CELEX: 51976PC0582
Language: en
Date: 1976-11-03
Title: Draft modifications to decision 73/287/ECSC concerning coal and coke for the iron and steel industry in the Community.

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 582
Vol. 1976/0182
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                           COM (7 6) 582 final .
                                           Brussels ,    November 1976.
                              Draf t
   modifications to decision 73/ 287/FKSC concerning coal and coke
           for the iron and steel industry in the Community
 k Cœ(7 6) 582 final .
 ---pagebreak---            Economic considerations relevant xo t.-ie extension or.d
           amendment of 'Decision Ko 73/ 2fc7/ ECoG of 2 5 July 19
           concerning coal and coke for the 1 roil rmd steel ina -,- -
                         try in the Community ( l )
A. SlMhW.
           Appropriate measures must be adopted if trie ooectxves of Community
energy policy a.re to be achieved .
           Security of supply on ecor:.omically satisfactory terms , of blast-fur­
nace coke , a raw material indispensable to iron and steel making requires the
Community 's coal production capability to be maintained in the long term -
i.e. both the capacity and the labour needed to run it properly. Mining ca­
pacitor is usually linked with equally large coking capacity .
           Financial aids to the coal industry are still essential if it is
to be in a position to sell coking coal , especially in areas far away from
the coalfields , without any risk of triggering a rise in world coking-coal
prices * ,
           It is therefore in the " common interest " cf tho Member States and of
the coal and steel industries to take part in an operation designed to achieve
several of the objectives laid down in Articles 2 and 3 of the ECSC Treaty ,
           By this is meant the extension to 1985 of the arrangements for coking
ccal provided up to 1978® The period originally planned has proved too short
in view of the structural changes in the energy sector since 1974 »
           The extension would be accompanied by financial adjustments better
suited to the new duration and which could have been examined under Article 10
of the existing Decision .
                                                                             -A
( l ) O.J. n° L 259/3 6 du 15.9.73
 ---pagebreak---                                   - 2 -
    13 . Tirs l!W GOAL GlïTTV-TLINprî
    1.          Like its forerunners , Decision 73/ 287 is meant to help the coal in­
   dustry to produce the necessary amount of coking coal and sell it as blast-
   furnace coke , whereas - in the absence of any such measure - a substantial
   reduction of capacity could still prove necessary .
   2.          The expiry date is 31 December I978. In I977 and I97Q the amount of
  Community finanoe in aid of intra-Community trade will each year be reduced
   by 15 "p relative to the previous year in line with the objective that the
  steel industry should cover its total coke supply costs when the system comes
  to an end .
  3.          At the time this decision was taken , a, period of six years was deemed
  sufficient for the coal and steel industries to put their relations on a
  footing consistent with the principles laid down by the Treaty .
              Intervening events , and decisions or guidelines adopted in the mean­
 time , have changed the outlook in several respects .
              In the energy sector , the "Medium-term guidelines for coal 1975-1985 "
 (l J and the Council Resolution of 17 December 1974 ( 2 ) envisage the mainte­
nance of a high level of Community coal production over this period as a
 contribution to Community energy supplies . This level can be achieve.;1 only if
there is stable , steady disposal of production .
              As regards coking coal , this involves firm , long-term commitments on
the part of the iron and steel industry .
              As regards this industry , recent experience underlines the desirabi­
lity of its taking a long . view of the possibilities and conditions of its
supplies of Community coking coal .
0 .. FP'IAnS OF IKPLH.nU?THTCJ TIIE GUIPELTNES
'i .          The Community has already taken or planned a number of measures to
aid implementation of the guidelines for the coal industry . On 25 February
1976 the Commission adopted a new decision on Community arrangements regar­
ding aids granted by the Member States to the coalmining industry ( 52 8/7 6/ECSCX;'
This Decision will be in force until 31 December 19$5 »             Commission consi­
ders that there is no certainty that in view of its financial situation , the
coal industry can implement the guidelines on its own .
 ( 1 ) C0M(Y4)l860 final of 21 November 1974
( 2 ) o.j . No c 153 of 9 J'uiy 1975 ; P » 2
( 3 ) O.J. No L 63 of 11 March 1916 . P* 1
 ---pagebreak---             In its oommunxoation to the Council » implementation .n - no enwr/
-y       ; guidelines drawn up by the European Gounoii at its mee'^ag in ilosne
on 1 and 2 Deoewber 1975" ( l )» +-he Commission propose that , with some
adjustments , the decision on coking coal should be extended to 19         Other
measures are planned for the protection or development o ? Community coal ,
none of which should duplicate the system applying to coking coal . In parti­
 cular, Decision 528/76 does not take into account the fact that there are
 sizeable intra-Conurmnity trade flows in coking coal and that the existence
 of Community coking-coal production is of concern to all the Kember States .
             In line with the "guidelines for coal ", it appears essential that
 producers and consumers of Community coking coal and coke should be given
 the opportunity of keeping or placing their contractual relations on a more
 permanent basis than was envisaged in 1973 , by extending the validity of the
 présent syst&nu
                   «
  5.         The following considerations show the desirability of such a system :
  5.1 . Up to 1985 , the overall volume and breakdown of Community supplies of
  coking coal and coke should not differ essentially from the pattern of recent
  years .
              The increase in the production of pig iron will be compensated by a
  reduction in the specific consumption of coke . The introduction of formed
  coke and other processes will effectively widen the range of coals suitable
  for coking ; this will only be a gradual development . The world market for
  classic coking coals , though important , will remain limited in terms of vo­
  lume and elasticity .
              Community production - even though it may be affected by economic, and
   geological considerations in certain coalfields - will continue to offer im­
   portant coverage of requirements in conditions of security , regularity and
   quality which are still important considerations .
              Intra-Community trade will continue to play an essential role in terms
   of quantity and. quality while helping the recipient countries to improve
   the value of their resources . In this way, intra - Community trade will
   remain an important factor for cross-penetration .of energy markets .
   ( l ) 0011(76)20 of 16 January 1976
 ---pagebreak---   ').2 .  'f-ie Communrty coal industry , winch generally produces coking coals
 and steam coals t-jgether can - by accurately programming the
 tonnages of coking coal and coke contracted over the long term by the
 iron ant steel industry ~ optimize its capital and operating costs
  for the entire output of coal and of mine-owned coking plants , thus
 limiting the protection     and development costs which the Community as a whole
 and each, of the producer countries would otherwise have to envisage .
 Despite the considerable price rises on the world market , Community cokinq
 coal is still not always competitive .
 5.3 .    The iron and steel industry can obtain coking coal on a long-term
"basis at Community prices as close as possible to world prices for comparable
transactions . It can take a longer view of the need for or desirability of
goihg to the world market for a proportion of its requirements , It has ,
within the Community , stocks or , should the occasion arise , storage capaci­
ties enabling it to counter the effects of peaks and troughs in the business
cycle - as occurred in 1974 and 1975 . It can thus limit uncertainties sur­
rounding its supplies of an essential raw material .
         All these considerations fit in with the basic objectives laid down
in Articles 2 and 3 of the Treaty .
5.4 .    The specific arrangements for coking-coal are intended to ensure equa­
lity of treatment , as regards aids , of Community coalmining companies where
the cost of producing coking coal exceeds a common reference level . They also
permit the application of prices based on the reference level by broadening ,
in respect of alignment , the possibilities open to coal undertakings under
the final sub-paragraph of Article 60 ( 2)(b ) of the Treaty . This offsets
remaining restrictions in commercial policy which tend to impede
inteqration .
D. PRINCIPAL AIŒFIDLIETTTS
6«       A3 stated above , there is no intention of changing the general lines
of the arrangements , merely of extending their application and adapting cer­
tain financial points in line with the spirit of Article 10 of Decision
73/287 .
 ---pagebreak--- ('.I -     Tho following provision a would remain unchanged in oubst H&oe ;
~ production aid fixod annually for each coalfield , limited to the difference
     between costs and the corresponding price at aorld level ;
- sales aid . intended to facilitate int ra-Community t^:ide &nd erdoa in areas
     remote from the coalfield ; given the difference trcisVlng in these cases
     between the world level and the Community delivered prices , the aid should
     represent a permanent incentive to rationalise production and improve the
     cost situation ;
 - production aid paid by the producing Member State and sales aid for deli­
     veries in the same country ;
 - a special fund for financing sales aids applying to intra-Gommunity trade ;
     through its contribution related to its use of blast–furnace coke , the .
     steel industry would express its interest in maintaining Community coking
     coal production .
            In keeping with its long-term objectives the decision will maintain
 the dispositions relating to long–term contracts for supplies from within
 the Community and to guide prices which trace the long-term evolution of
 conditions relevant to supplies from outside the Community . In order to con­
 firm the practice which has been followed since 1970 ?          disposition relating
 to the determination of rates of production aid will refer expressly to the
      xle prices . Long-term contracts constitute the base for assessment of both
 production and sales aid ; with their reasonable degree of
 flexibility , they enable both sides to plan for the long term and they help
 to reduce the stocks problem. Also the amendment clause (Article 10 ) would
 be maintained ; the introduction of the SUA from 1 January 197° appears likely
 to alleviate the consequence of any monetary measures (l ).
  6.2 .     The amendments would relate to the following points :
 - extension of the period of application up to the end of I985 , "the
      limit for the ".guidelines for coal " and Decision 520/76 >
 - maintenance of the sales aid rates applying in 1976 (3 and 1.6 . u.a . , depen­
      ding on the consumer 's location ) until 19 83 ; postponement until 1984 and
      1985 of the reduced rates planned for 1977 and 1978 under the present arran­
      gements ;
 - raising the intervention ceiling of the special fund for intra-Community
      sales aids : this ceiling would rise from 15 "to the more realistic level
      of 18 million tonnes a year ( it was set at 17 million tonnes between I J
      and 1973 and the trade shows no tendency to 'decline ). This tornage would
      also be considered as an annual average for the period l£77-i9°3 |
  ( 1 ) All the rates expressed in u.a. in uhe Decision as nov vmrded would have
        to be converted into ISITA following publication of "'ho Deo :.u ion. on tiiio:
         question planned by the Commission .
 ---pagebreak---    contribution not needed in .years of low steel produotion could thus oe
   used in years of strong demand ;
- financing : if the above measures are adopted , the fund would increase
   from 30 million u.a . in 1976 to 36 million u.a . for 1977 - 19*83 . The
  difference of 6 mua would have to be split among the three sources of
  contri Dutions , say as follows :
         ECSC                         + 1 mua
         States                       + 1,9 mua
         Steel industry               + 3,1 mua
         As regard the iron and steel industry , it would be enough for the
Fund to be credited with the British Steel contribution currently paid to
the UK government .
         The degression planned for 19$4      19^5     modelled on that currently
planned for 1977 and 1978 , but accentuated slightly for the iron and steel
industry *
 ---pagebreak---                                                                     - 1 -
                                           Braft modifications to decision 73/287 / EC 30
                              concerning coal sxid coke for the iron and steel ir;dy st::y in
                                                                   tho Community
                      Comparative text showing the modifications proposed by the Commission
                      ( right-hand column) and the existing text (loft-hand column)                           (l )
                              sr.cnoN 1
                      Aids by Member Slates
                               A rln It I
      The Member Slnles arc iHitltorireil to grant to coal
      undertakings under their jurisdiction v/hii h supply
      coining coo! and l>l:>sf-luniace coke lo the Community
      iron and steel industry .tills lo l.uiht.iie production ,
      marketing in regions far away from the production
      areas and irilia - Community Irade . .nut the conclusion
      and implementation of long-term contracts lor supply
      anil olUction . To this end the following aids may be
      Cî.mîro :
      («) a production nicl, for wlmli the ^uvernmvtUN shall
          each ) c.\r determine a rate per coalfield, while                               Article 11 aa))
                                                                                          Article
          taking particular account of the average costs of                                             4
           production in that coalfieUH- [ he price of coking + .font Instead                  o «. » » conditions "
                                                                           end of "the price «...
          coal in ils principal sales area and the long-term          read "and the price of coking coal   COal in its
          supply conditions ;                                         principal sales area calculated from the guide
      (b) a sales aid applying to deliveries to areas remote          cif prices referred to in article 5»1     5.1 "»
           from ( lie coalfield or effected by way of intra-
           Contmunity trade . The rale of any such aid may
           not exceed I u.a. per metric ton of coking coal in                            Article 1 b )
           the case of deliveries to installations which can he
           supplied direct via maritime transporrf-and i -f>o        _After
                                                                      A-Ttor "nsaritimo transport " add "or can only b©
           u.a . per metric ton ill all other cases. I liese rates    supplied after maritime transport
                                                                                                   transport"®".
           shall be reduced to 2-60 and I 411 u.a . respectively
           for thcHifth year and 2 ami I u.a. respectively lor -f. Instead of "fifth year" reod" last year but one 5'
thc+sixth year of the term of the Decision. These                  + Instead of " sixth " read " last "
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 .
 ( l ) 06 J. lîo . L 259/36 of 15*9.1973
 ---pagebreak---                                                                - 2 -
                          At title 2
t.      Where a Member State makes use oI its option
under Article I , the following rules shall apply :
(a) the aids shall he paid to the coking-coal producer
      undertakings in respect of their disposals of their
      own coal ;
(b) the aids may he paid only where the coal is used
      for coking and the coke in question is actually
      consumed in the hlast furnaces of the Community
      iron ami steel industry ;
(c) the aids tnav he paid only where deliveries of
      coking i o.il and M ast-furnacc coke are made under
      a long-term contract .
 2.     The production aids uferred to in Article I (a) of
 this Decision mav he paid only after the rates thereof
 ha\e hem atiihon /ed by the Commission '1 he authori­
 sation shall be given bv the Commission with due                         Article 2«2
 regard to the tiiicna referred to in Ailide I (a) For          + Instead of "30 September"
 this purpose Member States shall . hv+'iH September of
 each lear. submit then applications tor the following            read  "31 December "
 calendar year, togctlict Willi supporting documents.
 'I he Commission shall give its ruling within two
  mouths alter recupt ol the application .
  $.     The sates aid referred to in Article I (b) may be
  granted ordv if it is passed on in the foim of price
  rebate to the purchaser of coking coal or blast hmi.icc
  coke . When a coal undertaking passes the production
  aid on to his buyers . this shall not give rise to discrimi­
  nation between the \ arious long term coniiacts to be
  performed by that undertaking.
                          Sl.criON I !
                         Pricing rules
                            Art iiït J
   1.     Coal umfetakings are authorized, v. here neces­
   sary. to grant rebates on their list prices, (or disposals
   of coking coal and hlasi-furnace coke for the Commu­
   nity iron iind 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 The rebates allowed under (1 ) above shall not
cause the delivered prices of Comn.un.ry coal and
coke to work out lower than those winch would be
charged (or coking coal from non-member countries
and coke made from non -member country coking
coal .
 3 All other provisions concerning the alignment
 provided for bv Arlicle 60 2 (b) last subparagraph of
 tl.c Treaty, and decisions in implementation theieof.
 shall apply to the transactions referred to in (1 ) above,
 in particular those which allow the Commission, in
 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 .n
   Article X the provisions of Article 64 of the Treaty
   shall apply.
                               Artide f
    | The delivered prices of coking coal from non-
    member countries referred to in Article (2) shall be
    calculated from the prices c.f 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 Arlicle *(2) shal
     |,c < nictitated from the cif prices for coking coal
     referred to in ( I ) above in such a way as to cover in
     (nil the net coking costs of the supplying coking
     plants. Standard values therefor may be laid down by
     the Commission .
      J. The Commission may lay down criteria for the
      assessment of differences in grade in coking coal and
      coke .
                               SUCTION III
                Community financing arrangements
                                 Article 6
       Community financing arrangements shall be set up
       for :
       _ sales aids paid in pursuance of Section I of this                Article 6
             Decision in respect of intra-Community trade ,      + seoon4 indent -to ~hc deleted
   + '– the amount of the contributions by the iron and
             steel industries of member countries not engaged
             in intra-Community trade, insofar as their produc­
             tion of coking coal covers at least 75 Vo of the
             requirements of their blast-furnaces.
        A special fund administered by the Commission shall
        be instituted for this purpose.
 ---pagebreak---                                                                                                          Art i cl c 1*1
                                                                                      to   rcad  i
t       The C:-w r.n^ie>                   finsmcinr arrdnpor.K-r.t ? shMi           "The Community financing arrangements c-iall t>e
row fi cjuantity of o.-l                  :i tl; < unì amomttiiy? te «to              limited to on average annual tonnage of 'J 8 Dillion
th.»n IS million rk .                    ic tt-iis per nnm;m . ^ uc5 'h€              metric tours and to the contributions dot oiled in
L. nnyml o' the con ?//                  ,UfO?*s rcfc.Tcrf to in Arur'x 6             paragraph 2 . The above average annual tonnage
fihc-.e .                                                 ' • •                       and the- annual cont ribu t ions detailed below may
                                                                                      'be exceeded in a given year to the extent of
                                                                                      any tonnage and contribution not taken up in
                                                                                      another ye ar <> The rates of contribution per
                                                                                      metric ton of coal detailed below may not be
                                                                                      exceeded".
2.      The spcci.il fund shall be financial as follcws :
(a'» The contribution of (he European Coal and Sterl
      Community shali be :
           {or i he firs! year, 0-2fi' u.a . per metric tors oi
           coal , ie, no* mere fh.iri 4 miHron u.a . ;
      – for the tccond year, 0-"?.U ti.a . per metric 'on                                                Article 7*2 , i)
           of rail , ic . nnt more than 1 million tr jt. ;
   +       Jor sir >cqumt yv."»rs> G -'*00 u.;i . fur moine ton                     4 Instead of " for subsequent years' ", eroad " for the
           os                  R\ not nvjre eban <•» nrJiton u .?. pe :                 years 1975 and 1976 "
           tî n n * 5 ' * i .
   4-                                                                               +■ Add a 4t'n indent J " from 1977 ? 0-3,88588 u,s.» per
                                                                                        metric ton of coal ; ie ? rniilioft u«iii 2®r erav.vn''®
                                                                                                         Article 7*2 bî
 ij] The MctMbci States shall provide the following
      ovev^i ! r>. « mril'.;itic»is, o\i she scr»!e shown fn pn?a-
      graph 3 below :
      – for ? he first year,, 0-62? u a . per rm*tric ion of
            cool , se . n.A nunc Elwn                           nuiiion u.a . .
      – for ihe second year, 0-')60 u.a , per meinc 'on
            of coal , ic , f'O? more than 8-4 rn « 51 ion u.a.;
      – fo / ( he (. bird .. id lonf'Ji vesrs, 0 49;i u.a , per
            mcirr;            tor.-  c?               ie , po'     more shsn     7
                                                                                   4' Pelote the laat tvro indent. s:
            ni ill Ion u..i . pc -rvr.-itm ;
                                                                                       X'TT indents 4j 5            'o as i'oi lOvrn :
    4       ì ì : * 5 ^,,            yC --.- 02.7 }             per metrìc « on o$ +         for the yea v& 1577 to                  U         u,a. ptr
                         - e , re : : ro ;, i ! » ;• ì <!-!      ni-hnn v /i . ,             metric ton of coal • ic 9 ».i m ' l_op r.r a - _ P " J"
       --- lor 'he s»*?h yerr , > .<'.0'/ u . , ?>e : wc^r-.r :.o n o(             4- "5 } for the year 1934 -. 0, J32 ji? ''-J-                     '
                         te . ^ T''. r^rc • : JXJI 3-'.         n^;cf          :             per metric ton of l'oj.:., : i.e ?.■ ® i.'.r.o -1 Ue£-.
                                                                                             per a'rvnui/J ;
                                                                                       "6 ) for the ;.rea.r lyk5 , 0 - 2''7 ("■' *!                    1,j
                                                                                             ef coal .; ic 5 triii'jon              pt-r .it." »
 ---pagebreak---                                                                        - 5 -
     (c) The overall contribution of the iron and steel                              Articles 7.2 . c )
          industry not referred to in Article 6, second
          indent, shall be :
              for ( lie first four years, I - 107 u.a. per metric
              ton of coal , it, not more than 1 6 6 million u.a.
              per annum ;
                                                                  + delete the last two indents ;
                                                                    add indents 2 , 3 and 4 ao follows :
              for the fifth year, I 027 u.a . per metric ton of     7 "2 ) for the years 1977 to 1983 , I.O9444 iwj. per
              coal, ie, not more than I VS million u.a. :                   metric ton of coal , io 19.7 million u.a , per
                                                                          \                  -                     cuiiiCua m
              for the sixth year, 0 .S9.1 u.a . per metric ton of   + " 3 ; for the year 1984 , 1.02222 u.a. per motric
              coal, ie , not more than KH million u.a.
                                                                            ton of coal , ie 18.4 million u.a* per annum ;
       + -
                                                                    + "4) for the year 1985, 0.622222 u.a. per metric
                                                                            ton of coal , ie 11.2 million u.a. per annum".
    I lie overall amount of the contribution shall he appor-
   tinned nnionj? the iron and steel undertakings on the
            of their con>urni>tioi > of bhist-furiuee tola*.
 - - -                                                                             Article 7.2 .
+ he contribution of the iron .» nd su-el industries                +                    sentence t
    ref.ned to m .Article a, second nuKnt. calculated on              "The contribution ........ other undertakings ".
          |M-,S      , l,t' "«<■■ |H-r metric ton of consumption
   applicable to the other imdvrt.ikini's.
 ---pagebreak---                                                                 - 6 -
 3.     The contribut on to be provided by the Member
 States shall be on the following scale :
            Germanv                             31 %
            Kclgium                              1.1 %
            l' itlIKO                           2K %
            Italy                                12 %
            Luxembourg                           10 %
            Netherlands                            6%
                             Article S
  1 . The supplier States may apply for reimburse­
  ment from ( lie special fund of aids actually paid.                                 Article 8.2
  2.     The Commission shall check ( lie applications
  and determine tl?e amount 1, to lie reimbursed from
  [he special (unci to the Member Slates concerned'- ,'lf         Inr.tead of " If the tonna^oo .        Article 7(l )»
  the toim-ipcs concerned exceed the limit tixed ill              road : " If the -total tonnage or amounts concerned.
  Article 7 ( I ), the reimbursements shall be coirespond-        exceed tho annual limits fixed in Article ^ ( l )
                                                                  ancl ( 2 )".
  inpjy reduced. I lie percentage of the reduction is the         After : " supplier States ", arid % " after applica­
  same for each of the supplier States. +
                                                                             tion when appropriate of the provisions
                                                                             of Article 7t first paragraph , second
                                                                              sentence ".
                                                                                      Article 8.3
  3.     Ihc Commission shall fix the contributions to
  be paid into the special fund on the basis ofHhese            + Instead of " of these amounts ". read " the amounts
                                                                   11            to be reimourocd •     –––
+ amounts and the contributions by the iron and steel             Pel cte " and tho contributions by the iron and
  industries refened to in Article 7 ( I ) above .                          oteol industries referred to in Article
                                                                            7 ( l ) above .
   4.     To speed up Community financing, the supplier
   fmmliics sh.ill notify the Commission of the deliv­
   eries of coking coal qualifying for aid made during
   the pietcding quarter under Article 6. On the basis of
   these notifications , the Commission shall request the
   Member Stales to pay 'he corresponding amounts.
   The Commission shall forthwith apportion these
   amounts between the supplier States , at the same time
   as the corresponding contribution of the European
   Coal and Steel Community. The Commission shall
   call for contributions from the steehnaking undertak­
   ings and immediately apportion the payments among
   the Slates concerned .
   5.     The final accounts shall be settled at the begin­
   ning of each calendar year in respect of the preceding
   year.
                            SFCTION IV
                    General and final provisions
                              Artiilt 9                                                     Article 9*1
     I.   The Commiv ion shall take into account the aids
    provided for in th ; . Decision in assessing whether the
    aids relerred to i--$* Articles £ to 9 of tJeciMon No             Instead of "Articles 6 to 9 of Dsciaion
    .V7I / ILCSC ol 11 .J - cemher I (* 70 are iiyhlo lo inter­       Tio~rff£f&SC Of 22 December 19?0", read
    fere with the pre per functioning of '.lie Common                 "Articles 6 to 12 of Decision Ho «
    Mmkct .                                                            of 25 February V)76"a
 ---pagebreak--- s
 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, awl 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 after the unanimous assent of the
  Council has been given , amend :
  – the rate of the sales aids,
  – the ceiling to intra-Comimmity trade.
  – the rules governing the financing of the special
        fund.
   – the scale referred to in Article 7, paragraph 3.
   These amendments shall take account of the long-
   tcrm trend of supply conditions ami the supply
   pattern within the enlarged Community.
   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 condi­
         tions , volume or pattern of infra-Community
         trade, thus altering      the economic conditions
         prompting the adoption of this Decision , »t may
         suspend application of this Decision . Ii :> ha!I refer
         the matter to the Council forthwith .
     3.     If at the request of a Member State or acting on
     its own initiative the Commission finds that perfor­
     mance of the long-term contracts is jeopardizing ( he
     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, lay down without delay the
     necessary safeguarding measures, notify the other
     Member States accordingly and refer the matter to the
     Council forthwith .
                              Article \l
     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 intra-Community trade .
 ---pagebreak---                                                                   - 8 -
                            Arlith
                              -        }?
    After consulting tlu' Council .met ( lie Consultative
    Committee, the Commission shall take all measures
    nctf '.iry for the .if plication of tins Decision .
                                                                                       Article 13
                             A rlit ft 13
                                                                + refd "This decicicm shall enter into force on
 + THIS Decision shall cntef into force on 1 August I '>73.             lot January 1977 . It ceases to bo operative
    Set lions I. II and I 'll apply retrospectively Irom I
    January 197 .? to deliveries of coking coal ami coke                after 31st Dscembor 1983 . This Incision
     effected since that date. The applications provided for            shall "be binding 'in its entirety snd
     in Arm It 2 (1) in respect of ! '>' .) shall he siihmitted         directly applicable in all Member States"#
     by 31 October 1">73. l or the year I *>7.1 the provisions
     concerning the payment of aids (Aiticlc 2 ( 1 ) (c )),
possible rebates in the absence of nttn.il competition
(Arm le ? ( I )), and Community financinp ( Annie 7)
shall apply notwithstanding the absence of a loitg-
term contract .
This Decision ceases to be operative after 31
 December IV7X .
                                                                   Dane at
 Done at Brussels, It July 1973 .
                                                                                 for the Commiosion
                            / or thi Commission
                                                                                    The President .
                                T?)t PrçfiJiDt
                           François-Xovicf ORTOLI
 ---pagebreak---                Commentary on proposed modifications to the Text
               of Decision 73/287/ECSC of 25 July 1973 concer­
               ning coking coal and coke for the iron and steel
                            industry in the Community
Article 1 a ) in fine : It will be expressly provided that the " price " crite­
                            rion to be used in determining production aid shall
                            relate directly to the guide cif prices referred to
                            in article 'j.l .
                            This will confirm the practice followed since 1970 ;
                            the guide price traces the evolution of " long-term
                            supply conditions ". The new wording is at the request
                            of a member State government .
 Article 1 b ) : The maximum rate of sales aid will be applicable not only to
                   coastal installations , but equally to inland installations for
                   which maritime transport is essentially part of the supply
                   route ( continental supplies in the case of the United Kingdom ).
 Article 1 b ) : The degression in sales aid originally provided for in years
 ( continuation ) _      r                     .
                   5 and 6 ( 1977 and- 1978 ) will be transferred to the end of the
                   new period of validity ( 1 9 8/J and I985 ) the rates applicable
                   in 1976 being maintained up to I983 .
Article 2.2 :      Applications will be called for three months later than at
                   present . In this way the market information relevant to 1 Ja­
                  nuary of the year under consideration will be available to the
                  Commission as will be the information provided by Member States
                  regarding measures taken to assist the coal-mining industry
                  under decision 528/76/ECSC of 25.2.7 6 ( information notified
                  by 1 November ).
Arbicle 6 , 2nd indent : By deletion of this text the special arrangements for
                 the British steel industry contribution will be terminated , The
                 amount concerned (+ 3 mua ) will be transferred to the special
                 fund instead of to the British government .
Article 7«1 '•   The intervention tonnage for aid in respect of intra–1Community
                 trade will be increased from 15 . to 18 mt and considered o.s an
                 annual average instead of a ceiling . Provision is therefore
                 made for any contribution nnot needed in slack        eary to be
                  in years of strong demand .                                   „
 ---pagebreak---                     Tne        . c t: :,3 "to art J cie 6 will ue d - p::<ea
Article 7 * 2 * a , 'o , c , - Increasing 'the ceiling anu ;iiaii)tainiii£* rates of aid at
                    the 197 - level requires an increase in the fund and adjustment
                    of the three annual contributions ; as with the existing
                    system , the degression for 1984 and 1985 reduces the State
                    and Steel industry contributions , ( see attached table ).
Article 7«2 . in fine : This sentence refers to the British Steel Industry and
                   no longer applies .
Article 8.2 :      The new wording needs to cover both possible cases of the limit
                   being exceeded (tonnage and amounts ).                      is made to the
                   possibility of carrying over as provided for in Article J,l »
Article B-3 s      Rephrased and. referrence to the British steel industry deleted .
Article 9.1 :      Modified to relate to the provisions of the new decision re­
                   garding measures taken by the Member States to assist the coal
                   mining industry ( Decision 528/76 ).
Article 13 :       Extension of validity to 31 December I985 .
 ---pagebreak---                                                                                                                               ΰνΊΕΧ
                                                  Coking coal - Financing the Coranur.it7 Fund - Yearly amounts
                             ( For comparison )
                                                                  1977 - 1933                      1934                  1985
       Y ears                        1976
                                                                                                                          2/1                  A
                                                                                                                                             ua.
Aids per ton ua/t                  3 /1,60                           3/1,60                    2,6
                                                                                                            ua/t                     ua/t
Contributions                  mua       7°      ua/t           mua        7°   ua/t        mua       7°
                                                                                                                    mua.
                                                                                                          0,388888   7       30     0,388858
ECSC                            6       20      0,400            7        19   0,388888      7      22
                                                                                             6      19    0,333333   5       22     0,277777
States                         7,4      25      0,493           9,3       26   0 , 51 66 66
                                                                                                          1,02222   11,2     48     0,622222
Steel industry               16,6       55      1,107          19,7       55   1,094444     18,4     59
                                                                                                   100    1,74              100     1,29
                             30       100       2,0             36      100    2            31,4                    23,2
Tonnage 18 mt ( maritime : 5.16      mt     Others    :   12.84 mt )
ECSC : Participates with    1 mua in 6      ( 16 io ) te3 wards the increase in charges . Same percent a 30  of the
        period to 1 9 83 -
Sates : Participate with 2.3 mua in 6 towards the increase in charges - Same percentage ^of the tota_ (-0 ,»<).
        In 1984 , degression benefit of 3*3 mu.a ( 9*3 - 3.3 = 6 ) as provided for from 197° "t° 1977 *
        In 1984 degression ',1 mua.) as provided for from 1977 "k° 1 97 8.
Steel indE-try : 1976 percent are ( 55 '/>) maintained through to 19^3 •                            ^        .
                  In I984 , degression of 1.3 rnua ( against 1 mua provided for from 197° to 1 977 )«
                  In I985 : degression - 7.20 mua (against 6 . 70 provided for from 1977 to 197-0 •