If the Commission fails to act, a Member State may bring the matter before the council,  Which may, acting unanimously, require the Commission to establish a system of quotas.

2. The Commission shall, on the basis of studies made jointly with undertakings and  associations of undertakings, determine the quotas on an equitable basis, taking account of the  principles set out in Articles 2, 3 and 4. It may in particular regulate the level of activity of  undertakings by appropriate levies on tonnages exceeding a reference level set by a general  decision.

The funds thus obtained shall be used to support undertakings whose rate of production has  fallen below that envisaged, in order, in particular, to maintain employment in these  undertakings as far as possible.

3. The system of quotas shall be ended on a proposal made to the Council by the Commission  after consulting the Consultative Committee, or by the government of a Member State, unless  the Council decides otherwise, acting unanimously if the proposal emanates from the  Commission or by a simple majority if the proposal emanates from a government. An  announcement on the ending of the quota system shall be made by the Commission.

4. The Commission may impose upon undertakings, which do not comply with decisions  taken by it under this Article fines not exceeding the value of the tonnages produced in  disregard thereof.

Article 59

1. If, after consulting the Consultative Committee, the Commission finds that the Community  is confronted with a serious shortage of any or all of the products within its jurisdiction, and  that the means of action provided for in Article 57 are not sufficient to deal with this, it shall  bring the situation to the attention of the Council and shall, unless the Council, acting  unanimously, decides otherwise, propose to it the necessary measures.

If the Commission fails to act, a Member State may bring the matter before the Council,  which may, acting unanimously, recognize that the situation in question does in fact exist.

2. The Council shall, acting unanimously on a proposal from and in consultation with the  Commission, establish consumption priorities and determine the allocation of the coal and  steel resources of the Community to the industries within its jurisdiction, to export and to  other sectors of consumption.

On the basis of the consumption priorities thus established, the Commission shall, after  consulting the undertakings concerned, draw up the production programmes with which the  undertakings shall be required to comply.

3. If the Council does not reach a unanimous decision on the measures referred to in  paragraph 2, the Commission shall itself allocate the resources of the Community among the  Member States on the basis of consumption and exports, irrespective of the place of  production.

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