CELEX: 51973PC0916
Language: en
Date: 1973-06-06
Title: Amended draft DECSION (ECSC) OF THE COMMISSION concerning coal and coke for the iron and steel industry in the Community (submitted to the Council lay the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 916
Vol. 1973/0170
 ---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 ( 73 ) 916 final
                                               Brussels , 6 June '(975
                                           I
                            Amended draft
                  DECSION (ECSC ) OF TIE COMMISSION
              concerning coal and coke for "the iron and
                   steel industry in the Community
                                                                    \
           ( submitted to the Council lay the Commission )
COM(73)916  final
 ---pagebreak---                                 Amended draft (*)
                      DECISION (ECSC ) OP THE COMMISSION
                  - concerning coal and coke for the iron
                     and steel industry in the Community
                                    SFCTI®T I
                             Aid ^ "by Member States
                                   Articl e 1 '
The Member States are authorized to grant to coal undertakings under their
jurisdiction which supply coking coal and blast-furnace coke to the Community
iron and steel industry aids to facilitate production , marketing in regions
far away from the production areas and intra^Community trade , and the
conclusion and implementation of long-term contracts for supply and
collection. To this end the following aids may be granted :
( a) a production aid, for which the governments shall each year determine
     a rate per ooal field , while taking particular aocount of the average
     costs of production in that coalfield , the price of coking ooal in. its
     principal sales area and the long-term supply conditions ;
(b ) a sales aid applying to deliveries to areas remote frcn the coalfield
     or effected by way of intra–Community trade . The rate of any such aid
     may not exceed 3 u.a. per metric ton of coking coal in the case of
     deliveries to installations which can be supplied direct via maritime
     transport and 1.60 u*a. per metric ton in all other cases .    These rates
     shall be reduced to 2.60 and 1.40 u.a. respectively for the sixth year ,
     2»30 and 1.20 u,at respectively for the seventh year and 2 and 1 u.a.
     respectively for the eighth year of the term of the Decision. These
     levels are determined on the basis of the rates applicable for the
     first year of application, without prejudice to the provisions of
     Article 10 . No scale adopted by a government shall introduce any
     element of discrimination into the aids relating to the deliveries made
     by the coal undertakings .
                                   Article 2
1.   I'lhere a Member State makes use of its option under Article 1 , the
following rules shall apply ?
(*)Asterisks in the margin indicate amendments to Doc. No COM(73 ) 38Q final.
 ---pagebreak---  (a) "the aids shall "be paid to the coking-ooal producer undertakings in
       respect of their disposals of their own coal ;
 (b ) the aids may be paid: only where the coal is used for coking and the
       coke in question is actually consumed in the "blast furnaces, of the
       Community iron and .steel industry ;
 ( c ) the aids may be paid only where deliveries of coking coal and
       blast-furnace coke are made under a long-term contract#
2,     The production aids referred to in Article l(a ) of this Decision may '
"be paid only after the rates thereof have been authorized by the Commission .
 The authorization shall be given by the Commission with due regard to the
 criteria referred to in Article 1(a)# For this purpose Member States
 shall f by 30 September of each year, submit their applications for the
following calendar year f together with supporting documents . The
 Commission shall give its ruling within two months after receipt of the
application .
3.     The sales aid referred to in Article l(b ) may be granted only if it
passed on in the form of price rebate to the purchaser of coking coal or
"blast-furnace coke *  When a coal undertaking passes the production aid cn
 to his buyers , this shall not give rise to discrimination between the
various long-term contracts to be performed by that undertaking. .
                                      SECTION IX
                                 Pri'cing rules
                                HJK-.DHII
                                     Article 3
 1 * Coal undertakings are authorized, where necessary, to' grant rebates
 on their list prices , for disposals of coking coal and blast-furnace coke
 for the Community iron and steel industry under long-term contract , even
where there is no actual competition from coal or coke from non-member
 countries at the point of consumption.
 ---pagebreak---                                        - 3 -
2„    Hie rebates allowed tinder ( l ) above shall not cause the delivered
prices of Community coal and coke to work out lower than those which would
be charged for coking coal from non-member countries and coke made from
non-member countiy costing coal .
3.   All other provisions concerning the alignment provided for by
Article 60 , last sub-paragraph. 2(b ) of the Treaty, and decisions in
implementation thereof, shall apply to the transactions referred to in ( l )
above , in particular those which allow the Commission, 5.n the event of
abuse , to abrogate or restrict the right of the undertakings concerned to
grant such rebates#
                                  Article 4
Should an undertaking infringe the rules laid down in Article 3 , the
provisions of Article 64 of the Treaty shall apply .
                                  Article 5
1.    The delivered prxces of coking coal from non-member countries referred
to in Article 3(2 ) shall be calculated from the prices cif Community ports
for comparable transactions .   The Commission may fix guide cif prices .
2.    The delivered prices of blast–furnace coke from non-member countries
referred to in Article 3(2 ) shall be calculated from the cif prices for
coking ooal referred to in ( l ) above in such a way as to cover in full the
net coking costs of the supplying coking plants .     Standard values therefor
may be laid down by the Commission .
3.    The Commission may lay down oirteria for the assessment of differences
in grade in coking coal and coke .
 ---pagebreak---                                           - 4 -
                                    , SEC H (IT III
                          Community financing arrangements
                                                    •      /
                                       Article 6 ■
        Community financing arrangements shall be set up fort
        – sales aids paid in pursuance of Section I of this Decision in
(*)        respect of intra-Community trade ;
(*) – the contributions defined in Article 7(1 ) "below from member countries
(*)        not engaged in intra-Community trade , in so far as their production
(*)        of coking coal covers at least 75$ of the requirements of their "blast
(*)        furnaces .
        A special fund administered "by the Commission shall be instituted for
        this purpose .
(*) 1 .       The Community financing arrangements shall cover a quantity of
(*) coking coal amounting to no more than 15 million metric tons per annum,
(*) and the amount of the contributions from the iron and steel industries
(*) of the countries referred to in Article 6 above ,
        2.    The special fund shall be financed as follows :
(*) (a ) The contribution of the European Coal and Steel Community shall be J
(*)           - for the first year, 0.266 u.a. per metric tons of coal , i.e ,
                not more than 4 000 000 u,aj
(*) .         - for the second and third years , 0.333 u.a. per metric ton of
                coal , i.e , not more than 5 000 000 u.a . per annum ;
(*) -         - for subsequent years , 0.400 u.a.' per metrio ton of coal , i.e ,
                not more than 6 000 000 u.a . per annum.
(*) (b) The Member States shall provide the following overall contributions ,
      .. .  ' on the scale shown in paragraph 3 below:
(*)           - for the first year, 0.627 u.a. per metric ton of coal , i.e^ not
                more than 9*4 million u.a ;
(*)         . – for the second, third and foruth years , 0.560 u.a. per metric
                ton of coal , i.e , not more than 8.4 million u.a. per annum ;
(*)           - for the fifith year, 0.437 u.a. per metric ton of coal , i.e ,
                not more than 7*3 « million u.a ;
(*)           - for subsequent years, 0.207 u.a. per metric ton of coal , i.e ,
                not more than 3.1 million u.a . per annum ;
 ---pagebreak---                                    - 5 -
( o ) The overall contribution of the iron and steel industry shall "be :
     – for the first five years , 1.333 u.a. per metric ton of coal , i.e t
       not more than 20 million u.a. per annum ;
     – for the sixth year, 1»167 u.a» per metric ton of coal , i.e f not
       more than 17«5 million u.a |
     – for the seventh year T 1 u.a. per metric ton of coal , i.e , not more
       than 15 million u.a ;
     – for the eighth year , O . 867 u.a. per metric ton of coal , i.e f not
       more than 13 million ua a .
The overall amount of the contribution shall "be apportioned among the
iron and steel undertakings on the "basis of their consumption of
blast–furnace coke .
       The contribution to provided by the Member States shall be on the
       following scale ?
       Germany       31%
       Belgium       13%
       France        28%
       Italy         12%
       Luxembourg    10%
       Netherlands    6%
                             Article 8
1.     The supplier States may apply for reimbursement from tne special
fund of aids actually paid *
2»     The Commission shall cheok the applications and determine the
aaounts to be reimbursed from the special fund to the Member States
concerned .    If the tonnages concerned exceed the limit fixed in
Article 7(l)j the reimbursements shall be correspondingly reduced. As
regards intra-Communiiy sales , the percentage of the reduction is the
same for each of the supplier States ,
3»     The Commission shall fix the contributions to be paid into the
special fund on the basis of these amounts .
4.      To speed up Community financing, the supplier countries shall
notify the Commission of the deliveries of coking coal (qualifying for
aid made during the preceding quarter under Article 6 .       On the basis
 of these notifications , the Commission shall request the Member States
 to pay the corresponding amounts .      The Commission shall forthwith
 ---pagebreak---                                            - 6 -
(*) apportion these amounts "between the supplier countries , at the same
    time as the corresponding contribution of the European Coal and Steel
    Community .  The Commission shall call for contributions from the
    steelmalcing undertakings and immediately apportion the payments among
(*) the producer and supplier countries .
    5.    The final accounts shall "be settled at the beginning of each
    oalendar year in respect of the preceding year .
                                  SECTION IV
                                  – p ci »
                        General and final provisions
    1.    The Commission shall take into account the aids provided for in this
    Decision in assessing whether the aids referred to in Articles 6 to 9 of
    Decision No 3/71/ECSC of 22 December 1970 are liable to interfere with
    the proper functioning of the Common Market ,
    2.    The Commission shall also ensure that the aids provided for in this
    Decision do not have the effect of distorting conditions of competition
    between coal , coke and iron or steel undertakings .
                                  Article 10
    1«    In an emergency , and otherwise at the end of the first year of
    application of this Decision and then every two years , the Commission
    may , by decisions taken after consultation with the Consultative
(*) Committee and the Council , amend;
    – the rate of the sales aids ,
    – the ceiling to intra*- Community trade ,
    – the rules governing the financing of the special fund ,
    – the scale referred to in Article 7 » para . 3 *     1
    These amendments shall take account of the long-term trend of supply
    conditions and the supply pattern within the enlarged Community .
 ---pagebreak---                                        -7 -
    2.    If at the request of a Member State or on its own initiative the
    Commission finds that :
    (a ) the implementation of this Decision is liable to give rise to
          serious disturbances in the common market for coal and steel ,
          or to difficulties which may result in a deterioration in the
          regional economy, or that
    ("b ) appreciable changes are taking place in the conditions , volume or
          pattern of iri craz-Conmunity trade , thus altering the economic
          conditions prompting the adoption of this Decision,
          it may suspend application of this Decision. It shall refer the
          natter to the Council forthwith .
    3.    If at the request of a Member State or acting on its own initiative ,
(*) the Commission finds that performance of the lon^-teim contracts is
    jeopardizing the attainment of the objectives of this Decision, it may,
    in respect of the undertakings in question, limit the benefits deriving
    from the application of Article 1 .
    4 . In an emergency, the Commission shall , on the request of a Member
    State , ley down without delcy the necessary safeguarding measures ,
    notify the other Member States accordingly and refer the matter to the
    Council forthwith .
                                     Article 11
    The Commission shall periodically report to the Council on the
    application of this Decision and on developments in the supply
    situation, in particular in connection with intrar-Community trade.
                                     Article 12
    After consulting the Council and the Consultative Committee , the
    Commission shall take all measures necessary for the application of
    this Decision .
 ---pagebreak---                                  - 8 -
                               Article 13
    This Decision shall enter into force on                       for a
    period of eight years .  The applications provided for in Article 2(2 )
(*) in respect of 1973 shall "be submitted "by 30 June 1973 * For the
(*) period from                    to 30 December. 1973 f the provisions
    concerning the payment of aids (Article 2(l)(c )) f possible rebates
    in the absence of actual competition (Article 3(l )) f and Community
    fianancing (Article 7 ) shall apply notwithstanding the absence of a
    long-term contract .
    Done at Brussels .                         for the Cormission
                                                 The President
 ---pagebreak---                                                                         Annex II
                            Plan of Commmity Financing Arrangements
1 * SALES AIDï Trade : 15 million metric tons                  Average rates 1.80 u.a./t
                   Cost :     27 million u.a»
2,   FDETDj  Expenditure :     27.00 for Germany            Resources :   Iron .
                                3.10 for UK                and steel industry 18.20
                               30.10 million u.a.           ECSC                    5.50
                                                           Member States            6 „/l0
                                                                                   30.10 million u.;
3 . SITUATION1 BY COUITTRYs ( in 10 u.a.)
                Reimburse Contributions
                                   m «• <Min
                                                                    Balances Old draft 001^73 ) i
                ment s                                                                     fanal
Cotmtry                       Iron and        States                Balances     Contri–    States
                              steel                                              mitions
                              mductry
                       (a )     00             c)           (afW-c ) (a+b+c )
Germany            +27.00       -5.3         -2.00   (31 ) +19.7      +24.22                  D
Belgium                         -2.4         -0,83   ( 13 ) -3.23       -3.63    1.14         Β
Prance                          -4.0         -1.80   (28 ) -5,80        -6o82    2.50         Ρ
Uh.it ed ICingdom    +3.10      -3.1                                    –2«0o                 UK
Italy                           -1.6         -0,75   (12 ) -2.35        -2,89    1            I
Luxembourg                      -1.1         -0.62   ( 10 ) -1.72       -2.05    0.85         L
Netherlands                     -0 o 7       -0,40 . ( o ) -1.10        -I.27    0,57         1TL
                     30.10     -18.20        -6,40 ( 100 )                       6.O6
                                                                      (a ) vdthout contributions
                                                                           for internal
                                                                           deliveries