CELEX: 51978PC0769
Language: en
Date: 1979-01-11
Title: PROPOSAL FOR A COUNCIL DECISION on Community aid for restructuring or conversion investments in the shipbuilding industry#PROPOSAL FOR A COUNCIL DECISION on Community aid for restructuring or conversion investments in the textiLe industry, particularly in the man-made fibres industry (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 769
Vol. 1978/0278
 ---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(78)769 final.
                                                      Brussels , 11 January 1979
                              PROPOSAL FOR A COUNCIL
                                    DECISION
                      on Community aid for restructuring or
              conversion investments in the shipbuilding industry
                             PROPOSAL FOR A COUNCIL .
                                    DECISION
               on Community aid for restructuring or conversion
               investments in the textiLe industry , particularly
                         in the man-made fibres industry
                ( submitted to the Council by the Commission )
                           feï
                                                    /
                                                   I
                                                 /
COM (78 ) 769 final .
 ---pagebreak---                                EXPLANATORY MEMORANDUM
  1 ) The Commission sent a proposal for a regulation relating to Community
        intervention , measures for industrial restructuring and conversion
                                                      1
       operations to the Council on 31 October 1978 .
       Under the terms of Article 1 of this regulation , it is proposed that
       the Council will identify , on the basis of Commission proposals , from
       among the sectors experiencing a crisis , those sectors which , as a
       result of the poor financial condition of many companies and the social
       and regional consequences of restructuring , are not in a position to
       proceed with the necessary structural changes without the intervention
       of public authorities . In -the explanatory memorandum accompaning the
       above-mentioned proposal , the Commission has already indicated that , in
        its opinion ,   the shipbuilding and textiles , particularly the syn^
        thetic fibres sector ought to become the : subject of Community financial
        intervention measures : in fact , such intervention measures would by
        their nature encourage the realisation of the Communities' objectives .
 2 ) The situation in the shipbuilding sector is such that it is unable
       to undertake , on its own , the changes necessary to adapt to a situation
       of increasing difficulties on the world market . In another connection ,
       through its Resolution of 19 September 1978 relating to the re-
                                                 2  •
     . organization of the shipbuilding sector , the Council invited the
       authorities of the Member States , as well as those of the Community ,
      O.J. C 272 of 16.11.78
•     O.J. C 229 of 27.9.78
 ---pagebreak---                                       - 2 -
     to provide sufficient funds to support the necessary restructuring
     and conversion operations since , without these , an improvement in
     the situation could hot be achieved . In addition , the . Council in­
     vited national authorities to limit the social consequences for
     workers affected by the reduced level of activity in the industry .
        textile , particular ly the
3 ) The / synthetic fibres sector is experiencing considerable difficulties
     due to the fact that existing capacity is well in excess of that which
     is needed to satisfy the present level of demand or the estimated level
   ■ of demand in the medium term . This capacity must therefore be reduced
     to a level at which companies can once more become competitive on an
     international scale .
     These reductions necessitate restructuring in certain cases and these
                                                ι
     will be accompanied more often than not by an appreciable reduction in
     the number of jobs in some of the areas where they take place ; in other
     cases , it will be necessary to adapt industrial plants for other uses .
     In the majority of cases the areas concerned are already affected by
     unemployment which makes it necessary to create both alternative
     employment and to facilitate the re-use of factories for other activities ,
     The companies themselves are not in a position to take the necessary
     initiatives to invest in restructuring if measures for encouragement
     by public authorities to create employment in other sectors do not exist .
     The Commission sees the need for the Community to contribute to these
     financial assistance measures in order to induce the necessary
     restructuring and conversion operations to bring about the reduction
     of production capacity and the creation of alternative employment
     in other sectors .
 ---pagebreak---                                    - 3 -
4 ) To that end / two draft Decisions designating the shipbuilding and
    textiles , particularly the man-made fibres sectors as eligible for
    the aid provided for by the Regulation referred to are hereby
    submitted by the Commission to the Council .
 ---pagebreak---                                                             ANNEX I
                              PROPOSAL FOR A COUNCIL
                                     DECISION
                     on Community aid for restructuring or
                conversion investments in the shipbuilding industry
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
HAVING regard to the Treaty establishing the European Economic Community ;
HAVING regard to Council Regulation ( EEC ) N°               of
                                                                        1
on Community aid for industrial restructuring and conversion operations ,
and in particular Article 1 thereof ;
HAVING regard to the proposal from the Commission ,
WHEREAS, pursuant to Article .! ( 2 ) of Regulation ( EEC ) N°
 it is for the Council , acting on a proposal from the Commission ,
to designate each sector to which the aid covered by that Regulation
may be granted ;
WHEREAS the Council Resolution of 19 September 1978 oh the reorganisation
of the shipbuilding industry includes among the principal objectives
to be achieved the adaptation and the restructuring of the industry of
that sector , the diversification of its activities , the increase of
its competitiveness and the creation of new jobs to compensate any
resultant dismissals ;
1
 ---pagebreak---                                    - 2 -
                                                          ANNEX I
WHEREAS point 4 of that Resolution requests the authorities of the
Member States and the Community to take account of these objectives
in their industrial , regional , social and general economic policies
and to . make available adequate funds for this purpose ,
 HAS DECIDED AS FOLLOWS :
                               Article 1
Investments for restructuring shipbuilding establishments shall be
eligible for the aid provided for by Regulation ( EEC
N°           , such investments assisting these establishments
to turn towards other activities or , in the areas concerned and in other
industries , assisting the creation of new jobs primarily intended for
workers made redundant .by the restructuring operation or by the- total or
partial shutdown of shipbuilding establishments .
                               Arti ele 2
 'Shipbuilding establishment   means any establishment building ocean­
going civilian vessels and the establishments of undertakings more
than half of whose turnover is derived from transactions with ship­
yards of the region in which they are established .
Done at Brussels ,
                                         For the Counci I
                                       ■ The President
 ---pagebreak---                                                          ANNEX II
                          PROPOSAL FOR A COUNCIL
                               DECISION
                 on Community aid for restructuring or conversion
                 investments in the textile industry , particularly
                        in the man-made fibres industry
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
HAVING regard to the Treaty establishing the European Economic Community ,
HAVING regard to Council Regulation ( EEC ) N°                of
                                                                         1
on Community aid for industrial restructuring and conversion operations ,
and in particular Article' 1 thereof ;
HAVING regard to the proposal from the Commission ;
WHEREAS, pursuant to Article 1(2 ) of Regulation ( EEC ) N°
it is for the Council , acting on a proposal from the Commission ,
to designate each sector to which the aid covered by that Regulation may
be granted ;
WHEREAS the difficulties confronting the textile industry , particularly
the man-made fibres industry, are due to excess production capacities which
the foreseeable market trend will not entirely eliminate ;
WHEREAS these difficulties will therefore be solved only by a     major
restructuring operation on the conclusion of which the remaining production
capacity will be in equilibrium with the market .
WHEREAS such a restructuring operation , if accompanied by substantial
 losses of jobs , would pose serious social problems in areas already
suffering from under-employment ;
1
 ---pagebreak---                                   - 2 -
WHEREAS Community aid could facilitate certain essential restructuring
operations or encourage undertakings to initiate new activities
creating new jobs and would permit the conversion of the industrial
installations to other activities ,  .
 HAS DECIDED AS FOLLOWS
                              Sole Article
Investments for restructuring establishments producing textiles , parti­
cularly man-made fibres,shall be eligible for the aid provided for by
 Regulation ( EEC ) N°                  ■ f such investments assisting
these establishments to turn towards other activities or , in the areas
concerned and in other industries , assisting the creation of new jobs
primarily intended for workers made redundant by the restructur ing
operation or by the total or partial shutdown of such establishments .
                                                    For the Counci I
Done at Brussels ,                                   The President