12 million EEC jobless by the end of '83? Gaston Thorn spells out the priorities for a new industrial strategy EUROPE83

In this issue ••.

Europe's jobless: is there a way out? 3 Published by the Commission of the European Communities, 20 Kensington A new industrial strategy for Europe. By Gaston Thorn 6 Palace Gardens, London W8 4QQ. 'Jobs for Youth' campaigners call on Brussels 7 Tel: 01-727 8090 Editor-in-Chief: George Scott Queen Beatrix: building Europe 7 Editor: John Greenwood Why Sir T erence Beckett believes in Europe. Interview by Roy Stemman 8 Associate Editor: Denis Thomas Design: Lawrence Edwards Rules and ruses in the protection racket 9 Printed by Lawrence-Ailen Ltd, Getting hooked on computers. By Eric Meyer 10 Weston-super-Mare, Avon Europe 82 does not necessarily reflect, in all Portugal would be welcome: secretary ofstate Lord Cockfield 11 particulars, the opinions of the Community Ireland's up-and-down career i.n Europe. By Dennis Kennedy 12 institutions. Unsigned material may be quoted or reprinted without payment, What Denmark's politicians say about the EEC. By Heinz Andresen 13 subject to suitable acknowledgement. Community reports 14 Belfast Office: Windsor House, 9/15 Bedford Street, Belfast BT2 7EG Questions in the House 15 Tel. (0232) 240708 CardiffOffice: 4 Cathedral Road, 1983, the year of the small company. By Gerald Bourke 16 CardiffCFl9SG Tel.(0222) 371631 Brushing up the Entente Cordiale. By John Ardagh 18 Edinburglt0ffice:7 AJvaStreet, EdinburghEH24PH Blooming Merseyside-the prospect for 1984. By Jack Waterman 20 Td. (031)225 2058 What about some help for the housing estates? 22 Associated editions: Europe,2100M Street, NW, Letters 23 Suite707, Washington DC20037, USA Tel. 202 8629500 What's in the papers 24 Europe, 350Sparks Street, Suite 1110, Otrawa, Ontario, Canada KIR 7S8. liUROFORUM is inset after page 12 Tel. (613) 238·6464 Community Repqrr, 39 Molesworth Street, Dublin 2, Ireland Td. 712244 JOJound'Europe, 61 rue des Belles Feuilles, 75782 Paris Cedex 16, France. Tel. 501 58 85 Comunita Europee, Via Poli 29, 00187Rome,ltaly. Tel. 678 97 22 EF-afJuen Gammd Torv 4, PostBox 144, 1004CopenhagenK, Denmark. Tell44140/1455 32 EG Magazin, Zitelmannstrasse 22, 5300 Bono, W. Germany Tel. 238041 Comunidadeuropea, Serrano,41·5 a planta Madrid-!, Spain Tel.4741199 Europaiki Koinoris, 2 Vassilissis Sofias, T.K. 1602, Athens 134, Greece Tel. 743 982/3/4 Europa-btricht, EUR i'fl/o, Archimedesstraat 73, 1040 Brussel, Belgium Tel. 235 4178 EcJros del'Europe, Batiment Jean Monnet, Luxembourg-Kirchberg Td.43011 Af1rUpa Top/ulugu, 13 Bogaz Sokak Kavaklidere, Ankara, Turkey Td.276145 2 EUROPE83 Europe's jobless: is there a way out?

With the average rate of inflation in the European agreement on the remedies. But they were less Community now in single figures, unemployment precise on how these should be carried out. They has become the biggest economic concern of all ten agreed only that there was no short-cut to reducing member states. In the Community as a whole, unemployment, and that the main remedy lay 11 .5 million men and women are now out ofwork­ through creating conditions for a broadly-based o_v~r 10 per cent of the workforce. And that figure is economic recovery. nsmg. After the meeting, trade union and employers' Finance, economics and labour ministers, meeting leaders gave their reactions and comment. First, in Brussels on 16 November, sat down to work out an BOB TA YLOR spoke to Georges Debunne, overall job-creation strategy. They achieved President of the European Trade Union Confederation.

BOB TA YLOR: How does the European Trade Union Part-time working, on the other hand, should remain the Confederation judge the outcome of the Brussels meeting? exception rather than the rule. It is a discriminatory kind of GEORGES DEBUNNE: The trade unions are deeply disappointed arrangement, especially against women. Little progress was made because it endorsed the present deflationary, monetarist policies, on any of these issues at the meeting. The resistance of the ET UC in which only make unemployment worse. We believe there have to be face of government inaction is rising. The ETUC is now nearly ten years measures to stimulate consumption, albeit within limits that do not old, and is keen to organise its members in the different member rekindle inflationary pressures. T he ETUC reckons that productive stares under its banner in favour of Community-wide action to investments area vital factor-so much so that it should be the defend their interests. We are confronted with governments which public sector that takes the lead. Private enterprise would then obtain special powers which could ultimately endanger our political follow. and social democracy. T rade unionists are It is, ofcourse , essential that reflationary 'Young people should losing confidence in the Community. Ifthey policies be applied by all member states at the not become a source of no longer believe in it, they may not be same time. A policy of reflation practised by motivated to vote in the next direct elections one member state alone is no longer possible, cheap labour' for the European Parliament in 1984. as recent events in France have amply The basic element of our platform is demonstrated. In a way, we feared the straightforward-a reduction in working session would fall below our expectations. hours, without loss ofearni ngs, but with Already the preparatory consultations with wage moderation. Ifwor kers accept cuts in governments and with the European real wages by accepting pay rises below the Commission showed us how hard it was to get rate of inflation, then it must serve a purpose the ET UC's ideas across. by enabling firms to hire extra staff. Previously, higher productivity was What are the ETUC's priorities for getting translated into salary increases. Now, it people back to work? should be translated into new jobs. The T here is no viable solution to unemployment reaction of governments to our proposals today other than sharing out the amount of show they do not take the ETUC seriously. work to be done among more people, thanks to a cut in working hours. T he situation is Where does job-creation figure in the made even worse by the present demographic ETUC programme? trends, which show thatuntill98S, and Young people must have priority in possibly beyond, there will be more young employment policies. But young people starting their working life than there people should not become a source are pensioners going into retirement. ofcheap labour. They should not In addition, technical paid less money than older innovation is almost where they do a full day's exclusively geared work. Specific work experience to increasing programmes for young people productivity and have not been a success in reducing labour general. Then again, in making inputs. For these a special effort for young people, older people out of work should not be forgotten. Do Jll> 3 EUROPE83 1 lt has proved difficult to hours should be the Community, we are told that the appropriate level is national level. When we go to national employers' have a dialogue with the organisations we are told these issues should be treated at the level of European Employers Federation' individual sectors of industries, and so on. There is a manifest bad faith when it comes to a dialogue with the you think it is easy for someone made redundant at the age of45 or 'There is a manifest bad faith 50 to find a job? when it comes to a dialogue with Is the ETU C ready for a dialogue with the employers at the trade unions' Community level? It has proved difficull for the ETUC to have a dialogue with the European Employers Federation. A meeting was set up recently, trade unions. There is clear obstructionism on the part of the but it was subsequently cancelled. The employers have employers when it comes to talking to us at European level. Personal systematically opposed the creation ofa formal framework at contracts can be good. But people tell us, 'We don't have a mandate Community level for discussions with the trade unions. When we to negotiate, we are not authorised to discuss this question'. This is propose that the framework for discussing reductions in working not the basis for a meaningful dialogue.

For the employers' reaction, the following questions were put to Guido Carli, President ofUNICE .. .

What, for businessmen, are the fundamental factors underlying the European economic crisis? GUIDO CARLI: The salient feature lies in the range of divergences expressed in money terms. Let me explain. In recent years, in all the Common Market countries, variations in wages adjusted for price variations (true wage variations) have shown controlled divergences. In general, there has not been a tremendous variation, in real terms, between EEC countries. However, if these are expressed in money terms we see that the divergences have increased. In 1982 basic wages increased in Italy by 18 to 19 percent,in West Germany by4 to 5 percent. T hese are the two extreme positions. But, if we examine the position of basic wage increases in Common Market countries, we see that the deviation from the mean for the Community has considerably increased. This type of divergence also exists for the national debt, expressed as a percentage of the gross domestic product, and of the money supply. The proportion of the national debt, expressed in money terms, also shows a wide spread. Here we have a paradox. The proportion ofnational debt to national income is increasing faster in Germany-where inflation is low­ than in Italy, where inflation is high. This happens because inflation lightens the burden of the debt every year in real terms.

What are the dangers of this trend? This situation leads one to fear for the EEC's ability to hold together. In the Community the controls which were supposed to induce countries to adopt converging policies have not worked. In this situation two dangers can be envisaged. T he first is that there will be increased recourse to political protectionism within the Community. This is apparent today in many forms, from border controls hindering circulation ofgoods to restrictions on payment, in the form of more stringent exchange controls or subsidies. The second danger is that, faced with the failure ofconve rgent policies, the continued existence of the European Monetary System might be put into question. I believe the EMS continues to make a useful contribution to the cause of unity within the 4 EUROPE83 'The situation leads one to fear problem of mobility arises. It is necessary to lift restrictions on for the EEC'sabilityto the mobility of the labour force. hold together' Would not these factors involve too heavy a price in social and human terms? What do you think ofthe Commission's proposal to reduce working hours, so as to redistribute European Community. There are two reasons for my belief. existing employment? Firstly, parity adjustments have always taken place through Protectionism and autarchy are always the consequences of this conciliation. Secondly, the EMS has ensured a high level of type of adjustment. I think that today we need shock treatment, stability of exchange rates within the Community, reducing the to achieve results in a very short time. Ifrestrictions were uncertainty typical ofexchange rates fluctuating out ofcontro l. imposed on working hours, which would give rise to reduced competitiveness on the part of the Community, this would be a To what extent can the divergent forces you describe be serious error. combated, and the European economy be put back on a convergent course? 'We need shock treatment ...' It is true that variations in wage costs expressed in money terms, are greater than when expressed in real terms and that there is a

correlation between these divergences and the divergences Would there not be a risk of the Community finding itself between the public-sector deficit and the creation ofa money trapped between the USA and Japan, which are aiming at new supply. But the correction should be found on the side of the technologies, and the developing countries? public-sector deficit and creating money. The picture we are Between 1963 and 1980 the proportion of Community exports, faced with is dominated by uncertainty. But this should out of the totalofworldexports, fell from 18.7 percent to 16 per encourage us not to give up those elements of institutional cent, excluding exports within the EEC. This indicates how stability which the Community is able to offer. important it is for the Community to remain highly competitive Certainly, progress towards unity of the European community with foreign countries. Today the Community is losing ground has not been as envisaged by the founders of the EEC. Within in international markets, against a background of ever fiercer national markets, sectorial policies have increased, even though competition. they are contrary to the concept ofthe market economy. But there is no need to repeat the mistake made between the wars when, seeing nothing wrong with the market economy, the idea 'The break between Europe and · ofmoving in that direction was rejected. Let us not forget that the US is bad for everyone' the years in which ·the reconstruction ofthe post-war economy made most progress were those in which some great myths were accepted-including that of the construction of a world market based on multilateral trade and payments, and on stability of exchange rates. Then there is the problem of what to expect in the context of world trade. I believe that what happened at the GATT summit 'lt is necessary to lift recently is extremely serious. The break between Europe and the United States is bad for everyone, because the prosperity of the restrictions on the mobility Community depends increasingly on the development of trade of the labour force' outside the Community. Then there is the problem of the rate of the dollar against Community currencies, marked by the fluctuations that have damaged world trade. For years Europe What obstacles need to be removed to survive the present has been reproaching the United States for not having a recession and to begin to absorb unemployment? sufficiently strict monetary policy. When the USA at last moved In all industrialised countries we are witnessing profound towards stricter monetary policies, based on a quantitive control structural changes. In the past decade, 15 million jobs have been of money, and when some European countries adopted similar created in the United States. Ifthe same thing were to happen in policies-notably Great Britain and Germany, both countries the Community today there would be no unemployment. But in which are centres of reserved currencies-it was bound to every country the level ofemployment in manufacturing happen that the exchange rates between the three reserve industry has fallen. Jobs have been created in legal, financial and currencies- the dollar, sterling and the mark-would reflect the admini.strative areas, not in industry. The country where events differences in interest rates. So, faced with higher interest rates most resemble those in the USA is Italy. In Italy jobs have been in the USA, thedollarcouldnotfail togoup, which-unusually­ created in recent years, but only in the service industries. has done more harm to the American economy than to Europe. However, at the same time the number of people looking for The problem remains establishing a rate ofexchange between work has increased. The composition of the labour force has Europe and the United States, and agreements to limit exchange changed- the proportion ofwomen is tending to increase. rate fluctuations. Otherwise I can foresee a continuing decline­ We are on the threshold of a great technologicl\1 revolution monetary divergences, protectionism, exchange controls, which will have a profound effect on levels of employment, and subsidies-which would do irreparable harm to the unity of the on the distribution of jobs among different industries. So the world market. 5 EUROPE83 A new industrial strategy for Europe

President Gas ton Thorn cited some sobering the last 12 years, as compared with 19 million in the economic statistics in calling for a new industrial US and 5 million in Japan. The investment rate has strategy during a speech in Turin. His figures plummeted from 6.4 per cent in 1965 to a negative confirmed the gloomy economic climate of the figure during every period since 1980. And while Community. The unemployment rate is expected to public investment has diminished from 10 to 6 per exceed the 12 million mark by the end of 1983. Only cent in the last 12 years, public expenditures have 2 million jobs have been·created in the Community in increased from 32 to SOpe r cent.

n examining the complex causes of this simation, President Thorn pointed to lack of Community solidarity. 'While the eco­ Inomic crisis should have been the occasion for a reinforcement of common effort, it has instead become an excuse for new opposition between countries,' he said. Gaston Thorn reminded his audience that 'integration is not a given, but rather a con­ tinually evolving process which depends on the efforts of its peoples.' In specifying areas in which immediate action must be taken, the President outlined nine priorities for a new in­ dustrial strategy. These include elimination of intra-Com­ munity trade barriers through respect of the rules of free trade and a simplification of cus­ toms formalities. Elimination offiscal dispar­ ity between countries through harmonisation of the currently unequal rates on value added tax. And creation of the European enterprise as a legal entity. Also central to the new industrial strategy is the substitution of European for national norms in production, as well as work and so­ cial conditions, easier loans for innovative small and medium-sized enterprises, and pilot programmes selectively offering Com­ munity financing to projects in research, ener­ gy, transport and training. Finally, Mr Thorn called for a coherent Community plan ofindustrial modernisation, as well as a re-adjustment of the Community budget in favour of industrial programmes. Socialist parties in the Community are now demanding 'basic changes in policies and a reorientation of resources and institutions of the European Community' to deal with the crisis ofg rowing unemployment. ~hile the economic for improved mutual assistance whenever a What these changes should be is spelt out in member currency comes under speculative the resolution, entitled 'The Crisis in Europe crisis should have been attack. and the Socialist Response', adopted by the the occasion for a re­ The Socialist parties condemned attempts Confederation of the Socialist Parties of the to shield national markets from imports) European Community at their biennial con­ inforcement of common which they described as one of the main gress, held in Paris last November. effort, it has become an threats to the world economy of today, and Greece, alone of Community countries, is excuse for new opposi­ argued that such tactics would not effectively not a member of the Confederation, although combat unemployment, even on a medium­ Spain and Pormgal, two countries seeking to tion between countries' term basis. join the Community, are represented. One of the most controversial elements in The British Labour Party abstained on the the resolution was the suggestion that Com­ resolution, which called for increased private aryorder. munity governments should extend their poli­ and public investment, social and regional Here, the Confederation paid tribute to the tical cooperation talks to cover 'cooperation equality, shorter working hours, a new in­ European Monetary System, which delegates on questions of European security . . . parti­ dustrial policy, energy conservation, and considered should be used as an instrument cularly with regard to international establishment of a new international monet- for better control on capital movements and negotiations on disarmament'. 01 6 EUROPE83

It also included a request for more money to be 'Jobs for Youth' allocated from the European Social Fund, to set up business advisory centres in all the member countries and to encourage new and campaigners call small business enterprises. It also asks for the length of the working week to be reduced in on Brussels order to create more jobs. The Community's Social Policy Committee en young people from Britain and Youth Committee listened to what the de­ travelled to Brussels at the end of legates said, but made them no promises. November, to take part in a 'Euro Nevertheless, the British party felt that the l Jobs For Youth' campaign, launched trip had been worthwhile, and they intend to by European Community's Youth Forum. continue using the Youth Forum as a platform The party were selected by the British for their views. Youth Council, which represents groups Youth worker William Clemmey, who ranging from the Girl Guides to the Young travelled with them as a BYC representative, Socialists. All the young people chosen had said it had been heartening to join with young one thing in common-their experience of people from other EEC countries who shared unemployment. the same problems as British youngsters. He In Brussels, they joined similar groups said: 'It was worth making the journey, just to from the other member countries, and spent make our common voices heard.' three days lobbying their respective Euro MPs and the Council ofMinisters. They also presented a 'Jobs For Youth' Jobs for the boys-and girls-is the aim of charter, containing a set of proposals for im­ youth opportunity schemes such os this proving the job prospects of Europe's youth. one on Tyneside. BUILDING EUROPE by Queen Beatrix

' We in the European Community are in­ volved in a laborious process. Why should we deny it? Europe's advance towards greater un­ ity is a process of evolution. Everyone adopts the pace that accords with his nature and his­ tory. The problems that occupy us at the moment are so wide-ranging and overwhelming that they penurb us to the depths ofour being. We no longer have cut-and-dried solutions, but go forward searching and groping. At such times we are sorely tempted to withdraw behind our national frontiers and let Europe be. But only if we are self-confidently aware of our identity can we become good Europeans; indeed, it is a precondition for cooperation. Only from our own beginnings can we build the Europe of today and tomorrow. This idea was already propounded in former times, when Sir Thomas More, of London, a{\d Erasmus, of Rotterdam, corres­ ponded with each other as firs~-generation Europeans. The United Kingdom c;an, and undoubtedly will, contribute in large measure towards the accomplishment of the European Community. In 1940, a dark moment in British history, Winston Churchill called for unity in these words: 'If we open a quarrel between the past and the present, we shall find that we have lost the future.' That is just the point, even now. f

-Queen Beatrix of the Netherlands was speaking at the Guildhall, London, during her state visit last November. 7 EUROPE83

million to £347 million after tax. Mter a 30- year career in the motor industry he left to take up his duties as director-general of the Con­ federation of British Industry in October 1980, since when he has been an energetic and fearless fighter on behalf ofh is 300,000 mem­ bers who between them employ some 12 mil­ lion people. A TV and a radio sit side by side on a win­ dow shelf which runs the length of his tenth floor office suite in London's Centrepoint building. They are a reminder of the import­ ance ofcommunication in his work: the media often seek his views, and Sir Terence's pun­ chy remarks, whether aimed at Government or the unions, make front-page headlines. Pfhe CAP is the main area requiring attention'

One of the penalties of being a public figure is that cartoonists are likely to depict you in unusual ways. Sir Terenceappears to take that in his stride, with a quiet sense ofhumour. As we chatted, a secretary brought in an original cartoon by Franklin which had just arrived, together with a note from the Chancellor ofthe Exchequer, Sir Geoffrey Howe. It depicted Sir Geoffrey, dressed as the PrincessofWales, holding her new baby. The babe in the car­ Why the boss of the CBI toon, however, is Sir Terence, representing the CBI ... and he is shown crying loudly. This inte.rlude over, Sir Terence spoke believes in Europe about the CBI's enthusiasm for Europe. 'At our council meetings we get unanimous sup­ port for the EEC. At our annual conference last November there was also unanimous hether he is speaking personaUy ROY STEMMAN visits Sir backing for a motion in favour of Britain's or as the voice of British membership-all800 delegates gave their sup­ ndustry Sir Terence Becken is a Terence Beckett, director­ port. Why? Because it gives us access to a very ommitted European. 'I can talk general of the Confederation large market- comparable with America and Wendlessly about Europe' he told me, and larger than Japan. And thatisvital,particular­ pro ceeded to outline his views and beliefs ofBritish Industries and a ly with the way technology has moved in the with a passion born of experience. self-confessed champion of last 30 years. The Community is now the Mter all, he was responsible for twelve of the EEC largest trading block in the world, and a politi­ Ford Motor Company's European companies cally stable area in an unstable world.' He between 1968-1974. His belief in Europe, added: however, goes back much further. As one of ' It's silly for people to talk about going back the generation who came through the last war ence told Henry Ford that it was inevitable to old trading patterns. The Commonwealth he is acutely aware of the futility of a situation that we would one day be part ofthe Common markets have established new ones - with which had allowed Europe to make an enor­ Market. Japan, for example. T he trade unionists, of mous contribution to the civilisation of the By the time the UK joined forces with the course, advocate coming out-of the Common world, yet had contrived to put its principal other Community countries, ten years ago, Sir Market but the point we make to them is that nations at war for over a thousand years. Terence was vice-president, European Sales 2 Y2 million jobs depend on it, and a large num­ From an early age, he hoped the European Operations. That job did not involve the Brit­ ber of those would beat risk if Britain were to nations would come together to preserve their ish or German companies but in 1974 be re­ leave. heritage and promote peace, for the benefit of turned to the UK to become managing direc­ 'Britain has also benefited from USA and civilisation as a whole. That hope soon turned tor. In the five years when be was running Japanese investment. In our first ten years of to conviction when changing trade patterns Ford in Britain, he saw its profits rise from £3 membership, 60 per cent of American invest­ made it essential that Ford should operate ment in the Community and SO per cent of more effectively, and in order to achieve eco­ 1 At our annual fapanese investment has come to the UK.' nomies ofscale it decided to integrate its Euro­ In addition, Sir Terence is delighted with pean manufacturing operations. conference, all800 the responsiveness of British industry to the This decision was taken before Britain delegates gave their opportunities of the Community, enabling a joined the EEC, but in anticipation of its change in trading patterns over the last decade membership. Even when President de Gaulle support to the EEC' from £2 112 billion in exports to more than £20 rejected Britain's application to join, Sir Ter- billion - an increase far greater than the rate of 8 EUROPE83 inflation, and representing 60 per cent oftotal exports in 1982. 'But we are not blind to the Community's Rules and ruses in the shortcomings,' he told me. 'We think the Common Agricultural Policy is the main area requiring attention, because of its budgetary protection racket impact on the UK and the fact that it is such a cause 'of souring relations, which is a great pity. We need to change the mechanisms.' hould margarine be sold in cubes or The CBI would also like to see some aspects cones? A silly question? Not for the of the internal market reformed, giving Bri­ manufacturers-or, ultimately, the tain better access to the insurance market, for Sco nsumers. example. Cheaper air fares would also be an The European Court ofJustice has just con­ enormous help to businesses. With a Brussels demned Belgium for blocking trade because it office and various committees and delegations only allows the sale ofmargarine ifit is packed paying regular visits to the city, the CBI is able in cubes. The legislation blocks the entry of to keep its finger on the EEC pulse. It also foreign margarine, especially margarine from makes representations through its contacts in Germany which is packaged in cones. As the the Government and civil service, with MEPs Belgian authorities see it, the cube shape is and others. It is keen to see some reforms, not­ part of a consumer tradition and prevents any ably less bureaucracy and greater emphasis on confusion with butter. what can be done to remove the obstacles to in­ This is not an isolated case. Examples of ternal trade. In time, Sir Terence believes, similar subtle forms of 'protectionism' are to there will be a common commercial law for the be found inalmosteveryCommunity member state. For instance, apple or malt vinegar can­ ~e must not forqet not enter Italy, because only wine vinegar is recognized south ofthe Alps. All kinds of his­ our trade links w1th torical reasons are raised to justify the ban on Denmark' imports offoreign vinegar, imposed by Italy. Then there is the German legislation, dat­ ing back to 1516, which bans the sale of any EEC, so that companies can be constituted on beernot made exclusively from malt or barley. a European basis. This stops the sale of English, Danish and m unity rules, the scenario is always the same. As we looked out across Soho from Sir Ter­ Alsatian beer in Germany. And, although Firstly, indications that the sales ofa particu­ ence's office suite, shoppers could be seen condemned as completely illegal by the Euro­ lar product on a market are being slowed scurrying along the pavements of Oxford pean Community, it is still applied. down. Secondly, the argument used is always Street and Tottenham Court Road, and the 'Speculoos', the rather delicious Belgian legitimate. Thirdly, the authority responsible traffic crawled at an even slower pace. Many of biscuits, cannot be sold in the Netherlands be­ for the ban tells the Commission that identical those cars were foreign. The CBI's director­ cause their cinnamon content is considered treatment is meted out to national products general recalled the time, 20 years ago, when toohigh-andcouldendangerthehealthofthe and foreign products. Final stage: a closer he and others were sounding the alarm bells Dutch. The famous ' Dijon Cassis' is also still look shows that the measure is designed to about the fate of the British car and motor cy­ not sold in Germany, because its alcohol con­ stop imports indirectly. cle industries. 'Our motor industry is half of tent does not conform to German standards. What kinds of measures are being used? what it was then, in terms of the number of The European Court of Justice has con­ Almost everything, including bureaucratic vehicles produced, and our motor cycles have demned Germany for this, but has not formalities, red tape, papers to fill in, over­ virtually disappeared.' persuaded it to change its rules. zealous customs officers, fines. States are par­ Now he is warning that six other industries There are hundreds of other examples of ticularly good at drawing up very complicated are in danger of demise, because of the high protectionism, justified by reference to lists of norms and standards, which must be costs ofelectricity. The chemical, glass, steel, ancient laws, health of citizens, or consumer respected by foreign exporters and which vary paper, brick, cement and ceramic industries protection. These pretexts are, at first glance, from country to country. all depend on electricity to a large extent, and perfectly legitimate and even admirable. But The European Commission is also suspi­ they are having to pay much more for it than a closer look reveals a more dangerous trend cious of slogans used to encourage consump­ other European industries, because the cost of towards protectionism - or rather 'neo-pro­ tion of national goods suchas·'Buy British' or coal is so high in the UK. tectionism' - of a specifically European na­ 'Reconquest of the national market'. His concern is real enough. But the man ture. The European Commission is increas.ingly who trained as an engineer and economist, The EC Treaties ban all traditional forms of concerned by the increase in such neo-protec­ and was voted Businessman of the Year in protectionism, such as tariff barriers and tionist measures. Warnings have been given 1978, seems to allow these problems to sit quotas. So Community member states look by a number ofEuropean Commissioners, in­ lightly on his shoulders. His philosophy be­ for other ways. Using their imagination, they cluding Karl-Heinz Narjes and Frans came clear when he made a passing reference succeed in avoiding Community regulations Andriessen. The Commission's stance is to the Danish refusal to agree to a Common and achieving their aim: the protection of a clear. It is based on two decisions taken by the Fisheries Policy and its threat to fish right up specific product or a threatened sector. Court. Thefirstdealswithltalian vinegar,and to the British coastline. The European Commission is now getting the second with 'Dijon Cassis'. It stipulates 'We are bound to get these disputes at a time four times as many complaints against trade that any product sold and consumed in one of change and deep recession. If we didn't, it barriers than in the past-400 currently, com­ Community member state should be allowed would be a ve.ry dull world. We must not pared to SO in the 1970s. Of these, 110 are into the others, unless specific health reasons forget, either, that we have very strong trade currently being investigated by the Euro­ can be invoked. links with.Denmark. One of the values of the pean Commission and the European Court So, if apple vinegar and 'Dijon Cassis' do EEC is that it does enable you to see things in ofJustice. not kill people, or at least make them extreme· perspective.' [t For the Commission, which enforces Corn- ly sick, they have to be let in. [t 9 EUROPE83 Getting hooked on computers

uppose you are product manager of It is not just businessmen communications as a pubUc service. Roland a margarine factory in Denmark, Haber, in charge ofthe' Echo ' host computer, and you want to extend your sales and bankers who stand to managed by the Commission in Luxembourg, Sto the Middle East. In order to be profit from the new recaHs: 'Each EEC country could have instal­ able to give continuous proof to your technology-computer led its own network. Data banks could have Moslem customers that your factory been set up all over, by computerising a chunk contains no pork, you are looking for an power is here for all, reports of the huge reserves of information we have infallible way of detecting any animal fat in ERICMEYER here in Europe. But no one country would the vegetable oils which are your raw have had enough potential users to justify materials. such an investment." Or say you are a businessman in Flanders, So telecommunications had to be European and you have had the idea of using (hot) cool­ or notatall. This was fully grasped at the Com­ ing water from a power station to breed language and coming from every country. mission, and then in the member states. Fol­ crayfish. Before investing, you want to be sure Thus the anti-fat test, before reaching the lowing a resolution ofthe Council ofMinister s that the project is financially viable. margarine factory in Aarhus (Denmark), has in June 1971 , the Commission began to Or again, let's say you manage a small to zig-zag over thousands of kilometres, from organise the demonstration network Euronet chicken farm in Northern Italy, and you want Zeist (Netherlands) to Frascati (near Rome) Diane, which was officially inaugurated on to get to know about techniques for keeping where the data bank is based; via Hamburg 13th February 1980. In absolute terms, the fowls outdoors. (where the scientific article was published), Community investment was limited: 16 mil­ In each ofthese three cases, you are missing London (where the British Library found the Uon ECU up to 1980 (2nd plan ofaction ), plus the magic ingredient - precise information, article), and Reading (where the IFIS -Inter­ 15 million between 1981 and83. Nevertheless both specialised and essential, requiring days national Food Information Service-prepared the Commission has not exactly built but of painstaking research in files and specialist the computer record). Thus Euronet Diane is rather eo-financed and directed this network, magazines. Time you haven't got: such files or an unequalled instrument for distributing carrying out all the work of defining common magazines may be hundreds of kilometres techniques and ideas throughout Europe. standards and techniques, in cooperation away. Towards the end of the 1960s, the United with the nine telecommunications authorities However, ifyour solution exists, one of the States recognised the opportunities for tele- of the time, plus Switzerland, which partici- surest ways of getting to it is Euronet Diane, the telecommunications network designed at IJelecommunications had to be European or not at all' the initiative of the European Commission. It now opens up to 300 million potential users the services of 300 data banks in l S European countries in the European continent - the I 0 member states of the EEC, plus Switzerland, Spain, Porrugal and Finland. By consulting the data banks to find out which one is related to your problem, using a terminal connected to EURONET, you can obtainyouranswer injustaquarterofanhour. So the Danish product manager will find the test he needs (developed in Zeist in the Netherlands some years ago, based on gas chromotography). The would-be crayfish breeder will discover that even an almost free supply of hot water will not give him much chance of matching Turkish or Czech com­ petition (he has to abandon the idea, but saves his investment). As for the poultry farmer in the Po valley, he will find in France a study on the bacteriological effects ofkeeping chickens outdoors. On the terminal screen the information ar­ rives quickly, and apparently simply. How­ ever, when you see how it gets there- from the source to the enquirer's screen - you can see that it requires close cooperation between a whole series ofprofessions (researchers, tech­ nicians, specialised press, etc) speaking every 10 EUROPE83

pated from the beginning. of Italian decrees on computer. In France, Furthermore, Euronet and Diane each cor­ CNEXO, speciaHsts in applied research on Portugal would respond to a different reality. Euronet, to start the marine environment, set up in Brest the with, is a cable linking the five telecom­ largest data bank on the marine world. But the munications 'nodes' ofParis, London, Frank­ very first host computer is in Frascati, at the be welcome, says furt, Rome and Zurich. Itisalsoa very power­ European Space Agency, with ESAIIRS, ful transmission system, with a capacity of which controls 34 banks and 14 million items trade secretary 4000 simultaneous calls, which France intro­ ofinformation - a quarter of all the data avail­ duced in 1978 on its own 'Transpac' network. able in Europe. In fact, acknowledges Roland 'In a situation where protectionist However, Euronet's days are numbered: as Haber, with the crisis, host computers must pressures are increasing, the existence the national (interconnected) networks are set now prove their usefulness and find their us­ of a largely free market in the up, it is disappearing as it is integrated into ers. 'For example, we notice that they are Community is enormously important.' them. Besides the French 'Transpac' net­ moving en masse from the "base" to the So said Lord Cockfield, Secretary of State work, the British ' PSS', the Dutch 'DNI', the "bank" which holds SO percent of the market, for Trade, speaking to the British Portuguese German 'DATEXIP' and the Belgian 'BCS' as against 30 per cent two years ago. This is to chamber of commerce on 2~ October. In the (the latest arrival - opened in November '82) meet demand - clients want the information context of continuing negotiations for Port­ are now operational. direct, not a bibliography.' ugal's membership, the trade secretary has DIANEis the 'club' of49 hostcomputersin As for the users, they appear very modest in clearly underlined Britain's commitment to operation in the EURONET network, which numbers-3,000at the beginningoflastyear. an enlarged European Community. maintain the 300 data banks or bases. The But they are growing fast, according to Barry Benefits ofmembership would be enhanced Commission is endeavouring to get potential Mahon, head of the Euronet Diane team in by enlargement, Lord Cockfield said. En­ users familiar with them by organising se.mi­ Luxembourg. Users, and research into host largement would demonstrate that the Com­ nars, meetings and film shows in the different computers are growing at a rate of40 per cent munity was capable offurther development in member countries. To join the 'club', and per annum. Clients are spread fairly evenly a world beset with economic and industrial benefit from collective promotion, one sole between public bodies, industries and univer­ anxieties. condition is required of the host computers: sities. However, one of the team managers With Europe taking the lead, it would also they undertake to supply their information on sees another category ofenthusiastic clients in give impetus to the belief that nations had to a non-discriminatory basis -without limita­ the Americans and the Japanese. When the work together, particularly at a time when the tion and at the same price. host computer, ' Teleservice-Questel', world recession was giving protectionist argu­ Who are these host computers? Their ori­ opened in Paris, he says, 150 subscriptions ments greater respectability. The role of the gins are very· diverse. In Rome, the Supreme were obtained in Japan in just 45 days. Community on the international front was Court had the idea of storing the thousands Like Euronet, Diane and its.host compu­ also important when it came to removing bar­ ters will be unrecognisable tomorrow, be­ riers to trade between Europe and the rest of cause ofthe tremendous changes taking place. the world. 1 Ciients are s~read The Commission is continuing to help them The British Government 'warmly wel­ progress, by participating in the technical re­ comed' the prospect of Portuguese mem­ between pul:ilic bodies, search which they cannot do alone. Priority is bership of the Community and was willing to industries and given to the computer language, which must help Portugal during the preparations for be developed so that the host computer can accession wherever possible, Lord Cockfield universities' give an 'a.ctive' rather than a 'passive' response said. Moreover, as industrial expansion in to the enquirer, helping him to direct his Portugal led to an expansion in the country's search more precisely. Another problem to be international trade, so Britain looked forward overcome is that ofthe national languages: in­ to an expansion of Portugal's internal market stantaneous translation(by computer), which and the consequent expansion in two-way it is hoped to introduce in a few years' time, trade in goods and services between the two should enable a French doctor, for example, countries. to consult DIMDI, the German host compu­ Britain was in a position to make a special ter specializing in his field. contribution to Portuguese economic de­ The Commission also announced last velopmentat this time, he maintained, by way November its decision to finance research into of direct investment, joint ventures and the problems of document transmission, a supply of know-how as well as the supply of 'bottleneck' in the development of telecom­ machinery and plant. munications. This would provide the client On services, the trade secretary took the with complete documents, either instantly opportunity to restate Britain's determination (via the terminal to a printer), or after a very to push ahead for a completion ofthe common short delay. However, the most far-reaching market by achieving free trade between mem­ change, out of all this technical progress, will ber states in services as well as goods. 'An im­ come from telematics- the use of the family mense amount of work has been put into en­ TV as a terminal, with a simplified keyboard, suring that the internal common market in coupled to the telephone. goods works freely and efficiently and that In this way the number of clients could obstacles are removed,' be said. 'But the same reach several hundred thousand in a few cannot be said of trade in services.' years, and telecommunications would have a He pointed out that the Government be­ di.rect influence on the work, study and leisure lieved that it was 'high time' the objectives of of the mass of the population. A fundamental the Treaty of Rome were achieved in the mat­ changehascomeaboutwiththeappearanceof ter offree trade in services. Twenty-five years Euronet Diane - 'computer power', which after the Treaty was signed it was still not yesterday was reserved only for public bodies possible to trade freely in insurance within the and large companies (multinationals), is now ·Community. available to all. [t 0 British Business 11 EUROPE83

30 June 1970: enlargement progress, and EEC funds to aid the poorer negotiations begin in parts of the country have been less than some Luxembourg. had hoped. Even the boom in agriculture did not last. Prices rose annually during the transition from low Irish farm prices to high EEC ones, Ireland's and as the EEC itself was increasing fartn prices substantially each year. But the transi­ tion ended and the EEC's annual price rises up-and­ became much more moderate. Irish farmers, having borrowed heavily to develop their farms, found themselves hit by down very high domestic inflation and exceptional interest rates. Irish agriculture moved rapidly • from boom to crisis. It is only now beginning career1n to recover, and is understandably worried about the future of the Common Agriculture Policy. Europe Meanwhile, the economy in general has run into a crisis of the most severe proportions, arguably as the result of mismanagement f the three nations who joined the In its first decade in the which has allowed public borrowing and infla­ European Community in 1973, the tion to reach unacceptable levels. It is interest­ Irish, ten years later, are having the Community, Ireland has ing, however that, even in this time of very I fewest doubts about the wisdom of enjoyed growth and severe difficulty, there is little or no tendency that decision. to blame EEC membership for Ireland's T hey were the most enthpsiastic at the prosperity-followed by economic problems. ,. time, voting by more than five to one in economic crisis. A report But where anxiety has increased, particu­ favour of membership in a referendum in by DENNIS KENNEDY, larly over the past year of so, is in the area of May 1972. The Danes decided by a much political cooperation. When Ireland joined in narrower margin, and the British were European Editor ofthe 1973, the government explicity accepted the sharply divided. Irish Times political implications of the Treaties of Rome Ten years on, while the Irish remain clearly and Paris, and declared its readiness to work in favour of membership there is not the en­ thusiasm, nor the wide acceptance that the context of Europe, some of the less attractive 1 lrish exporters were Community is an integral part of national life aspects oflrish society, such as militant, ex­ and policy, that is to be found in Italy or Ger­ treme nationalism and obscurantist religious too heavily many. The percentage for the EEC has moved taboos, would weaken and disappear. dependent on the up only to 44 per cent, while that against has Experience has shown that things do not more than doubled from 7.4 per cent to 18 per change so easily, or so rapidly. Br1tish marke~ cent. This lack of growth in positive support On the practical side, some expectations for membership almost certainly reflects were realised. Irish farmers enjoyed an unpre­ widespread disappointment in the effects of cedented boom as incomes went up. Indust­ towards the goal of political unification in membership. rial exports progressed, and by 1981 the per­ Europe. But it stressed that this did not entail Ireland voted to join in 1972 because the centage of total exports stemming from agri­ any military or defence commitments on the economic logic of doing so was obvious, and culture was down to 27. Dependence on the part oflreland. the prospects were attractive. The main British market lessened, as more goods were Since then Ireland has participated in Euro­ attraction was the Common Agricultural sold to mainland Europe. By 1981 the percen­ pean political cooperation without trouble, Policy. In 1972 Ireland was still heavily de­ tage of total exports going to Britain had drop­ until the past two years. Now two rather new pendent on farming, both for employment ped below 40. developments have combined to raise doubts. and exports. Most farm exports went to Bri­ Foreign investment was boosted. By 1980 First European political cooperation itself has tain, whose cheap food policy meant low foreign-owned firms were employing 34 per taken on a new momentum, and has specifi­ prices for Irish exporters. cent of the manufacturing workforce, as cally included consideration of the political Irish exporters of all sorts were heavily de­ against 27 per cent in 1972, and the real aspects ofsecurity matters-but not defence or pendenton theBritishmarket-in 1972,60per growth in jobs in the past decade has been in military affairs. cent of all Irish goods sold abroad went to foreign companies. But the oil crises of the Secondly, Irish governments, particularly Britain. Another great attraction of EEC Seventies had made nonsense of much that under Mr Haughey, have given a new emph­ membership was the chance of lessening this was predicted in 1972, and ove.rall there must asis to Irish neutrality as a fundamental aspect historic dependence on Britain. Membership be disappointment after a decade inside the of foreign policy. This was especially so dur­ was also regarded as essential to Ireland's EEC. Redundancies were expected as the re­ ing the Falklands crisis, when some critics drive to attract foreign capital into investment sult of new competition, but have been much argued that Irish neutrality had been given a in Irish industry. Foreign capital was,and still higher than predicted. Today, unemploy­ dimension it had never had in the past. is, the key factor in Ireland's industrialisation. ment in Ireland is second only to Belgium's, This concern over neutrality and European There were other, less clearly defined, ex­ inside the EEC. political co-operation may account for the in­ pectations. It was hoped that with both Bri­ Nor has there been any evidence that the crease in outright opposition to the EEC in tain and Ireland inside the EEC, Anglo-Irish economic gap between Ireland and the rest of Ireland. It is a question that may become more relations would be put on a new and better the Community is closing. Ireland's GDP per acute for the Irish as pressure continues for footing, and the problem of Northern Ireland capita remains at about 60 per cent ofthe EEC closer political cooperation, and for more con­ might somehow become less difficult. Others average-roughlywhatitwasin 1972. Within sideration of security and defence-related hoped that, in the wider political and cultural Ireland, regional development has made little matters within the context ofthe Ten. [I 12 final document. The other partners accepted this realistic view. The public is nowadays often given the impression that free world trade does not exist any more. This is quite wrong. Never before have goods been able to circulate so freely around the world. Never before has international competition been fiercer, at least in Europe and North America. Never be­ fore have duties in the industrialised countries and in a few of the developing countries been lower. Itisonlynecessarytolookattheselec­ tion of goods available in European de­ partmentstoresorfromlargemailorder firms. If our international order was characterised not by free trade but by protectionism, then the selection would be quite different - there would be no Japanese pocket calculators or motor After Geneva- the risks bikes, no watches from Hong Kong or Switzerland and no Korean shirts. Where free trade is concerned there is to free trade in the world's little with which the EEC can be re­ proached: we import twice as much in the way of industrial goods as the USA, and four times as much as Japan. This econonllccorrunuxUt,y also applies to sectors such as textiles, where trade is subject to great restric­ The GATr ministerial conference (24 to 29 November 1982) tions in all industrialised countries, ended in anticlimax. The 88 ministers and delegates who came with all the unwelcome bureaucracy that this brings. to Geneva all, without exception, declared themselves in favour Nevertheless, it is obvious that there ofmore free trade and against protectionism worldwide. The are cracks in our world trade system, final document, agreed by all sides after it had been at last which has been developed in a pragma­ . worked out in wearying day-and-night negotiations, binds all tic fashion in the course of the last 30 GATr signatory states to resist protectionist pressures, from years. When 10 per cent or more of the labour force is unemployed, any govern­ whatever quarter, with all the forces at their· command. ment will be exposed to the temptation More could not have been achieved in to create extra employment by restrict­ Geneva than wasachieved,namelypoli­ WILHELM ing imports and encouraging exports, ticalself-restrictionindifficulttimes, an HAFERKAMP, Vice­ especially exports to countries from appreciation of the proven basic princi­ which more is imported than is exported ples of GATT, and a working pro­ President ofthe European in return. Thisisthereasonforthegrow~ gramme for clearing up matters of Commission, underlines ing protectionist pressure against, for dispute such as protectionist measures example, Japan. and agriculture. the options-and In a desperate macro-economic situa­ Some had hoped for substantially implications- aJi.sing from tion,anappealforreasonintradingpoli­ more. First, for a legally binding com­ the GATT 'summit' cywillgounheard. This happened in the mitment not to take any further mea­ Thirties and could happen again ifthere sures which run directly or indirectly is any further increase in unemploy­ eounter to GATT, e.g. self-restriction ment, or ifgovernment, employers and agreements or administrative mea­ tively -that is, against the main export­ employeesdonotsucceedinstoppingthe sureswhichhinderimports, and to prog­ ing countries only. downward spiral very soon. ressively reduce existing measures TherewasnoreformulationofGATr. When thereisadisequilibriumincur­ which run counter to GATT, such as There-examinationofthepresentrules, rencyratesofexchange-forexample, as quantitative import restrictions. particularly as regards agriculture and a result of politically motivated move­ Second, for a commitment to reduce, or the trade protection clauses, has been ments of capital or fear of devaluation, at least to freeze, agricultural export referred to the trading policy experts for orbecauseofgovemmentmanipulation subsidies (these subsidies are at present the next 12 or 24 months. oftherateofexcbange-politicianscome ..... allowed by GATT). Third, for a progres­ The conference was not able to give sive extension of the GATT rules to in­ the go-ahead for a further liberalisation "The conference was clude services, where at present they ofworld trade. The European Commun­ only include trade in goods. And fourth, ity had describedthis as unrealistic long not able to give the for an agreement on the question of before the conference. The view of the go-head for further whether protectionist trading policy European Community was that what measures (eg. temporary increases in mattered was to take measures to stop liberalisation of duties, or the introduction of quotas) protectionism spreading, and to honour world trade' may be applied generally or only selec- the corresponding commitments in the

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.. under increasing pressure to correct the will be a new kind ofinternational trad­ possibility. Without international com­ trading imbalance, which is often ing order. The flow oftrade will then be petition there can be no international achieved by means oflittle protectionist more strongly influenced by political competitiveness and no technological tricks. It would be better to create the factors, and more bureaucratically lead. proper conditions for trade, that is, to let ordered, in a similar fashion to the pre­ If Europe is not to be reduced to a the rate of exchange settle down to a sent situation in western Europe. Tex­ third-class economy, three conditions level that enables the balance oftrade to tile and steel are cautionary examples. are necessary: a readiness to accept be restored. Such a development will sooner or technological, economic and social Whencountries'tradingpolicieshave later bring disadvantages for all of us. change; the ability and will to adapt to led them into a dead end where they We only have to look at those countries changes in the world economy; the poli­ have to use all their foreign earnings for which have ordered their external trade tical will to offer continued support for debt servicing, or to pay for imports of in such a manner. an open trading system, and not to take energy or foodstuffs, then appeals for The EEC depends on its exports of in­ cover behind a protectionist wall. them to open up their markets to foreign dustrial products, just as Japan does. The siren songs of protectionism are textiles, perfumes or cars will be to no This is the only way for both of them to bewitching, but they lead to the abyss. It avail. In such cases, what is required is meet their requirements for energy and is up to everyone to oppose such a de­ for the trading policy to be revised; raw materials. A retreat to 'Fortress velopment, and not just politicians. If, in addition to such faulty macro­ Europe' is no solution for lack of com­ Trade policy is only possible when the economic development, there is loss of petitiveness, even ifmany dream ofthis world economy is in order. competitivity in certain sectors, with the threat ofredundancies, calls for pro­ tectionist measures are intensified. Everyone can give examples of such 'sensitive' sectors. What manufacturers 'Britain's experience in wouldnotprefertodevelopandsell their productsinamarketwhich was as far as possible protected? world affairs has helped to The strength ofprotectionist pressure at the present time is explained by a combination ofunfavourable conditions such as has not been seen in Europe and give us a new direction' in the USA for the last 50 years, and the political achievement ofthose who have prevented the dyke from giving way is Looking back over the last teri years, it is possible to identify a all the more worthy of respect. Cracks number ofways in which Britain has been instrumental in have appeared here and there. There are helping the Community to enlarge and consolidate its world self-restriction agreements for textiles and steel. Exporting countries have role. Your great experience in world affairs has helped give the agreed to 'voluntary' restrictions of ex­ Community a new dimension: in our relations with developing ports of'sensitive' products. countries; in achieving our unified voice on foreign policy; and However, the flow of exports has not in our reinforced stance against international protectionism. been diminished - only the rate of in­ crease has been reduced. This 'res­ The Commonwealth still has close al cooperation reflects the conviction tricted' flow of exports, instead of in­ ties with the United Kingdom. But, that the Community must be in a posi­ creasingby20to30percenteachyear, is after enlargement, it was possible for tiontoexpressthepoliticaldimensionof now only increasing by 3 to 5 per cent. theCommunityasawholetosharesome itsworldrole.Britishgovemmentshave Purists will see this as a transgression of of Britain's responsibilities to the de­ long been strong advocates of effective the sacred rule ofinternational competi­ veloping countries of the Common­ political cooperation and have given it tion. Political realists will say that only wealth. The Lome Convention, which powerful political impetus. Britain was such a restriction ofthe increasing flow now links the Community with more able to reap the benefit when, thanks to ofexports will preventwholesectorsand than sixty developing countries of such cooperation, the Community was regions of industry disappearing from Africa, the Caribbean and the Pacific, able to make a united response to the the map within a few years, without the was an achievement of the best kind of Falklands crisis. The pro~ made chance to adaptor change. creative politics, ·transcending what over the last ten years has been con­ Nevertheless, even political realists member countries could have achieved siderable. must accept that many small cracks individually. UK experience was a key The Community as a whole is heavily may eventually lead to a catastrophic element in devising this new relation­ dependent for its economic well-being flood. Ifthe large number ofmore or less ship between North and South. on its capacity to sell Its goods, services concealed protectionist transgressions Political cooperation over foreign and expertise on world markets. We continue and multiply, as in the last 10 policy matters has taken on growing must strive to avoid the competitive pro­ years, then by 1990 at the latest there significance. The development ofpolitic- tectionism that characterised the 1930s. Events at that time showed that 'beg­ O Gaston Thorn, President of the gar-my-neighbour' trade policies 'Small cracks may European Commission, gave a press conference in London on 25 November brought terrible consequences for all. eventually lead to a 1982, to introduce the London Office's Inthisendeavourwecounton the firm catastrophic flood' publication,'Britain and the Community', support ofthe United Kingdom. marki!lg_the United Kingdom's first ten These changing aspects of the Com­ years rn-Europe. munity are ofbenefit to all our member

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We need more Community, not less. for UK butter. But to generalise the sys­ 'ltwould be dishonest It is vital that we break the habit of tem of deficiency payments would lead to P.retend that improvising temporary solutions to our to very considerable increases-tenfold Brttain's membership existing problems. We must somehow on some estimates-in our agricultural break free ofthe short-term and concen­ expenditure. The growth in British self­ has been problem­ trate on the very considerable economic sufficiency since 1973 has been such free' problems that we shall face in the next that it would even be too expensive for decade. The Community budget is no the UK on its own. doubt the greatest of our present preoc­ The adaptation of the common agri­ countries, including the United King­ cupations. It gives rise to twin concerns: cultural policy is a problem that has to dom. Theyenhanceourcapacitytoactin Community solidarity is weakened by be faced. The Community has already an unpredictable and difficult interna­ the imbalance in benefits flowing from shown that it is prepared to tackle the tional scene. The original Community Community policies; and Community problem ofstructural surpluses. For five has gained much, then, from Britain's development is stunted by the limit im­ major commodities, including cereals, membership. But Britain, too, has posed by present financial resources. milk and sugar, we have set up a system gained. Apart from the benefits of our Both these concerns must be met in to discourage unreasonable increases in more unified political approach, you the construction of a new resource base production. When production exceeds have marked up concrete economic ad­ for the Community. We muSt agree on a certain threshold, producers must vances. new sources of Community finance in expect either a reduction in their Britain's entry into the Community order that we can develop the policies guaranteed price or to have to contri­ coincided with the first oil crisis, accom­ and advantages of the Community in a bute financially to the cost of disposing panied by the unprecedented peace­ balanced way. This new resource base of the additional production. This is a time shortages on world food markets. must be such that it puts an end, once major development which has perhaps Since then, the United Kingdom has and for all, to talk of a 'just return'. The not been sufficiently appreciated in this been hit by the economic recession that Community has not been created to act country. has now fastened its grip on the rest of as a clearing house for national govern­ One can only be impressed by the way the Community. Against this back­ mentcheques. in which, despite the difficult economic ground, the economic benefits of Com­ The size of Britain's contribution to background, Britain has sought to take munity membership seemed a longtime the Community budget has become a advantage ofthe economic and political coming. The unified market seemed matter ofconcern to the British people. I opportunities created by Community more ofa burden in the early years than have already indicated that the lasting membership. an advantage. No longer is this so. solution to this problem must be found The British Government has seized But it would be dishonest to pretend in the creation ofthe Community's new upon, and used, Community instru­ that Britain's membership has been resource base. But, to get matters into ments wherever they were available. In problem-free. Integrating the United proportion, let me point out that in 1982 one sector, however, you choose to go it Kingdom into the Community-or the the United Kingdom's contribution-as alone. I refer, ofcourse, to monetary and Community into the United Kingdom­ a result of the recent agreement - exchange rate policy. has, from the political point of view, amounted to three hundred and eighty Until now, the British Government been more difficult than we ever im­ seven million pounds, which is equal to has considered it inappropriate for the agined. At first, the difficulty seemed to less than 3 per cent of Britain's defence pound to participate fully in the Euro­ be related only to the United Kingdom. expenditure. pean Monetary System. This is ex­ Now we can see it as something more The Commission is developing ideas plained by the importance given to general. In Britain and Denmark, Com­ for a new resource base that would monetary policy as an economic instru­ munitymembership remains a political achievetheseoqjectives.Itwillcomefor­ ment in recent years. It is also linked issue, even ten years on. The same is ward with its proposals in the first three with the status of the pound as a petro­ true for Greece after two years. It may months of next year, so that we can be currency. So far, so good. But now you well be true for Spain and Portugal. ready for the Community's enlarge­ are faced with the task of maintaining We must accept that only rarely will ment to include Spain and Portugal. the advantages that you have fought so the political choice between 'inside or Enlargement makes it necessary to hard to gain. The time is now ripe, in my outside?' be as clear-cut as it has seemed look again at the operation of the com­ opinion, for Britain tojoin the European in Ireland. Normally, it will be a keenly mon agricultural policy. I am convinced Monetary System. The advantages of debated question for years after the ori­ that the objectives of the policy are as participation would out-weigh the costs. ginal choice has, been made. The insis­ valid today astheywerewhen the policy In particular, a stable exchange rate tent question will be 'What is the Com­ was founded. But some of the policy's would make the overall economic munity doing for me?' To the first gen­ mechanisms 'Qndoubtedly require environmentmorefavourableforinves­ eration of Europeans, it is a sufficient adjustment. tors and would help structural adjust­ answer that it has made unthinkable Demands for common agricultural ments ofthe UK economy. another European civil war. But in­ policy reform have been insistent in the Recent movements in the pound's creasingly people look for concrete eco­ United Kingdom ever since entry. At value may illustrate some of the prob- nomic advantages. first UK opinion urged the adoption ofa lems that may lie in store. I believe that .... If we are to exploit the Community's generalised deficiency payments sys­ potential to the full, we must press tem. We have built deficiency payments 'The time is now ripe aheadanddeveloppolicies in new areas. into several of our agricultural market This is made more than ever necessary support systems. Indeed, about 30 per for Britain to ioin the by the depression which is gripping an, cent ofour total expenditure in the agri­ European Monetary our economies. A united response to cultural sector now goes on some kind of these difficulties will be much more deficiency payment, like that for sheep System' beneficial than isolated national efforts. or else on consumer subsidies like that

(ill) 4 i' Mlt ;er WEUROFORUM I""'' T

Britain will exert greater control over we have our past - on the success of medies to both the countries which have the value of its currency within the heavy industries. already (or nearly) won. their battle European Monetary System. There is a desperate need to develop against inflation, and also to those British membership of the European . new industries in the service and high which still suffer from worring rates of Monetary System would also benefit the technology sectors. This is best done at inflation and unduly large budgetary Community as a whole. It would be a the Community level rather than coun­ deficits. real contribution to the development of try by country. As long as there are divergent econo­ the system. And it would come at a time In the last ten years, then, we have mic trends, there will need to be diffe­ when the Community was seeking a come some way together. In Britain one rent policies. The objective is rather to concerted approach with its main inter­ can see initial suspicion giving way to a bring about progressively the condi­ national partners towards the stabilisa­ cautious acceptance that Community tions necessary for a better harmony, tion of exchange rates and interest membership does, .after all, bring which in its turn will make the cohemon rates. It is also important for the benefits. _But we must go further. The of economic behaviour patterns and a Community to fight as a team against Community must develop if it is to re­ greater miliility m exchange rates the international move towards protec­ spond to our present economic circumst­ posmble. The timetable proposed by the tionism. ances. Only in this way can the Com­ heads of government is aimed at realis­ It is important that the Community munity prove its importance to our ing these conditions. can work together to modernise old sta­ second generation as it has done to our Firstly, has the Council ofEurope dis­ ple industries. It is equally important first generation Europe. covered the commonmarket?Thisisnot that, together, we take stepstorelaunch The Community provides, I believe, a trite question. Several Community our economic activity. the only political and economic countries in order to cope with internal The present recession is nota tempor­ framew;orkin which we can realistically problems, have increased trade barriers ary downturn in our economies. Let confronttheproblemsthatwillfaceusin to imports originating not only from there be no mistake about that. We are the years ahead. third party countries but also from other in a period of fundamental transition. Community countries. This is a mis­ Wecannotbaseourcollectivefuture-as GASTONTHORN take, and a foolish one at that. In ex­ changeforanapparent-andinanycilse short-lived - protection of the national market, all the prospects for future de­ Is a unified economic velopment are compromised by such ac­ tions. European industries can develop in­ policy in sight? vestment projects and development plans if they are guaranteed that they Ifthe EEC keeps toth~ pr~posedtimeta~le decided upon ~e cancountonamarketof250millioncon­ HeadsofGovernmentdurmgthe Council ofEurope meetmg sumers in which goods can circulate freely. If this certainty should dis­ held in Copenhagen in early December, then the first quarter of appear, then all their industrial plans the New Year will be one of the most productive that Europe are doomed to failure. The combined has known for a longtime. It will represent a happy prelude to heads of government have realised that the whole of1983, a year which appears already to be one of the road upon which certain of their great importance to community construction. national governments are embarked is a dangerous one, and they have asked Let us take a look. The government the Council to decide, before the end of leaders considered that, by common con­ The Community can March, on the priority measures aimed sent, a timetable should be decided upon act by creating a true at making the EEC into a unified mar­ for specific actions to be taken at Com­ internal marl

(iv) •~·------J~EUROFORU14F Revival of investment accelerate the procedures should allow Without a solution to thesereticences to be overcome. is essential to improve The fourth orientation covers the spe­ the budget problem, the competitiveness of cificmeasureswithasocialcharacter.In the Communi~ will go general, the Ten do not favour aid prog­ European industry rammes which create artificial jobs, be­ into a state of crisis cause as soon as the aid· :finishes these Forty projects within these various jobs disappear. The only way ofcreating the requirements of the new enlarge­ fields are before the Council. The heads lasting employment is to revive invest­ ment (Spain and Portugal). The Com­ ofgovernment have asked that the prin­ ment and industrial activity. However, mission will continue to advocate a cau­ cipal and most urgent of these be this does not mean that nothing should tious budgetary and financial policy, be­ adopted within three months. The Euro­ be done on the social level. On the con­ cause Europe must not squander its re­ pean Parliament is actively supporting trary, the heads ofgovernment explicit­ sources. But the EEC must be in a posi­ the efforts of the Commission. The pro­ ly refer to the guarantee for young peo­ tion to finance its construction and its fessional bodies (Industrial Association ple of either an immediate chance of elaboration in the interest of all its pf the Community, Chambers of Com­ work experience or offurther training. members. merce, etc) have reacted against these They also refer to the reorganisation As far as relations with the rest ofthe barriers. The realisation, at the highest of working hours, which covers a very world are concerned, the EEC must first level, ofthe risk implicit in protectionist large number of possible measures ofall overcome its present uncertainties measures should allow rapid progress to aimed at a better distribution of the with regard to negotiations on the mem­ be made towards a real 'internal mar­ ~vailable work among the whole of the bership ofSpain and Portugal. The poli­ ket'. population. Here, too, the Commission's tical 'yes' to these countries' mem­ The second orientation decided upon proposals, established after a long pro­ bership must be translated into be­ bytheheadsofgovernmentconcernsthe cessofpreparationandconsultation,are haviourconformingtotheobjective. The revival ofinvestment, which is essential available. Commission has already indicated cer­ to improve. the competitiveness ofEuro­ But no-one is unsophisticated enough tain conditions which are necessary to pean industry against international to believe that, even if it is respected, enable this new enlargement to be competition and to create new jobs. The this programme will alone resolve all achieved satisfactorily, and the member strategies to be employed depend essen­ the problems of the Community. It falls governments owe it to themselves to be tially on the member States' according far short of it. Other matters are just as coherent. to the coordinated orientation& defined important as that of economic revival The definition of more harmonious by the 'Economics/Finances' Committee and the fight against unemployment commercial and economic relations and taken up by the heads of govern­ (even ifthis one does benefit from prior­ with the United StatesandJapanrepre­ ment. ity, because it influences all the others). sentthe second 'external' objective ofthe But the Community as such can also The government leaders did not take Community. This is an objective which act-first ofall by creating the veritable any decisions on these other matters at is tied to commercial policy, to the strug­ internal market which will prompt in­ Copenhagen. They will be discussing gle against protectionism, to the dustry to invest as already indicated; them partly or in whole at the next maintenance of international free ex­ but also by the enlargement and the im­ Council of European in March. Mean­ change and at the same time to the im­ provement of its own fin.aticial instru­ while, the Community institutions Will provement ofEuropean industrial com­ ments- especially the NIC, which has continue to study them and promote petitiveness and, as far as the United the specific job of financing productive them. States is concerned, to the rigidity of investments. The heads of government On the internal Community front, the some aspects of the common agricultu­ did not limit themselves to a request for budgetary problems should be men­ ral policy, without touching on the the general strengthening of this: they tioned from both their points of view: essential principles and mechanisms. explicitlytookupthefigureof3,000mil­ provisions aimed at settling the 'British The third fundamental 'external' lion ECUs proposed by the Commission problem' for the coming years, and the objective concerns the redefinition of as an extra appropriation in addition to increase ofits own resources. The Com­ Community policy over cooperation the amounts available at present. The mission has put forward some sugges­ with the third world, starting with the NIC gathers up the floating capital on tions on this first aspect, deeming that preparation of negotiations for a new the capital markets (including those in the United Kingdom's contribution to Agreementwith the African, Caribbean the Arab countries and in Japan), recy­ the Community budget will remain and Pacific States (ACP). cles it, and directs it towards invest­ positive during 1983 and 1984, thus So the projects are numerous. The ments. making the maintenance of 'budgetary subjects are all of concern also, because The third point taken up by the heads compensation' in its favour necessary. in the majority of cases the EEC is of government concerns a vast range of Indeed, the contribution ofeach country 'obliged' to decide. These are matters Community actions aimed at realising to the Community budget must be which cannot be postponed from one certain joint research projects, at mak­ brought into balance both in the year to another. Without agreement on ing information networks available to medium and the long term by the de­ its own resources, and without a clear industry, at financing pilot projects in velopment of common policies which and lasting solution to the 'British the fields of energy and innovation, so will benefit all thememberstatesequal­ budgetary problem•; the Community that the results may be made available ly. will go into a state o-f crisis due to a fun­ freely to all. The ditliculties experienced As for the second aspect, the Commis­ damental disagreement over the means by the. Council are, in general, to be sion has already announced that it will for its own financing. It will then be un­ found in the cost of these actions: the soon be proposing that the present ceil­ able to maintain the agricultural policy Ministers tend to reduce the appropria­ ing of receipts belonging to the Com­ and the other policies which represent tions for the various programmes. The munity beexceededinordertocopewith its substance itself. request by heads of government to thedevelopment~fcommonpoliciesand FERDINANDO RICCARDI

(v) ~'45 .. "EUROFORUM t '= ., EUROPEAN REVIEW

Mr Nmjes, Commissioner for the Inter­ How much does nal Market, hit out at the Member UK accepts turkey States who were raising admlnistrative Europe care about the and bureaucratic barriers to trade. imports aged? About 30 proposals, some which have been blocked for up to ten years, are The European Community has ready for decision, explainedMr Nmjes. scored another success in its 'Does Europe care?' ask the He wants the Council of Ministers to attempt to do away with all organisers ofEurolink-Age, anew start negotiations within the next two veterinary barriers to intra­ pressure group established in months and reach decision before June Community agricultural trade. Brussels in November 1982 to lobby 30nextyear. the Community on behalfof the The Commission's ·priority proposals Renewed pressure from the Commis­ elderly. fall into three categories: harmonisa­ sion on the United Kingdom to comply tion ofregulations on the certification of with the Court of Justice ruling and Eurolink-Age is an informal coalition third country products; the transmis­ open its borders to poultry imports has of non-governmental organisations, sion of information on the technical put an end to one ofthe longest episodes academics, MEPs and professional rules and industrial standards set by in the veterinary rules war game people working with and for pensioners Member States; simplification of cus­ amongst Community countries. inthetenmembercountriesoftheCom­ toms procedures. The fifteen-month long import ban munity. Representatives from the Commissioner Nmjesmadeclearthat was originally applied to poultry and national organizations (from 'Age Con­ none of these proposals go against the eggs in order to protect British flocks cern', England, and 'Le Troisieme Age', economic interests ofa particular Mem­ from the fowl pest virus, Newcastle Dis­ Belgium, for example)· held their :first ber State; all that was required was ease. Under the threat ofrenewed legal meetings in Brussels on Monday, 22 'political will'. action for breaking the Community's November. As the Danish representa­ The Federal Republic of Ger:many free trade rules and rising discontent tive said, 'Europe has now become the whichwillbetakingoverthepresidency among French turkey breeders anxious rightforumfordiscussions-herewecan of the Council of Ministers in January, to corner part of Britain's lucrative all learn from each other.' Initially wants to see a strengthening of the in­ Christmas turkey market, the Govern­ however, members want to learn how ternal market and has put this high on ment lifted the ban on French poultry the European institutions work and to its list of priorities. Council Presidency six weeks before Christmas. draw up a joint plan ofaction. support for the Commission's initiative One ofthe last obstacles to trade to be Eurolink-Age's wide-ranging agenda couldmeananearlystarttothenegotia­ removed was the request for larger­ covers many of the problems associated tions and an eventual agreement on sized labels on imported birds which with old age. But they would like to see some of the measures before the prop­ could not be realistically provided by these problems approached in a more osed June 30 deadline- coincidentally French machines geared to the smaller positive way: more pre-retirement pre­ the last day of the Federal Republic's 'European' labels. paration, more use of old people as presidency. However, there are still strings volunteers, an improvement in the sta­ attached to the decision to resume free tus of old people and a greater recogni­ trade. tion of the contribution which they can A European Year stilloffertosociety. Theywouldalsolike to see young unemployed people trained of the Family? Trading with to work with families in which there is a Yugoslavia frailordementedeldermember living at Families as suchneedmore home. attention, accordingtoMrs Maria Cassanmagnago Cerretti's report to The Community's Cooperation Sharpening up the the Parliament's Committee on Agreement with Yugoslavia came Social Affairs and Employment. into effect in the New Year, with plans for a Business Week in competitive edge It appreciates the Commission's BelgradeinMarchanda efforts to assist families with hardships, Cooperation Councll ofministers The European Commission has for but is asking for more general attention planned for ApriL the second yearnmning called on and more funds to be spent on the family Community Governments to agree as a social unit. The Business Week, which will be to a range ofmeasures that would The report calls for a family affairs organised by the European 'Commis­ strengthen the working ofthe division created within the directorate sion, will be designed to improve con­ Community's internal market. generalforSocialAffairsandEducation tacts between European ·and Yugoslav that would identify and consider all entrepreneurs, with the aim ofboosting This move was taken by the Commis- . aspects of Community policy which in­ trade, investment andjoint ventures. sionbecauseofgrowinganxietythatthe fluence the family. It also wants mem­ Sectors represented will include recession was leading Member States to ber states to be urged to adopt policies to wood, agricultural machinery, machine pass increasingly internal protectionist strengthen the position of the family in tools, electronics and car components, in measures. society, taking into account the chang­ addition to general areas of potential In a strong intervention in November ing roles ofmen and women. business cooperation.

(vi) - --- 11 EURO FORUM" all gas used in the Community or eight tion, beforedecidingwhethertoproceed. More cash for the per cent oftotal energy consumption. Exactlytwomonthslater, the Council . The Commission recommends that provided a comprehensive response, de- reg1ons additional measures should also be tailing exactly what stage had been taken to increase the security of sup- reached in the examination of a long The Commission has proposed that plies. These include further diversifying series of European Commission propos- afurther710millionECU from the imports, stepping up domestic produc- alson which theParliamentcomplained non-quota section ofthe Region81 tion and developing substitute natural no action had been taken. Fund be allocated to areas affected gas (SNG) from coal. The main thread of the Council's let- by the dec1ine ofthe steel, ship- ter to the President of the Parliament, building and textile industries. Piet Dankert, was that, in these trou- President urges bled economic and social times, there is Regions that will benefit are in Bel- greatdifficultyinarrivingatagreement gium, Greece, Italy, France, the Nether- two-way trade on any common policy, includingtrans- lands, Ireland and the United Kingdom. port. The Transport Ministers share the The extra cash will strengthen and A successful partnership between political interest expressed by the Par- supplement the 220 million ECU pack- the European Community and liament in achieving a common policy ageestablishedforthese areas two years India depends on two-way trade. forthesector,saidtheletter,andconsid- ago. The Commission attaches special This was the message given by er that good progress has been made to- importance to rundown steel areas Commission PresidentGaston wards that objective. which will have to contend with job- Thorn, during his visit to India at losses under their restructuring pro- the beginning ofNovember. Human rights still to grammes. 230 million ECU will be ear- marked for promotion of industrial in- 'Practical and down to earth mea- the fore novation and give investment aid in the sures in the field of trade promoti,on are form of capital grants to small and needed,'he told theCouncilofCommun- medium-sized companies. ity Chambers of Commerce, meeting in According to a large group ofEuro A further 260million ECU will be de- New Delhi on 2 November, adding that MPs, the400,000-strong Greek voted to the promotion of new economic theestablishmentofthisnew body in In- minority in Albania is being activities in depressed_ textile and clo- dia represents a practical attempt to prevented from practising its thing manufacturing areas. promote trade between the two distant reJigion, studying in Greek, or 160 million ECU will go towards the partners. travelling to Greece to maintain promotion of small firms and rural tour- Increased cooperation in the indust- family ties. They are caJlingon ism in regions which are likely to be rial sector was also emphasised by.Mr Albania to respect the Helsinki worst hit by the accession of Spain and Thomduringhisweek-longvisit,aswas Conference Acts and re-open the Portugal. 43 millionECUs is to be made the possibility of extending European Greek churches, allowreJigious available for investment in energy pro- Investment Bank loans to projects of services in them, permit the Greek jects and a further 17 million ECUs will common interest. Finally, Mr Thorn language to be taught at all levels of be granted to rundown shipbuilding stressed the need for closer cooperation Albanian education, and to open all areas. amongthedevelopingcountries, an idea border crossings with Greece. close to Mrs Indira Gandhi's heart. Securing Europe's India is one of the principal be- In the same vein, MEPs Van Hemel- neficiariesoftheCommunity'sGeneral- donck and Viehoff are calling on gas supplies ised System of Preferences and is the Czechoslovakia to release four intellec- major recipient of EEC aid wider the tuals who have been sentenced to long non-associated programme having re- termsofimprisonmentfortheirinvolve- Member states would be well able ceived some 145 million ECUs since ment with a non-official cultural jour- to deal with a major interruption in 1976. nal. The MEPs claim the arrests are an natural gas supplies from non- open violation ofthe Helsinki provisions Community countries for an guaranteeing freedom ofexpression. extended six-month winter period, The Council gets The case of Ida Nudel, a Soviet Jew, according to a survey recently has also been raised in the European carried out by the Commission. into gear Parliament. A group of six MEPs claim Only minor problems would arise at that, since applying for an exit visa to times ofpeak demand and then only On the day of the deadline set down Israel in May 1971, she has been con- in the most extreme circum.stances. by the European Parliament, the tinuously harassed and repeatedly Co:m'm.unity's Transport Ministers .arrested and tortured by the Soviet au- The shortfall would be made up by communicated their response to the thorities. using supplies in storage, spare produc- threat made by the Parliament to Shewasreleasedfromexilein Siberia tion capacity, interruptible contracts take the Council before the Court of last March, but has since been refused and flexibility in import contracts. Justice for ttailure to act' in the residence permits in Moscow and Riga. The Commission decided to carry out formulation ofa Common This leaves her homeless and unable to the survey because natural gas imports, Transport Policy. apply for an exit visa. particularly from the Soviet Union, will The MEPs are calling on the foreign account for an increasing share of the The Parliament adopted a resolution ministers of the member states to use Community's requirements in the years in mid-September threatening the their good offices to persuade the Soviets to come. By 1990, imported gas is ex- Court action, butgavetheMinisterstwo tograntldaNudelanexitvisaassoonas pected to constitute about 44 per cent of months in which to respond toitsresolu- possible.

(vii) EUROFORUM·

Family lib number ofbirths over deaths ··Start training substances and other hazards, Women's roles and family and to a net immigration of FolloWing the Greek like harmful exposure to high needs received an enterprising 181,000 people. President's offer to hold the levels ofnoise and vibration. boost from an opinion paper The census showed that43 Olympic Games in Greece- It also underlines the need to drafted by MEP Jook percentoftheFrench their ancient and original develop safety-training Vandermeule Crouckeforthe population lives in four regions home, MEP Gontikas is schemes for young people and Parliament's Committee on which cover 18 per cent ofthe proposing that Europe organise migrants. social aft'ah:s and employment. countryside: ne de France, its own versionofthefamous The paper encourages Rhone-Alpes, Provence-Alpes- event to unite the 10 nations in Emergency aid for member states to offer Cote d'Azur, and Nord-Pas-de- 'noble pursuits'. comprehensive information Calais. He suggests the first refugees programmes on the need to Community athletic games be The Commission has decided share domestic responsibilities held in 1984-to coincide with upon the amounts ofaid to be cLost' marbles distributed by non- when women go out to work and The Elgin Marbles are in the the second European elections. to consider schemes allowing The place? Greece ofcourse! governmental organisations to news again. Three GreekME:Ps refugees fleeing from conflicts couples to choose between have tabled a motion at the maternity and paternity leave in Southeast Asia, European Parliament asking Alexandrianduets Mghanistan, Central America, when a child is born. the British government tO A number ofjoint ventures The opinion also urges and Southern Africa. return the famous monuments were initiated last June at the The aid is part ofthe member states to remove all Egypt-EECAle:xandriaForum and statues to their homeland. Community's special restrictions on part-time work The collection was brought to on Investment and so that more men and women programme to help fight Britain by the Earl ofElgin and Cooperation, but the overall hunger in the world. can choose to work this way and subsequentlyinstalledat.the. resultS ofthe conference can share family duties. After meetings in Geneva British Museum, where it has only be judged in the medium- with the United Nations High been displayed ever since. term, Development Commission for Refugees and Commissioner EdgardPisani the League ofRed Cross ~n university? told.the European Parliament. Six Euro MPs are calling on the New housing for Societies, the Commission Responding to a written decided in November that the Commission to study Britain's the Mezzogiomo question by BelgianMEPLuc OpenUniversitytosee aid should be distributed by A framework agreement was BeyerdeRy~e, Mr Pisani said whether it offers scope for use signedinNovemberto lend non-governmental more than 60UEgyptian organisations in the following in other member states. 62.8 million ECUs to build businessmen and They want to know whether 1,600 housing units in the way: 10million to refugees in representatives of233 Southeast Asia, 1n million to the system could provide Mezzogiornoto underpin European firms attended the cultural and vocational industrial development in the Mghan refugees in Pakistan, forum, where the main aim was 5 million to refugees in Angola, education to help working, region. to promote contactsbetween unemployed, and elderly adults About63percentoftheloan and 10 million to refugees in private individuals and firms Central America. throughout Europe to cope with will come from resources ofthe on both sides. rapid changes in life-styles and New Community Instrument The operation's success the economy. for Borrowing and Lending depends on the follow-up, Mr Birth defects in (NCI) and the rest from the Pisani said. The Commission Seveso Europeanlnvestme~tBank'ii! has funds under this project to Social Affairs Commissioner Lady scholars own resources. Female applicants last June help promote investment and Ivor Richard has assured the The borrower is the Sezione won 10 ofthe 31 grants in the cooperation, but any measures European Parliament that the Autonomadi Credito Fondario Community's Bl!ientifieand funded will be chosen after Commission is supporting ofthe.BancaNazionaledel technical training programme, consultations with the scientific efforts to assess the Lavoro. The housing which will Commissioner Etienne Egyptian authorities, he said. impactonhumanhealthofthe be builtinLatium, The Davignon told the European leaks at the Seveso chemical Marches,Ab~,Apulia, Action on safety plant in 1976. Parliament. ·Calabria, Sardinia, and Sicily, His statement came in Social Affairs Commissioner But, Mr Richard said, it is will mostly be reserved for response to a question by MEP IvorRichardhassubmitteda hard for scientists to carry out people working in local second action programme on comparative studies, because of MrsMechthild VonAlemann, industry and services. asking what proportion ofthe safety and health at work to the the serious under-reporting of Community's scholarships had Council, It covers the period birth defects which normally been awarded to females. Mr Bear facts 1982/S7, and aims to carry on occurs. His statement was in Davignon explained that the Brown Bears are in danger in theactivitiesofthefirst reply to a written question by grants are intended for Europe, particularly in the programme, adopted in 1978, MEPVera Squarcialupi Utaly), applicants ofboth sexes, but in Pyrenees, where only ten to which specified 14 areas of asking how the Commission some programmes the twenty survive. work and gave priority to explained Seveso's higher than percentage awarded to females Commissioner Karl-Heinz controlling dangerous average rate ofmalformations proved higher than the NaJ.jestoldtheParliamentthat substances. innew-bom babies and percentage offemale the CollllD.ission is aware ofthe RegulationS have since been disorders ofthe liver and applicants. bear's critical conservation sought relating to substances nervous systems. status and would consider like lead and asbestos. The first usingita funds to support ·programme also concentrated Are fairs fair? More French projects to help it survive. MEP on exchanging information An unknown number of The population ofmetropolitan Hugo Muntingh wanted to between member states and European children belong to France now stands at know when the Commission reaching a common travelling circus and fair 54,257,000, according to the would submit a draft directive understanding and approach to families. Three Euro MPsare latest census carried out last on the protection ofvertebrates safety and health problems at concerned about how little is March. Thisisa3.2percent in general and was told that a work. known about these children increase over the last census study is already in progress to The new programme puts and the work they do, as well recorded in 1975. determine which species are increased emphasis on safety as the apparent lack of The rise in population was endangered in the Community on the shop floor while educational and training due to a natural increase in the and howvubierable they are. continuing work on dangerous facilities for them.

(viii) EUROPE83

hanks to the EEC, the present world-wide economic recession is not having the same catastrophic results ... and in Denmark, what l as in the 1930s, when every country sought refuge in protectionism ••• Even although the cooperation is not effective the politicians say enough, there is no alternative to the EEC. It is impossible to imagine Denmark not being in the EEC.' Ofthe nine political parties, pied with agriculture, while little is done in These are the words of the Social Democrat other areas. Anker Jorgensen, who became Prime Minis­ seven-with some 85 per Poul Schliiter sees the poor employment ter the day after the EEC referendum in cent of the MPs-have a situation as being the main problem for the October 1972. EEC, and pleads for a comprehensive prog­ Political and national feelings had hardly positive attitude towards the ramme aimed at encouraging investment by ever been stirred up so much as during the re­ Community, reports private industry. He thinks it would be de­ ferendum on Denmark's joining the EEC. HEINZANDRESEN trimental for the member countries to extend 'The Danish language will disappear,' people the public sector or give priority to artificially­ said. 'The country will become incorporated created employment, as such measures would into Greater Europe and lose its identity.' brought for agriculture, which in fact brings lead to higher taxes and increase the problems 'Danish land will be bought up by foreign Denmark millions in net profit each year. In­ of private industry. He would also like to see a capitalists.' 'The country will be swamped by dustry has also succeeded in winning a share of pragmatic development of cooperation foreign workers.' 'Danes will be forced to the EEC market, so that neither Schliiter, among the Ten. 'Changing the political struc­ work abroad.' These and similar arguments Ellemann-Jensen, Erhard Jakobeen (Centre ture ofthe EEC would not solve anything, and were used by the opponents of the Commun­ Democrats), nor Anker Jorgensen questions for that reason I am sceptical about any possi­ ity. The proponents were not exactly reticent, Denmark's membership. Any notion ofleav­ ble abandonment of the veto right and the in­ either. A 'Yes' for the EEC would ensure ing is described as quite unrealistic. Com­ troduction of majority decisions in the Coun­ prosperity, full employment and a future ments Schliiter: 'That would be an economic cil ofMinisters,' he says. without problems; a 'No' would mean in­ catastrophe.' Anker J orgensen is also against doing away creasingunemployment, huge price increases In particular, the European Political Coop­ with the right ofveto. He says: 'Theoretically, and diminishing prosperity. eration (EPC), which was not mentioned in minority decisions bring quicker results, but The debate was often acrimonious. It split the EEC treaty, is looked upon as being posi­ it doesn't work in practice, since the smaller not only the country but also families and peo­ tive. ToquotePoulSchliiteroncemore: 'This member countries would be forced to accept ple at work, into two camps. Political alliances cooperation is of great value for the whole of such decisions, while the bigger ones would fell apart. Politicians, trade unionists, em­ western Europe, since it gives us Europeans never do so. We naturally reject a system in ployers, clerics, actors and scientists formed greater influence, both in terms of economics which the big countries have a kind of veto groups to campaign either for or against join­ and offoreign policy.' Erhard J akobsen, lead­ right and the small ones have none.' ing. When the final decision was taken on 2 er of the Centre Democrat party and Member Ofthe nine parties at present represented in October 1972, nearlytwomillionDanes (63.3 of the European Parliament, describes it as the Folketing (Parliament), seven of them, per cent of the votes cast) voted for entry into 'quite fantastic' that Europe today speaks with some 85 per cent of the Members of theEEC,andaboutonemillion(36.7percent) with one voice on many issues, which just a Parliament, have a mainly positive attitude to­ voted against. few years ago would have been unthinkable. wards the EEC. The attitude of a large part of Today, ten years after the referendum, He says: 'It is the member countries which the population towards the EEC is significant­ both sides agree that their prophesies were have changed, not the EEC.' ly more negative. In the first direct elections to much exaggerated. Denmark is still an inde­ However, even the pro-Europeans are not the European Parliament in 1979, the so-cal­ pendent country inhabited mostly by Danes: completely satisfied. Uffe Ellemann finds it led 'Peoples' Campaign Against the EEC' and the promised problem-free future has yet 'lamentable' that EEC policy is still preoccu- took 21 per cent of the vote and won IS of the to materialise. In the words of the Foreign Danish seats. The Peoples' Socialist Party are Minister, Uffe Ellemann-Jensen: 'The EEC also opposed to the EEC. The Social Demo­ corresponds neither to the rosy outlook de­ crats, in particular, lost votes to the 'Peoples' scribed by its proponents, nor to the grim pic­ Campaign'. ture painted by its opponents.' In the opinion ']he general difficulties of the 1970s Anker Jorgensen does not believe the ques­ of the Minister of State, Poul Schliiter, Dan­ have spilled over into the popular tion ofthe EEC can lead to renewed friction in ish membership of the EEC has not brought attitudes towards the European his party, since, as he puts it, the former oppo­ any surprises: 'The problems which we have Community in all three of the nentsoftheEECamongthe Social Democrats are just what we expected.' countries which joined ten years ago. are now more or less of the opinion that it's The leader of the far-left Socialistisk Folke­ Danish and Irish farmers expected, and in worth while staying in. Gert Petersen does parti(Peoples' Socialist Party), GertPetersen, the early years got, substantial benefits not think that it would be impossible for De­ who opposes the EEC, admits that the from membership. But today the nmark to leave the EEC, but admits that, for threatened mass migration has not happened. Community is even more unpopular in this to happen, there would have to be a At the same time, he sees old fears as being Denmark than it is in the UK-the fishing change ofpolicy among the Social Democrats. confirmed: 'We are so restricted by the EEC dispute has hardly helped-and while Irish He comments optimistically: ·'We have seen that we are no longer able to take independent opinion is somewhat more favourable it is the Social Democrats change their policies be­ measures against unemployment and the less enthusiastic than in any of the original .fore, and it can happen again if the economic economic recession. We are worse off than Six., recession gets worse.' comparable nations like Sweden, Finland and Erhard Jakobsen is not surprised at the Austria, which have remained outside the -Emile Noel, secretary-general ofthe Danish people's somewhat cool attitude to­ EEC.' European Commission, in the Financial wards the EEC. Asheputsit: 'How can people The four liberal government parties and the Times, S January 1983. understand the problems of Brussels, when it Social Democrats point particularly to the is difficult enough to follow what hapllens in advantages which EEC membership has the Danish Parliament?' 13 EUROPE83

potentially important and could be Commission officials agree with cannot remain indifferent to the fate exploited for some time to come in German Socialist MEP Gerhard offellow Europeans. several member states. Schmid, that food products treated The Political Comtnittee of the The largest lignite reserves are in with radiation should be labelled to Parliament therefore wants the the Federal Republic of Germany. tell the consumer exactly what he is Foreign Ministers of the European Estimates show that some 35 billion eating. Community, when discussing poli­ tonnes of lignite are exploitable Radiation treatment of food is tical cooperation, to adopt a joint from an economic point of view. currently biggest in Belgium, where position on the issue. It also prop­ Greek reserves are estimated at 2.7 it is allowed for strawberries, on­ oses that 'the problem of the Baltic billion tonnes, followed by reserves ions, garlic, shallots, paprika, pep­ States' be submitted to the Special in Italy, France, the Netherlands pers and potatoes. In the Nether­ Decolonisation Committee of the and Denmark. lands it is used for potatoes, onions, United Nations. How could the Every Community member state, mushrooms and poultrymeat; in Soviet Union oppose such a proce­ Meepingto with the exception of Belgium and France for onions, garlic and shal­ dure since it has introduced similar L~embourg, has some sort of peat lots and in Italy for potatoes, onions requests itself on other occasions? reserves. The most peat is found in and garlic. In Germany, Britain and The principle of decolonisation is the left the United Kingdom and Ireland; Denmark it is banned in principle, indivisible. 'What is ri!Jht for Mrica 1,580,000 hectares and 1,200,000 but irradiation equipment does is also right for Europe,' concludes From 1 January 1983, people hectares respectively. These are exist. the report. coming from another European followed by Greece, the Federal Community country to the UK to Republic of Germany, Denmark, live have been eligible to exchange ltaly,Franceand the Netherlands. their foreign licence for a British The European Comtnission is one within a year. British driving playing an active role in promoting licence holders who decide to live lignite investment. In 1981 it lent The Baltic What's the in another Community country 30.7 million pounds for the ex­ will have similar rights. ploitation of new reserves in the masculine of Regulations have been approved Meyreuil mining region of France, States are by Parliament which will allow the and for the construction of a new exchanges to take effect. Applica­ electricity plant. In 1982, about part of 'midwife'? tions for exchange can be made on £68.5 million wenttofinancethe ex­ the usual licence application form ploitation ofligniteminesin Greece. Equal rights for men and women is obtainable from Post Offices. Community financial assistance Europe something that no politician can Community licence holders who has been used for the exploitation of afford to ignore these days, also require heavy goods or public peat in Ireland. Loans amounting to 'Cold and calculated slow particularly in the discrimination­ service vehicle licences will receive about £18.6 million were granted genocide' is how the Political conscious confines ofthe application forms from their local during the period 1976 to 1980, for Comtnittee of the European European Community. Now, Traffic Area Office. In addition to the financing of investments in peat Partiament has described the British MEP Roland Boyes is holding an appropriate Community production and the construction of actions ofthe Soviet Union in the doing his bit for the cause, by licence covering these vehicles, peat-fired power stations. Baltic states of Estonia, Latvia striking a blow for male rights. and Lithuania since 1940, when such applicants must also provide The extraction ofboth lignite and He says that men who want to be­ proofof recentdrivingexperienceas peat provides a large number of the Soviet occupation began come midwives in the United King­ laid down in the Regulations. jobs, particularly in Ireland and under the Molotov-Ribbentrop dom are effectively discriminated pact, signed by Stalin and Hitler. Minimum periods of driving ex­ Greece. against because there are only two 'In an era of world-wide decol­ perience for vocational licence hospitals in Britain that are pre­ applicants are either six months onisation, the USSR is the last major pared to train them. in the 18 months preceding the date colonial power on earth,' states the Training in midwifery is now the of becoming resident, or one year in report, prepared by German Christ­ same throughout Europe and in ian Democrat MEP Otto Habsburg. the previous three years. A health 1983 midwives will be allowed to TheSovietUnionhasforthepast42 work in any Community country. years 'deprived these three popula­ European Commission officials warning for tions of their national identity and have told Mr Boyes that the Euro­ exploited their natural resources', pean Court of Justice is looking into Lighting-up fruit and veg which include bituminous tars and the legal ramifications of. the case phosphorite, two important raw and will report its conclusions ... Are you worried that your candle­ materials. hopefully before the 1984 European time for tit dinner will be r.UUed by a 'There is a general sentiment of elections. fluorescent glow given off by the despair among the population,' peat? strawberries? Or that future states the report. It recalls the dec­ children may sprout additional laration made in April 1979, and Coal is not the only solid fuel with Hmbs because of radioactive signed by 45 Estonians, Latvians a glow.ing future in the European onions? and Lithuanians, asking the United Are you Community's energy strategy. Fear not. At the request of a Nations to recognise the rights of A recent report adopted by the Member of the European Parlia­ the Baltic States to self-determina­ European Commission shows that ment, the European Comtnission tion and independence and urging a banking on a lignite and peat are also has been looking into the practice of referendum on this issue. economic:ally viable sources of giving food a shot ofradiation before The report says that 'a cold and loan? energy. it arrives in the shops, in order to calculated slow genocide' by the The shareofligniteand peat in the stop the bacteria getting to it before USSR is in flagrant contradiction The European Investment Bank Community's internal energy pro­ you do. with the principles of the final act of has launched a 136 million pounds duction and consumption will be Apparently, safety measures to the Helsinki Declaration on Secur­ bid to help hard-pressed small and smaller than the part played by coal. protect both workers using the ity and Cooperation in Europe, medium-sized enterprises in In 1981, lignite represented 6.4 per dangerous cobalt 40 and caesium guaranteeing the rights of peoples France and Italy. The funds, the cent of total production of primary 137 irradiators and the general con­ to self-determination, and with the bulk ofwhich will go to Italy, energy in the Community; while suming public, areinforcethrough­ United Nations charter. The Baltic come from Europe's New peat represented only 0.2 per cent. out the European Community States are part of Europe, the report Community Instrument for long­ But Community resources are under a Euratom Directive. But continues, and· Europe therefore term loan finance, and will be

14 EUROPE83 made available to firms through what it sees as the increase in local banks and financial human rights violations in intermediaries. Europe. Three proposals on the QUESTIONS Small and medium-sized firms subject have been tabled, in employing less than 500 people cur­ November, by three groups of IN THE HOUSE rently account for about 95 per cent MEPs. of all registered companies in the The first one, tabled by two European Community and they socialist MEPs, Marijke Van BrianKey, United Kingdom: Andrew Pearce, have been particularly hard hit by Hemeldonck and Phili Viehoff, Now that the Commission has United Kingdom: therecessionandhigb interest rates. condemns the recent prison sent­ ratified, on behalf of the Commun­ In the allocation of EEC authorisa­ Bankruptcies have been increasing ences imposed on Czech intellec­ ity, the Convention on the conserva­ tions for road haulage operators, at nearly unprecedented rate. In the tuals and signatories of'Charter 77'. tion of European wildlife and natu­ does the Commission take properly Netherlandslastyeartheyrose by 42 It says it is particularly concerned ral habitats, how does it propose to into account that British users are at percent on 1980. In the Federal Re­ with the arrest oflvan Jirous, a for­ ensure that member states comply a disadvantage in the use of their au­ public of Germany, traditionally mer artistic and cultural director, with the provisions of the Conven­ thorisations because of the time Europe's strongest industrial eco­ accused of editing a non-official tion, and to collate information for taken on sea crossings; and if not, nomy, they increased by 27.4 per paper, and recently condemned to a exceptions made to the Convention will it undertake to give British road cent; in the United Kingdom by long prison sentence. The arrests under Article 9? hauliers in future a large share ofthe 26.4 per cent; in France by 20.3 per and subsequent sentences contra­ pertnits available, in order to take cent; and in Belgium by 15.8 per dict the Helsinki Final Act, which Answer by Karl-He~ Narjes on account of this factor? cent. Even worse figures have been guarantees freedom of expression, behalf of the Commission: recorded for the first half ofthis year says the motion. Inaccordan~;ewithArticle 155 ofthe Answer by Mr Giorgio and a post-war record is expected. The second proposal expresses EEC Treaty, the Commission will Contogeorgis on behalf of the The new European Investment concern over the situation of the ensure the Community complies Commission: Bank loans- £116 million to Italy 400,000 members of the Greek with the provisions of the Conven­ In. its proposal on calculating and and £21 million to France-are part minority living in Albania, who are tion within the limits of the powers allocating the additional commun­ ofa concerted response by the Euro­ currently deprived by the Albanian vestedinitbycommonrulesalready ity quota for 1982, the Commission pean Community's financial institu­ government of freedom of religious in force and by those which come proposedanewmethodofallocating tions to stem the tide. Last year the expression. The Albanian author­ into force as the result of measures authorisations. Under this system Bank made 860 loans, worth £158 ities have also forbidden the Greek adopted by the Council in the fu­ the additional pertnits would have million to small and medium-sized language to be taught in schools and ture. been distributed in accordance with enterprises, from its own resources. universities. The parliamentary The Commission will cooperate the following criteria: first, each Compared to the previous year, this motion calls on the Albanian gov­ closely with the member states to member state's share of the trade; represented a sevenfold increase in ernment to restore freedom of reli­ make this Convention work as well and second, the licence used by the number of loans and a fivefold gion by pertnitting churches to be as possible, in particular, by collat­ transporters in each member state, increase in the amount of cash reopened and services held again. ing on behalf of the Community the the use figures being modified to granted. The other government to be information referred to in Article 9 take account of the distance of each In coming years the Bank is ex­ condemned by the European Parlia­ and by preparing the report on ex­ of these member states from the pected to channel more and more ment is Ankara. According to ceptions, particularly on the basis of centre of the Community - this loans like the French and Italian another parliamentary proposal it is the information it receives in being expressed in terms of travel­ ones from New Community Instru­ obstructing an inquiry, requested accordance with Council Directive ling time (the Frankfurt region was ment funds into the sector. Under by the United Nations, into the fate 79/409/EEC of 2 April1979, which the point ofreference). the system, which has operated ofpersons missing since the Turkish is to do with the conservation ofwild For sea crossings included in the since 1979, the money is raised by invasion of Cyprus in June 1974. birds. total journey made, the correspond­ the European Commission. There are strong indications that ing loss of time was taken into people reported missing are still Vincent Ansquer, France: account. being held either by the Turkish au­ Does the Commission intend to pro­ This new method of allocation The fight for thorities or by the Turkish forces vide financial incentives for certain was not adopted by the Council, occupying Cyprus, says the motion, types ofinvestment in the field ofthe which chose to distribute the addi­ proposed by Greek communist rational use of energy? tional quota based 50/50 on the way human MEP Leonidas Kyrkos. it is currently distributed and on licence use. Two countries (Greece rights Answer by Etienne Davignon on and Ireland) benefited from a sup­ 'Producers maintain permanent behalf of the Commission: plementary increase in their quotas Since the signing of the Final Act lobbies in Brussels to protect their The Commission has adopted a in order to compensate for their of the Helsinki Conference on interests'- an illustration from a draft Regulation authorising the peripheral situations. security and cooperation, human lively booklet, 'Making Our Voices granting, under the budget of the The recent proposal of the Com­ rights issues have been Heard', published by Consumers in European Communities, of specific mission for the 1983 quota again paradoxically less and less talked the European Community Group. aid for certain categories of invest­ takes account of the disadvantages aboutinEurope. The European Write to them at 24 Tufton Street, ment in the rational use of energy. experienced by certain countries Parliament is very worried about London SWJP 3RB,forafree The categories in question are as bc;cause oftheir peripheral position. copy. follows: Investment in heat generation for district-heating systems using in­ J.M. Taylor, United Kingdom: dustrial waste heat, solid fuels and Would the Commission please indi­ waste material; investment in the cate in how many member states conversion of industrial fuel-oil­ corporal punishment is adminis­ fired plant to coal, using innovatory tered in schools, the form it takes, high-yield technology. and whether it is administered by a Investment in facilities for the member of staff of the school or an handling, storage and preparation independent disciplinary agency? of coal intended for users other than power stations and coking plants; Answer by Mr Ivor Richard on investment in the generation of behalf of the Commission: energy from urban, agricultural and The Honourable Member's ques­ industrial waste and from agricultu­ tion does not come within the ral by-products. Commission's jurisdiction.

15 EUROPE83

the EEC's lending institutions are actually 1 making more and more money available. 1983 is to be the year of The EIB's loans are also much 'softer' than those of other banks. Under its global loans scheme, low interest credit is made available the small company' to SMEs through financial intermediaries in the member states. These loans can be any­ thing from 25,000 ECU to 4 million, and can mall and medium-sized enterprises More than ever is being be given for up to half the cost of the fixed investment. To qualify for an EIB loan, indi­ ~=~~::.=rds:Ue!':~ done to lend a hand to small vidual firms employ no more than 500 work­ Svarious criteria, including turnover, and medium-sized ers; have less than 75 million ECU in fixed accumulated capital or fixed assets to businesses-the backbone assets; and have no more than one-third of classify undertakings. But, owing to the , • their capital owned by a larger company. diversityoftheTen'seconomies,sizeof ofEurope S econOIDIC In 1981, 860 loans, totalling 288.3 million workfo~e is seen as the mostre:WStic structure, reports ECU, were granted by the EIB to small and measunngrod.fortheCommumtyasa whole. GERALD BOURKE medium-sized companies in the Community. All firms Wlth up to 500 employees are By comparison with 1980, this represented a therefore loosely categorised as SMEs. sevenfold increase in the number ofloans and Although no recent completely acceptable a fivefold rise in the amount of cash granted. figures exist, it is safe to say that more than 95 vors to bounce back. Nevertheless, the dismal Three years ago a new lending arm was per cent ofall companies in the EEC fall under statistics underline the need for greater efforts added to the EIB- the so-called New Com­ this heading (almost 100 per cent in Denmark to help small companies stay afloat. munity Instrument, which funds SMEinvest­ and Greece, 98 percent in theFederalRepub­ Following a proposal by the European mentin addition to providing money for infra­ lic ofGermany). SMEs are therefore the back­ Parliament to proclaim 1983 'the year ofsmall structural and energy-savin:~ projects bone of the economic and commercial struc­ and medium-sized companies and the craft throughout the Community. So far two 'tran­ ture of the Community. trades,'theCommissionissteppingupitsown ches' of one billion ECU have been raised on Therecessionhastakenitstolloflargecom­ programme in favour of SMEs. 1983 has panies. But it is SMEs which are apparently kicked off with an important conference in finding it most difficult to weather the storm. Brussels - January 20 and 21 - highlighting #fop priority is to Not since World War II has Europe seen such the problems facing small companies and dis­ improve small firms' a spate ofcompany closure. In the Federal Re­ cussing ways and means to overcome them. access to capital public of Germany, traditionally the Com­ The conference is to be followed by a series munity's industrial stronghold, 27.4 per cent of seurinars throughout the year, which will markets' more companies collapsed in 1981 than in deal with specific areas of policy. These in­ 1980. In the UK, France and Belgium there clude various aspects offinancing, innovation were increases of 26.4 per cent, 20.3 per cent technology, and the elimination of trade bar­ the world's capital markets, and a further 3 and 15.8percentrespectively. In the Nether­ riers in both the Community and export mar­ billion ECU is expected to be distributed lands, company failures were up a massive 42 kets. The Commission hopes that clarification under NCI Ill. percent. at a European level will underline the crucial Small businesses also benefit from a con­ The first half of 1982 saw an acceleration of importance ofSMEs, and will encourage indi­ siderable amount of support from the Euro­ the trend. West Germany was hardest hit-50 vidual member states to improve the domestic pean Regional Development Fund. That per cent more companies folded there in the conditions in which small companies operate. 3,861 of the 4,102 industrial projects which six months to the end of June than during the The existing programme is a broad one, received assistance between 1975 and 1982 same period in 1981. touching upon all the sensitive aspects. concerned investments ofless than 10 million The more mercenary may view this weed­ Obtaining adequate financial backing is the ECU, is an indication of the extent to which ing out as a sort of natural selection process biggest single problem for companies in these small and medium-sized companies receive which will ultimately result in more competi­ days ofhighinterest rates and credit squeezes. preferential treatment from this source. tive industries. On the other hand, the finan­ A top priority of EEC policy is to improve Restructuring and improvement loans are cial chaos and widespread unemployment small firms' access to capital markets. Indeed, also available on favourable terms from the which has resulted from the recession may when most banks are becoming increasingly European Coal and Steel Community seriously undermine the ability of the survi- reluctant to take risks by funding investment, (although the severe problems of these two sectors has reduced the number of loan ap­ plications) and also from the Agricultural Funds (EAGGF and FEOGA). The number 'The dismal statistics underline of grants for research into energy-saving and the need for greater the exploitation of alternative energy sources efforts to help small companies is increasing at a rapid rate. Studies have con­ stay afloat .. .' sistently shown that SMEs are more innova­ tive than larger companies and the Commis­ sion bears this in mind when financing the risks associated with innovation. It is often the case that managers of small firms are inadequately trained. A report earlier this year by the European Parliament's Economic and, Monetary Affairs committee maintains 'that the day-to-day running of SMEs presupposes a level of skills and qual­ ifications which not all ofthem have attained'. When the Commission outlined its priorities 16 EUROPE83 for the administration of the European Social Fund (which eo-finances training and re­ training schemes in the Community) over the next two years, the improvement of manage­ ment techniques within SMEs was near the top of the list. Since small companies create more new jobs than large companies, this has a significant bearing on Social Fund alloca­ tions. Small businesses constantly complain that they are obliged to function in an oppressive tax environment. Fiscal policy is largely the preserve of national governments, and the Commission powers of influence in this area are strictly limited. It has been trying for a number of years to bring some degree of har­ monisation to member states regimes but its attempts have been strongly resisted by the Council of Ministers. VAT receipts do, however, constitute a large proportion of the EEC's income and it is this form of taxation over which Brussels has most control. The most frequent criticism made by small companies is not the financial burden imposed by the tax but rather the complexity of the paperwork involved. There is, however, no standard Community V AT scheme for small firms and those operated by member states are very diverse. In an effort to counteract this, the Commis­ sion is planning a single scheme for all small firms in the Communi~y. Among other things, A Spanish master it wants to set a uniform ceiling below which businesses will be exempt from paying VAT. comes to town It is also formulating a simplified system which would base VAT accounting on pay­ ince last autumn, the Prado ments and receipts as practical cash flow con­ Museum has been packed with cepts, and therefore go a long way towards visitors to the highly successful ironing out existing complications. Some SMurillo exhibition, drawn from member states already operate a system of famous collections throughout the world. deferred payments for VAT on imports. The The 77 paintings and 25 drawings have now Commission is now planning to extend this to arrived at the Royal Academy, London, all member states, and thereby remove one of where they will be on show until27 March. the main obstacles to intra-community trade. Of the great Spanish masters, Murillo has Barriers to trade can take many forms. A been comparatively underestimated in recent number of measures to speed up traffic are times. But he achieved enormous fame and currently in the deliberative pipeline, includ­ acclaim in his own lifetime. By the middle of ing regulations to cut down on cross-frontier the 18th century his paintings were so popular inspection of goods and to simplify customs throughout Europe that an edict was passed to formalities. prevent their wholesale export from Spain. In The Commission has always sought to · 1852 the Immaculate Conception ofLos V ener­ Top: create an environment in which SMEs can ables was bought by the Louvre for 615,300 (Bett collection). compete with large companies. While large­ gold francs- the highest figure ever paid for a (Dulwich Gallery). scale mergers are strictly controlled, SMEs single painting at that date. Examples of his are freely allowed to enter into market-sharing work were owned by the King of France, is The Street Urchin from the Louvre, an un­ agreements as they are unlikely to cause dis­ Queen Catherine of Russia and many English sentimental picture of a ragged boy in which ruptions. The Council has also approved a collectors, including Horace Walpole. dramatic use is made ofchiaroscuro. Later he regulation enabling small producers to estab­ He was born in Seville in 1617 and, unlike refined his images of childhood into a more lish effective sales networks in other member his fellow townsman, Vel:izquez, the quintes­ idyllicvision,asin TwoBoysEatingaPiefrom states. A patent licencing law which is now sential court painter,he hardly ever left his na­ Munich, and The Flower Girl, in the Dulwich being prepared will give SMEs access to new tive town. Although it was a time ofeconomic Gallery. All these are on loan to the present ex­ technologies and enable them to exploit their recession, merchants, both local and foreign, hibition. They greatly appealed to 18th cen­ own inventions. still amassed great.fortunes trading through tury English taste, and had a profound impact Much is being done in Brussels to create an the port ofSeville with the New World and the on Reynolds' and Gainsborough's 'fancy pic­ environment in which small companies can rest of Europe. These merchants, together tures'. thrive. But national governments are often in with the aristocracy, wereMurillo's main pat­ Murillo was also a painter of portraits and a better position to improve their lot. Perhaps rons, along with the Church. landscapes, and a superb draughtsman. Ex­ the year of the craft trades and small and While these assured Murillo's success in his amples from each ofthese genres, for which he medium-sized companies will act as the own country, it was through his genre works is less well known, are also included in the ex­ catalyst. . 01 that his fame spread abroad. An early example hibition. 01 17 EUROPE83 Brushing up the entente cordiale

love all things French- except the French,' one Englishman told me recently. It is a common attitude, alas. ITh e British go eagerly on holiday to F ranee to savour her food, scenery, architecture, and just as eagerly they buy French cars, wines, perfumes. But-apart from a bard core ofd edicated francopbiles - they often find it hard to get on easy personal terms with a people they feel to be prickly, arrogant, chauvinistic. Why is it that these rwo illstoric rivals re­ main locked in so many mutual misunder­ standings and prejudices, and even enjoy the cherishing of their outworn cliches about each other? Moreover, have these past ten years of Britain's EEC membersillp done anything to improve this climate and to bring the two na­ tions to know each other better? At first sight, the answer to this last question might seem No, judging by the reports ofmutton and tur­ key 'wars' and other such disputes. And yet, look more closely and the record appears far less negative. JOHN ARDAGH, an subsidy from the rates). And party politics In my view, the F rench and British are mov­ sometimes get dragged in, especially as so ing closer through a kind of osmosis, almost authority on F ranee and the many French communes have Communist despite themselves. Of course there is bicker­ French, detects signs that mayors. I was told how one PCF mayor used ing, partly because there is more to bicker ab­ ills visit to his English twin-town to urge his out now that we are so closely linked within relations, at least on a hosts to lobby the British Government for the the EEC; bm the quarrels have the air of fami­ person-to-person level, are release ofl RA prisoners. Tills did not go down ly tiffs rather than real enmity. Slowly, some looking up too well. of the old cliches and prejudices are being Youth and educational exchanges, like broken down, as more people make real con­ twinnings, have developed greatly in the past tact through the vast increase in exchanges of ten years. Very recently, however, budget all kinds, cultural, social and commercial. For On the other hand, there seems little doubt cuts have begun to take theirtoll. A number of ignorance is the enemy: whenever the French that real holiday-making brings real di­ British local education authorities have this and British do take the trouble to get to know vidends. year suppressed all annual posts of French each other personally, they usually end up Britons who spend a fortnight or so in some 'assistants' in schools, as a staff economy- a friends. rural area generally come home with a warmth regrettable step that will weaken an important Here is a brief survey of the growth in ex­ of feeling for the French they have met, espe­ link in the chain of human contacts. · changes over the past ten years. First, tour­ cially if they take one of those down-on-the­ As for consumer trends, the vogue in ism. The annual total of French visitors to farm holidays in a gfte n1ral, now increasingly France for buying certain British goods, and Britain rose steadily from 763,000 in 1972 to a popular. And the same applies to the French vice versa, has been gaining strength and peak of 1,603,000 in 1980; then in 1981 it who go bed-and-breakfasting in Britain. seems unaffected by political frictions or dropped back to 1,413,000, due largely to the The same argument holds good for town­ xenophobic Press articles. During the 1980 fall of the franc against the pound sterling. twinnings, which should not be scoffed at as 'Lamb war', some leading Britons including The number of British tourists to France (ex­ mere freebees for mayors and councillors, for John Nott and Lord Buccleugh proposed a cluding day trippers) has risen from 2,000,000 usually they embrace a wide range of ex­ boycott of French imports. The result? Sales in 1972 to 3,5 77,000 in 1981. One recent fac­ changes between local sports clubs, school of French wines and cars in Britain did better tormay be the rise in the pound, but another is groups, choirs, even firemen and beekeepers. than ever. that the air package-tour to, say, Spain, has The number of twinnings has risen since 1972 Similarly, the range of British goods that been losing some of itS appeal in favour of the from 156 to 480, and it is rising still, despite the French regard as 'chic' has been widening individual touring holiday by car, and for this recession. beyond the traditional luxury market for France is the obvious venue. They have not been harmed by the Franco­ whiskies, tweeds and cashmere, to embrace There has also been an astonishing boom in British commercial squabbles. A Devon twin­ recherche blends of English tea, and even cheap day trips to French ports. At Calais, the ner told me; 'The politicians and professionals Christmas puddings. 'Les After-Eight' arc all annual figure has risen since 1971 from maygethotunderthecollaraboutmuttonand the rage. And Marks and Spencer's store in 396,000 to 1,700,000. Now, it may well be turkey embargoes. But when we meet up with central Paris sells 15,000 crumpetS a week to asked whether a day's shopping-and-boozing our Normandy twin-friends, we either treat the French. Some try to eat them raw. spree really does much to improve the trip­ these topics as a joke or just ignore them.' I only wish I could report the same zest per's knowledge of France; indeed whether However, there are one or two small clouds in the two nations' appetites for each others' the sight ofdrunken British louts in the streets over town-twinnings today. They are serious­ current cultural output - painting, theatre, and cafes of, say, Boulogne, helps to raise the ly under-funded especially on the British side novels, etc. But it is in the arts that rapproche­ image of Britain in French eyes. Maybe not. (rare is the council that will accept to give any ment has been weakest in the past decade. 18 EUROPE83

Whereas French and British businessmen, in­ ~henever the French from the French-and today British are again dustrialists and scientists today have close dragging their feet. Will the Chunnel ever get links and easily find common ground, by con­ and British take the built? If it does, then a fast and relatively trast the cultural pundits seem to inhabit two trouble to get to know cheap Paris-to-London train link, on the different worlds. And the impact notably of model of the Paris/Lyon high-speed train, French contemporary culture in Britain is far one another, they could bring a whole new dimension to tourism weaker than 20 or 30 years ago. usually end up and other exchanges and - maybe help us to Is this because both countries are in the friends' feel Europeans at last. creative doldrums, and so have little to offer? Even so, the Franco-British marriage will or because both are in a parochial phase and probably always remain an uneasy one-our thus are less alert to what the other has to temperaments are so different. No doubt offer?-or a mixture of the two? At all events, perhaps three times as many French people most Britons will always feel more at ease not few French painters of the past twenty years speak fluent English as ten years ago. only with others of an Anglo-Saxon culture are at all known in Britain. Few new French In Britain, alas, this is not the picture. T he but with people such as Scandinavians or plays nowadays cross the Channel, for there. numbers taking French for '0' or'A' levels, or Dutch, who are relatively ready to meet us on are hardly any playwrights left in a French for degree courses, have remained roughly our own terms. By contrast, those competitive theatre dominated by the director-as-super­ static since 1972, whereas one might have and sophisticated French present the kind of star. And even the F rench cinema has gone hoped that our EEC entry would have pro­ assertive challenge that tends to make Britons into decline since the heyday of the nouvelle vided a boost. But the steady growth of feel awkward, disturbing their complacent vague. English as the world's lingua franca (which in assumptions of superiority. Above all, what has happened to the French some other respects may be valuable) does Yet the more we travel and meet, the more novel since the days ofGide and Camu s? Very give us British even less incentive to learn the old cliches and prejudices will wane, as has few contemporary French novelists are other languages, thus providing an alibi for already been happening. And I find that ex­ known or read in Britain- Michel Tournier is our innate linguistic, and intellectual, lazi­ changes are often more successful at grass­ one of the rare exceptions - and far fewer are ness. Hence more and more Franco-British roots level than between blase 'top people' translated than a generation ago. It may be exchanges take place in English. The result is such as mediacrats. Once, when Crowbor­ that part ofthe blame lies with the insularity of that the French are thereby broadening their ough, in Sussex, was hosting a sports meeting British publishers, most ofw hom are far more cultural horizons more than the British are. with its twin-town, Montargis, at the par ty geared to the American scene than to the Con­ Geography, too, is a barrier. Those twenty afterwards the young leader of the French tinent {and translations are costly). But it is miles ofwater separating us from Europe have visiting team made a touching speech in not­ true also that the French novel is in an arid often in our history proved a vital protection quite-perfect English: 'Europe will not be cre­ phase, still suffering from the blighting influ­ against invasion; but today they are a practical ated by the politicians in Brussels haggling ence of the nouveau roman and of structural­ and psychological handicap. It is ironical that over the price of butter, but by the people get­ ism. mostof the post -war initiative and enthusiasm ting together, dancing, drinking, sinking .. . ' Most French novels today are either for a Channel Tunnel has come not from the (sic). And so, till nearly dawn, we danced, mediocre historical works or else abstruse British, who might benefit most from it, but drank and finally sank. () poetic/stylistic experiments, and neither are likely tohavemuchappealinBritain. Faber& Faber last summer made a serious effort to find some good new French novels, sending an editor to Paris who collected and read some 50 books; but not one was judged worth trans­ Yes, Minister ... lating. Other firms have had similar experi­ The French have unofficially decreed that any civil servant who wants to get to ences. the top must spend a period of employment in one ofthe European Community This is not to say there is no good new institutions . Ifa Whitehall civil servant spends longer than five years working in F rench writing: but it has moved away from the Community he or she is then struck off established service in Whitehall the novel into sociology, history and philoso­ altogether. But in France, their jobs back at home are preserved including phy, and here some books do make an impact promotion prospects. in Britain: witness the success here of Le Roy This points to a fundamental difference in outlook between the French and Ladurie's Montaillou. And at least modern British administrations . T he French see working in the Community as being British novels have some success in France, essentially in the best interests of France. where Fowles, Murdoch, Durrell and others It works at the political level too. Mitterran d himself was elected to the are widely read and admired. Yet it is clear European parliament in 1979. As the French President he has no fewer than seven that far greater efforts need to be made to fonner MEPs among his key ministers. What chance has an MEP got of getting bridge the cultural gulf ofmu tual indifference into Number 10 at the moment? and insularity. T he answer is no chance at all. The Government is, of course, wholly In all exchanges, human and commercial as committed to Britain's membership of the Community but industry and the public well as cul rural, language remains the greatest have yet to grasp the importance of that commitment and give it their full support. barrier. Here the French at least have made There are so many tangible benefits that Community membership will spectacular progress in the past decade. undoubtedly bring if they would commit themselves, not only to membership, but T hough still rightly proud of their own lan­ to knowing more about it and, above all, actually participating more in the guage, and often vexed at its global loss of Community's development. ground to English, they nonetheless seem T he insular attitude to Community membership is probably the result of now to have accepted that they have little op­ groundless fears . Again, look at the French- who are certainly no less French for tion but to buckle to and learn the world's being in the Community .Indeed, one could say that they have put the French dominant language, as everyone else is doing. imprint firmly on to the Community! Foreign language classes are now compulsory - Tom Normanton MP, who is also MEP for East in all universities and at most school levels, Cheshire, in an interview with British Business. and 83 per cent of pupils make English their first choice. And my own impression is that 19 EUROPE83

11.33 am on a squally, blustery day cation, endorsing their 'territorial rights' on last November, on a temporary car Merseyside, and enabling them to show their Blooming park by the banks of the Mersey in a own particular kind of national garden. Asc ene ofgi gantic earth-shifting and The scale of this international participation construction, a Belgian national flag was matches the concept of the Garden Festival Merseyside­ bent to a halyard, and raised to a masthead. itself: an idea, for these depressed economic It took its place beside a Union flag and the times, of outstanding boldness, and with a azure symbol of the Bureau International des time-scale that is a definition ofvaulting ambi­ the prospect Expositions, already streaming in the wind tion. Organised and promoted by the from the estuary over new man-made moun­ Merseyside Development Corporation, with tains of soil and clay. A Belgian delegation the initial impetus having come from the UK for1984 looked on as Count de Kerchove de Denter­ Government Environment Minister, Mr ghem, President of the Societe Royale d'Agri­ Heseltine, the result promises to be a near­ cultu.re et de Botanique, raised the flag. miracle. A massive clean-up on They came from the Belgian Embassy in Little more than a year ago, the site (approx­ Liverpool's dockside paves London, the Office Nationale des Debauches imately six kilometres south-east of Liver­ Agricoles et Horticoles, and from the Belgian pool's centre, on a stretch ofcoast just beyond the way for an international architectural landscaping industry. They lis­ the docks where the Garston Channel threads garden festival next year­ tened, as did a sizeable turnout of press and past the Devil's Bank) was 101 hectares of de­ on a site that hasn't seen a T V reporters and photographers, as Lord reliction; disused tank farms, tipped rubbish, Aberconwaycompeted with the howling wind a decrepit wharf, and burnt-out car wreckage flower in a long time ... and the sound of caterpillar earth-movers in from the Toxteth riots ofl98l. That dispirit­ JACKWATERMAN making a speech ofwelcome. ing spectacle has already been erased - bull­ Thus Belgium became the first country to dozed, and vanished from the map as ifit had reports accept formally the British Government's in­ never been. vitation to take part in the biggest event of its In twelve months, 3.2 million tonnes of kind ever staged in Britain: the International material have been shifted on and around the Garden Festival, which will last from April to site, hills created and landscaped, and a start October 1984. The significance of the cere­ made on the planting of a quarter of a million mony, as the Liverpool Daily Post reported trees and shrubs. Already, just behind where next day, was that 'A small corner of the Belgian flag flies, are rank upon rank of Merseyside has been annexed to Belgium - new trees, heeled into the ground prior to re­ until the end of 1984, that is.' moval to where they are to be planted. They T he hope now is that, where Belgium is begin with a line of Acer Campestre and pro­ flying its orange, black and red striped flag, ceed alphabetically throughAcerPseudoplaUl­ others will follow. Discussions are going on nus and Betula Pendula to the far distance­ with 30 countries which have expressed an in­ presumably to shrubs with names beginning terest - not only from Europe, but (among withZ. others) from, China, Hong Kong, and the By the time another year is out, a further United States. The aim is that a minimum of transformation is scheduled to take place. In 20 countries will be presented, as Count de this instance the change is of the order of Kerchove was, with a certificate of site allo- magic that normally only a stage extravaganza 20 EUROPE83

context - although at this stage the precise form of their garden is still in the planning stage. Their architectural engineering repre­ sentative, M. Jacques Lefever explains: 'We can't say specifically what we shall be doing. But we shall be bringing over a lot of botanic rarities, and we have a standard which we fully intend to maintain at a prestige event of this kind. The British public have come to expect it of us, because every year we do particularly well at the Chelsea Flower Show.' M. Robert de Craene, Agricultural Coun­ sellor at the Belgian Embassy in London since 1978, is equally enthusiastic. 'We have already seen the site,' be says, 'and shall be able to plan for a truly national participation. Our ties with Britain are improving all the time - and they are far closer now than they were ten years ago at the time the UK entered the Common Market. We have a very good re­ lationship, we are increasing all the time the volume of horticultural products between the two countries, and we are looking forward to the Garden Festival to improve this even more.' The Count de Kercbove, heading the de­ legation, says: 'Horticulture is very impor­ tant, both in import and export to Belgium, so we were very keen to participate. I've only just heard that we are the first internationally in the Festival. That is something that just hap­ pened, but it is something I'm very proud of, because it is an international horticultural project ofsuc h prestige and importance.' As to prestige and importance, much has already been made of a comparison between the new Festival Hall- a building of great air and light- and the 'Crystal Palace' which was a wonder of the Victorian world at the Great Exhibition of 1851 (and which, appropriately for that comparison, perhaps, contained among its many exhibits a 40-foot model of Liverpool Docks, complete with 1600 scale­ size sailing vessels). Paxton's great glass building, which arose in the space of ten might provide. There will arise a landscape of 'A landscape of dells, with ponds, lakes, months in Hyde Park, was approximately ten dells, mill ponds, lakes, cascades and a long cascades ... ' That is the prospect for times the sizeofthenew Festival Hall, the roof riverside walk; rose gardens, Victorian gar­ Merseyside in 1984, when the derelict site of which will be built of extruded translucent dens, bee gardens, and butterfly gardens; shown above will burst into life and polycarbonate sheet. glasshouses of tropical displays and (being colour. Opposite: an artist's view of part But this is not to belittle other points of of the finished gardens. Me.rseyside) a Beatles Maze. There will be a comparison between this great Merseyside viewing tower, a great festival hall, and hot air event of 1984 with its industrial equivalent of balloons tethered above; a pub, restaurant more than a century ago. The once-derelict and local railway. And of the International 'If the French come, then there would be a site is far larger than the ready-made park used , Theme Gardens, Mr Rodney Beaumont, the BastilleDay, for example. Butwe think itvery for the Great Exhibition. The buildings will Festival design co-ordinator, has this to say: important for each country to project itself. be completed, in only a little longer time, by 'Within the whole event we are providing The Belgians are very high up in the horti­ far fewer than the 2000 men who were em­ five and a half months of special attractions­ cultural league, as witness their performance ployed on the Crystal Palace. More impor­ and within the international theme gardens each year at the Chelsea Flower Show. We tant, perhaps, is a direct link in the field of in­ we shall have special days set aside for each shall see their great strength here in a similar ternational co-operation. Exhibits came to country. way-but this is a far, far bigger event. London for the Great Exhibition from all over Ifthe Italians come we would see, for exam­ the world (and the one uncompleted section ple, conifers. And if the Japanese, their gar­ when Queen Victoria opened it on 1 May, 'The BeiSJians, as dens of contemplation. 1851, was the Russian part, because their ex­ 'Our object is to let people see the specific hibits had not arrived.) prize-w1nning flower­ character of each country's gardens all The 1984 Festival, with its theme of inter­ growers, were the first together here on this one site.' national co-operation, has already provided to accept' The Belgians, with their great tradition of much-needed work on Merseyside. While it is outdoor horticultural landscaping, are de­ on, the local economy should further benefit lighted at the chance to show their skills in this fromthenumberofvisitors,notordyfromthis .... 21 EUROPE83

Merseyside Metropolitan County Council and Knowsley Metropolitan Borough Coun­ cil, the report traces the root causes of the pre­ sent situation on the estate, where unemploy­ ment over the past few years has been one­ and-a-half times the level for Liverpool. Some 50 per cent of Kirkby families could be de­ scribed as living in poverty or on the margins of poverty. Many adults have been unem­ ployed for two years or more, following the closure of Massey Fergusons and other large engineering plants. Others have repeatedly been made redundant. Of the leavers from a typical Kirkby school, only 12 out of 300 found a job. This produces what many have referred to as 'de-skilling' which accompanies the loss of training opportunities which are no longer available. The survey revealed the realities of the this will be a marvellous occasion-and, with­ A plan, backed by 'A building to match out it being a Disneyland or a Coney Island, the old Crystal Palace there will be many, many other things to sup­ Community aid, that is on the drawing plement the actual gardens.' could be 'very cost And after it is all over? The Festival Hall effedive' board' (in a similar way to the subsequent use of the old Crystal Palace) is to be taken over by Liverpool City Council, who propose to con­ country but overseas (more than six million vert it into a spectacular new sports and leisure struggle to make ends meet: 70 per cent of flocked to the Great Exhibition, many ofthem centre. In addition, Merseyside will have an families had nothing left after paying regular in specially organised parties from all over the additional place of beauty, as well as a long es­ bills; 50 per cent felt they were going without land). planade and riverside walk that it never had necessities in food and clothing; and 20 per Aside from the purely horticultural and before. cent were having rent or fuel bills paid for garden aspect of this hugely ambitious affair, Belgium - in the hope that many other them directly. there will be other attractions. Already the European countries will follow her lead- can Most positions of responsibility in the Tall Ships Race is scheduled to end there. take pride in having led the way in contribut­ community - managers, local government And, as Lord Aberconway, Counsellor ing not only to the Festival itselfbut also to the officers, teachers-are taken by professionals General of the International Gard~n Festival, lasting benefits that the event will ensure on who live well away from Kirkby. There is no­ points out: 'We are brimful of confidence that the banks of the Mersey. rl thing unusual about this; but because Kirk by is a sizeable, self-contained town, the mixing between social groups in activities outside working hours -local groups and politics- is less than in, say, some inner city areas. The And now-what about community therefore has fewer skills and expertise at its disposal when dealing with official agencies. Only church leaders and loc­ some help for the housing al councillors who both live and work locally bridge this gap. The people ofKirkby, the report says, have estates? shown great forbearance and resilience in managing to develop a stable community, where 'friendliness' and 'willingness to help' erpool's inner city problems have A study undertaken in the are put at the top of the list of what Kirkby been making news, ana receiving people like about the town. They recognise creasing attention. But what ofless Live~olarea,~ded and appreciate the progress made in providing central urban areas, such as housing largely by the Community, sports facilities, the town centre shops, and estates on the outskirts, where similar the reorganised local bus service, and there is social and economic problems also arise? puts up ideas for rescuing no doubt that the council's policy to demolish During the past year an EEC-funded study areas on the outer fringes the unpopular maisonette blocks is universal­ ofone ofthese areas-the townshipofKirkby, ofthecity ly popular. in the Metropolitan Borough of Knowsley, Many people, however, have marked scep­ adjacent to Liverpool- has analysed the prob­ ticism about gove.rme.nt's willingness or abil­ lems in depth and suggested some solutions. to stimulate discussion of the problems ofout­ ity to bring jobs to Kirk by, which they see as The study was intended to consider the linked er housing estates elsewhere in Britain and the top priority for action. They are also not effects of the economic, social and environ­ other parts of Europe. convinced about the local authority's ability to mental difficulties of these areas. In the past, Whilst some aspects are special to Kirkby, get housing repairs moving or to 'clean the attempts at improving the situation have often or to Merseyside, much ofwhat has been writ­ place up', which they also see as urgent needs. foundered because they have sought to deal ten might have been written about other outer There is thus a significant section of the with one or other of these aspects in isolation. housing estates. community who feel that, given support and The Kirkby Study is different: it is intended Funded by the European Community, given a lead, and if offered more opportunity 22 EUROPE83 to help itself (not merely 'paying outsiders') People have shown They would also gain considerable participa­ Kirkby people have the ability and skills to tion from non-public sector local firms in improve life in the town. 'great forbearance' in 'commercial improvement areas' by second­ The study recommends a coordinated developing a stable ing expertise, and supporting the investment programme to help remedy the situation, fund. starting with the creation of a North community The report concludes that this kind of Merseyside business resource and initiatives ., ' - A major programme, mounted with the help of centre; small industrial units; new mixed light and products and services, which local people central government and the local authority, industry/service premises in the town centre; could provide. backed by European aid, could be a very cost­ and an investment fund for Merseyside to en­ Many of these projects, and others prop­ effective way ofcontributing to the economic, courage new investment and support exisiting osed in the report, will make demands on pub­ social and housing needs of Merseyside as a jobs. It also calls for a comprehensive prog­ lic resources. Butwillnotalwaysrequire'new' whole. Unless something along these lines is ramme for the unemployed, including free spending. They are also designed to make attempted, adds the report, Kirkby and other access to facilities, special training in getting much more use of special funds from govern­ outer estates will approach levels of unem­ new initiatives started (business and coopera­ ment urban aid and employment program­ ployment which could shatter the social sta­ tives), exchange networks, and an active mes, from the European Regional and Social bility which the community has built up, in search for new opportunities and new markets Funds, and from independent foundations. the face of severe problems, over the years. [I

Being an Irishman, and consequently School report possessed of a considerable sense of humour, his reactions to the centenary events of 1982 For the past 12 months I have received your would, I feel sure, have matched their excellent monthly magazine. In fact, you letters send copies to our department. Roy 10 Mr Tribute from a 'hard nut' content, spirit and quality. Whether J oyce is 'fashionable' or not is not Stanley, our Head of Department, and I, As always, your magazine has some very the issue. Many of the events have been in would like to say how much (as teachers of important facts and information. May I say bad taste and overly commercialised; others 0-level and A-level Economics, Law, that, ifyou have converted me from being an have, of course, been more sober and Business Studies and Sociology) we enjoy anti-Marketeer to a pro-Marketeer, you have dignified. The crux of the matter is that he reading and using the articles as basic, recent cracked a hard nut. The same information has finally been recognised, including in his information, presented in very interesting needs to get over to consumers everywhere. own country and in the city he vividly format. Page 22 (News Review, November) calls described in such details to thousands of For marks out of 100, as teaching material, for us to stop moaning about the Common readers. the standard A-level texts would score 10, Market. If the average man and woman does On balance, I think he would be extremely and your magazine 100! not have the facts, then it is far easier to be pleased and satisfied that, forty years after his Teaching as we do in the North-East, our 'anti' anything than to be 'pro'. I have done death, he has finally arrived and entered the interest has been furthered by articles on the surveys and studies in the Common Market 'Pantheon' of Irish and world literature by Newcastle Metro, north-east industry, the since 1964, but until now had rigid views. the front door. Kielder Dam project, and most recently on I have often thought that, given the Sunderland. That you present the life, StephenJ. Joyce economy and culture of Europe in the way opportunity, it would benefit many of our 2 Rue de Civry, Paris unemployed ifthey had the means to go to you do is to be highly recommended. Europe and see things for themselves. We thank you, and praise your excellent journalism and editorial presentation. Minni Sanders West CliffRoad, Bournemouth John Hunt, MA St Mary's Comprehensive School Portrait of the artist Newcastle upon Tyne Your issue of August 1982 and a letter from Nuclear waste? Patrick Emek in ~e November issue lead me In Euroforum (July 1982 issue) you describe to make a number of comments. thermonuclear fusion as being 'regarded by On the cover of the former, highlighting scientists as a potentially inexhaustible my grandfather's centenary, you have put a source of cheap energy'. As scientists we drawing. It would have been fitting, in would contend that this is a monstrous talking about one European master, to statement. There is a vast diversity of opinion explicitly mention that his portrait on your within the scientific community on this cover was by another European master, matter. Augustus John. I know this, since! am the proud possessor of the original of the David A. Dawson, BSc (chairman) drawing. Philip H. Harmer, MSc(vice-chairman) With regard to Mr Emek's comments on Sunderland Liberal Association the article, 'The Man who Remembered Tyne&Wear Dublin', ifmy grandfather is indeed turning 0 The item in EUROFORUM, reporting over in his grave, it is in order to get a better approval for a £347 million research look at the centenary shenanigans, by which programme into nuclear fusion, reflects the he would have been tickled pink. His Community's belief that coal and nuclear reactions would, of course, have varied, energy between them will be providing up to depending on the events, from smiles to sly Joyceby John-with grateful three-quarters of the Community's grins and to sneers of utter contempt. acknowledgements. electricity by 1990. 23 EUROPE83

Danish Foreign Minister, Uffe The British government plans to The measure of the vigour of the Ironically, any move by the U.S. Ellemann-Jensen, was accused by resist a proposal, hatched at the EuroJ>e!m stance has been the anger to swamp the market could simply his Social Democratic European Commission in Brussels, oftheresponse.TheAmericans­ mean even higher food mountains predecessor of'betrayingthe cod to ban the spreading ofraw sewage whose farm lobby can make a being stored throughout Europe. of Greenland' two days before the sludlfeonfarmland. The ban, French farmers' riot seem a rather A compromise proposal moved summit started. He had allowed which is proposed in a draft EEC ineffective irrelevance-are set to in Geneva by Britain-but the West Germans to catch a directive, would put £20 million retaliate by unloading their butter opposed by the French-for a further five thousand tons this peryearonBritain'swaterrates, mountain on to the world market. world-wide review offood trading year, so now there is some comer according to water industry Transatlantic exchanges are practices is unlikely to head off of a foreign freezer that is for ever sources. going to call for steady nerves in the the pressure in America for tough Denmark. A memorandum issued to water weeks to come. Few ofus have ever action. The first thing one notices authorities by the Department of been happy with that part of the -Daily Express about the politics oftrade is that the Environment says that the Common Market structure which is almost everything said and written proposals 'would have a frankly protectionist rather than The Common Market appears to about them for public considerable impact on sludge liberal. Meanwhile let us be ·be heading for a cheap-food war consumption rings false. Cod, in disposal practices' and are grateful for the evidence of unity in with America that could hurt a lot the Irish sense ofhigh-tlown 'premature and rigid'. The DoE Europe. Itismorelikelythanany of smaller countries. mendacity, flavoured the prefersitsown,ratherlaxer alternative to be an influence for The Geneva meeting of88 conference wherever one went. guidelines which do not ban raw sanity in world commerce. tradingnationa ended at 5 o'clock -Spectator sludge. -Daily Telegraph yesterday mornmg in near­ -NewScientist ~ deadlock on what to do about subsidising farm prices • The British Airports Authority has One of the few victors in such a decided to absorb the cost ofan conflict would be Russia and the EEC ruling which would increase Communist bloc, who would get the price of some duty-free goods. their butter and other dairy Rather than pass the increases on products even more cheaply from to passengers, the authority has \ .. the Common Market's surplus opted to foot the bill estimated at . ~~;~ ~~·· stock. around £2,000,000 next year. All the losers would be in the The move follows a Brussels free world. decision that duty should be levied -Daily Mail from January 1 on all previously duty-free goods imported from Although Greece has not formally countries out-side the EEC. requested the return of the Elgin It would have increased the price Marbles, Athens is intensifying of Japanese electronics and some '~ ~ ~- pressure on Britain for the spirits, including rum and repatriation of the prized bourbon. antiquities, taken by the 7th Earl of The Authority will now pay the Elgin from the Acropolis Hill import duty itself. nearly two centuries ago. -Standard Britain has categorically rejected the Greek campaign, led by Miss Melina Mercouri, the actress and It is not isolationism that tempts Minister of Culture, and has been modem America but a mood supported by most Westem known in Washington as to its farm policies. A decade ago, the EEC was a net importer of just governments which apparently fear 'unilateralism'-a conviction that the creation of a precedent for the the United States must try to look about every type offood. Now, it is more than self-sufficient in pork, return of artefacts displayed in after the west's global interests on their museums. Mrs Thatcher is coming under p~ucts, its own rather than rely on soggy beef, milk wheat, barley -Sunday Telegraph allies who do not always share its intense pressure from and sugar. In 1981, for the first views on standing up to the conservationists to rethink the time, the EEC exported more Progress on the harmonisation of Russians. Evidence keeps piling up Government's refusal to support a cereals than it bought. Yet it enjoys insurance within the EEC has been to show that America and westem Common Market embargo on no comparative advantage: EEC very slow over the past few years, Europe have diverging interests. imports of baby sealskins from wheat prices last year were 38 per Mr Gerard lmbert, director of the -Economist Canada. cent higher than on the world Community's financial institutions A final decision is due from EEC market, sugar 33 per cent higher, committee admitted on the first day environment ministers and a beef 52 per cent higher and butter of the Financial Times conference Britain's mothers and fathers are campaign is being mounted to 53 percent higher. World Insurance in 1983,heldin lagging behind many oftheir persuade those countries who are Many European farmers cannot London. European colleagues in maternity . against the ban-Britain, France make it even with these high prices. This lack of progress was and paternity pay and conditions, and Germany-to change their Farm income in France, Britain disappointing, coming as it did according to a report released minds, Britain is the main target. and West Germany fell by more after a period of considerable yesterday by the Equal Around 80 per cent of the skins than 20 per cent in real terms progress, he said. Freedom of Opportunities Commission. come to this country either for between 1974and 1981. Even so, establishment was now a reality for It calls for an immediate conversion to products such as key these farmers have reacted by non-life business and was on the increase in the maternity grant rings, snowboots and toys, or for producing even more food to go way for life business. Freedom of from £25 to £114, the introduction re-exporting to other EEC nations. into butter mountains, milk lakes establishment and provision of ofpaid paternity leave, and the A Common Market embargo and sugar lumps. Doubtless they services was also a reality for removal of restrictions on the would probably destroy the could make a profit ifprices were insurance brokers and agents. eligibility for maternity leave. commercial basis for the cull of pushed up high enough, even in However, Mr lmbert said there The report says that Britain is 100,000 harp and hooded seals on growing yams, pineapples and could be a real common market in almost alone among 14 countries the Newfoundland and Labrador bananas. · insurance only when every insurer in insisting on a two-year working coast each March. The Canadian A better way would be to reduce in the Community was genuinely reqnirement with the same government has warned ofa European prices gradually to world able to provide insurance services employer before maternity pay possible embargo against EEC levels by freeing farin trade through freely in member states in which it can be given. exports in retaliation. theGatt. was not established. -Guardian -Sunday Times -Economist -Financial Times 24