A4-0029/94

Resolution on the draft ECSC operating budget for 1995

The European Parliament,

-having regard to the draft ECSC operating budget for 1995 established by the Commission, COM(94)0291 - C4-0082/94,

-having regard to the communication of 22 June 1994 from the Commission on adjusting borrowing and lending policy with a view to the expiry of the ECSC Treaty on 23 July 2002 (COM(94)0269),

-having regard to the conclusions of the Industry Council of 22 April 1994,

-having regard to the report of the Committee on Budgets and the opinions of the Committee on Economic and Monetary Affairs and Industrial Policy, the Committee on Research, Technological Development and Energy and the Committee on Social Affairs and Employment (A4-0029/94),

A.whereas the draft ECSC operating budget for 1995 has been presented early by the Commission, as requested by Parliament, in order to bring its timing into line with the first reading of the general budget,

B.having regard to the consequences of the decline in coal production and the stagnation of steel production for employment in those two sectors,

C.whereas the phasing-out of ECSC activities should prompt general consideration of the possibilities of incorporating them in the general budget,

D.whereas it will be necessary in the future to continue the research and development and the modernization and conversion measures in order to make these sectors more competitive internationally and consolidate their world market position,

1.Notes that the overall volume of the draft ECSC budget, amounting to ECU 291 m, is 32% lower than the forecast outturn of 1994 and lower than the illustrative forecast for 1995;

2.Notes that this reduction results mainly from the low level of unused resources from the previous financial year, which in turn stems in particular from the compensation that the ECSC has had to pay to a company for losses incurred as a result of the implementation of the quota arrangements in force between October 1980 and June 1988;

3.Expresses its agreement with the proposed rate of the levy (0.21%), which is in line with the illustrative forecast presented by the Commission and with the recommendations of the Council and Parliament (see the latter's resolution of 21 April 1994 on the report of the Court of Auditors on the accounts of the European Coal and Steel Community at 31 December 1992 and on the report (annexed to the annual ECSC report for the 1992 financial year) of the Court of Auditors on the management of the accounts and the financial management of the ECSC);

4.Wishes to stress that the low level of appropriations in this draft budget is also attributable to the position unilaterally adopted by the Commission with regard to the ECSC's financial activities, which does not envisage any reduction in borrowing and lending before 1997, thereby blocking any release of reserves until then;

5.Calls on the Commission to submit to it a detailed report on the loans policy in the light of expiry of the ECSC Treaty, so that Parliament can take a decision in the near future;

6.Considers, in particular, that the continuation of loans for social housing for workers can only be justified if the Commission also redirects them into environmental improvement schemes in ECSC areas;

7.Renews, in addition, its call on the Commission speedily to draw up a proposal for the complete deletion of the 'Administrative expenditure' heading, which is no longer justified in the present circumstances;

8.Considers, with regard to requirements, that the Commission's commitment to social priorities is fully justified in the light of the economic situation in the sectors concerned and therefore endorses the allocation of 70% of expenditure to the various social measures;

9.Believes, however, that research, to which the Commission has allocated ECU 35 m, has reached a critical threshold which is unacceptable, bearing in mind the fact that the budgetary authority does not yet have detailed information about the first batch of calls for bids under the fourth framework programme;

10.Recalls, in this connection, paragraph 11 of its resolution of 15 December 1993 on the draft ECSC operating budget for 1994 and paragraph 14 of its resolution of 21 April 1994 on the future of the ECSC Treaty on redevelopment loans under Article 56(2) and therefore decides to make an ECU 17 m reduction in conversion aid, for which the European Regional Development Fund should now become responsible;

11.Decides to allocate the above ECU 17 m to aid for research, with ECU 8.5 m for steel research and ECU 8.5 m for coal research;

12.Also decides to amend Subsection B 5 of the general budget by creating two items with token entries (steel research/coal research), in order to alleviate the inadequate coverage of specific ECSC research activities by the relevant programmes of the fourth RTD framework programme;

13.Calls on the Commission to enter adequate appropriations in the draft supplementary and amending budget for 1995 forthwith, so that these ECSC research items may be incorporated in the general budget;

14.Considers, moreover, that thinking on the problems of phasing-in should not be restricted to purely budgetary considerations, but should embrace a more political approach, involving the retention of the specific features of the ECSC Treaty, with particular regard to social policy, in Community legislation;

15.Calls on the Commission, therefore, to submit a comprehensive report on its thinking on this subject at the earliest opportunity;

16.Considers that the possibilities of using the remaining reserves between now and 2002 should also be included in this process and emphasizes, in this connection, its interest in the establishment of a foundation representing the interests of the ECSC sectors and regions to inherit any remaining ECSC assets when the Treaty expires;

17.Recalls, in addition, its position that no transfer of funds from the ECSC reserves or assets may be used to complement the funding of phasing-in in the general budget;

18.Expects the Commission to present a supplementary and amending budget early in 1995, following enlargement of the Union;

19.Also awaits with interest the conclusions of the decision on the introduction of voluntary arrangements connected with restructuring of the steel industry;

20.Instructs its President to forward to the Commission this resolution and its decisions on the setting of the rate of the ECSC levy and the establishment of the ECSC operating budget for 1995.