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The European Coal and Steel Community. Address by Mr. D. P. Spierenburg, Member of the High Authority [of ECSC], before the Swedish Iron and Steel Federation. Stockholm, 6 October 1955

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/,

TFIF ..EEI+;OFEAN

COAL AN-D STE,E.L

.QQ.I.r1P4.U.NITY

Adrft,csr by I'tr,. D. p. SF.fERENBURG

i4*mb;r of the High Authortty

bcfrrre the Swedish l,l''on and Steef Federatlon

(2)

, :i

',t

:.1'

.:3 't;:

The Eurolr€an Goal

AddresS

. : . - : r - t

, Iember

. a.:,: ... .

.-say' a very:

arrd,

i ts ., inv tte.t io4j,.,tt' r.,i€,,,,,

to be among Vou,

formed on econgnlc matters,

t'ry,,:.wh.!ch r:,:,11

d i t i o n a n d with lts posttlon

L n E u

frequently sympathetie and always

vari.ous experlments in

ther developments affect the, future

::1,':

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t ::" '- :; : :l: ': :: "": ' l:;:: ' xay. I, ,f.ljrst'-of :'el-l thanks to the Swedish Iron

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,' ,.,':i;:;r,:l.;;:,,

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I should like, if I may, to tell you about what

.

' . t .

r .

I have myself learned in the course of a particular

experiment - - - f - : the setting up of the Cornmon Harket for ' :j

:

Coal and Steel. I have gained over the last three

- i : ' ' : I

- : : r j ' y e a r S c o n s i . d e r a b 1 e e x p e r i e n c e o f t h e p r o b 1 e m s i n v o 1 v e d

J _ _ _ _ .

. - , . . , . : , 1 . ,

in setting up such a Common llarketr through the part I , ,

have taken,,. frltFt, f'n: th'e 'n6gotia'tt<iirs',on ;what".w&-s','.,., : .,...,,.,1,,.i.r",,t

known in those days as the "Schgttl4n PIan'!, and then

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i l m e m b e r o f t h e H i g h A u t h o r i t y i n L u x e m b o u r g .

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pean comnerce has

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there ls no doubt that these efforts to orgarri

:

' ,countr'y,

States, .struggled,to e,xpand;the1r trader rhlle ,8t .th€ .,,r,,f,;f,,:,,

EaEe tine makLng good thc ravages of , th€ tar. and, rrcd- ..,.',,,:'

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ernlzlng'.thelr induetrl

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rd they eould

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r, Unquesttonably theee ef forts have, produced:, , ,:,,

userur resul,ts . *ogtess: has been made lln ttbeiaf f ;i

trade and'pryments

- tn. ,ror.m"iot ii.a" "-og U';".r'ii

c-ountries ,:hhs ,-lncreased: slnce, 195O,:in., a,..h]'.t gh-Cn,pi.o.p9,,r,..

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(6)
(7)

6 '

-t a c -t i c s l n r l v a l r y o r a l l l a n c e r l t h o n e a n o t h e r & r e

tending to take the place of the old apparatus o-f 4u-'

tomatlc narket adjustnents, Gtvernnent :action ean

affect economic processes at any noment ln a hundred

d l f f e r e n t r a y s . T h e t r a d e s l t u a t i o n a n d t h e l e v e l o f

b u s L n e s s d o n e t n e a c h c o u n t r y d e v e l o p l n a m a n n e r

rhtch is inevitably bound up vith government decLslons,

pressure and lnfluence. If lnternatlonal trade tere

liberalLzed tt ;ould still remaln. at the merey of

unl-lateral State lctLon. tr\rrther even tf the

relntroduc-tton of self*rorking adJustments such ag exlgted under

the Gold Standard ;ere possLble, lt la perfectly

eer-taln, that these 'adJustments , rlth atr 1 the ef f ects

they rould have on the level of enploSrnent and the

movenent of inconeg, rould not be accepted today by the vast naJortty of the population.

Many people began about 1950 to reallze these

polnts. They reallzed that lt ls not enough to take

reclproeal actlon establlshtng ^ zone;tthln rhlch

trade and pa;nnents rould be free of reatrlctLona, Over

and above the actlon needed for the llberallzlng of

trade, over and above even the ende&vourB to arrange a Custons unl,on, there began to be talk of sonethlng

quite new B Connon Market

ffhat ls a Conn6n trtrarket? Let ue try to de*rlbe

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7

The introductron of a coromon Marlret

lncorpo-r a t i n g e c o n o m i c areas previously

s e p a r a t e , a n d a i m e d

a t a c h l e v i n g t h e most rational

d i s t r i b u t i o n o f p r o d u c _

t i o n a t t h e h i g h e s t possible lever of producti.vity, i s

s o m e t h i n g much more than a mere riberalizatlon o f t r a _

d e ' r t is not enough to abolish quotas o r f o r e i g n e x

-c h a n g e restri-ctions.

w h e n customs duties are retai'ed o r r e i n t r o d u c e d

a n d e v e n r a i s e d , as has bee'known

t o h a p p e n u p o n a liberalizati.n o f t r a d e

t h e y c a n

c o n s t i t u t e j u s t a s s t r o n g a p r o t e c t i o n ,

a n d j u s t a s

d e c i s i v e a n o b s t a c r e to a rationar distribution

o f

a c t i v i t i e s , a s q u o t a s t h e m s e l v € s .

c e r t a i n k i n d s o f t r a n s p o r t

r a t e s c a n h a v e the

s a m e effects a s c u s t o m s duties,

i f n o t even more far_

r e a c h i n g o n e s , since proteetion

c a n be provided to

n a t i o n a l i n d u s t r i e s b y v a r y i n g f r e i g h t - r a t e s

a c c o r d i n g

t o t h e distance and llnes of communicatr_on c o n c e r n e d .

E q u a l " l y there would be no point in abolishing,

t h e impediments to trade caused by government r e s t r i c _

t l o n s a n d t r a n s p o r t r a t e s if further

i m p e d l m e n t s ,ere

t o b e created by the producers themselve'. T h u s it is

e s s e n t l a l t o see that no international

c a r t e l s a r e

f o r m e d to allocate m a r k e t s and that no entreprises

a c h i e v e rhat amounts to monopolistic p o s i t i o n s e n a b t - t r g

(9)

- B

The Common lUarket means,

t i o n o f q u o t a s , f o r e i g n e x c h a n g e

d u t i e s , t r a n s p o r t d i s c r i r n i n a t i o n s ,

a n d d u a l p r i c l n g .

therefore, the

r e s t r i c t i o n s ,

a l l o e a t i o n o f

a b o l i

-Customs markets,

o t r r e r p r o b l e m s again arise as a resurt o f the

r e p r a c e m e n t o f t h e old nationar markets b y a s i n g l e

common $Iarret' These fal'

for the most part under the

g e n e r a l heading of rfharmonizationr? o f p r o d u c t i o n

c o n _

d i t i o n s , a n d , m o r e g e n e r a r l y ,

o f e c o n o m i c p o l i c i e s .

T h e w o r d is a hancry one, but the idea behind i t i s of_

t e n e n o u g h ' a t r i f f l e w o o r l y . o b v i o u s r y ,

n o b o d y i s g o i n g

t o c l a m o u r t o h a v e all production c o n d i t i o n s _ t a x a t i o n ,

s a g e s , social security, c r e d i t e x a c t l y

t h e sare eve_

r y w h e r e : t h a t c o u r d never be achieved entirely w i t h i n

a n a t l o n a l e c o n o m y where the different

a r e a s rearry do

d i f f e r f a i r r y w i d e l y in character.

R . r s h e d to extremes,

i n s i s t e n c e o n i d e n t i c a l p r o d u c t i o n

c o n d i t i o n s s o u l d

mean no trade and no prcrgress. But the proper operation

of a common Market does require that there "tro,,rc be a

r i n i t t o t h e d i s p a r i t i e s ' t o l e r a t e d

t h a t a d i s t i n c t i o n

s h o u l d be drawn between those differences , n r ; ; ; ; .

corrected as a vhole by the rat€s of exchange

in force

b e t w e e n , r e areas concerned and those vhtch " " r i , " "

s p e c i f i c c o r r e c t i o n o n e by one like subsidies,

a n d ,

f i n a l l y , t h a t t h e economic poricles

o f t h e member sta_

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- 9

w i t h o u t g o i n g in greater detail into all these p r o b r e n s

i n a n y case, the theory of thern is onl"y g r a d u a l l y

e r n e r g i n g as our experience progresses _ i t

i s o b v i o u s that a Common lHarket is characteriz.ed a t

l e a s t a s much by the rules it i.mposes a'd the

s u p e r v i

-s i ' o n it demand-s a-s by the impedirnent-s t o t r a d e it

re-m o v e s .

You donrt open a comrnon {arketr you introduce

i't ' rt is something which is done by stages, btrt which

m e a n s y o u h a v e to be on the watch all the time.

T h e introduction o f a Comnron

M a r k e i involves

p r o f o u n d cha'ges. I t i s therefore

n e c e s s a r y to see

t h a t t h e t r a n s i t i o n f r o m n a t i o n a r markets to a,common

M a r k e t i s g r a d u a l l y e f f e c t e d .

A t t h e s a m e t i m e , it must

b e c l e a r t o a l l

c o n c e r n e d that the devel0pment ot the

C o m m o n }tarket will n o t be reversed. A l s o , safeguards

m u s t b e p r o v i d e d against measures rhich might d i s t o r t

t h e c o n d i t i . o n s o f competition

o n t h e common *rarket o," ,, a g a i n s t s o c i a r u p r r e a v ^ r s consequent upon its introduc* t i o n .

T r a n s l t i o n a l p r o v i . s i o n s are needed because,

t o r m a n y i n d u s t r i e s , 1 0 n g u s e d t o p r o t e c t i o n ,

a d a p t a

-t i o ' t o t h e s t e r n e r c o ' c r i t i o n s o f a competitive

n a r k e t

m a y b e n o e a s y m a t t e r . Poorly placecl.industries n e e d

t h e time and the means to reorgani"ze thernselves t o

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- 1 0

N o c o u n t r y c o n s i d e r i n g v h e t h e r ' i t r l l ' l c o m m i t i t s

w e a l t h t o a C o m m o n M a r k e t c o u l d c o n s e n t t o d o s o i f

t h e r e s o u r c e s l t c o n t r i b u t e s t o t h e c o m n o n p o o l t e r e

t o b e s q u a n d e r e d b y a n a b r u p t , u n t h i n k i n g p l u n g e front

t h e p r : o t e c t e d e c o n o m y i n t o t h e f r e e m a r k e t '

o n t h e o t h e r h a n d , t o c a r r y t h r o u g h a n y s t r u c

-t u r a l r e f o r m s , i t i s e s s e n t i a l t h a t a l l c o n c e r n e d

g o v e r n m e n t s , e n t e r p r i s e s , t r a d e - u n i o n s s h o u l d b e

q u i t e c l e a r t h a t t h e C o m m o n M a r k e t h a s c o m e t o s t a y ,

a n d t h a t t h e t r a n s i t i o n a l p r o v i s i o n s r l i l l u t t i n a t e l y

c o n e t o a n e n d . I f n o r e t u r n t o t h e p a s t i s p o s s i b l e

t h e y r i l l a c t t o m e e t n e t c o n d l t i o n s a n d l n d o i n g 8 o ,

encourage them to cone about''

A t t h e s a n e t i n e , i t i s n e c e g s a r y t o e n s u r e

t h a t t h e o p e r a t i o n o f t h e C o m m o n ll a r k e t i s n o t f a l s i

-f i e d b y a b u s e s o -f t r a d e a n d d i s t o r t i o n s o f t h e c o n d i

-t l o n s o f c o n p e -t -t -t i o n , A c o d e o f f a i r t r a d e u u s t b e

e n f o r c e d .

Finally, the concept of the Connon Market

i n p l l e s c o n t i n u o u s c h a n g e . I f f i r n s a r e n o t t o b e

p r o t e c t e d , t h e y n u s t b e c o m p e t i t i v e . T o c o m p e t e t h e y

nust loier co3ts. Lor€ring'costs usually means more

e f f i c i e n t n a c h l n e r y r e q u i r i - n g l e s s l a b o u r . I n t h e

pnst, labour has tended to r-esist technlcal progress

because it threatened to'depiiv-el"lorkers of their

(12)

.ri' 11 jg ,l: = ii )3. ':i!-::r .ll: ,,ii ,i4 :i* .in'+ i 5 i :::-ti .-i3: ,:': :ll t;-Yr :tA 1i.t ti+ .;4 t;f,

t h i s t h r e a t i f

c o n c l u s i o n

c h e a p e r c o s t s .

t 1

c o m p e t i t i o n i s t o l e a d

m o r e efficient m e a n s o f

t o i t s l o g i c a l

p r o d u c t i o n a n d

T h e s e a r e diverse and complicated tasks. rt

v o u l d b e u n r e a l i s t i c t o e x p e c t a l l t h e n e s o u t l o o k s

a n d f o r m s of behaviour they require to arise sponta-n e o u s l y sith sponta-no machisponta-nery of esponta-nforcemesponta-nt. rt is sponta-neces_

s a r y r t h e r e f o r e , t o m a k e certain t h a t t h e rules of

o p e r a t i o n o f t h e common Market shalr not be infringed

w i t h i m p u n i t y b y a n y o n e .

w o u l d l t b e t r u e t o say 'rat the introduction

a n d o p e r a t i o n o f s u c h a common r[arr'.et can be acrriev_

e d s i n p l y b y e c o n o m i c corlaboration b e t w e e n g o v e r n _

m e n t s , r i t h r e p r e s e n t a t i v e s m e e t i n g r e g u l a r l y r o u n d a

t a b l e t o s e t t l e c o m n o n p r o b l e m s by unanimously voted

s o l u t i o n s ? H a r d l y . w h a t e v e r p r o g r e s s may be expected

f r o m co-operatlon, e x p e r l e n c e shows that its limits

a r e n a r r o t . A s s o o n a s r e a l d i f f i c u l t i e s a r i s e , g o v

-e r n m -e n t s t e n d t o t a k e u n i l a t e r a L a c t i o n . E i t h e r

t h e y

d i s r u p t t h e o r g a n i z a t i o n b y t h i s a c t i o n o t , a s more

o f t e n h a p p e n s , they disappoint i t s h o p e s vith t h e

c o n n i v a n c e o f t h e other governments, who knor they m a y h a v e t o r e q u e s t s i m i l a r vaivers in their turn.

T o g o v e r n a commcin Market an institution i s

r e q u i r e d , t h a t c a n a r r i v e a t d e c i s i o n s

a n d whose

(13)

L 2

h a s i n s u f f i c i e n t p o w e r s t o e n f o r c e i t s d e c i s i o n s r ' t h e

s a m e d i l e m m a s W i l l a r i s e a s i n i n t e r g o v e r n m e n t a l o 1 .

-L ^ ^ * S ^ .

g a , n i z - a - t i o n S . . T h e r e f o r e i t h a s b e e n f o u n d ' n e C e S S A r y t o

c l e l e g a t e n a t i o n a l p o w e r s t o l n d e p e n d e n t i n s t i t u t i o u s

W i t h p o y e r s t o a c t a n d t o l a y f o u n d a t ' i ' o n s s e c u r e e n o u g h

f o r t h e C o m m o n lH a r k e t t o d e v e l o P '

I t s a s w i t h t h e s e t r u t h s i n m i n d a n d w i t h

t h e d e s i r e , t o o , t o h a v e G e r m a n y f u l l y i n t e g r a t e d i n t o

a E u r o p e i n w h i c h F r a n c o - G e r m a n e n n i t y i s n o w r e a f i z e d

t o b e o u t c l a t e d t h a t s i x c o u n t r i e s r e s p o n d e d i n M a y

1 9 5 0 t o t h e c a l l o f [ l r . R o b e r t S c h u m a n '

o n A p r i l 1 8 , 1 9 5 1 , t h e T r e a t y e s t a b l i s h i n g t h e

E u r o p e a n C o a l a n d S t e e l C o m m u n i t y v a s s i g u e d . T h e G o v

-e r n n r -e n t s o f B -e l g i u m , F r a n c -e , t h -e G -e r m a n F -e d -e r a l R -e p u b *

1 i c , I t a l y , L u x e m b o u r g a n d t h e N e t h e r l a n d s , i n t h e

p r e a m b l e t o t h a t T r e a t y , s t a t e d t h a t t h e y e e r e " d e

-s i r g u -s o f a -s -s i -s t l n g j - n r a i s i n g t h e s t a n d a r d o f l i v i n g

a n d i n f u r t h e r i n g t h e w o r k S o f p e a c e , a n d r e s o l v e d t o

s u b s t i t u t e f o r h i s t o r : i c r i v a l r i e s a f u s i o n o f t h e i r

e s s e n , t i a l i n t e r e t s , a n d b y c r e a t i n g a n e c p n o m i c c o m

-m u l i t y t o l a y t h e f o u n d a t i o n s o f a b r o a d e r a n d d e e p e r

t t c o m t n u n i t Y t t .

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(14)

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l 3

I{HAT IS THE COMUUNITY ?

T h i s c o m m u n i t y c o v e r i n g two basic industria] p r o d u c t s

c o a r a n d s t e e r , t o g e t h e r witrr iron ore and

s c r a p i s e s s e n t l a l l y a c o m n o n M a r k e t g o v e r n e d by

c o n m o n i n s t l t u t i o n s .

T h e o b j e c t i n e s t a b l i s h i n g t h e c o r n r n u n i t y w a s ,

i n a n economlc area producing 24o mLtrion tons of hard

c o a l a n d 4 0 m i l l i o n t o n s o f s t e e l p e r annum, to enabre

t h e consumers to obtain their supplies freery and

with-o u t d i s c r l m i n a t i with-o n , a n d b y t h i s v e r y f a c t to stinurate

p r o d u c e r s to develop productivlty a n d o u t p u t ,

A t t h e same tirne, rures were raid down to ensure

t h a t t h e transitlon t o t h e comnon larket s h o u l d be made

a s e a s y as possible t h a t t h e r e should be fair competi_

tlon and that breakdoryns in the development of produc_

t i o n and employment should be avoided.

l

A n d t o see that these rules were observed,

l n s t i t u t i o n s w e r e e s t a b l i s h e d , w h i c h may seem somewhat

c o m p l i c a t e d a s r e g a r d s organlzation, b u t v e r e strictty

n e c e s s a r y as soon as it was decided to go beyond the

t r a d i t i o n a l r n e t h o d s o f i n t e r n a t i o n a l c o - o p e r a t i o n .

T h e s e l n s t i t u t l o n s a r e t h e f o l l o w i n g .

A H i g h A u t h o r i t y , t o w h l c h I have the honour to

for coal and

(15)

14

. '

s t e e l . I t c o n s L s t s o f n i n e m e m b e r s . I t d s ' , i n d e p e n d e n t

o f t h e n a t i o n a l g o v e r n m e n t s , i t t a k e s i t s d e c i s i o n s b y

m a j o r i t y v o t e b u t l t c a r r o n l y t a k e t h e m a f t e r v e r y w i d e

c o n s u l t a t i o n s , n o t a b l y w i t l r a C o h s u l t a t i v e C o m m i t t e e o f

p r o d u e e r s , c o n s u m e r s a n d w o r k e r s W h i c h i s a t t a e h e d t o

i t . I t m u s t a l s o n a k e a L 1 i t s d e e i s i o n s p u b l i c . :

A n A u t h o r i t y w i t h r e a l p o w e r s m u s t a e t o n l y s u b

-J e e t t o d e m o c r a t i c c h e c k s r e x e r c i s e d b y t h e C e r y n g g

A s . s e m b L y , t h e m e m b e r s o f w h i c h a r e d e s l g n a t e d b y t l l e

d i f f e r e n t n a t i o n a l p a r l i a m e n t s . I t f o l l o w s t h e H i g h

A u t h o r i t y p o l i c y s t e p b y s t e p , m a i n l y t h r o u g h p a r l i a

-m e n t a r y C r : -m r n i t t e e s , a n d i t c a n r b y a v o t e o f c e n s u r e ,

c o m p e l t t e H i g l r A u t h o r i t y t o r e s i g n i n & b o d y .

A t t h e s a m e t l m e G o v e r n m e n t s , i n d l v i d u a l s a n d

e n t e r p r i s e s c a n a p p e a l a g a i n s t a n y d e c i s l o n o f t h e

H i g h A u t h o r l t y b e f o r e t h e @. T h e d e c i

-s i o n -s o f t h i -s C o u r t o f ' -s e v e n J u d g e -s a r e d i r e c t l y e n

-f o r c e a b l e , t h r o u g h o u t t h e C o n n u n l t y a , r ' e a ; ' t n e t " J u d g

-m e n t s i n a l l c a s e s , w h e t h e r f o r o r a g a i n s t t h e H i g h

A u t h o r l t y a r e f i n a l .

F i n a l l y , t h e p r o b l e m s p r e s e n t e d b y t h e w o r k o f

l r a r m o n i z i n g t h e H i g h A u t h o r i t y ' s a c t i o n w i t h t h o s e o f

t h e G o v e r n m e n t s r e s p o n s i b l e f o r t h e g e n e r a l e c o n o m i c

p o l i c i e s o f t h e i r c o u n t r i e s a r e d e a l t w i t h a t m e e t i n g s

or rh' s!"grll !,qs"911={r

+llriilliii.

or the,.nember

S t a t e s , I n c e r t a L n s p e c i f i e d c a s e s , t h e ' C f E n A u t h o r i t y

; n

(16)

e a n a c t n i s t e r s .

to take

o n l y wlth the I n n e a r l y a l l i t s d e c i s i o n s

15

a g r e e m e n t of the Counci.l of Mi_ c a s e s the Council is .requj.red

b y n a j o r i t y v o t e .

By the end of tgsz the implementation of the were ready and working.

r l e s s t h a n s i x m o n t h s after

T r e a t y , t h e l n s t i t u t i o n s

T h e H i g h Authority n o w haet to introduce t h e

Common llarket.

1 . r n t r o d u c t n g t h e c o n m o n u a r k e t meant first

o f a r l

d o i n g a w a y w i t h all barriers, s i m u l t a n e o u s l y i n t h e

s i x c o r n m u n i t y countries t o e n a b l e co'sumers of c'al,

s t e e l , i r o n o r e a n d s c r a p to obtain thelr supplies

f r e e l y . T t a l s o m e a n t a b o l i s h i n g all cliscrLminations

i n r e l a t i . n s b e t w e e n p r o d u c e r s and consumerso

r n f a c t t h e r e w e r e p r a c t i c a l l y n o c u s t o m s d u t i e s

o n c o a l , i r o n o r e and scrapl and duties on steer h a d r n o s t l y been suspended. France w&sr however,

r a i s i n g t h e p r i c e s o f c e r t a i n g r a d e s of imported

c o a r i n o r d e r t o b r i n g up the derivered prices to

t h e l e v e l o f h o m e _ p r o d u c e d coal. These price increa_

s e s w e r e abolished.

Q u a n t i t a t i v e r e s t r i c t i o n s w e r e ,

h a n d l f r e q u e n t , b o t h o n imports and

c o a l n e a r l y a l l t h e c o u n t r i e s had a

o n t h e other

(17)

t6

a n d e x p o r t l l c e n c e s ; F r a n c e c o n t r o l l e d ' a n d l i m i t e d

i t s l r o n - o r e e x p o r t s ; . t h e : B e n e l u x c o u n t r l e s h a d i n

p r l n c i p l e i m p o r t a n d e x p o r ' t l i c e n c e s f o r s t e e l ;

F r a n c e l n p r i n c i p l e b a n n e d a l l s t e e l i m p o r t s a n d

l i m i t e d e x p o r t s ; a s L r u l e n o n e o f t h e s i x c o u r

-t r i e s p e r m i t t e d e x p o r t s o f s c r a p t o e a c h o t h e r . A l l

t h e s e r e s t r i c t i o n s w e r e d o n e a w a y w i t h '

The removal of these lmpediments to trade I alrd

t h e e n f o r c e m e n t o f t h e T r e a t y r u l e s o n n o n d i S c r l n i

-n a t i o -n , r e s u l t e d i n t h e e n d o f d u a l p r l c i n g ' B e f o r e

the Lntroductlon of the Connon f,arket, France used

to sell iron ore to Belgium and Luxembourg at a

h i g h e r p r l c e t h a n t o F r e n c h w o r k s , a n d G e r m a n c o a l

was more expensive when it was exported. As regards

s t e e } , G e r m a n a n d B e l g i a n p l a t e w a s e x p o r t e d a t ^

p r l c e n e a r l y S o % h i g h e r t h a n t h e f i g u r e c h a r g e d o n

t h e h o m e m a r k e t ; F r e n c h s t e e l e x p o r t e d t o G e r m a n y

w a s s o l d a t p r i c e s c o m p a r a b l e t o G e r m a n n " , 1 " p r i c e s t

w h i c h w e r e w e L l a b o v e F r e n c h p r i c e s ; d e a l e r s f r e b a

-tes were arranged so as to benefit the home producert

a n d f r o m t h e t a x a t i o n a n g l e G e r m a n p r o d u c e r s u s e d

t o i n c l u d e i n t h e i r i . n v o i c e s t o f o r e i g n c u s t o m e r s

t a x e s o n w h i c h t h e y t h e m s e l v e s w e r e e n t i t l e d t o r e

-b a t e s . . : .

A l l t h e s e d i s c r i m l n a t i o n s w e r e , a t o l i e h e d i n t h e

Common Xarket:.

tr.i f1

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Ist1 !i ;i -q!l {i ijr -i: ;i:;i

,::fr

.t'E :.€ € i4

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ii

T 7

r n t h e t r a n s p o r t f l e l d t h e r e w e r e a r s o ' a g r e a t

m a n y d i s c r i m i n a t i o n s . F o r i n s t a n c e , t h e t r a n s p o r t

c o s t s f o r Lorraine o r e g o i n g t o Belgiurn or

Luxem-b o u r g \ { e r e higher over the distance covered wi.thin F r a n c e t h a n t h o s e f o r o r e on its way to French w o r k s . Again, coal from Lorraine alrd ilre Saar car-r i e d i n Gecar-rmany went at the standacar-rd car-rate, instead

o f g e t t i n g t h e c h e a p e r rate arlowed on German coal.

T h e m o s t important of these discriminations

w e r e s u p p r e s s e d , as regards rail t r a f f i c , u p o n t h e

i n t r o d u c t l o n o f t h e Common Uarket. Since that time,

a c t i o n i n t h e t r a n s p o r t f i e l , d h a s c o n t i n u e d . A l l

c a s e s o f d i s c r i m i n a t i o n n o t i f i e d t o t h e H i g h A u i l r o r

-i t y h a v e b e e n dealt with by means of recommendation

t o t h e g o v e r n n e n t s concerned, bnd the governments

h a v e w i t h o u t e x c e p t i o n t a k e n apprlopriate measures

t o g e t r i d o f t h e m . I n a l l , t h e f i r s t s t a g e o f t h e

H i g h A u t h o r i t y t s a c t i o n h a s c h a n g e d t h e c h a r g e s

p a y a b l e on the carriage of something like 4s million

metric tons per annum.

T h e H t g h A u t h o r i t y h a s n o t c o n f i n e d l t s e l f t o

a b o l i s h i n g d i s c r l m i n a t i o n s p r o r r e r . The Treaty also

p r o v i d e s f o r t h e abolitlon o f e x t r a c h a r g e s levied

o n f r e l g h t s a s t h e y c r o s s , . f r o n t i e r s . T h e s e e x t r a

charges' have .on 'the average made ,transport across a

f r o n t i e r m u c h d e a r e r t h a n w i t h i n a s i n g l e c o u n t r y .

(19)

l 8 d

communlty consum€rs to deperid dn sttplill'ere tr'eveLf]'Lng'

a c r o s s f r o n t l e r s t h e a b o l l t i c l r r o f t l i e e e E x t r e

s e s t s a m a J o r e o r r t r l b u t l ' ( t t i t $ e n d l n g t h a a r t ; L l L e t * L

d l s a d v a n t a g e s w h i c l r f o r m e r l y e x l g t ' e d '

All restrietlnng on forelgn trxchertga have been

- r e m r r v e d r S o t h a t t o d a y a s l r l p y n r d l i t r F , a ; Y s & r l | E e t d z ' s

or Saint-Nazalre wishtng to lrtry p'Lr-te !'ro* the &ul+x.'

s r a m a n u f a c t u r e r l n H u n l c h w h c ' g e t r b e t t e v

t e t c t g l E

L o r r a i n e o r t h e s a a r r C & | l r , r o e j u r e a s m a n y g u L L d e t s

or marlrs or francs as he requlres' The $esrl'er States

hs,ee undertahen to arrange for xt.e necesg,Lry

traas-f e r s , l r r e s p e c t l v e o traas-f t h e l r o l ' n L n t e r n z L r e g u L z t i . o n s

o r t h e i r p o s i t i o n l n r e l a t l o n t ' o t h e E u r o g e u E t P a . Y '

m e n t s U n i o n .

A g a l n r t h e g o v e r r u n e n t s t h e m s e l v e s ' f u z d p r e v i o + l s :

-ly introdueed numerous compl Lcated systerns qi

srrb-sidies for certaln producers, codpeBs1aLs,* sebemes

for prices, and special advantages favouridg

Fa;?i-* u r a r c o n s u m e r s . T h e H i g h A u t h o r i t y t * a d f i r s ; € t s

slrow uP r and then to cut down ' this c'engeri *s' *'1

reguLations, rhich rrere onfy serniaE ts' d€sS*:c?

corngre ti tion.

As regards Belgian coal ' th* Ere*t'g Vzgsl-= -"*" E*e

* * p e e l : i l } f i v e - y e a r e o m p € n s a t i * g ' s c ' h e ' a e . i i e ' e * e & & * .

r h e B e l g l a n m a r k e t t o b e f u l l y i n t e g . r e ; t E r i , i f r a c ' E & e

LtcrnmCIn Xnrket. During 195{t the' Eii## *t&:t&n'$'si"''SinFo' Etu

t,i{i l:.ilt

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1 9

c o - o p € r a t t o n w i t h t h e B e l g i a n G o v e r n m e n t , u n d e r t o o k

a d e t a i l e d e x a m i n a t i o n o f the position as a whole,

i n o r d e r to make sure that ilre resurts obtalned

r e a l l y d i d m e a ' that progress was being made

to-w a r d s t h e o b j e c t i v e s w h i c h h a d b e e n r a i d d o w n . ,rn

M a y o f t h i s y e a r e a f t e r . t w o y e a r s of the transition p e r : i o d had elapsed, ilre High Auilrority decided to w i t h d r a w compensation from ce',tain grades of coal, t h e p r i c e of which was thereupon freed, and to

r€-d u e e i t f o r c e r t a i n p r o f i t a b l e c o r l i e r i e s . T h e B e l

-g i a n Government for its part undertook to push

for-w a r d t h e r e - e q u i p m e n t , r a t i o n a l i , z a t i o n a n d o v e r h a u r

o f t h e B e l g i a n c o a l m i n i n g i n d u s t " y . This inrpries

t h a t p r o d u c t i o n w i l l b e c o n c e n t ' a t e d i n a l e s s e r

n u m b e r o f p i t s . A n u m b e r o f p i t s w i l l g r a d u a l l y b e

c l o s e d d o w n .

r n a d d i t i o n t o r e s t r i c t i o n s o f t r a d e b y s t a t e s ,

t h e r e a r e t h e r e s t r i c t i o n s b y c a r t e l o r g a n i z a t i o n s

a n d m o n o p o l i e s . T h e H i g h A u t h o r i t y h a s a l s o t a k e n

a c t i o n t o e l i r n ' i n a t e t h e s e l e s s v i s i b l e o b s t a c l e s t o

c o m p e t i t i o n .

A s r e g a r d s c o a l , i l r e H i g h A u t h o r i t y h a s e x a n i n

-e d i n g r e a t d e t a i l t h e a c t i v i t i e s o f i l r e b i g s e l

-l i n g o r g a n ! ' z a t i o n i n t h e Ruhr, and of L number of

o t h e r s l n B e l g i u m and France. It gauged the complex_

i t y o f t h e p r o b l e m s t o b e d e a l t w l t h ; and formed a

d e f i n i t e o p i n i o n o n t h e need to apply ilre

,discipll-. t : : , , ' , : : : . : j t i , . ..:::'i

: : l ; i _ i i :

(21)

l . t a r y m e a " S u r e s l l t ' e r v l t l t + t l t ' o r . J ' n t l r e T r e & t Y . I t h a s

u n d e r t a k e t r t o t n a l < e l n p o . r t t r r r t n r r c l c l e c l s l v e s t a t e

-m e u t s t o t l t e A s s e n r l i l y o l i t h e C o r u -m u n l t y i n N o v e -m b e r

n e x t c o n c e r n L n g t h e t e g l . r n t l g e r n e n t o t ' t h e w h o l e s f s

-t e m o f c o a l a g e -t -t c l e s .

A s r ' e g a r c l s l r c r n o t ' € r t l r e } ' r e n c l r C e i m p t o i r d e s

M i n e s d e } t B i s t i t s e l f c l e c l d e d t o e n d s o m e o f i t s

a c t i v i t i e s . T h e s c r . a p a r r o c a t r o n o r g a n L z a t i o n s i n

t h e d i f f e r ' e n t c o u t r t r i e s w e r . e a b o l l s h e d i n l g s 3 , a n d

n o t l o n g a g o a r e q u e s t f o r a u t h o r i z a t l o n t o o p e r a t e

b y a j o i n t - b u y i n g a g e n c y c l o s e l y a k i n t o o n e o f t h e

o t g a n L z a t l o n s w h l c h h a d b e e n d i s s o l v e d w a s t u r n e d

d o w n .

F i n a l l y r s s r e g a r d s s t e e l , t l r e H i g h A u t h o r i t y

i s r n a k i n g a s e r i e s o f l n v e s t i g a t i o n s i n t o p r i c i n g

m e t h o d s i n t h e C o m m o n lf a r k e t ' a n d w 1 1 1 i n a f e w

w e e k s t t l ' m e b e h o l d i n g a c o n f e r e n c e o f c o n s r r m e r s t o

f t n d o u t t h e i r v i e w s o n h o w t h e C o r n m o n l a r k e t i s a t

p r e s e n t o p e r a t i n g '

2 . O n c e t h e c o m m o n l l a r k e t w a s e s t a b l i s h e d a n d w o r k i n g ,

t h e H i g h A u t h o r i t y t s o r d i n a r y d u t i e s a p a r t f r o m

a c t i o n i n e m e r g e n c y p e r i o d s o f g l u t o r s h o r t a g e

w e r e t h o s e o f e n s u r i n g , w i t h o u t u n n e c e s s a r y . i n t e r

-ference, thet the rules of the market were respeeted,

t h e d e v e l o p m e n t o f t h e m o s t e f f i c i e n t p n o d q c t i o n

(22)

-2 L

e s s a r y g u i d a r r e e in connection with rong-terrrn

pran-n i pran-n g .

S t e e l and iron,ore p r i c e s a r e f i x e d b y t h e

e n t e r p r i s e s t h e m s e l v e s . A s regards coal, the only

m a x i m u m p r i c e s f i x e d by the High Autho'ity

a r e t h o s e

i n t h e Ruhr, as the selling o r g a n L z a t i o n there has

n o t y e t undergone the changes required by the T r e a

-t y ' s c r a p p r i c e s a r e f r e e , b u t ' r e r e

i s a

compensa-t i o n scheme compensa-to reduce ilre price of irnporcompensa-ted s c r a p .

I n a l l t h e s e c a s e s , t h e High Authority has taken

i t s d e c i s i o r r s t o c o r r e s p o n d wlth the state of the

C o m r n o n M a r k e t , while striving,

a s t h e Treaty r€_

q u i r e s , t o k e e p d i r e c t action to a minlmum.

F o r t h e enterprlses t o be properly

a d J u s t e d to

t h e new condltions o f t h e common ldarket, it was necF

e s s a r y t o b e q u i t e clear regarding the manner in

w h i c h the Treaty was to be applied to concentra_

t t o ' s . c o n c e n t r a t l o n s a r e o f t e n e s s e n t i a l

t o t h e

m o d e r n l z a t i - o n of plant and ilre rationalizatlon o f

p r o d u c t i ' o n .

R u r e s were latd down, the general aim

o f w h i c h was not to discourage concentrations b u t

t o p r e v e n t t h e building u p o f monopolistic

g r o u p s , w h i c h could hamper competition.

T h e H l g h Authority on the Common Harket if w i t h whlch to back them

(23)

2 2

H i g h A u t h o r i t y p o w e r t o r a l s e ' a l e v y o n t h e ' " " 1 : : '

o f t h e c o m m u n i t y r s c o a l a n d s t e e l p r o d u c t i o n . t l 1 . =

t a x l b r o u g l r t i n 5 5 m i l l i o n d o l l a r s l n t h e l a s t f l

-nancial year , Lg54n955' The ptloeeeds of the levy

h a v e s o f a r c h i e f l y b e e n u s e d t o b u i l d u p a f u n d

g u a r a n t e e i n g r e p a y m e n t o f t h e l o a n s w h t c h t h e ' H i g h

A u t h o r l t Y c o n t r a c t s .

o n t h e b a s i s o f t h e c r e d i t w i t h g h i c h t h l s f u n d

p r o v i d e s i t , t h e H i g h A u t h o r i t y h a s a l r e a d y r a i s e d

s e v e r a l } o a n s , L n c l u d i ' n g o n e o f I O O m i l l i o n d o l l a r s

b o r r o w e d f r o m t h e U n i t e d S t a t e s i n L g s 4 . I D v i e w

o f t h e s h o r t a g e o f c a p l t a l w h i c h s t i l l e x l s t s l n

E u r o p e , t l r e H i g h A u t h o r i t y t s a b i l i t y t o r a i s e l o a n s

o n c a p i t a l m a r k e t s , w h e r e c r e d i t i s r e l a t i v e l y

c h e a p r a l L o w s i t t o m a k e ' a c o n t r l b u t i o n t o w a r d s

i m p r o v i n g c o n d i t i o n s o f f i n a n c i n g i n t h e C o m m u n i t y

a r e a . T h e A m e r i c a n l o a n , f o r l n s t a n c e ' w a s r e l e n t

t o t h e m i n i n g e n t e r p r i s e s o f t h e C o m m u n i t y , t o . e n a

-b l e t h e m t o r e d u c e p r o d u c t l o n c o s t s a n d i n c r e a s e

t h e e x t r a c t l o n o f c o k i n g c o a l '

Though the Hlgh Authority does not have dlrect

p o w e r s r o v e r l n v e s t m e n t p o l l c y ' i t m u s t d r a w . u p ^ g e n

-eral obJectives for the long-;srm developmen''! of Fro-'

d u c t i o n c a p a c i t i e s i n t h e C o m m u n i t y ' , T o " " " - * - n : t

t h e s e g e n e r a l o b J e c t i v e s r a r e b e l n g o b s e r v e d t , l n "

H i g h a u t h o r i t y r e q u i r e s f i r m s t o s u b m t t ' d e t a i l s o f

all their irnportant investnent ;proJee'ts. Th'€' Ilrfgh:'

(24)

2 3

A u t h o r i t y c a n , i f n e c e s s a r y , g i v e i t s o p l n i o n

t h e s e p r o j e c t s , w h i c h w i l l e e r t a i n l y

h a v e a r l

e n c e o n p o t e n t i a l l e n d e r s .

o n

i n f l u

-3 . r t i s t h e d u t y o f t h e community to contribute to

e c o n o m i e expansion, t h e deveropment of empl0yment

a ' d t h e r a i s i n g o f t h e s t a n d a r d o f l i v i n g i n t h e

m e m b e r eountries. A c c o r d i n g l y , t h e Commuhityrs work

a s a w h o ] g in connection with ilre i'troduction a n d

o p e r a t l o n o f t r r e common Market is aimed at improving

t h e c o n d i t l o n s u n d e r w h i c h p e o p l e l i v e .

B u t m o r e p a r t r - c u r a r l y , t h e i n s t i t u t i o n s o f t h e

c o m m u n i t y have to promote an improvement ln llving

a n d w o r k l n g c o n d i t i o n s i n e a c h o n e o f t h e i n c l u s t r l e s

now pooled in the Comrnon Market.

T h e a c t i o n t a k e n i n t h i s fierd at the time ilre c o m m o n l t a r k e t was introduced was mainry in connec_ t l o n w l t h a s s i s t a n c e f o r w o r k e r s who had to change

t h e i r e m p l o y n e n t , f r e e d o r n of movement for workers

l n t h e c o a r m r . n i n g a n d r r ' n and steer industries _

w l t h i n t h e c o m m u n l t y r 4 n d t h e b u i l d i n g of workens,

h o u s e s .

R e a d a p t a t i o n

T h e e s s e n t l a l e f f e c t o f t h e Common

b e t o e n c o u r a g e the efficient p r o d u c e r

llarket must

(25)

24

his output and the less

efficient

one

eittt"i^l:i-],"u-ernize to meet competitlon

-

or to give'*1t O"t"il.

i ' T h i s w i l l l e a d ' : t o L r i s e

h i s m o r e e f f e c t i v e r i v a l s

e r n s t h e r a i s '

i n p r o d u c t i v l t y w h i c h i n l t s t u r n g o v

i n g o f t h e s t a n d a r d o f l i v i n g '

B u t t h e c h a n g e s w h i c h a l e

w l l l o n l Y b e a c c e P t a b l e l f t h e

t o b e a r t h e b r u n t o f t e c h n i c a l

t h e i r e m P l o Y n e n t '

F o r t h i s r e a s o n ' t h e T r e a t y p r o v i d e s

f o r w h a t

i t t e r m s t r r e a d a P t a t i o n t t a r r a n g e m e n t s t o

c o m p e n

-s a t e w o r l c e r -s c o m p e l l e d t o c h a n g e t h e i r

j o b s ' t o

h e l p i n r e s e t t l i n g a n d r e t r a i n i n g t h e m l a n d t f r l € G

-essary to facil Lta'te investments which would provide

g a i n f u l a l t e r n a t l v e e m P l o Y m e n t '

:

T h l s p r o v l s i o n h a s a l r e a d y b e e n t : n t t : | , : : : ^

number of o"catiorJs' The trade situation'

being so'

g o o d t t p r e s e n t , t h e n u m b e r o f w o r k e r g

a f f e c t e d a n d

the amount of money required "1:n :,:t"

were

compara-t i v e l y s m a l l , b u t ' p s y c h o l o g i c a l l y t h e m e a s u r e s ' \ l r € r e

m o s t i m p o r t a n t a s r e g a r d s s e c u r l : r : : n "

t s t t : l t n t , o f

t h e w o r k e r s t o c h a n g e s w l t h o u t w h i c h t t : : " t d

n o t

b e p o s s i b l e t o a c h i e v e a n y p r o g r e s s a t a l t r '

F r a n c e , t h e g o v e r n n e n t ' a P P l i e d

f inancial' assis'tance f ron' the

necessarY to Progress workers do not have

innovati.ons bY losing

for and ob-Htgh,AuthoritY I n

(26)

25

f o r t h e transfer o f w o r k e r s , f r o m t h e s o u t h e r n

coar-f i e l d s t o t h e c o l l l e r i e s i n L o r r a i n e , w h i c h a r e

f a s t expanding. In France again, the,workers of a

s t e e l f i r m which.has been formed by the merger,of

four small existing works, and is having to

treeon-v e r t some of its productlon t o e n g i n e e r i n g , h a v e

had their Jobs and wages Euaranteed, and the

oppor-t u n i oppor-t y o f f e r e d t h e m t o attend occupational t r a i n i n g

courses, throughout the conversion period. In

o t h e r i n s t a n c e s , l a i d - o f f w o r k e r s h a v e been

guaran-t e e d o n e y e a r r s compensaguaran-tion allowance equal guaran-to

a p p r o x i n a t e r y s i x t y p e r cent of their previous

sal-a r y sal-a n d r e t r sal-a i . n i n g f a e i l i t i e s p r o v i d e d .

s i m i l a r a c t i o n , v a r y i n g e a c h t i m e according to

c i r c u m s t a n c e s , i s e n v l s a g e d or actually l n h a n d i n

r t a l i a n i n d u s t r y a n d i n c e r t a i n B e l g i a n p l t s t h a t

w i l l h a v e t o c l o s e d o w n .

T h e r u l e i n all these cases is that, unless

ex-p r e s s l y s t a t e d o t h e r w i s e , r e a d a p t a t l o n e x p e n s e s are

s h a r e d b e t w e e n t h e High Authority a n d t h e g o v e r n

-m e n t c o n c e r n e d . The High Authority c a n f u r t h e r ,

though it has not yet done sor contribute by way of

l o a n s o r g u a r a n t e e s to the financing o f t h e ' L n v e s t

-ments needed for the re-employment of redundant

w o r k e r s r e v e n i n i n d u s t r i e s o t h e r t h a n coal and

(27)

2 6

the TreatY 4r€' a ml}e+stone

These appllcations :of

Strr,ope. AnO .

in the econolti'c 'and social history

t'e trade-unions and' govelrnments

r e a l i z e i t . ' : F r o m t h i s p o i n t o f v i e w '

t i t i s s y m p t o m a '

tic that one ,of the governments of the

member States

modelled itself ver'y largely on: the Community''!

s

re-a d re-a p t re-a t i o n r u l e s i n d e a l i n g w i t h

r e c o n v e r s i o n O i : O

-l e m s a r -l s i r r g i n i n d u s t r i e s w h i c h d o n o t c o m e

u n d e t '

t h e C o m n u n i t Y t s j u r i s d i s t i o n '

F r e e d o m

T h e n e m b e r S t a t e s o f t h e C o l n m u n i t y

h a v e u n d e r

-taken to allow freedom of movement througihout

their

t e r r i t o r y t o i t u l y q u a l i f i e d w o r k e r s i n t h e

e o a l

-m i n i n g 4 n d i r o n a n d s t e e l - i n d u s t r i e s '

I n o t h e r w o r d s t

a p a r t f r o m r e s t r i c t i o n s d u e t o b a s i c r e q u i r e m e u t s

o f h e a l t h o r o r d e r ' t h e r e w i L l b e l 1 o

i m p e d i m e n t o r

d l s c r i m i n a t l o n t o s t o p w o r l < e r s w i t h

s p e c i f i e d q u a l

-i f -i c a t l o n s f r o m a p p l v i n g f o r

j o b ? - 1 : a : e a s . " n : : :

g e n e r a l w o r k i n g c o n d l t i o n s a ' r e b e t t e r

t h a n i n t h e i r

o w n .

T h i s i s s o f a r o n l y a f i r s ' t s t e p i n t h e d i r e c t i o t r

of a nCotnlnon Market'r f or work6rs - whlch ls essen: "

t i a l t o , , t h e , ' s a t i s f 4 c t o r y o p e r a t i " i - : U

t n : " * : :

Marlte,t fgr,products and the progrressivet

ha'rrnoniz1- '

(28)

2 7

-H o u s i . n g .

. .

B o t h t h e r e a d a p t a t i o n o f w o r k e r s and their

i t y m a k e i t

e s s e n t i a l t h a t s o m e t h i n g shourd be done to remedy

the houslng shortage i.n most of the comnunity

cour-t r i e s .

T h e H i g h Authority h a s s t a r t e d t w o o p e r a t i o n s

i n t h i s f i e l d . F i r s t l y , i t h a s f i n a n c e d a n e x p e r i

-m e n t a r h o u s l n g sche-me, in order to study production

c o s t s i n t h e b u l l d i n g t r a d e i n t h e v a r i o u s areas

and work out the most economic nethods available.

s e c o n d l y l t h a s j u s t contracted a n u m b e r o f l o a n s

i n E u r o p e , ' o u t o f w h i c h i t will a d v a n c e c r e d i t s t o

e n t e r p r i s e s a n d s o c i e t i e s b u i r d i n g w o r k e r s r h o u s e s .

s o m e 1 2 r o @ h o u s i n g units are now in process of

coD-s t r u c t i o n u n d e r t h i s s c h e m e .

B u t l n s t e a d o f q u o t i n g one example att"" & n

-o t h e r -o f t h e -o p e r a t i -o n s t r r e c o r r u n i t y i s u n d e r t a k i n g

i n f u l f i l m e n t o f t h e d u t i e s w h l c h h a v e b e e n e n

-t r u s -t e d t o i t , I s h o u l d l i k e t o t r y t o g i v e y o u a

g e n e r a l b a r a n c e - s h e e t l a n d t o n o t e t h e m a i n lessons

(29)

LDSSONS AIITD REST'ITS

2 B

s t a n d o u t ,' : '

a s i n t r o

-whlch were

a l l t h e s e . s a f e g u a r d s

. o r i g i n a l f e a r s o f t h e c r l t i c s s e r e

an inaccurate reading of the facts

d u c e d d i d

s o o f t e n

A s w h l l e n o t

Thanks to nl.so because the mostly based on

T o m y m i n d , t h r e e m a j o r c o n e l u s i o n s

The first is that the Common lr{arket

not lnvolve any of the uPheaval's

predicted ln some quarters.

I h a v e t r i e d t o s h o w Y o U l t h e H i g h A u t h o r i t y ,

y i e l d i n g a n i n c h i n r e g a r d t o i t s o w n p o w e r s

a n d t h e a l m s o f t h e T r e a t y , h a s b e e n m o s t c a r e f u l t o

a l l o w f o r t h e s p e c l a l f e a t u r e s o f e a c h c o u n t r y r s s i

-t u a -t i o n . T r a n s i t i o n s w e r e e a s e d a n d p r e c a u t i o n s w e r e

t a k e n n o t o n l y w h e r e t h e T r e a t y a c t u a l l y m a d e i t o b l i

-g a t o r y s u c h a s w i t h t h e B e l g i a n c o l l i e r i e s a n d l t a

-l i a n i n d u s t r y b u t w h e r e v e r t h e H i g h A u t h o r i t y w a s

n o t i f i e d o f r e a l d i f f i c u l t l e s . T h e t r a n s i t l o n l n a l l

c r r s e s 1 s c a r r l e d o u t i n s a r e f u l l y d e f l n e d s t a g e s . E a c h

s t a g e i s f l x e d l n a d v a n c e a s t o l e n g t h a n d c o n t e n t .

T h e l e n g t h a n d c o n t e n t a r e p u b l l c k n o v l e d g e t s o t h a t

c o m b i n e d e f f o r t s c a n b e m a d e t o a c h i e v e t h e j o i n t o b

-j e c t i v e s , w l t h o u t r i s k o f s e r i o u s d i s t u r b a n c e s i n t h e

national. economies or delaying actions damaging to the

(30)

!]i-1* ..,"$ * i:"1 ::r.: :* :;:ir i+\.j:i,;.l . + :i)::-A .r:-si ,+1i t_::-'it ?.:4 :it:r t.i:+ ::;-.i::;* '::.1,s :;&'i:n r!,i? :i? .,fi = ;; ,,4',i. :a,! .ai; ::, :,: !! + ':aa. t':, t !1 .t :5 ,1: .t -rl 1i , ? iln i

-. 2 9

t h e c o m m o n M a r k e t h a s s u c c e e d e d in producing positive r e s u l t s w i t h o u t d i s t u r b i n g p r n d u c t i o n a n d e m p l o y m e n t c o n d i t i o n s .

T h e s e c o n d c o n c l u s i o n i s t h a t

o f n e w c o n d i t i o n s o f e c o n o m i c a c t i v i t v m a r k e t a n d s u b j e c t t o s t a t e d r u l e s o f

t r e g i n n i n g t o s h o w r e s u l t s ' b e n e f i c i a l d u c e r s , t h e c o n s u m e r s a n d the workers

t h e i n t r o d u c t i o n

, i n a n e x t e n d e d

c o n p e t i t i o n , i s

t o b o t h t h e p r o

-o f t h e C -o m m u n i t y .

a ) B y 1 t s m e r e e x i s t e n c e , a n c r t h e c o n s t i t u e n t

r u l e s l a l d d o w n f o r i t , t h e c o n m u n i t y i s s h e d d i n g m u c h

n e e d e d l i g h t o n i l r e w o r k i n g e i f t h e c o a l a n d steel nar_

k e t s . E s s e n t i a l f a c t s o n e c o n o m i c a c t i v i t y a r e c o n i n g

i n t o l i g h t o f d a y .

B e f o r e t h e conrmon Market was introduced, i t w a s

u s u a l t o c h a r g e w h a t w e m i g h t c a l l " p r i c e s to fit the

c u s t o m e r t ' . T o d a y i n t h e i n d u s t r i e s o f t h e c o m r n u n i t y

t h e r u l e i s t h a t e a c h e n t e r p r i s e m u s t p u b l i s h i t s p r i

-c e s a n d -c o n d i t i o n s o f s a l e t o b e a p p l i c a b l e t o a l l

q u s t o n r e r s . Before the comnon Market enterprises were

e n t i r e l y f r e e t o c o n c l u d e a l l s o r t s o f car:tel

,rgre€-m e n t s a ,rgre€-m o n g t h e ,rgre€-m s e l v e s , a n d t o a r r a n g e whatever

tech-n i c a l a n d f i n a n c i a l c o n e e n t r a t i o n s t h e y p l e a s e d r s u b

-j e c t t o a c c e p t i n g r e s p o n s i b i l i t y f o r a n y a c t u a l m a l

-p r a c t i c e . T o d a y t h e H i g h Authori,ty i s n o t merely

e4-t i e4-t l e d b u t o b l i g e d t o c a r r y o u t l n v e s t l g a t i o n s , b a n

(31)

i , i ; : . 1 r ; . ' - r : _ '

f o r i t s d e c i s i o n s ' F o r n e r l y ' e n t e r p r ' L s e s l

t n v e s t m e n t

p o l i c i e s $ e r e L t i e h t l v k e p t s e c l e t : . t " o " : . ] : " : : : t e n t s

m u s t b e d e c l a r e d t o t h e H i g h A u t h o r i t y ,

w h i e h m a y i s *

s u e o p i n i o n s o n t h e m ' W h a t h o l d s f o r t h e e n t e r p r i s e s

h o l d s a l s o f o r t h e g o v e r n m e n t s ' T h e y . : " " : : i : : : " :

a b l e t o d i s g u i s e s u b s i d i e s o r p r : o t e c t i v e

t a r i f f s a s

B u d g e t i t e m s o r t r a n s P o r t r a t e s '

F i n a l l y , t h e H i g h A u t h o r i t y ' i s c a r r y i n g o u t a

L a t g e n u m b e r o f l r r q u i r l e s a n d c o n p a r a t l v e s u r v e y s o n

c e r t a i n i m p o r t a n t f e a t u r e s o f e c o n o n i ' c a c t i v i t y

p r o d u c t i o n c o s t s , w a g e s a n d s o c l a l c h a r g e s ' v o r k l n g

c o n d i t t o n s , e t c . s o n e , s u c h a s p r o d u c t i o n c o s t s r e r g

t r e a t e d a s s e c r e t s b y t h e H i g h A u t h o r i t y b u t s e r v e t o

g u l d e l t s a c t l o n ' O t h e r s ' s u c h a s c o u p a r l s o n s o f w a g e s

l n t h e d l f f e r e n t c o a l f l e l d s a n d s . t e e l b a s i n s ' a r e n a d e

p u b l . i c . A r e c e n t s t u d y o f r a g e c o s t s ' f o r e x a m p l e '

helped to change the current vLer taken in certain

Comrnunity countries of natlonal labour costs in

rela-t i o n t o t h o s e i n o t h e r c o u n t r i e s '

b ) T h e i n t r o d u c t l o n o f a l a r g e C o n m o n M a r k e t i n

an area where a 160 nilllon

people

|-rve

O:t

lnich

was

f o r m e r l y d i v i d e d ' l n t o s n a l l . , d l v l d e d , p r o t e c t e d n a t i o

-nal. narlrets, broadens the outlook and chatt*":- tn

duct of both producers and consunerl' 'The ;elfer

learns i f denand f alrls' , of f to look" f or :uston€:s_

side his traditional Eerke-t; the buler'learns at

cono u t

(32)

3 1

o f e x p a n s i o n t o carpy on more satisfactory d i s c u s s i o n s

r e g a r d i . g p r i c e s a n d q u a r i t i e s a n d d e t i v e r y dates by

g e t t i n g

i n t o u c h w i t h f i . m s other than his usual

sup-p l i e r s . T h i s f a c t o r c o m b i n e d . w i t h t h e effect on hav_

i ' g t o p u b r i s h prices on products does seem to

re-s u l t i n a reduction o f e c o n o m i c ups and downs and to

l e a d t o a n i n c r e a s e d stability o f p r i c e s .

I n t h e s t e e l n a r k e t , f o r i n s t a n c e ,

b e e y r a n o t a b l e s t a t r i l i t y o f p r i c e s s i n c e

M a r k e t was introduced i n i l l a y tgb3, f irst

c e s s i . o n r . a n d then during an expansion of

t h e r e has

the Common

d u r i n g a re-t r a d e .

I n t h e f i r s t p h a s e , f r o n the Spring to the

A u t u n n of rgb3, the Bergian and French producers,

w h o s e t r a d l t i o n a l n a r k e t s rere sagging, began to 100k

for outlets ln the areas where denand was nore

vig-o r vig-o u s n a i n l y i n G e r n a n v r the Netherlands and rtaly

-a t t h e s-a'e tine -alrowlng cert-ain prices reductions of whlch consuners duly took advantage.

The expansion whlch has been observable since

t h e e n d of 1953-, and nore pantlcularly s i n c e t h e

s p r i n g o f 1 9 5 4 , p r o v i d e s a k i n d of cross-check on the

e c o n o n i c advantages of an extensive narket. The pro_ c e s s l s g o i n g on in alr the countrles of ttre connuni-t y , w h e connuni-t h e r connuni-they serr nainry in connuni-the hone narkeconnuni-t or

a r e s t e p p i n g u p d e l i v e r i e s t o c o n s u n e r s tn other areas

o f t h e C o n n o n , n a r k e t . '

(33)

-32

The volume of tnade ln irgn and steel products

between corirmunity countrleB 'has risen from tws mi'llion

metric tons in 1952 to Z,SOO'Oo0 in 1953 t 4tlOOr'OOO

i n l g s 4 a n d o n t h e b a s i s o f t h e f i r s t s i x m o n t h s ,

S ' 6 0 0 ' 0 0 0 i n 1 9 5 5 . s t a t e d a s a p r o p o r t i o n o f c r u d e

s t e e l p r o d u e t i o n r t r a d e i n s t e e l a c r o s s f r o n t i e r s w i t h

-i n t h e c o m m u n -i t y h a s r -i s e n f r o m 5 . 5 % i n 1 9 5 2 t o L 2 %

i n 1 9 5 5 .

A s r e g a r d s p r i c e s , i t i s h a r d t o f i n d a n y € X

-planation but the cornmon Market for their present

sta-btlity in face of such strong deinand. The basic home

prlce of Bessemer nerchant steels, which stood at

ap-proxirnately g 91 in May 1953 and $ 86 ln February 1954 '

still only exceeds the 1953 1evel ln the Benelux

coun-t r i e s , coun-t h a coun-t i s n l n r e s p e c coun-t o f a m e r e coun-t w e n coun-t y p e r c e n coun-t

of the steel produced and consumed ln the conmunity.

firls ls probably the ftrst tine thet there has

been such a mrked exponsl.on as the present one in the

s t e e l n g r l r e t , u n d e r a s y s t e m o f f r e e d o m o f p r l c e s ,

without the ltvely densndts resultlng ln reckless price

increases, or ln the type of dLscrtnl'natlon usually

p r a c t i s e d a t t h e e x p e n s e o f t n p o r t l n g a r e a s s u c h . a s

t h e N e t h e r l a n d s a n d I t a l y .

In the coal nrarket tOo we fl'nd an lncrease in

trade and the beginnlngs of a redLstributlon of

(34)

- J S

2 4 n r i l l i o n m e t r i c t o n s i n 1 g s 2 t o 2 7 mLrlion

3 I m i l l i ' n i n l g b 4 , a n d r o r r t h e b a s i s o f t h e

S e v e n n o n t h s , n e a r l y g g m i l l i o n i n l g S S .

i n 1 9 5 3 ,

f i r s t

T w o e x a m p r e s wirl show how a redistribution o f

t h e f l o w of trade takes place. The Aachen coalfierd, i n G e r m r r y r which used to sell mainry to southern Ger-m a n y because lts natural Ger-markets to the west were

c l o s e d t o i t , i s h e n c e f o r w a r d f i n d i n g n e w o u t r e t s i n

B e l g i u m and France. The plts in Dutch Lirnburg, which

d e l i v e r e d n o c o a l to other cornmunity countri.es in

L 9 5 2 ' are no'u serling t h e i r c o k i n g c o a l once more to

t h e i r o l d markets in France, Belgium and Luxembourg.

A s r e g a r d s p r i c e s , t h e y d o , i t i s t r u e , r e f l e c t

the maximum-price systern still in force for the Ruhr

c o a l f i e l d , b u t s i n c e the common market was introduced

t h e r e h a s been a certain r e d u c t i o n r . n t h e discrepancies

b e t w e e n the prices of the nain community coarfierds.

c ) T h e i n t r o d u c t i o n o f t h e common Market is

l e a d i n g t o e v e n more far-reachtng c h a n g e s . r refer

to the technical. and structural changes which the en_

terprises now obliged to conpete in the connon Harket

a r e s t a r t i n g t o a r r a r g € r i n o r d e r to rationa]-l.ze

t h e i r p r o d u c t i o n a n d l o w e r p r o d u c t l o n c o s t s . T ? r L s

(35)

'"34

-N o w t h a t t h e y f i n d t h e m s e l v e s i n ' ' a n " ' e x t e n d e d

m a r k e t , t h e e n t e r p r l s e s a r e s h o w i n g m u c h l e s s h e s i t a

-t l o n -t h a n -t h e y u s e d -t o a b o u -t e n g a g l n g ' i n l n v € s -t r n e n -t s

w h i c h w o u l d n o d o u b t h a v e l o o k e d p r e t t y h a z a r d o u s i n

L market whlch was too llmited in scope. There is no

d o u b t a b o u t i t t h a t t h e l r o n a n d s t e e l i n d u s t r y o f t h e

C o m m u n i t y t a k e n a s a w h o l e h a s a c o n s i d e r a b l e t e c h n i

-c a l l e e w a y t o m a k e u p i f i t i s t o w i t h s t a n d u n i t e d

s t a t e s c o m p e t i t i o n , a n d p e r h a p s i n t h e n e a r f u t u r e

f r o n o t h e r c o u n t r i e s i n p r o c e s s o f r a p i d i n d u s t r l a l i

-z a t i o n .

I n t h e s a m e W a Y r p r o d u c t l o n p r o g r a m m e s e a n b e

b e t t e r t h o u g h t o u t , a n d e n t e r p r l s e s c a n s p e c i a l i z e

more successfully, now that producers have a wider

m a r k e t i n w h l c h t h e y c a n h o p e t o g e t l e s s d l v e r s l f i e d

o r d e r s .

Ttrese ventures in investment and rationalization

a r e o f t e n t o o a m b i t i o u s f o r i s o l " a t e d e n t r e p r i s e s t o u n

-d e r t a k e , p a r t i c u l a r : l y i n c o u n t r i e s w h e r e p r o d u c t i o n

unlts haVe up to nov been many in numbert

comparative-l y o comparative-l d , a n d m o r e t h a n a t r i f comparative-l e w e d d e d t o t h e i r o w n

independence.

And so it is that, since the co4tltgn,Market was

l n t r o d u c e d , a n d e v e n i n a n t i c i p a t i o n o f t h e e v e n t r Y €

f i n d e o n c e n t r a t l o n s b e i n g f o r m e d - m o s t l y i n F r a n c e

and Belgturn - which enable units sUtted tO the

condi-if

,i

,.i?

.i

;:!

-3.:

i,i;

::/f,

.4'.]=: ::li :+i .i* .iii .-J:

,ii

::.::

:.t

Figure

table limits m&rketsrt.

References

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