ABSTRACT
The Paris Treaty which led to the establishment of the European Coal and Steel Community (ECSC) gave the High Authority extensive powers which included the raising of levies on production, extending loans to firms for capital investment, financing research and development and retraining redundant workers. The supranational institution was also empowered to co-ordinate investment plans, although the authors of the Treaty did not go as far as giving the High Authority the right of veto over investment decisions. Some mild form of long-term planning was envisaged, while in a period of ‘manifest crisis’ the High Authority had the power, with the agreement of the Council, to establish a system of production quotas. Mergers were subject to authorisation by the High Authority and all state aids and subsidies were prohibited but member states reserved the right to pursue independent commercial policies vis-à-vis third countries.
