European Coal and Steel Community, abbreviated as ECSC by AbbreviationFinder, Montan | union, English European Coal and Steel Community [j ʊ ərə pi ː ən kə ʊ l ənd sti ː l kə mju ː n ɪ t ɪ ], abbreviation ECSC, French Communauté Européenne du Charbon et de l’Acier [k ɔ myno te ør ɔ pe εn dy ʃ arb ɔ e dəla sje], abbreviation CECA, to 2002 existing supranational organization with legal personality, which was aimed at a partial economic cooperation of member countries and marked the beginning of European integration after the 1945th The coal and steel union was established by the “Paris Treaty” of April 18, 1951 between Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands as a supranational community to establish a common market for coal and steel. The contract (since 23 7 into force in 1952) went on the initiative of French Foreign Minister R. Schuman back (Schuman Plan). In contrast to the permanent contracts of the EEC (since 1993 EC) and EURATOM, the contract was limited to 50 years. The ECSC retained its status as an independent organization within the framework of the EU. On July 23, 2002 the ECSC ceased to exist; their specific powers and their assets and liabilities were transferred to the EC.
Organization: The organs of the ECSC were originally the High Authority, the Joint Assembly, the Special Council of Ministers and the Court of Justice. In 1958, the Agreement on common organs of the three European Communities dated March 25, 1957 established a common Court of Justice and the competence of the European Parliament for the EEC, ECSC and EURATOM. After the merger agreement of April 8, 1965 came into force on July 1, 1967, the High Authority was incorporated into the European Commission and the Special Council of Ministers in the Council of the EC. However, the new bodies continued to make their decisions and decisions regarding the ECSC on the basis of the original, repeatedly modified treaty. Members were all states of the EU.
Goals, development: In terms of foreign policy, the direct powers of control of the victorious powers of World War II over the Ruhr industry should first be replaced. In terms of economic policy, the aim was to achieve a rational supply of coal and steel products to consumers by combining national markets into a common market for coal and steel. In terms of social policy, the working and living conditions for all employees in the coal and steel industry should be harmonized and improved.
The ECSC supported the coal and steel producing companies in financing investments by granting loans, secured supplies by controlling prices (setting maximum and minimum prices within the common market) and granted workers in the coal and steel industry adjustment aid (retraining -, bridging and early retirement grants) and home loans. A ban on discrimination prohibited the governments from distorting the production and sales conditions for coal, ore, scrap and steel in the common area through trade barriers (tariffs, quotas), subsidies or other economic policy measures in a competitive way. Business combinations had to be approved by the European Commission.
In view of the recurring crises in the coal and steel sector since the 1970s as well as the structural change in the energy sector, the overall economic importance of the coal and steel union declined in the end. In addition – contrary to the company’s own objective – state aid was granted to companies and to workers affected by layoffs in order to adapt coal production to the market situation. The steel crisis was countered with strict limits on producer quotas, monitoring of foreign trade and subsidies (steel industry).
Common rules for bank resolution : Uniform rules for closing crisis banks represent the second pillar of the banking union. to new liability rules for the resolution of banks. These provide that shareholders and creditors as well as savers pay more than 100,000 euros for the losses (“liability cascade”). They also agreed on a unified settlement mechanism (Engl. Single Resolution Mechanism, abbr. SRM), which the European Parliament adopted in modified form on 15 4th, 2014. The SRM came into force on January 1, 2016. In future, the Single Resolution Board will make decisions(Abbr. SRB) on the resolution or restructuring of a bank. This body (seat: Brussels) consists of an executive director, his deputy, four full-time members and representatives of the national resolution authorities (plenary). The Commission and the ECB have observer status. The SRB is responsible for banks that are subject to joint banking supervision and for all cross-border banks, a total of around 250 institutions. In addition, a joint European resolution fund (Single Resolution Fund, Abbr. SRF), which amounts to 1% of the covered deposits of all credit institutions in the participating countries. The volume will be around € 55 billion (by 2023). If the funds from the liability cascade are insufficient in the event of bank insolvency, the fund can step in. In the development phase of the fund, the European Stabilization Mechanism (ESM) can also provide funds if necessary. A direct bank recapitalization is excluded. Only the Member States can apply for financial assistance from the ESM; they are also liable for the repayment.
Joint deposit insurance: Of the measures originally planned, a uniform system for deposit insurance at European level was the most controversial. According to the Commission’s proposal, there should be a European deposit guarantee system (EDIS) which will gradually replace the national guarantee systems.
Requirements for all EU member states: On April 15, 2014, the European Parliament also passed two directives that are valid for all EU member states. The Bank Resolution Directive (BRRD) stipulates that banks must set up a national resolution fund in 2015–26. The Deposit Protection Directive obliges the member states to ensure that national deposit protection funds are filled through bank levies within ten years. The amount depends on the banks’ risk profile, with an average target of 0.8% of the secured deposits.