Treaty establishing the European Coal and Steel Community, ECSC Treaty

 

SUMMARY OF:

Treaty of Paris setting up the European Coal and Steel Community (ECSC)

WHAT WAS THE AIM OF THE TREATY?

KEY POINTS

Objectives

The aim of the treaty, as stated in its Article 2, was to contribute, through the common market for coal and steel, to economic expansion, employment and better living standards. Thus, the institutions had to ensure an orderly supply of coal and steel to the common market by ensuring equal access to the sources of production, the establishment of the lowest prices and improved working conditions. All of this had to be accompanied by the growth in international trade and the modernisation of production.

In creating a common market, the treaty introduced the free movement of products without customs duties or taxes. It prohibited discriminatory measures or practices, subsidies, state aids or special charges imposed by states and restrictive practices.

Structure

The treaty was divided into 4 titles:

It also included:

Institutions

The treaty established a High Authority, an Assembly, a Council of Ministers and a Court of Justice. The ECSC had legal personality.

The High Authority took decisions, made recommendations and delivered opinions. It was assisted by a Consultative Committee (the forerunner of today’s European Economic and Social Committee) made up of representatives of producers, workers, consumers and dealers.

Tasks

Funding aspects

Production

The ECSC played a mainly indirect, subsidiary role through cooperation with governments and intervention in relation to prices and commercial policy. However, in the event of any decline in demand or shortage, it could take direct action by imposing quotas with the aim of limiting production in an organised manner or, for shortages, by drawing up production programmes setting consumption priorities, determining how resources should be allocated and setting export levels.

Price-fixing and competition

Agreements or associations between undertakings could be cancelled by the High Authority if they directly or indirectly prevented, restricted or distorted normal competition.

Worker aspects

Commercial policy

FROM WHEN DID THE TREATY APPLY?

The treaty applied from 1952, it was valid for 50 years and expired in 2002. The common market created by the treaty opened on 10 February 1953 for coal, iron ore and scrap and on 1 May 1953 for steel.

BACKGROUND

MAIN DOCUMENT

Treaty establishing the European Coal and Steel Community

last update 11.12.2017



(1) The United Kingdom withdraws from the European Union and becomes a third country (non-EU country) as of 1 February 2020.