EC MINISTERS CONSIDER CUTBACKS IN STEEL SUPPORT
A new steel quota system that would
strictly limit European Community (EC) support to the industry
could be forced on producers if they fail to find their own
solution quickly, officials said.
    EC industry ministers meeting here considered two key
proposals aimed at cutting back surplus capacity by 30 mln
tonnes by 1990.
    The first would limit the current quota system, which has
protected EC output for seven years, only to flat products and
heavy sections, thereby forcing other types of steel products
into free market competition.
    The second proposal would link continuation of a quota
system with progress toward plant closures, although less than
a month ago the EC steelmakers' lobby group Eurofer said they
had abandoned efforts to close plants voluntarily.
    The ministers stopped short of imposing their own solution
immediately, instead urging steel producers to try again to
reach agreement on voluntary cutbacks.
    The EC Commission has said it will come up with detailed
proposals in July on the future of the EC steel industry and EC
industry ministers meet again in September to reach a final
decision.
 Reuter
