CELEX: 51974PC1964
Language: en
Date: 1974-11-27
Title: PROPOSAL FOR A COUNCIL DECISION (EEC) on the measures to be taken in the event of oil supply difficulties (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1964
Vol. 1974/0319
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(74)1964 final
                                               l
                                                     Bruxelles , 27 november 1974
                      PROPOSAL FOR A COUNCIL     DECISION ( EEC)
                      on the measures to "be taken
                      m the event of oil supply difficulties ;
                 ( submitted to the Council by the Commission )
COMm ) 196 ^ final
 ---pagebreak---                         EXPLANATORY MEMORANDUM
 A sudden drop in imports of crude oil and petroleum products , which is a sign of a
 difficult supply situation , is, by and large , affecting all importing countries .
 To cope with the situation far-reaching international cooperation is necessary.
 The problem of allocating available oil supplies in the event of supply difficulties
 must therefore be examined in the context of the Community's external relations .
 nevertheless , special Community arrangements should be introduced in order to
 safeguard the unity of the common market in the event of supply difficulties . This
 is an obligation under the Treaty , but it is also essential if within the
 Community all users of energy are to shoulder their fair share of the burden
 resulting from the crisis .
 When supply difficulties arise it is necessary :
 ( a) to set for the whole of the Community a specific target for the reduction of
       energy consumption.   This target must relate to all forms of energy and not
       only to crude oil and petroleum products , sinoe the share of these fuels in
       total energy consumption varies greatly from country to country ;
 (b) to coordinate national measures to restrict consumption so that the various
       countries' economies are affected as uniformly as possible ;
 ( c ) to prevent price movements which could enable certain regions to obtain supplies
       more advantageously , which would be at the others' expense ;
 (d) to base export policy in respect of third countries on uniform principles , with
       Community decision-taking procedures .
If these four conditions are satisfied it should normally be possible to maintain
free movement of the products within the Community. However , especially if the
shortage affects Mera".    States unevenly , it can not be ruled out that disturbances
in intra-Community ttu might seriously jeopardize supplies to certain parts of the
Community and might require the introduction of protective measures . And other
^supplementary measures may be needed to ensure the satisfactoiy organization of the
supply of crude oil and oil products to the entire Community, on which decisions
will have to be taken quickly.
 ---pagebreak---                                     _ 2 -
 Several of these points are already covered "by instruments m iorce or fcy
 Commission proposals which are "being discussed "by the Council .
 Directive No 68/414/EEC, as amended "by Directive No 72/425/EEC, which imposed the
 obligation to maintain emergency stocks of crude oil and petroleum products
 corresponding to 90 days' consumption , provides for consultation between the
Member States and the Commission with respect to withdrawals from those stocks .
 Council Directive No 73/238/EEC has as its object the coordination of measures
to mitigate the effects of supply difficulties .    A proposal for a Council
Regulation ( Annex III to Doc COM(74)550 final ) provides for the introduction of
common rules for imports and exports of hydrocarbons . Pricing policy is being
studied by a special working party of the Energy Committee . The Commission will
present a proposal to the Council on the basis of the working party 's conclusions .
The two proposals contained in Annexes    I ana II provide the legal basis for the
other measures , which would be put into effect only in the event of a crisis .
One concerns the setting of a Community target for the reduction of energy
consumption ; the other provides for the introduction of arrangements for supervising
intra-Community trade and specifies that protective measures may be applied if
supplies to one or more Member States are seriously endangered .
In both cases , to enable the measures envisaged to be put into effect immediately ,
it is proposed that the decision in question be adopted by the Commission and
applied without delay by the Member States . The Council may amend or repeal
the Commission 's decision within ten days .
 ---pagebreak---                                                               Annex I
         PROPOSAL FOR A COUNCIL DECISION PIT THE SETTING OF A COMMUNITY
         TARGET FOR A REDUCTION IN THE CONSUMPTION OF PRIMARY FORMS OF
        ENERGY IN THE EVENT OF DIFFICULTIES IN THE SUPPLY OF CRUDE
        OIL OR PETROLEUM PRODUCTS
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European' Economic Community , and
in particular Article 103(4) thereof ;
Having regard to the proposal from the Commission ;
                                                    A
Having regard to Council Directive No 73/ 238/EEC of 24 July 1973 on measures
to mitigate the effects of difficulties in the supply of crude oil and petroleum
products ;
Having regard to Council Directive No 68/414/EEC of 20 December 1968 imposing an
obligation on Member States of the EEC to maintain minimum stocks of crude oil
and/or petroleum products ;
Whereas - in the      it of supply difficulties the consumption of energy products in
the Community «.     Id be reduced by reference to the foreseeable trend of supplies and
of ., withdrawals , if any , from the emergency stocks ;
Whereas , in taking measures to meet the target for a reduction in energy consumption
set for the whole of the Community , Member States will have regard to the structure
of:. their particular market ;
 OJ No L 228 , 16 August 1973 , p. 1 .
^OJ No L 308 , 23 December 1968 , p. 14*
 ---pagebreak---                                  - 2 -
HAS ADOPTED THES DECISION :                                                         j
                                                                                     l
                               Article 1
1.   Where difficulties arise in the supply of crude oil or petroleum products
     in one or more Member States , the Commission , acting at the request of a
     Member State or on its own initiative , may , after consulting the Member
     States , set for the Community as a whole a target for reducing the total
     consumption of primary forms of energy.    In the event of a slight shortfall
     in supplies , the reduction in consumption may be confined to petroleum
     products .
2.   Where intervention by the Commission has been requested by a Member State , the
     Commission shall take a decision within a maximum of five working days
     following receipt of such request .
3.   Any decision taken by the Commission to set a target for reducing consumption
     pursuant to paragraph 1 shall be communicated to the Council and to the
     Member States .  Any Member State may , within ten working days following the
     day of communication , refer such decision to the Council .  The Council ,
     acting by a qualified majority , may repeal or amend the Commission ^ decision.
4.   Decisions taken by the Commission shall apply as soon as they have been
     communicated to Member States .
                               Article 2
    Member States shall without delay take . all measures necessary to reduce
    their consumption of petroleum products and/or other primary forms of
    energy by at least their share of the reduction target set for the whole
     Community pursuant to Article 1 .
 ---pagebreak---                              - 3 -
                          Article 3
The Member States shall inform the Commission , as soon as they are put
into effect , of all the measures taken pursuant to Article 2 .
                          Article 4
This Decision is addressed to the Member States .
Done at Brussels ,
                                                      For the Council
                                                      The Président
 ---pagebreak---                                                        AMEX II
        PROPOSAL FOR A COUNCIL DECISION ON INTRA-
         COMMUTTITY TRADE IN CRUDE OIL AND PETROLEUM
        PRODUCTS IN THE EVENT OP SUPPLY DIFFICULTIES
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having Regard to the Treaty establishing the European Economic Community ,
and. in particular Article 103(4 ) thereof ;
Having regard to the proposal from the Commission ;
Having regard to Council Directive No 73/238/EEC of 24 July 1973 on measures
to mitigate the effects of difficulties in the supply of crude oil and
petroleum products ;
Whereas ; it is necessary to prevent such supply difficulties from causing
disturbances in trade within the Community which would seriously jeopardize
supplies to one or more Member States ;
Whereas it is necessary to be continuously informed regarding intra-Community
trade in order to keep a check on the development of the situation ;
Whereas a system of automatic authorizations is an appropriate means which
least affects trade within the Community ;
Whereas protective measures may prove necessary ;
Whereas that other supplementary measures may also be necessary for the
satisfactory organization of the supply of crude oil and oil products to
the entire Community.
 OJ No L 228 , 18 August 1973 » p - 1 .
 ---pagebreak--- HAS ADOPTED THIS DECISION :
                                   Article 1
 1.  VJhere difficulties arise in the supply of crude oil or petroleum products
     in one or more Member States , the Commission , acting at the request of a
     Member State or on its own initiative , may decide to make intrs.-Community
     trade in products falling within heading No 27.09 and subheading
     Fos 27.10 A , B , C I and C II of the Common Customs Tariff subject to
     automatic authorization , to "be granted "by "the exporting Member State .
     Authorizations shall he grafted without delay and free of administrative
     charges in respect of any quantity requested and for a maximum period
     of one month .
2.   Where intervention "by the Commission has "been requested "by a Member
     State , the Commission shall take a decision within a maximum of five
     working days following receipt of such remiest .
3.   Any decision taken "by the Commission to introduce a system of authorizati
     pursuant to paragraph 1 shall "be communicated to the Council and to the
    Member States .     Any Member State may , within ten working days following
     the day of communication , refer such decision to the Council .     The
     Council , acting by a qualified majority , may repeal the Commission 's
    decision or. alter the conditions and procedures laid down therein .
4.  Decisions taken by the Commission shall apply as soon as they have been
     communicated to Member States .    They shall not apply to products which
    are already under way .
 ---pagebreak---                                     Article 2
 1.   The Member States concerned shall inform the Commission every other
      Wednesday and for the first time on the second Wednesday following: the
      day of communication of a decision taken pursuant to Article 1 :
      ( a ) of authorizations delivered during the period of two weeks
             expiring at midnight on the Sunday preceding the day of communication
            "by ten days ;
      ( b ) of exports actually effected during that period .
2.    The information referred to in paragraph 1 shall relate to the volume
      and value of products exported , broken down by country of destination
      and "by relevant heading and subheading of the Common Customs Tariff .
                                    Article }
The Commission shall , within eight days of receipt , forward to the Member
States the information transmitted under Article 2 of this Decision and shall
organize , on its own initiative or -at the request of a Member State , the
necessary consultations .
                                    Article â
If , following such consultation , the Commission finds that the oil supply of
a Member State is seriously imperilled , it may , in order to ensure a balanced
supply throughout the Community , authorize such Member State to suspend ,
subject to conditions laid down by it , the issue of the authorizations
provided for in Article 1 .
 ---pagebreak---                                    Article 5
 In the event of a sudden crisis in a Member State , such that any delay would
 cause serious harm to its economy , such Member State may , as a protective
 measure , suspend the issue of authorizations pending a decision by the
 Commission .   Such State shall immediately inform the Commission and the
 other Member States thereof .   The Commission shall take a decision thereon
within five working days .
                                   Article 6
The Council will decide within ten days oft any supplementary proposal which
the Commission may put forward aimed at creating a satisfactory organization
of the supply of crude oil and oil products to the entire Communicy .
                                   Article 7
The Commission shall lay down the procedures for the communications provided
for in Article 2 .
                                   Article 8
This Decision is -addressed to the Member States .
Done at Brussels ,
                                                       For the Council
                                                       The Président