Legal provisions of COM(1978)175 - - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(1978)175 - . |
|---|---|
| document | COM(1978)175  |
| date | April 26, 1978 |
Article 1 ' ■
1. The orderly functioning of the common market requires that the adjustment of the steel industry's capacity to prospective demand is madd in an orderly manner and that the industry's competitiveness is restored "by the extension, modernisation and rationalisation of those plants offering ■
. the best prospects of viability and the closure of other plants. -
2. Aids and interventions in favour of the steel industry, financed or pro’ vided by Member States or through State resources in any form whatsoever,
may be considered compatible with the orderly functioning of the common . market if they satisfy the provisions of this Decision and if they do not affect competition and trade between'Member States to an extent contrary to the common interest. Such aids and interventions shall only be put in— to effect in accordance with the procedures established herein.
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Article 2 ' . . . '
1. Aids and interventions in support of.investment in the steel industry may be considered compatible witir the orderly functioning of the common market if they meet the following criteria, that is to say . •
- the Commission has received prior notification of the investment pro-■ gramme concerned as required by High Authority Decision Ho 22-66 of 16 Hovember 1976 on information to be furnished by undertakings about ' their investments (l), as amended by Commission Decision Ho 2237/73 : (ECSC) (2) or by any subsequent Decision;
; - the amount and intensity of aid or intervention in any form whatsoever ... are justified either by the importance of the restructuring effort in-evolved or by the structural problems of the region where the investment is to be undertaken and are’ limited to that which is necessary for . -this purpose; . . - /
-the investment programme conforms to the General Objectives for steel, having regard to any reasoned opinion that the Commission may have , issued on the" investment' programme concerned. , . •
2. The net grant equivalent of aids and interventions shall be calculated ■ in the manner set out in the Commission's' Communication to the Council of 23 June 1971 on General Regional Aids Systems (l) subject to any amendments subsequently made to this method of calculation. ,
Article 3 ; . ' ' . r
1. Aids and interventions to defray the costs resulting from the partial or
total closure of steel plants may be considered compatible with the or. derly functioning of the common market. . ;
2. The costs eligible for such aids and, interventions shall be the following:
. - Payments to workers made redundant or retired before legal retirement age, where such payments are not to be met by contributions pursuant, to Article 56 (0 (°) or (2) (V) of the Treaty; .
- payments due to third parties in respect of the termination of contracts, in particular for the supply of raw materials;
- expenditure incurred for the redevelopment of the site of closed steel * ' ■ ■ •
plant for alternative industrial use.
3. Member States shall, with effect from...............,'submit six-monthly
; .'reports to the Commission on aid or intervention decided upon in the
course of the previous six months. These reports shall contain the '
following information on each closure: : . - .
-an identification of the undertaking or plant closed; .
— the amount and precise nature of eligible expenditure due to the
closure; . ; .
— the amount, nature and other particulars of the aid or intervention.
(i) oj No c 111, 4.11.1971.;
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Article 4 .. - ' . ’ " ' , ■ : . .
1, Aids and interventions to facilitate the continued operation of certain -
undertakings or plants may he considered compatible with the drderly ,
functioning of the common market if they meet the following criteria,
V that is to say / ' ... ' . ..
. - they form an integral part of a restructuring programme designed to assist the production unit in question to become competitive and able to operate without aid, the said restructuring programme being compa- _ tible with the General Objectives for steel; ' • ' ' ■
- they are of limited duration or progressively reduoed at a sufficient . rate for them to be eliminated within a reasonable period, having re— gard to the restructuring programme ■undertaken;
- they are limited in intensity and amount to that which is absolutely
necessary in order to enable continued operation during the period of the restructuring; and ' , : .
- they do not, in the case of support tariffs, appreciably affect competition on the transport.market concerned. \ —
2. In its examination of ^ach proposal the Commission shall take account of
the problems facing the production unit or units in question and the re. gion or regions concerned. . ...
Article 5 . , . ■ , ,
Emergency aid and intervention intended as a temporary solution for the rescue of an undertaking pending a definitive solution to the problems of the undertaking concerned may be considered compatible with the orderly functioning of the common market only in cases where they are required in order to cope with acute social problems. Other than in exceptional and fully justified cases, such measures shall be in the form of a state guarantee or of a loan at a commercial rate of interest.
Article 6 . ., v ■ ■ ...
1. The Commission shall be informed, in sufficient time-to enable it to sub—
■ mit its comments, of any plans to grant or alter aids and interventions . pursuant to Articles 2, 4 and 5* The Member State concerned shall only put its proposed measures into effect with the approval of and subject to
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any conditions laid down by the Commission. The Commission shall make its -• views known as soon as possible having regard to the urgency of the case. If, after giving notice to the parties concerned to submit their comments, the Commission finds that the aid or intervention is incompatible with
, the provisions of this Decision, it shall inform the Member State concerned of its deoision. When a period of two months from the date of receipt of
, the notification of the plan in question has expired without the Commission having initiated the procedure herein provided for or otherwise having made its views known, ^he measures may be put into effect, provided that ' the Member State has given prior notice to 4he Commission of its intention so to do* i
2. Where a Member State has put into effect aids or interventions contrary , to the provisions of this Decision, the Commission may by means of a decision addressed to that State require the repayment or other withdraiiial of the aid or intervention m question. . '
Article 7 ~ ■,
1. All plans proposed by Member States which involve an action within the ' meaning of Article 67 (l) of the Treaty shall be notified to the Commission in sufficient time to enable it ta submit its comments thereon. The proposed plans shall only be put into effect with the approval of and subject to any conditions laid down by the Commission.
2. The Commission shall evaluate such plans in'the light not only of Article 67 (2) and (3) of the Treaty, but also of the general objectives and, as appropriate, of the particular provisions of this Decision/
3* When a period of two months from the date of receipt of the notification __ of the plah in question has expired without the Commission having initia— ted the procedure provided for in paragraph 4 or otherwise having made . its views known, the measures in question may be put into effect, provided that the Member State has given prior notice to the Commission of its intention to do so. •
4* Where the Commission reaches a negative opinion on the plans in question, it may, after consultating the Consultative Committee and the Council, , address the necessary recommendation'to the Member State concerned.
Article 8
The Commission shall prepare regular reports on the operation of this Decision for discussion with experts from the Member States. It may also seek the views of these experts in the case of the more important aid and intervention plans notified to it before taking a position on these plans.
Article 9 ,
This Decision shall apply until 30 June 1981. •
Article 10 . ; .
This Decision shall be binding in its entirety and direotly applicable in all Member States. . . ■