CHAPTER 3

SPECIAL PROVISIONS FOR THE STEEL INDUSTRY

Article 29

1. It is agreed that, during the transitional period, special safeguards may be necessary in the  case of the steel industry to ensure that shifts in production levels due to the establishment of  the common market neither create difficulties for undertakings which would be in a position  to meet competition following the adaptation provided for in Article 1 of this Convention, nor  lead to more redundancies than can benefit under Article 23. Where the Commission finds  that the provisions of the Treaty, and in particular Articles 57, 58, 59 and 60( 2 )( b ), cannot be  applied, it is empowered, in the following order of preference:

a. After consulting the Consultative Committee and the Council, to limit by direct or indirect  means the net increase in deliveries from one area to another within the common market;
b. After consulting the Consultative Committee and with the assent of the Council both as to  the advisability and the details of the proposed action, to use the powers of intervention  provided in Article 61( b ), but, by way of derogation from that Article, without the  requirement that a manifest crisis should exist or be imminent;
c. After consulting the Consultative Committee and with the assent of the Council, to  establish a system of production quotas, which shall not, however, affect production for  export;
d. After consulting the Consultative Committee and with the assent of the Council, to  authorize a Member State to take the steps referred to in the sixth paragraph of Article 15 of  this Convention, in the manner provided therein.

2. For the purpose of applying these provisions, the Commission shall during the preparatory  period defined in Article 1 of this Convention, in consultation with associations of producers,  the Consultative Committee and the Council, fix the technical details for the application of the  safeguard arrangements.

3. If during part of the transitional period, either because of a shortage, or because the funds  earned by undertakings or placed at their disposal are insufficient, or because of exceptional  circumstances not now foreseeable, it has not been possible to effect the necessary adaptation  of or alteration sin production conditions, the provisions of this Article may, after the  Consultative Committee has been consulted and the assent of the Council obtained, be applied  after the end of the transitional period for as long as, but no longer than, this state of affairs  continues, up to a maximum of two years.

Italy

Article 30

1. In view of the special position of the Italian steel industry, the Commission is empowered  to authorize the Italian Government to continue, to the necessary extent during the transitional  period defined in Article 1 of this Convention, to charge customs duties on steel products  from other Member States; however, in the first year of the transitional period these may not  exceed the rates of duty under the Annecy Convention of 10 October 1949, this ceiling being

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