Brussels, 22/06/2000 (Agence Europe) - The European Commission this week adopted the preliminary draft operating budget of the European Coal and Steel Community for the year 2001. The ECSC Treaty expires at the end of 2001 and will not be renewed.
Planned expenditure for next year will amount to a total of Euro 190 million. All this expenditure will be financed through funds set up in 1997 with the aim of covering expenditure until the expiry of the Treaty. For this reason, the Commission is in a position to plan a zero levy. This levy on coal and steel companies was the first true European tax for almost half a century.
In terms of expenditure, the budgeted Euro 190 million will mainly cover: a) Euro 109 million for social welfare (retraining workers following the continuing fall in the steel workforce, coal industry social measures); b) Euro 76 million for research.
Focussing funding on social measures is justified by forecasts that a considerable number of workers in the steel and coal industries will be affected by restructuring before the end of 2000 (13,800 workers) and 2001 (12,800 workers). The amount set aside for social measures has increased slightly from the 2000 level (Euro 101 million) and the Commission forecasts that it will fall to Euro 58 million in the ECSC's final budget in 2002. These initial forecasts see the last budget in 2002 rising to Euro 135 million. As at 23 July 2002, the ECSC will still have Euro 1601 million in its funds.
As it stands, the preliminary draft budget indicates that only a "limited" level of ECSC's budgetary activities have been transferred to the general budget, whether for social measures or for research.
The preliminary draft budget for 2001 will be sent to the European Parliament for consultation and to the Council for information.