1996 ECSC operating budget

In adopting the report by Mr GIANSILY (UPE, F), Parliament initially noted that ECSC activities should be seen in a more favourable light in 1996 with a real growth of 3%. However, coal production was expected to decline with output falling from 130 million tonnes to 127 million tonnes. If this decline continued, the Community would be obliged to resort to instruments which have been provided by the ECSC up until 2002. At the same time, Parliament took note of the rise in steel production (14 millions tonnes in 1995, 2 millions tonnes in 1996). As regards the budget itself, Parliament noted that as far as expenditure was concerned the Commission wished: . to reduce the amount of aid for readjustment in a disproportionate way (from ECU 135 m in 1995 to ECU 80 m for 1996), . to increase the amount of aid for reconversion from ECU 35 m to ECU 50 m, . to reduce by more than one half the amount allocated to social measures for restructuring in the steel and coal industries. . In addition, the amount of aid allocated for research, which had not been particularly high in 1995, was to be maintained at ECU 60 m. Parliament therefore proposed altering the programme of expenditure in order to: . reduce the decline in aid for readjustment (which would be increased from ECU 80 m to ECU 86 m), . maintain research aid at an operating level (this to be increased from ECU 60 m to ECU 74 m), . reverse the trend for social measures to promote restructuring in the coal industry (appropriations to be increased from ECU 26 m to ECU 28 m), whereas social measures for the restructuring of the steel industry would only be allocated ECU 18 m instead of ECU 20 m. Considering that the increase proposed for reconversion aid went against the general budget trend, Parliament reduced this heading to ECU 30 m (instead of ECU 50 m) with the obligation on the Commission to apply strict criteria when granting reconversion aid for re-employment purposes. As far as the levy was concerned, Parliament suggested reflecting on the possibility of applying a global levy to all ECSC products so as not to penalize Community production. It also called on the Commission to: - present in its ECSC draft budget for 1997 a plan designed to give real content to the ECSC social inquiry; - define and possibly begin, from 1996 onwards, to implement the measures needed to ensure that the activities being pursued in application of the ECSC Treaty might continue beyond 2002; - refine its hypothesis for 2002 by determining more precisely the residual assets which will be available on that date. �