6-7 November industry Council

Date: 09/11/1995

THE Council of Industry Ministers agreed in principle to launch an action plan aimed at boosting European industrial competitiveness. Governments should remove administrative red tape, ensure competition is unimpaired, promote training and accelerate technical standardisation in the Union. The Commission will be asked to prepare a report every year into the progress made in implementation.

MINISTERS agreed to extend the Union's current rules on state aid for shipbuilding until the beginning of October 1996 if a global agreement is not ratified by then. The accord, which phases out all direct subsidies to shipbuilders, was negotiated through the Organisation for Economic Cooperation and Development. It is due to take effect from January, but the US and Japan have still to ratify it.

COMPETITION Commissioner Karel Van Miert told Italy that it had two weeks to meet a commitment to cut 500,000 tonnes of steel-making capacity in return for approval to subsidise Ilva. When the company was sold to Riva Group by the state in March, ministers said it would have to cut hot-rolling capacity within six months.

MINISTERS failed to approve a plan to subsidise the sale of Irish Steel to Ipsat International. The European Commission recommended the approval of state aid worth 34.6 million ecu, but this was opposed by the UK and Luxembourg. The Grand Duchy's Arbed competes directly with Irish Steel on its product lines, while the UK is sceptical about any subsidy payments in the sector.

A DRAFT decision to relax regulations on steel industry subsidies which are specifically targetted at environmental protection failed to get agreement in the Council. The Commission proposed the changes to bring the Steel State Aids Code into line with general environmental subsidy rules.

MINISTERS agreed to set up a programme to promote computer link-ups designed to help member state administrations exchange information. They decided on spending 60 million ecu in 1995 and 1996 for the Telematic Interchange of Data between Administrations (IDA). This has been stuck in the Council for two years because of problems over its budget and duration.

THE Council discussed a preliminary proposal to bring more company mergers under the vetting authority of the Commission. The existing regulation covers mergers between companies accounting for combined worldwide sales revenue of 5 billion ecu and EU turnover of 250 million ecu each. The Commission was asked to produce a document by the end of the year arguing the case for lowering the threshold.