The Davignon Plan was adopted in 1978 by the
European Economic Community
The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
to reform its
steel industry.
[{{Cite book, url=http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf, title=Dictionary of Trade Policy Terms, last=Goode, first=Walter, publisher=World Trade Organization, year=2003, isbn=, edition=Fourth, location=, pages=100] Its aim was to place a cap on steel's production capacity.
In the long term, it aimed to restructure and rationalise the steel industry.
Its main tools to achieve its planned targets were state aids and import restrictions.
The Plan took its name from
Étienne Davignon, the
European Commissioner
A European Commissioner is a member of the 27-member European Commission. Each member within the Commission holds a specific portfolio. The commission is led by the President of the European Commission. In simple terms they are the equivalent ...
for the Internal Market and Industrial Affairs.
References
Steel industry