B4-0329, 0331 and 0332/94

Resolution on the restructuring of the steel industry

The European Parliament,

A.having regard to the Commission statement of 26 October 1994 on state aid for restructuring in the steel sector,

B.noting the economic revival due to the growth of the European and world markets, but recalling the need for the steel sector to be restructured irrespective of economic cycles,

C.whereas it has given substantial support to the steel industry restructuring plan,

1.Regrets the Commission's unilateral decision to put an end to the plan for restructuring the steel industry in Europe;

2.Reminds the Member States of the objectives and conditions of the restructuring plan;

3.Regrets the suspension of aid measures for restructuring and its effect on the undertakings being restructured, at a time when the process is not yet complete and when the EU market for steel is not yet at normal levels;

4.Calls for the representative trade unions in each country and at European level to be involved in drawing up measures for the revival and modernization of the steel industry in Europe;

5.Calls on the Commission to maintain the social back-up measures for the restructuring under way in the countries of the EU;

6.Underlines the responsibility of certain undertakings and certain Member States which did not implement the reductions in capacity agreed beforehand in the framework agreements (Article 53 of the ECSC Treaty); serious consequences will result for the whole steel industry in Europe and will doubly penalize those undertakings which have attempted to reduce production;

7.Is concerned that the Commission has failed to act decisively in a number of recent cases involving elements of state intervention and calls upon the Commission to ensure that the Steel Aid Code is strictly followed in all cases;

8.Calls on the Commission to step up its efforts to achieve a durable restructuring plan which will enable the steel industry in Europe to return to an economically sound level of production, even when periods of strong economic activity have ended, and accordingly to maintain external structural and social measures and the necessary monitoring;

9.Urges the Commission to consider undertaking a fresh round of contacts with the Council and the steel industry in view of the negative implications which follow from the failure to cut capacity as planned;

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