CELEX: 51975PC0195
Language: en
Date: 1975-05-07
Title: Proposal for a Council Directive on aids to shipbuilding (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 195
Vol. 1975/0072
 ---pagebreak--- Disclaimer
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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
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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,
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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,
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 ---pagebreak--- COMMISSION G? THE EUROEEAN COMMUMTISS
                                         COM(75)195 final
                                         Brussels , 7 May 1975
                                  Proposal for a
                              Council Directive on aids
                                  to shipbuilding
                       ( submitted to the Council by the Commission)
   C0II(75 ) 195 final
 ---pagebreak---                  Proposée!. Council Directive of
                             on aids -to shipbuilding
THE COUNCIL OF THE EUROPEAN COIMUTIITIES ,
Having regard to the Treaty establishing the European Economic Community and
in particular Articles 92 , section 3(d), and 113 thereof;
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Economic and Social Committee
1.  Whereas the Council Directive of 20 July 1972 on the grant of aids to
    shipbuilding to offset distortions in competition on the world market
    h?.s effectively helped to reduce and harmonize aids granted to
    shipbuilding in the Community ;     whereas this . Directive expires on
    30 June 1975 ?
2.  Whereas the position of shipbuilding in the Community has shown a
    relative improvement since the adoption of the previous Directive , as a
    result of the rationalisation and re structv.ring efforts of shipyards ,
    facilitated by favourable market developments ; whereas it is necessary,
    in order to achieve the objectives of the competitiveness of enterprises
    and the equilibrium of the sector , to intensify these efforts and to
    bring them to fruition ; whereas this is all the more urgent because of
    the serious difficulties threatening the sector ;
3.  Whereas a sound and competitive Community shipbuilding industry is
    necessary to the Community , and contributes to its economic and social
    development as a substantial and growing market for all sectors
    inoluding those using advanced technology and as an employer in certain
    Community regions ; whereas this is also the case with ship conversion
    and ship repairing;
                                                                        /■
 ---pagebreak--- Whereas the objectives of competitiveness and equilibrium in the
shipbuilding industry require an appropriate adjustment of production
structures so that the enterprises in the sector are enabled to follow
general economic developments and eventually to meet competition on the
world market without the support of intervention by the public authorities
and so that the investment efforts of the sector are compatible with a
World equilibrium between supply and demand ;
Whereas distortions in competition on the world market have been reduced
through a series of understandings concluded by the main shipbuilding
countries within the framework of the OECD with the object of harmonizing
export credit conditions for ships ;     whereas within this SSJC3 organization ,
the principal shipbuilding countries have concluded a general understanding
by which they are committed to reduce progressively specific aid measures
which distort competition in the shipbuilding industry , with a view to a
complete abolition of such aid by 1 November 1975 »
Whereas , furthermore , the objective of making the shipbuilding industry
competitive in a relatively short time requires a solution covering all
aids and interventions affecting , whether directly or indirectly ,
competition and trade conditions on the market for the building ,
conversion and repair of ships ;
Whereas the continued application of aids to operations has a conservatory
effect which uas justifiable in the past but rvhioh is not of a nature to impro-*
significantly or in the long term the competitiveness of the Community
shipbuilding industry ;    whereas -, however , such aids must be eliminated
gradually so that the shipyards may adapt to the nes? conditions ;
Whereas aids to shipbuilding should not however adversely affect trading
conditions to an extent contrary to the common interest ;
 ---pagebreak---                                          - 3 -
Has adopted this Directive :
                                        Article 1
Aid and intervention measures to assist shipbuilding may be considered
compatible with the common market , under the present Directive , provided that
they satisfy the conditions set out in Articles 2 and 3 .
                                        Article 2
1 . The provisions of Article 1 shall apply to aid and intervention measures
       for the building , in the ' Community shipyards , of metal-hulled sea-going
       vessels of the following categories :
       – merchant vessels of not less than 150 gross tonnes for the transport
           of passengers and/or cargo.}
   * .                                                             '
       - fishing vessels of not less than 150 gross tonnes ;            . '
       - dredgers of not less than 150 gross tonnes ;
       - tugs of not less than $00 horse power ,
2 . ( a)The provisions of Article 1 shall apply to the aid and intervention
                                                                              t.
          measures referred to m paragraph 1 only until 31 December 1975 ?
          these may consist of any form- of aid and intervention to assist
           shipbuilding , provided that the present level of these aids is not
           increased.              •• - • v
     (b) nevertheless , the provisions of Article 1 shall apply in respect of
          any aid and intervention measures to assist shipbuilding until
          '31 December 1977 when these aids are granted:
          - in Ireland , and on condition that these aids are degressive and
             accompanied by a rationalization plan;
          – in Italy, and on condition thit these aids are degressive and are
             accompanied by the effective implementation of a plan to
 ---pagebreak---             rationalize the shipbuilding industry so as to raise its
            competitiveness to a level at which it will be viable without aids ;
          - in Franoe , in the form of a system of insurance against
            exceptional   price increases and on condition that the incidence of
            that intervention , calculated per ship , is appreciably degressive .
3.     On 1 March and 1 September of each year the Member States shall provide
       the Commission with a table giving the decisions , taken in the second and
       first half-years respectively to grant aids and interventions under
       paragraph 1 and the payments made in each of these periods on the basis
       of earlier decisions to grant such aids .
                                      Article 3
The provisions of Article 1 shall apply to aids , in the form of credit ^, to
exports and to aids to all other sales , provided that such loans satisfy the
conditions laid down in the understanding on export credit for ships contained
in the OECD Council Resolution of 18 July 1974 or in agreements replacing it .
These aids may be granted under the same conditions for the conversi on of
metal-hulled sea^-going vessels of not less than 5 000 gross tonnnes , provided
that the work entails radical alterations to the hold , the hull or the
u . ~x
propulsion system of the vessels concerned .
                                      Article 4
The Member States shall notify the Commission of their decisions to grant aid
to shipyard investments where these investments excede 5 million units of
account .     On 1 March and 1 September of each year the Member States shall
provide the Commission with a table based on the model contained in Annex I
 ---pagebreak--- in which will "be set out the decisions taken in the second, and first halves
of the calendar year respectively.
                                   Article 5
Aid and intervention measures of a conservatory character constituting a
temporary solution for the rescue of a firm until a definitive solution to
its problems is worked out shall "be notified individually to the Commission
in accordance with the procedures set out in Article 93 of the EEC Treaty ,
                                   Article 6
The Member States shall refrain from taking any intervention measures
favouring the "building, conversion and repair within their nati&naJ.
territories of ships to "be used for navigation or other purposes on the sea
and the manufacture of products incorporated in them, other them those
provided for in Articles 2 and 3 or those considered compatible under
Articles 92 and 93 of the EEC Treaty,
                                   Article 7
The Member States shall inform the Commission of their rules and procedures
for implementing the various systems of aid and intervention in respect of
the building, conversion and repair of ships , before such rules and procedures
enter into force .
                                   Article 8
The Council , acting by a qualified majority on a proposal from the Commission,
shall amend this Directive as and when appropriate *
 ---pagebreak---                                   Article 9
This Directive shall remain in force until 31 December 1977 •
                                  Article 10
This Directive is addressed to the Member States .
 ---pagebreak---                                                                                                   АЖИЕХ I
                    Table of aid and intervention measures for investments in accordance with Arfcinle 4
Îlescription of
   investment
                              Purpose of
                              investment(l )
                                                          Arnount of
                                                          investment
                                                                                    Form of
                                                                                   assistance
                                                                                                     Het subsidy equivalent 1
                                                                                                     in fo of the investment J
         ( l ) where applicable , correction with a sectoral or regional development programme®
 ---pagebreak---                                                             ANNEK II
                               Commission statement
The Commission^ in submitting to the Council the proposed Third Directive # has
attempted to determine , on the basis of the analysis of the situation of
Community shipyards made in cooperation with experts from the Member States
and the industry, which aids can be expected to help make Community
Septra! Iding competitive at world level and to enable it to function without
Member' State intervention .
It furthermore considers that the aids which have been determined are
sufficient to achieve the desired objective .
The Commission emphasises on this occasion that the procedures provided for
in the Third Directive cannot derogate from the provisions of Article 93(3)*
Aids notified to the Commission will be examined by it as regards their
compatibility with the common market under Article 92 of the EEC Treaty
taking account of the provisions and guidelines contained in the Third
Directive on Aids to Shipbuilding.