B4-1572 and 1573/95

Resolution on state aid to Irish Steel under Article 95 ECSC

The European Parliament,

A.whereas there have been ongoing efforts to secure the future of the Irish Steel plant in Cobh, County Cork, and to safeguard future employment in the plant and in companies which supply services to this facility,

B.whereas at consecutive meetings from February 1993 onwards the Irish Government gave notice of intention to the Industry Council of their proposal to seek a strategic partnership for Irish Steel and to grant state aid consistent with the ECSC Treaty,

C.whereas the Irish Government formally notified DG4 on 7 September 1995 of a proposal to grant state aid to Irish Steel and to privatise that company through a strategic partnership with ISPAT International; whereas ISPAT has given a commitment as regards future capital investment and employment retention,

D.whereas independent consultants Eurostrategy made a positive recommendation to the Commission in respect of this proposal,

E.whereas the Commission made a positive recommendation to the Council in respect of this proposal in October 1995,

F.whereas the Industry Council on 7 November 1995 failed to resolve the matter as a result of a UK veto but invited the Irish and British authorities to resolve the matter bilaterally if possible,

1.Notes that in a series of bilateral meetings considerable progress has been made in addressing British fears regarding Irish Steel's capacity, marketing strategy within the EU, and pricing policy, with specific guarantees as to the evolution of same on a yearly basis for the next five years;

2.Regrets that to date the issues outstanding have not yet resulted in common accord;

3.Urges the Commission in line with its own analysis and recommendation to use its good offices as a disinterested party to broker a settlement;

4.Demands, given the issues at stake, that if a bilateral agreement between Ireland and the UK is not found in the meantime, the special Industry Council scheduled for 20 December 1995 reach a decision;

5.Instructs its President to forward this resolution to the Council and Commission and the Irish and UK Governments.