund research activity).

The EC Treaty, on the other hand, provides for the ESC to be consulted on many
more subjects: free movement of workers (Article 40), the right of establishment
(Article 44), the freedom to provide services (Article 52), transport (Articles 71, 75,
80), taxation (Article 93), approximation of laws (Articles 94, 95), employment
(Articles 128, 129), social policy (Articles 137, 140), equal pay (Article 141),
migrant workers (Article 144), the Social Fund (Article 148), education and youth
(Article 149), vocational training (Article 150), public health (Article152), consumer
protection (Article 153), Trans-European Networks (Article 156), industry (Article
157), economic and social cohesion (Article 159, 161, 162), research (Articles 166,
172), the environment (Article 175).

Referring to mandatory consultation and the ESC's right of
the
Commission indicated in its opinion of 26 January 2000 that "There would need to be
a rethink of its role regarding legislative opinions, and the texts of the Treaty would
have to be adapted to allow the Committee to judge for itself whether it should issue
an opinion on proposals under the EC Treaty. The European institutions would still
be able to ask the Committee for an opinion."

initiative,

As the Treaties now stand, the EC regime is more generous than that of the ECSC
Treaty. The coal and steel sectors would therefore stand to gain from the ESC taking
over certain of the Consultative Committee's activities. Their representatives would
then be systematically consulted on such matters of importance to their sectors as
vocational training, social policy, taxation, employment, industry, etc. on which they
are not always consulted under the ECSC Treaty.

5. Early referral

One of the strengths of the Consultative Committee has been its ability to deliver
opinions and make recommendations at an early stage of the decision-making
the proposals for legislation and decisions taken by the
process. As a result,
Commission have been based on a thorough knowledge of the industries involved
and have often enjoyed the support of these sectors. This early referral has occurred
both under the ECSC Treaty, certain provisions of which require an opinion from the
Committee before a decision is taken, and at the instigation of the Commission,
which found it useful to consult the Committee on certain important issues.6

6

Typical examples of this practice are the general objectives and forward programmes. Article 46 of the
ECSC Treaty provides for the publication at regular intervals of general objectives, medium and long-
industries, and short-term programmes,
term forecasts of the development of the coal and steel
particularly on the market (price, quantity) and employment trends. Over the years differences have
emerged between the nature of the general objectives and programmes for coal and those for steel. But
the long-term programmes and objectives have been discussed with the Consultative Committee on the
basis of a provisional document presented by the Commission in order to canvas the opinion of the
Committee before publishing the final text. In the case of the study on the competitiveness of the steel

9

The EC Treaty makes no provision for systematic early consultation of the ESC.
Leaving aside the instances of mandatory consultation, Article 262 merely allows the
Council and the Commission to consult the Committee in all cases in which these
institutions consider it appropriate. "Exploratory" opinions are a special type of
optional opinion. Their purpose is to allow the institutions to seek the opinion of the
ESC before taking a decision or passing legislation. In such cases, the ESC does not
have a formal proposal before it but is asked to consider an issue and to make
recommendations. In practice, recourse to exploratory opinions has been exceptional.

Without altering the decision-making process, the Commission could announce its
intention of making greater use of exploratory opinions where the subject matter
warranted it. Such a practice, which would not require any amendment to the Treaty,
would be based on a political commitment and would reflect the Commission's desire
to engage in structured dialogue in an institutional framework with all sections of
economic and social life and civil society. It would also strengthen the foundations of
the Commission's proposals and decisions.

CONCLUSIONS

The Commission

- suggests that when considering the question of the total number of members of the
ESC the IGC take into account the expiry of the ECSC Treaty and the case for
ensuring proper representation of the coal and steel sectors in the ESC and for
considering the possible appointment of alternate members for the ESC;

- suggests that the ESC amend its rules of procedure and working methods to allow
full use to be made of sectoral expertise. This change could take the form of a
permanent structure involved on a regular basis in preparing opinions, answering to
all of the sections and represented at the level of the political bodies of the ESC;

- suggests to the ESC that this structure should not be confined to the coal and steel
sectors but extended to all matters relating to industrial changes. It also suggests that
similar structures might be set up for other specific sectors of economic and social
life where high-level technical expertise is required;

- notes that, when the time comes, consideration should be given to modifying
slightly the administrative support for the ESC under the heading of coal and steel.

industry, a special meeting was called at the beginning of 1999 on the basis of a simple annotated table
of contents presented by the then DG III.

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ANNEX 1

The ECSC Consultative Committee: role and composition

The ECSC Consultative Committee consists of 108 members representing the producers,
consumers and workers in the coal and steel sectors. Members are nominated by the Member
States and appointed by the Council. This appointment procedure has ensured a high level of
representation and given the institution a certain prestige.

The Committee delivers opinions either as required by ECSC procedures or on its own
initiative. These opinions can be on matters of general policy of relevance to the coal and steel
sectors or on more legal or technical questions (state aid, research, etc.). The Committee has
three permanent sub-committees (Markets and Forward Studies, Labour Problems and
Research Projects) and several special ad hoc committees, whose role is to prepare the work
of the Consultative Committee.

The Consultative Committee is served by a secretariat provided by the Commission and has
its own budget line of roughly

700 000 annually.

€

Much of the originality and added value of the Consultative Committee lies in its tripartite
structure, the technical expertise of its members and its continuity, which has made it a
permanent forum for dialogue. Experience has shown that these three factors have enabled the
Consultative Committee to accommodate the often conflicting interests of the Member States,
the coal and steel sectors and the social partners.

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ANNEX 2

Sectoral dialogue committees

The Commission has established a new framework for European sectoral dialogue.7 This is
applicable on the same terms to all sectors wishing to take part in social dialogue and will be
extendable to new sectors. The Commission has accordingly adopted a framework decision
on the establishment of sectoral social dialogue committees.

The new committees constitute the key forum for sectoral social dialogue (consultation, joint
action and negotiations) and will be set up in all sectors which submit a joint request and are
structured and have a European presence in line with the criteria of representativeness.

They operate as follows: at least one high-level plenary meeting each year, and restricted
preparatory meetings.

The Commission will provide secretarial services through the DG most concerned with the
issues on the agenda or
through DG EMPL. Meetings are normally chaired by a
representative of the employers or workers, but a Commission representative will take the
chair if asked to do so by the two parties.

The Commission will organise timely and substantial consultation on sector-specific issues
with social implications. Each sector will be fully supported through a partnership between
DG EMPL and the other relevant DGs, including technical back-up for the preparation of and
follow-up to meetings.

the social partners may also engage in
Within the framework of their social dialogue,
contractual activity and through agreements or recommendations contribute directly to
defining certain social aspects of policies affecting their sector.

7

See Commission Communication: "Adapting and promoting the social dialogue at Community level",
20 May 1998, COM(1998)322 final.

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