B3-0501 and 0508/94

Resolution on the state of the steel industry

The European Parliament,

-having regard to the Commission communication of 23 November 1992 on greater competitiveness in the steel industry and the need for further restructuring (SEC(92)2160),

-having regard to the Commission's intermediate report on the restructuring of the steel industry (COM(94)0125),

-having regard to the conclusions of the Council of 25 February 1993 and 22 April 1994,

-having regard to its resolution of 16 September 1993 on the steel industry,

A.whereas most steel undertakings in the EU are suffering serious losses and have done so for a long time,

B.whereas these losses threaten the survival of some undertakings and are leading to major cuts in employment in the steel sector, with threats to 70 000 jobs,

C.whereas these losses are caused in part by a serious structural overcapacity in the European Union,

1.Notes that an initial step towards reduction of capacity has already been made but is concerned at the delay and the new postponements granted; notes that the steel undertakings of the EU must continue their restructuring efforts in order to guarantee their long-term competitiveness;

2.Calls on the Council and the Commission to be strict in their enforcement of the aid rules in order to prevent distortions of competition and urges careful monitoring of those restructuring projects where aid authorizations under Article 95 of the ECSC Treaty imply a commitment to a net capacity reduction;

3.Stresses the importance of the monitoring report and demands that the Member States and the undertakings comply immediately with the requirement to report;

4.Warns the Member States against embarking on any new subsidies, which would jeopardize the restructuring process in general;

5.Calls on the Commission to continue and step up its accompanying measures restructuring so that the significant social dimension of restructuring is taken into account;

6.Supports the Commission in its negotiations on a Multilateral Steel Agreement (MSA);

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