Proposal for a COUNCIL DECISION amending Decision 2003/76/EC establishing the measures necessary for the implementation of the Protocol, annexed to the Treaty establishing the European Community, on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel
Date: 2017-08-25
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: ECSC, ECSC Treaty, coal, fund (EU), protocol to an agreement, research, research expenditure (EU), research programme, steel

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   EUROPEAN COMMISSION  Brussels, 25.8.2017  COM(2017) 452 final 2017/0213 (APP)   Proposal for a COUNCIL DECISION amending Decision 2003/76/EC establishing the measures necessary for the implementation of the Protocol, annexed to the Treaty establishing the European Community, on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel  
 
EXPLANATORY MEMORANDUM 

1. 

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CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

In the context of the quantitative-easing-policy led by the European Central Bank combined 
with  the security principle that  governs the management of  the assets  of the European Coal 
and  Steel  Community  in  liquidation  (ECSC  i.l.),  the  revenues  assigned  to  the  funding  of 
research projects for Coal and Steel are decreasing at a substantial rate from one year to the 
other, leading to a situation where the critical level of funding for organising an annual call 
for proposals may not be met. 

The  budgetary  envelope  of  the  RFCS  programme  has  decreased  from  EUR  46  m    in  2017 
based on 2015 ECSC i.l.'s revenues to EUR 27 m in 2018 based on 2016 ECSC i.l.'s revenues 
and the amount is expected to be even lower for 2019 (between EUR 14 m and EUR 18 m). 

A bridging solution which would maintain for a certain period an acceptable level of funding 
of  Coal  and  Steel  research  projects  while  waiting  for  a  change  in  monetary  policy  and  an 
increase  of  asset  returns  on  public  bonds  markets  can  be  found  in  the  recycling  of  unused 
appropriations put at the disposal of the research programme of the Research Fund for Coal 
and  Steel  (RFCS)  and  in  particular  the  amounts  corresponding  to  cancellations  of 
commitments made under this programme. 

The adoption of the proposed revision will authorise the recycling of all the de-commitments 
(including the amounts recovered) made in the RFCS research programme since 2003 which 
have  been  returned  to  the  assets  of  the  ECSC  in  liquidation  and  represent  a  possible 
complementary  funding  for  the  RFCS  research  programme  of  EUR  40.3  m.  It  will  also 
provide an extra funding of about EUR 5 m per year (average flow of annual de-commitments 
over the three past years in RFCS research programme). 

• 

Consistency with existing policy provisions in the policy area 

The  RFCS  programme  is  complementary  to  other  Union  instruments  that  can  be  used  to 
support the adaptation of the industry at several levels. These include the European Fund for 
Strategic Investments, the European Structural and Investment Funds, Horizon 2020 with the 
Public-Private  Partnership  'SPIRE'  (Sustainable  Process  Industry  through  Resource  and 
Energy Efficiency) and the European Social Fund. 

This  proposal  is  in  line  with  the  4th  priority  of  Juncker  Commission  "A  Deeper  and  Fairer 
Internal  Market  with  a  Strengthened  Industrial  Base".  It  is  also  consistent  with  the  Union 
support  to  the  competitiveness  of  the  Steel  industry  and  to  the  reconversion  of  the  Coal 
industry, which are among the objectives of the RFCS research programme. 

• 

Consistency with other Union policies 

The  proposal  is  fully  consistent  with  initiatives  taken  at  Union  level  in  the  context  of  the 
industrial policy. In particular, it is consistent with the 2014 Communication "For a European 
Industrial  Renaissance"1  which  sets  out  the  Union’s  priorities  for  industrial  policy  and  the 
2016 Communication "Steel: Preserving sustainable jobs and growth in Europe"2. 

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COM (2014)14 
COM (2016)155 

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2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  rules  concerning  de-commitments  are  enshrined  in  Article  4  of  the  Council  Decision 
2003/76/EC  which  establishes  the  measures  necessary  for  the  implementation  of  the 
Protocol3. 

The  proposed  revision  is  limited  to  two  paragraphs  of  Article  4  of  the  Council  Decision 
2003/76/EC and aims at applying the same treatment (automatic carry-over to the next year) 
for  both  categories  of  unused  funds:  appropriations  not  committed  at  year-end  and 
cancellations of commitments. 

• 

Subsidiarity (for non-exclusive competence)  

The measures implementing the Protocol are established in a Council decision the revision of 
which belongs to the Commission exclusive right of initiative for legislative proposals. 

• 

Proportionality 

Internal consultations within the Commission lead to the conclusion that the recycling of de-
commitments cannot be done through the interpretation of the current legal basis. A revision 
of paragraphs 4 and 5 of Article 4 of the Council Decision 2003/76/EC is therefore necessary. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable - The 2013 Monitoring and Assessment exercise affirmed that the RFCS has 
fulfilled its mandate to support the competitiveness of the sectors related to the coal and steel 
industry, and has confirmed that an adequate level of funding is necessary 

• 

Stakeholder consultations 

The Programme  Committee of the RFCS research programme (COSCO) has been informed 
about the decrease of the available budget (from EUR 46 m for 2017 to EUR 27 m for 2018).  

The  European  Steel  Technology  Platform  (ESTEP  representing  the  steel  stakeholders)  has 
expressed  its  full  support  to  the  Council  Decision  revision  as  otherwise  many  actors  would 
suffer from the drastic reduction of the RFCS fund. 

• 

Collection and use of expertise 

Not relevant 

• 

Impact assessment 

Not applicable.  

The  proposed  revision  has  a  limited  and  technical  scope,  without  any  significant  political, 
economic or budget implications (bridging measure). 

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Protocol n°37 to the Treaty on the functioning of the European Union, on the financial consequences of 
the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel 

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Regulatory fitness and simplification 

Not applicable. 

However, the proposed revision will simplify the internal workload of the Commission for the 
annual  closure  of  ECSC  i.l.  accounts,  as  the  de-committed  amounts  will  no  longer  be 
registered and booked in the balance sheet of ECSC i.l. 

• 

Fundamental rights 

Not applicable. 

4. 

BUDGETARY IMPLICATIONS 

None.  The proposal has no implications on Staff level and do not create any new liabilities to 
be charged to the General Budget under the current MFF. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A rapid adoption of the present proposal by the legislative authority by the first Semester of 
2018 would allow the commission to top up the expected envelope of the RFCS programme 
for 2018 (EUR 27 m) to reach an amount of EUR 40 m for the next annual call. 

The remaining amount may be used for 2019 to maintain the RFCS funding at the same level 
(EUR 40 m). 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Detailed explanation of the specific provisions of the proposal 

It is proposed to treat in the same way: 

a) the amounts de-committed :  sums which have been committed with the signature of grant 
agreements  and  which  are  no  longer  payable  to  beneficiaries  (eligible  costs  are  lower  than 
expected) or recovered, and  

b)  the amounts  which  have  not  been committed at the end of the year with  the signature of 
grant  agreements.  These  unused  funds  are  currently  automatically  carried  over  to  the  next 
year  in  the  general  budget  in  accordance  with  Article  4  (4)  of  the  Council  decision 
2003/76/EC. 

Therefore,  the  de-committed  amounts  would  be  assimilated  to  the  unused  funds  covered  by 
Article 4(4). 

Furthermore,  the  amounts  recovered  under  the  RFCS  Programme  will  follow  the  same 
treatment  and  will  also  be  automatically  carried  over,  in  accordance  with  the  relevant 
provisions of the Financial Regulation (FR) on assigned revenues (Articles 14 and 21 of  the 
FR).  

This  justifies  the  complete  deletion  of  the  current  Article  4(5)  of  the  Council  decision 
2003/76/EC. 

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The revision is then limited to the following provisions: 

(1) Paragraph 4 of Article 4 is replaced by the following: 

4.  Unused  revenue  and  appropriations  deriving  from  this  revenue  still  available  on  31 
December  in  any  given  year  as  well  as  de-commitments  made  under  the  research 
programme of the Research Fund for Coal and Steel shall be carried over automatically to 
the following year. These appropriations may not be transferred to other budget items. 

The amount corresponding to cancellations of commitments made since 6 February 2003 to 
the research programme of the Research Fund for Coal and Steel shall be made available 
upon the entry into force of the present Decision. 

(2) Paragraph 5 of Article 4 is deleted. 

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2017/0213 (APP) 

Proposal for a 

COUNCIL DECISION 

amending Decision 2003/76/EC establishing the measures necessary for the 
implementation of the Protocol, annexed to the Treaty establishing the European 
Community, on the financial consequences of the expiry of the ECSC Treaty and on the 
Research Fund for Coal and Steel 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, 

Having regard to the Protocol, annexed to the Treaty on European Union and to the Treaty on 
the  Functioning  of  the  European  Union,  on  the  financial  consequences  of  the  expiry  of  the 
ECSC Treaty and on the Research Fund for Coal and Steel, and in particular Article 2, first 
paragraph thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the consent of the European Parliament, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Under Article 97 of the Treaty establishing the European Coal and Steel Community 
(ECSC), the Treaty expired on 23 July 2002. 

The  Protocol  annexed  to  the  Treaty  establishing  the  European  Community, 
(hereinafter  referred  to  as  ‘the  Protocol’)  transferred  the  assets  and  liabilities  of  the 
ECSC to the European Community and allocated the net worth of these assets, as they 
appear  in  the  balance  sheet  of  the  ECSC  of  23  July  2002  to  research  in  the  sectors 
related to coal and steel industry. 

The  Protocol  also  assigned  the  revenue  from  these  assets  for  research,  outside  the 
research framework programme, in the sectors related to the coal and steel industry in 
accordance with the provisions of the Protocol and of acts adopted on the basis hereof. 

Due  to  the  exceptional  decrease  of  the  revenue  stemming  from  the  assets  ECSC  in 
liquidation  due  to  the  low  interest  situation  on  the  capital  markets  in  recent  years, 
dedicated to research in the sectors related to the coal and steel industry, it is necessary 
to  revise  the  rules  on  the  cancellation  of  commitments  made  under  the  research 
programme of the Research Fund for Coal and Steel so as to authorise their recycling 
in the research programme. 

(5) 

For the same reason, it is also necessary to revise the rules on the amounts recovered 
under  the  research  programme  of  the  Research  Fund  for  Coal  and  Steel  so  as  to 

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authorise  their  recycling  in  the  research  programme  under  the  relevant  provisions  of 
the Financial Regulation on assigned revenues4. 

HAS ADOPTED THIS DECISION:  

Decision 2003/76/EC is amended as follows:  

(1) In Article 4, paragraph 4 is replaced by the following: 

Article 1 

‘4.  Unused  revenue  and  appropriations  deriving  from  this  revenue  still  available  on  31 
December in any given year as well as de-commitments made under the research programme 
of the Research Fund for Coal and Steel shall be carried over automatically to the following 
year. These appropriations may not be transferred to other budget items. 

The amount corresponding to cancellations of commitments made since 6 February 2003 to 
the research programme of the Research Fund for Coal and Steel shall be made available upon 
the entry into force of the present Decision.’. 

(2) In Article 4, paragraph 5 is deleted. 

This Decision shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 2 

Article 3 

This Decision is addressed to the Member States. 

Done at Brussels, 

For the Council 
The President 

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Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 
2012  on  the  financial  rules  applicable  to  the  general  budget  of  the  Union  and  repealing  Council 
Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1). 

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