RESOLUTION OF THE CONSULTATIVE COMMITTEE on the restructuring of the steel industry and the organization of the steel market (87/C 154/02) (adopted by written procedure on 27 May 1987 following the 262nd session of 15 May 1987 by 55 votes for, 2 votes against and 5 absentions)

THE CONSULTATIVE COMMITTEE,

HAVING: - examined the proposals submitted by the Commission to the Council,

- taken note of the discussions of the Council on 19 March 1987,

- recalled the terms of the resolution it adopted at its 259th session of 17 October 1986,

- taken note of the preliminary proposals on restructuring submitted by 36 steel companies which represent 88 % of Community steel production capacity,

- heard the explanations of Mr Narjes, the Vice-President of the Commission, at its extraordinary session held on 15 May 1987,

1. notes that the restructuring proposals submitted by the producers to the Commission show willingness to tackle the overcapacity problem, even if they are still insufficient due in particular to political differences and to difficulties in financing the necessary social measures, which are problems that the companies cannot solve themselves;

2. therefore urges the Commission to take the initiative to promote further restructuring and to this end to put its full political weight into negotiations with the governments and all concerned;

3. is of the opinion that this situation and the prevailing market conditions require the continuation of the market regime for a further limited and well defined period and that guarantees be given for the maintenance of an appropriate quota system for as long as the new process of restructuring requires it;

4. asks the Commission to establish in conjunction with the industry a revised quota regime for this next period, which on the one hand, will be more global and effective than the present one and, on the other hand, avoids the many uncertainties which the existing system has been shown to give rise to;

5. points out that it is an absolute condition both for a successful restructuring process and for gradual liberalization that the aids code prohibiting national or regional subsidies is strictly adhered to. To this end the Commission should in general see that companies seeking the protection of bankruptcy regulations are not able to abuse them to acquire competitive advantage;

6. points out that the successful implementation of the restructuring process depends on suitable measures being taken to reduce the pressure of unfair imports from third countries;

7. welcomes the Council's acknowledgment of the need for social protection for the workers who will lose their jobs and for a special financing scheme and invites it to set up this scheme as soon as possible. It requests the Commission to submit without delay concrete proposals on both the level of the contributions and the method of funding;

8. draws to the attention of the Commission the fact that it is of vital importance that the aid for financing the social measures should be granted on at least an identical basis to what was the case prior to 1985.