B3-1215, 1234 and 1240/93

Resolution on the steel industry

The European Parliament,

-having regard to its resolution of 29 October 1992 on the situation in the European steel industry and its resolution of 12 March 1993 on the European steel industry,

-having regard to the statements made by the Council of Ministers on 25 February 1993,

-having regard to the Commission's statement of 16 September 1993,

A.having noted, on the basis of the provisional programme for the second half of 1993, that the situation on the steel market, despite a slight price increase, has worsened and in any event does not offer prospects of improvement in the short term,

B.whereas the serious social and economic consequences of this crisis have been made all the more dramatic by the persisting economic recession in Europe and whereas this applies particularly to certain areas of the Community,

C.aware that there are plans to lay off more than 60 000 workers in the sector in the next two years and that there may be a 10% reduction in jobs by the end of this year,

D.whereas the Commission's chosen strategy to tackle the crisis consists in coordinating voluntary redundancies and activating a programme of aid to cover the social costs of the reductions in capacity,

E.noting that all the deadlines set are not destined to be respected, as demonstrated by the fact that the meeting of the Council of Ministers on 26 July 1993 was cancelled, that there is considerable uncertainty about the actual possibility of a decision being taken at the next meeting of the Council of Ministers on cases of state aid to steel companies or of agreements being drawn up between companies by 30 September to reduce production capacity,

F.whereas contrary to the Commission's expectations, reductions in surplus production capacity on the basis of voluntary closures have not always been carried out, and having regard to the difficulties encountered so far in financing voluntary redundancies,

G.whereas the levying of import duties by the United States discriminates against European industry interested in the US market,

1.Expresses its alarm at a situation which is continuing to worsen, especially in social terms, and calls on the Commission to step up action, since only a Community strategy can prevent the clash of conflicting interests and a purely national approach to the crisis; therefore calls on the Council to find as soon as possible a solution to the cases of public aid to steel companies;

2.Calls on the Commission

(a)to ensure that any reduction in capacity actually results in reduced production,

(b)to ensure that all the restructuring measures accompanied by aid from the Member States are in accordance with the Aids Code,

(c)to ensure, by means of a strict application of Articles 91 and 92 of the Treaty, that all aid is linked to reductions in production;

3.Considers that in any event rapid and incisive Community action in the social sphere is a matter of priority and calls on the Commission and the Member States to allow those firms which want to reduce production capacity or have already done so, to have access to the social aid plan drawn up by the Commission, without being bound by the global restructuring plan;

4.Calls for the rapid preparation of a plan for the conversion of production which gives priority to the reemployment of steel workers who lose their jobs, with the aid of the existing resources provided for under the ECSC Treaty and the Structural Funds;

5.Calls for clarification of the current situation of the ECSC budget and its real ability to tackle the measures demanded by the crisis;

6.Desires that the financial reserve set up by the ECSC over the years be used to allow the restructuring of the steel industry;

7.Calls for help for the application of technological innovation in order to ensure that the output of the EC's steel industries is increasingly of the highest quality, as is being done in the US (where European technology is naturally being applied);

8.Calls for guarantees to ensure that ECSC loans and EC help to the countries of Central and Eastern Europe do not contribute to an increase in capacity which will subsequently be destined for the Community market before the cost structure of its companies is reformed;

9.Reiterates the demand, already expressed in the above-mentioned resolution of 12 March 1993, regarding the dispute with the United States, since it is still convinced that the customs duties levied by the US authorities are arbitrary and unfairly penalize the Community steel industry; welcomes the Commission's approach to the problem and the partial results already achieved and calls on it to continue its action, in collaboration with the European Parliament, to settle the continuing dispute;

10.Is alarmed that several EFTA countries have taken advantage of competitive devaluations to export to the EC steel in such quantities as to exacerbate a market situation that is already very depressed;

11.Supports the creation, as a matter of urgency, of a Community regional development initiative for the steel-producing areas;

12.Instructs its President to forward this resolution to the Commission, the Council and the governments of the Member States.