Bulletin of the EUROPEAN COMMUNITIES

rssN 0378.3693 il#EtfifiY Bulletin OF THE EUROPEAN COMMUNITIES

Commission

No 3 1985 Volume 1B The Bulletin of the European Communities reports on the activities of the Commission and the other Community institutions. lt is edited by the Secretariat-General of the Commission (rue de la Loi 200, B-1049 Brus- sels) and published eleven times a year (one issue covers July and August) in the official Community languages, Spanish and Portuguese.

Reproduction is authorized provided the sotirce is acknowledged.

The following reference system is used: the first digit indicates the part number, the second digit the chapter number and the subsequent digit or digits the point number. Citations should therefore read as follows: Bull. EC 1 -1985, point 1.1.3 or 2.2.36.

Supplements to the Bulletin are published in a separate series at irregular intervals. They contain official Commission material (e.9. communications to the Council, programmes, reports and proposals).

Printed in Belgium Bulletin OF THE EUROPEAN COMMUNITIES

ECSC_EEC_EAEC Commission of the European Communities Secretariat-General Brussels

No3 1985 Sent to press in June 1985 Volume 18 co nte nts

PART ONE PET9Ii*'=,

1. A fresh start for the Community Putting the Stuttgart and Fontainebleau decisions into effect- 7 2. European Council in Brussels and March Council meetings 11 3. The Commission's programme for 1985 17

PART TWO fi,"il1X'*'l=,f''"u

1. Building the Commgnity 20 - Economic and monetary policy 20 - lnternal market and industrial affairs 21 - lndustrial innovation and the information market 26 - Customs union 28 - Competition 29 - Financial institutions and taxation 31 - Employment, education and social policy 31 - Culture 33 - Regional policy 34 - Environment and consumers 34 - Agriculture 40 - Fisheries 48 - Transport 49 - Energy 50 - Research and development 51 2. Enlargement and external relations 55 Enlargement and bilateral relations with applicant - countries 55 - Commercial policy 55 - Relations with industrialized countries 58 Relations with other countries and regions 61 - o Mediterranean countries 61 o Countries of the Gulf and the Arabian peninsula 62 o Asia 63 o Latin America 63 r State-trading countries 64 - Development 64 3. Financing Community activities 68 4. Political and institutional matters 70 Political cooperation 70 - European policy and relations between the institutions 70 - lnstitutions and organs of the Communities 72 - o Parliament 72 o Council 77 o Commission 79 o Court of Justice 79 o Economic and Social Committee 88 o ECSC Consultative Committee 90 o European lnvestment Bank 91

PART TH REE D'.UMENTATI'N 1. ECU 94 2. Additional references in the Official Journal 95 3. lnfringement procedures 96 4. Commission memorandum to the European Council 97 5. Report from the ad hoc Committee on lnstitutional Affairs 102 6. Report from the ad hoc Committee on a People's Europe 111 Supplements 1 985

1/85 The thrust of Commission policy: Statement by Jacques Delors, President of the Commission, to the European Parlia- ment and extracts from his reply to the ensuing debate

2185 Consumer redress

3/85 Cross-border mergers of public limited companies Proposal for a tenth Directive -

4185 Programme of the Commission for 1985

'5i85 Progress towards a common transport policy-maritime transport -6lAS Advanced manufacturing equipment in the Community

' ln preparation \

PART ON{E SPECIAL FEATURES

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References in text and footnotes

References to other parts of the same issue of the Bulletin are given in parentheses in texr, thus (--+ point 2.1.53).

References to other issues of the Bulletin, to a Bulletin Supplement, ro an Official Journal etc. are given in footnotes.

Standardized abbroviations ,or the designation of cortain mon€tary units in tho diftersnt languages of the Community:

ECU : European currsncy unit

BFR = Belgische frank / Franc belge DKB = Dansk krone DM = Deulsche Mark DB = Greek drachma FF = Franc frangais HFL = Nederlandse gulden (Hotlandse floriin) IRL = lrish pound / punt LFB = Franc luxembourgeois LIT = Lira ilaliana UKL = Pound sterling USD = United States dollar 1. A fresh start for the CommunitY

Putting the Stuttgart and The aereement marks the culmination of ou., ,ii years of arduous negotiations, the Fontainebleau decisions closing stages of which involved highly sen- into effect sitive discussions, notably during the marathon session from 77 to 21 March and the negotiating round of. 27 to 29 March. and Portuguese 1.1.1. Vith the Spanish Aoorooriatelv. 28 March was the anniver- negotiations successfully con- accession r"'.y of Po.tugrl" official application to join than six years and agree- cluded after more the- Communities, lodged on 28 March on an increase in own ment finally reached 1977 the Spanish application was lodged resources and the financing of the 1985 on 28 July of the same year. budget-Greece's obiections lvere- over- come by the European Council's decision The March agreement does not mean that on IMPs-the Community has taken an every detail of the accession arrangements important step towards putting its house in has now been finalized, however. Not only order. have the exact terms of the Act of Accession still to be drafted: a few points, notably decisions follow on from those taken These the relationship between the two applicant 1984 the reform of the common in March on countries themselves, remain to be nego- policy, as as the adjust- agricultural well tiated. This will take time, but both sides the common organization of the ments to stressed the need to keep to the scheduled wine, and the overhaul of the market for enlargement date of 1 1985. This Regional Fund, which took effect in January Ja-n- means signing the Treaty no later than June, uary this year. RBcD has likewise received a so that it can be ratified by the parliaments go-ahead given to the Esprit boost with the of the existing and prospective Member programme and the outline research pro- States in the latter half of the year. gramme, and in the customs field the single eommunity document has finally been approved. These most recent achievements The main points of the pui the finishing touches to the negotiations March agreement begun at the Stuttgart European Council-to reictivate the Community and the guidelines set at Fontainebleau. They make it Spain possible to settle outstanding problems and grievances, and provide the Community 1.1.3. Agricuhure. Spain's import from the Com- with solid foundations for its development munity oF milk, .r.*n, buttei, cheese, beef and until the end of the decade. veal, and common wheat will be subiect to a special ten-year transitional arrangement which orovides foi a surveillance mechanism based on ioblective' import volumes for each product, A green light for the accession incieasing annually at predetermined rates. and Portugal of Spain The Community for its part will dismantle its customs duties on Spanish iresh fruit andvegetable 1.1.2. At four o'clock in the morning of exports over a ten-year period, the first- four years the President of the Council, Mr of 29 March seiving to facilitate Spain's introduction - Giulio Andreotti, was finally able to machinery that will enable the common market announce that the Ten had reached agree- organization to operate. There will be a tran- ment with the two applicant countries at a sitional period (also of ten years) for vegetable oils quantitative controls on imports political level on the main points of a sol- and fats; Spain's of seeds ahd seeil oil will remain in place for ution to the maior outstanding questions: the first five of those years. Full alignment of affairs, own agriculture, fisheries, social intervention prices will be postponed until -the resources, and the status of the Canary relevant Community legislation has been amended. Islands. For sugar and isoglucose, 'guarantee' levels have

Bull. EC 3-1985 Fresh start

been set at a million ronnes and 83 000 tonnes and special rules also govern the right to seek respectively. employment or change lobs in Luxem6ourg. There is provision for special support measures to Budget contributions. formula be applied ro pigmeat until such time as Spain has A similar ro rhar used for Greek accession has eradicated African swine fever, while on-the key been agreed. Spain will pay its share question of wine it was agreed that the alignment of own resources-in full,-but be.tween Spanish and Community prices-would VAT will be refunded on a sliding scale for a rake place over period numbe_r of years, ar a rate which eniures 'budget a of seven years from neutrality'-in accession. During that time a 'regulatory amount' other words, Spain will nor ba a net contributor, will be used to offset price differences in Spain's trade with the Community in table wines andsome other types of wine. The reference level for the The Canary lslands. The Canaries will not be a compulsory distillation of Spanish table wine has pa-rt of the customs union, which means among been set at 27.5 million hectolirres. other things that they will not have to apply Com- munity rules governing imports from non-member countries; also, however, Fisheries. The challenge facing the negotiarors that their duty-free was exports the to work out a formula for Spanish participation to Community and Spain must not exceed traditional in the common fisheries policy thai would still levels. The commbn agricultural policy, parts the common fisheries preserve the exisring balance between Member of policy and States. VAT will not apply to the Canaries eiiher;'tariff quotas will be ser for various agricultural and It was agreed that specific rules must be established fisheries products and manufactured tobaccos, and to govern fishing in French and Spanish coastal a -number of measures, ihcluding the introduction waters between the six-mile and twelve-mile limits, of origjn rules, will be taken to prevent any deflec- and.arrangements were worked out allowing Span- tion of trade. ish fishermen access to certain Communitv witers up to the end of 1995, when new t..-s *ill com. into effect. Spanish boats will also be allowed to Portugal operate in the Irish box from that date. 1.1.4. Agricuhure. The broad outlines A maximum of 300 vessels will be licensed for of the transitional arrangements had already been hake fishing, though 150 standard trawlers will be worked out in advance of the March allowed to fish at the same time, five of them for negoiiations, the two sides settling non-demersal species. There for a ten-year lransition will also be a limit period on the number divided into equal five-year stages for the of specialized boats allowed to products, oPerate. major and a basic seven-yEar period for other products (though some meaiures would Spain will be entitled to 30% of rhe total allowable apply for the full ten years). catch of hake in the areas concerned, plus a further It was also agreed thar Portugal would receive 700 4 500 tonnes, bringing its total up to 18 000 ronnes. million ECU from rhe EAGGF Guidance Section Catch limits will also be set for orher species on over the first ten years of membership an area-by-area basis, and Spanish fisheimen as a special will programme, over and above normal have to comply with all Community rules its entitle- on con- ment, to help it bring about servation of fish stocks. structural changes to its agriculture The murual fisheries arrangements of the two At the negotiating session 28 March applicant countries will be worked on further out in agree- important decisions were taken ment with the Community before concerning Portu- the end of the gal's agricultural trade accession negotiations. with the rest of thl Com- munity, and detailed arrangemenrs were established for sugar, vegetable oils and fats and romaro Social affairs. Spanish workers who already have concentrate: a quota of 75 000 tonnes was set for a iob in the Community will be entitled to equal sugar imports from the ACP States at the cut-rate tr-eatment, even if they are unemployed at the time levy; the arrangements for vegetable oils and fats of accession. Other Spanish workers will have free will be the same (a ten-year transitional period access to employment in the Community after plus a five-year standstill) as those applying to seven years, though members of their familv will Spain; while for tomato concentrate, taiiJfs aie to have to fulfil a transitional five-year residenci con- be phascd out-over four years and the guarantee dilion. Community family allowance provisions threshold has been ser ar 120 000 tonnei. Lastly, will not apply for three years to members of a tariff barriers on wine will be brousht down rao- worker's family remaining in the country of origin, idly----over two years in the case of iiqueur winel

8 Bull. EC 3-1985 Fresh start

Fisheries. There will be no access to Portugal's budget procedure for 1985 to be resumed, twelve-mile zone for present boats from the Mem- since all the requirements for the year can ber States, and vice versa. Outside that zone Com- now be met. munity fishermen will be able to operare in waters under Portuguese sovereignty or control, but limits On 1 April the Commission therefore senr have been set on their activity up ro 31 December 1995, and a ceiling has similarly been fixed on the the Council letter of amendment No 31 to number of Portuguese boats licensed to fish for the preliminary draft budget for 1985 which blue whiting or horse mackerel in Community it had presented on 15 June 1984.2 The areas, again until the end of 1995, when Portuguese Commission hopes that this will satisfy the fishermen will also have access to the Irish box. wishes voiced by Parliament in its resolution of 13 December 19843 rejecting the draft Social affairs. The same arrangemenrs apply ro 1985 budget.4 In throwing rhe draft Portugal as to Spain. oui under Article 203(8) of the EEC Treaty, Budget contributions. Portugal's budget contri- Parliament expressed the view that 'a butions, like those of Spain, will be reimbursed on budget which does not cover twelve months a sliding scale, making the country a net benefici- of revenue and expenditure is not accept- ary by some 1 200 million ECU for six years. able' and asked the Commission to initiate The Community will also be providing financial the procedure for establishing a new draft backing for Portugal's industrial pro- development budget. This request was repeated in a res- grammes plus balance-of-payments support loans passed of 1 000 million ECU over six years. olution on 13 February 1985.5 The Commission's proposals are confined to adjusting agricultural and food aid Southern Mediterranean counrries have repeatedly expenditure and own resources to take expressed concern about the likely effects of account of the latest developments (in par- enlargement on their exports to the Communiry. ticular, developments on agricultural mar- Meeting at the same time as rhe European Council kets, changes in world prices, and budgetary in Brussels, the Council adopted a statemenr on 30 discipline) and, in the case of food aid, the March reiterating the importance it attached the to amounts of aid decided in Dublin combat Community's cooperation ties wirh Mediterranean to countries and expressing its desire for an enhanced famine in Africa (-+ point 2.3.2). relationship (+ point 2.2.19). The three leaders of the negotiating reams-Mr Common Council position Fernando Morin for Spain, Mr Ernini Lopes for Portugal and Mr Giulio Andreorti for rhe Com- on new own resources munity-lost no time in proclaiming the importance of the political accord they had secured. Mr 1.1.6. On 21 March the Council adopted Andreotti expressed pleasure and satisfaction ar an a common position on new own resources; agreement which pived the way for a strengthened this was communicated to Parliament for Community, while Mr Morin and Lopes Mr conciliation purposes. Once adopted, praised the efforts of Mr Narali and Mr Andreotti, it will who, said Mr Morin, had 'combined rhe wisdom go to the Member States for ratification of a Roman with the patience of a Franciscan'. under their respective constitutional rules. The common position takes over the basic points of the Commission's amended pro- New own resources and posal of 9 July L984,6 itself based on rhe f inancing the 1985 budget

I coM(85) l3o. Financing the 1985 budget 2 Bull. EC 5-1984, points 1.1.1 et seq. and 2.3.7 et seq.; Bull.3 EC 6-1984, point 2.3.2. 1.1.5. By agreeing on 21 March to finance 4 OJ C 12,14.1.1985 Bull. EC l2-l984,point 1.4.1 et seq. the 1985 budget by means of non-repayable oJ C 3i7, 17.12.1984; Bull. EC 11-1984, points 2.3.1 and 2.4.13. advances under an intergovernmental agree- 5 oJ C 72,18.3.1985; Bull. EC 2-1985, point 2.4.11. ment, the Council made it possible for the 5 OJ C 193,21.7.1984; Bull. EC 7/8-1984, point 2.3.9.

Bull. EC 3-1985 Fresh start conclusions of the Fontainebleau European cation in February 1984 announcing its I Council of 25 and 26 June: intention to amend the proposal.5 (i) the maximum VAT call-up rate to be 1.4o/o f.or each Member State; The European Council met in Brussels on 19 and 20 March 1984 and agreed on the (ii) financial compensation to be made for principle of raising the VAT ceiling to the United Kingdom's budget contribution l.4o/o,7 but this agreement could not be (the cost to be shared between the other finalized because of outstanding differences Member States by reference to their normal concerning the compensation to the United VAT share, but the Federal Republic of Kingdom f.or 1984 and subsequent years. Germany's share to be no more than two thirds of its normal VAT share); The Fontainebleau European Council on 25 (iii) the United Kingdom to receive a and 26 June 1984 provided the political lump-sum reduction of I 000 million ECU basis for settling the Community budget for 1985, to be financed according to the dispute by finding a solution to this prob- mechanism described above. lem. 1 It reached conclusions that the Com- mission incorporated in the amended pro- The agreement reached at Fontainebleau posal for a Decision on own resources trans- also stipulates that one year before the new mitted to the Council and Parliament on 9 VAT own resources ceiling is reached, the July.8 In an opinion adopted in October Commission is to report to the Council Parliament regretted that the principle of a on the results of budgetary discipline, the single VAT rate for all Member States had Community's financial needs and the break- been dropped and that the mechanism for down of budgetary costs between Member correcting budgetary imbalances had been States. The Council is to review the whole included in the decision.9 The House was matter and take the appropriate decisions concerned uncertainty ex flouo. also about the shrouding any further increase in the VAf rate. Background

1.1.7. On 4 February 1983 the Com- mission sent the Council and Parliament a I green paper on the future financing of the 2 Bull. EC 6-1984, points 1.1.1 to 1.1.3. Community. z This was followed on 5 May Bull. EC 1-1983, points 1.2.1 to 1.2,14. 3 3 OJ C 145, 3.6.1983; Bull. EC 5-1983, points 1.1.1 to by a draft decision intended to supersede 1.1.5. the Council's decision of 21 April on own 4 a 5 oJ L 94,28.4.1970. resources, on which Parliament gave its 6 OJ C 342, 19.12.1983; Bull. EC il-1983, poinr 2.3.2. opinion on 5 November.5 7 Bull. EC 2-1984, point 7.2.1 et seq. 8 Bull. EC 3-1984, point 1.1.1 er se4. Vhen the May 1983 proposal oJ C 19i,21.7.1984;Bull.EC7/8-1984, points 2.3.9 and failed to win 2.3.r0. adequate support in the Council, the Com- e OJ C 3ls,26.11.1984: Bull. EC t0-1984, points 2.3.3 mission brought forward a new communi- and 2.4.10.

10 Bull. EC 3-1985 2. European Council in Brussels and March Council meetings

European Counci! in Brussels ested by the Commission; adopted an encouraging resolution on technology and competitiveness, thanks to the 1.2.1. The Heads of State or Governmenr intervention of several of the Heads Government; met in Brussels on29 and30 March with Mr of and endorsed the environmental guidelines Bettino Craxi in the chair. The Commission proposed by the Commission. was represented by its President, Mr Jac- ques Delors, attending his first European Finally, the Council stressed the need for Council, and Mr Lorenzo Natali, one of the the continuation of the efforts to combar Vice-Presidents. famine and discussed a number of foreign policy questions; no conclusions were This European Council opened in a mood for- malff_ adopted, but the Council drew up of satisfaction follow.ing the political agree- guidelines which were communicated rhe ment on Spanish and Portuguese accession to press by Mr Craxi (--+ point 2.4.1). reached during the nighr of. ZgtZg March, though the agreemenr was at the time still at risk because of the Greek reservation Conclusions of the associated with the adoption of the inte- European grated Mediterranean programmes Council (lMPs).1 Enlargement The main achievement of rhis Council was be the to agreement on IMPs, which enabled 1.2.2. The European Council noted with grear the Greek reservation to be lifted and the satisfaction that the essential points in- the enlargement agreement to take effect. The accession negotiarions with Spain and Portugal agreement on IMPs was in line with the have now been settled, as a rCsult, in parriculir, analysis, the general approach and the of the considerable effort made by all-parties in method proposed by the Commission. the week Ieading up to rhe European Council resulting in solutions to the key issues of fisheries, Mr Delors referred to the widening of the agriculture, social affairs and the own resources family circle and the opportunity now avail- system. able to think ahead. Pending the European The European Council called upon the Com- Council in Milan, where-as PresidentMit- munity bodies, together with rhe applicant terrand pointed out-the form European countries, to complete the drafring of the accession structures and policies should take would treaty as soon as possible so that actual enlargement of the Community could take place on 1 have to be determined, the Heads of State or January 1986 in accordance with the political Government confined themselves to setting resolve repeatedly expressed at the highesilevel. out the procedure to be followed in institutional matters, on the basis of the Dooge Committee report, and to agreeing to the Economic and social situation implementation of a people's Europe based 1.2.3. The European on the Adonnino Committee Council discussed the Com- report. munity's current economic situation, which con- A number of conclusions were also adopted tinues to be characterized by an unacceptable rate on the economic of unemploymenr, even though there has been an and social situation, improvement in other strengthening economic factors such as the technological base and inflation rates, balance of payments, the reduction competitiveness of Community industry, of budget deficits, convergence of the economic and the environment. The Council's delib- policies of the Member States and the process of erations were based on three Commission industrial restrucruring. documents (-r point 3.4.1 et seq.). It reached agreement on four fields of iction to promote growth and employment sugg- 1 Bull. EC 12-1984, points 1.2.16 and 1.2.17.

Bull. EC 3-1985 7t Brussels European Council

The European Council reaffirmed the prime new round of multilateral trade negotiations to be importancC for each Government and the Com- initiated in Brussels as soon as possible. munity combating unemployment through sus- of This new round will represent an important contri- employment-intensive economic tained, more bution to the campaign against protectionism. growth, and asked the ... Council [of Ministers for Economic and Financial Affairs] to report on the matter to the next European Council. Strengthening the technological It stressed the importance of completing the base and competitiveness of implementation of the economic strategy approved Community industry to that end in Dublin in December 1984 and the determination of all the member governments of 1.2.4. The European Council reiterates the the Community to pursue in a concerted manner importance of strengthening the technological base all the measures and policies which go to make up and competitiveness of industry; it recalls that such that strategy. strengthening was one of the major objectives of the guidelines which it adopted in March 1984 for In this connection, the European Council laid par- the future development of the Community. ticular emphasis on the following four fields of action: It considers that this aspect, which is vital for the Community's future, requires: (i) action to achieve a single large market by 1982, thereby creating a more favourable environ- (i) firstly, improvement of the environment in ment for stimulating enterprise, comperition and which undertakings operate so as to encourage trade; it called upon the Commission to draw up their capacity for industrial innovation and their a detailed programme with a specific timetable commercial enterprise; before its next meeting; (ii) secondly, better utilization of the Community dimension by States and above all by undertakings (ii) action to encourage the creation and develop- as enable the latter to develop in a competitive, ment small and medium-sized undertakings, so of unified and open market. particularly by significantly reducing the administrative and legal constraints to which they are It reiterates its commitment to increasing the Com- subiect; it called upon the Commission to report munity resources earmarked for research and to the Council on the problems in this sector development. and on the measures to be taken at national and Community level, particularly with regard to The European Council welcomes the Com- administrative simplification; mission's memorandum and endorses a number of specific objectives, namely: (iii) action adjust and adapt working con- to (i) achieving complete unification of the internal ditions to the new social, economic and technologi- market, in particular by the mutual recognition of cal circumstances in order to increase the efficiency standards, the creation of European standards in the labour market; called upon the Com- of it appropriate cases, the opening up of public con- mission submit any proposal might consider to it tracts, and stricter rules on aid to industry; useful in this area; (ii) adapting the Community's external commer- (iv) specific action to expand employment, cial policy to its objectives as regards new technol- including a Commission study of the potential for ogies, in the framework of GATT; using the Social Fund to promote innovatory model schemes, and programmes for solving the (iii) strengthening and making better use of the employment problems of certain disadvantaged scientific and technological potential of the Com- social categories. munity; (iv) making better use of human resources, in The European Council expressed its concern at the particular by means of increased mobility for stu- current international monetary instability which dents and researchers by recognizing certain high- threatens to endanger the Community's economic level establishments as Community 'centres of recovery; it stresses the responsibility incumbent excellence'; on all industrialized countries in the efforts to be made to achieve greater stability on exchange (u) encouraging innovation and establishing an markets and to strengthen the international finan- information market; cial system. (vi) achieving a breakthrough in telecommunications. The European Council stresses the importance of the decision adopted by the Council of Ministers The European Council calls on the Council of with regard to all the factors which will enable a Ministers actively to pursue the examination of the

12 Bull. EC 3-1985 Brussels European Council

Commission's current proposals, which already Hunger in the world correspond to rhese obiectives, and to initiate the examination of any new proposals which the Com- 1.2.6. The European Council, concerned mission considers it appropriate to submit. by the dramatic situation of certain African countriei and At each European Council, the Commission will the risk of its worsening, noted that the action it submit a stage report on the progress achieved in had decided on in Dublin to combat famine in strengthening technological cooperation and the Africa had been rapidly implemented. It welcomed competitiveness of the European economy. the fact the Community's action and the mobilization of the Member States had made it possible to go beyond the commitments entered into in Dublin Environment and had given the lead for initiatives by other industrialized countries.

1.2.5. In accordance with its decision taken in The Community and its Member States will con- Dublin in December 1984, the European Council tinue to keep a close eye on developments in the devoted parr of its present meeting to the serious situation, together with the other donors. problems raised by the considerable deterioration The European Council called for a continuation of the environment and to the quesrion of remedial of_the efforts already undertaken to improve the measures to be taken. effectiveness of the action ser in motion, ihanks to Community In this connection, rhe European Council noted and international coordination, particularly on the ground, order with satisfaction the useful work done by the in to ensure that deliveries reach all Environment Council in rhe field of combating air the famine victims. pollution caused by exhaust gases from motor The European Council srresses the need for short- vehicles; it noted that this progress is an important term aid to be supplemented by medium and long- stage in the achievement, on a Community scale, term structural measures which alone can enable of a genuine overall and balanced environmental the countries concerned to re-establish their food protection policy and expressed the desire, firstly, production potenrial and, by their own means, that this work take practical form as soon as face up in future to the problem of their food possible and, secondly, that similar progress be security. made regarding pollution caused by large-scale combustion plant. The European Council noted the Commission's intention of sending it a report on the implemen- The European Council considers that a Com- tation of aid, following the fact-finding visit which munity environmenral protection policy must be Vice-President Natali is shortly to make to Africa. based on the following considerations: (i) Having acknowledged that this policy can A people's Europe contribute to improved economic growth and iob- creation, it affirms its determination to give this 1.2.7. policy the dimension of an essential component of The European Council examined the report from the Committee on a People's the economic, industrial, agricultural and social Europe; it considered and agreed to both the proposals policies implemented by the Community by for and immediate implementation its Member States. and thosi relating to long-term objectives. (ii) It acknowledges rhe need for the Member It therefore requesrs the Council States to take coherent action in the Community of Ministers to take those decisions which are within its sphere of framework to protect the air, the sea and the soil, competence as quickly as possible. It also requests since isolated acrion is unlikely to prove effective the Commission to take the necessary steps for and may even be harmful. putting the report's proposals into practice. Lastly, It requests the Council to expedite its proceedings it invites the Member States to implement those and to make every effort, togerher with the Com- decisions which are within their field of commission, to ensure that the years to come are Petence. marked by significanr progress in Community In this context, the European Council emphasizes action for the protecrion of the environment in that the achievement of the oblective of abolishing Europe and throughout the world. frontier formalities must remain compatible with the need to combat terrorism and drug-g12fficking. In this connection, the European Council has decided that 1987 will be designated 'European The European Council requests the Council of Environment Year'. Ministers to report to it at its meering in June 1985

Bull. EC 3-1985 13 Brussels European Council on the progress which has been made in the various On this basis, the European Council agrees with sectors covered by the Committee's report. the proposals of the Commission designed to achieve fully coordinated programmes for the Medi- The European Council requests the Committee to terranean regions most in need through the oper- continue with its discussions and expects to have ation of the three structural Funds. a further report, containing proposals on the other sectors already indicated, by the June 1985 5. As regards resource allocation, which should meeting. be based on the criteria contained in the Com- mission proposal, the European Council would emphasizt that the allocation criteria should take IMPs accbunt, first and foremost, of the actual needs of the different regions and their situation as regards 1.2.8. l. In accordance with the undertakings economic and social development. given at its meeting in Brussels on 19 and 20 March In particular, the European Council would draw 1984, the European Council has decided to launch attantion to the special case of Greece, whose the integrated Mediterranean programmes in fav- entire territory comes within the sphere of the our of the southern regions of the present Com- integrated Mediterranean programmes, and to the munity within the framework of the proposals legitimate expectations of the Greek Government, made by the Commission. With regard to the quality of the programmes to 2. These programmes will last seven years; their be financed, which is an important factor in the aim will be to improve the economic structures of success of the IMPs, the European Council requests those regions to enable them to adlust under the the Commission to place at the disposal of those best conditions possible to the new situation cre- Member States who so request groups of experts ated by enlargement. needed for the assessment, preparation and implementation of the programmes. As far as financing arrangements and method 3. Lastly, the European Council would emphasize are concerned, the European Council agrees with is that the IMPs measures for the broad outlines of the approach recommended that it importint regions belonging to Italy and France should in by the Commission in its communication of 21 particular use the EIB and NCI appropriations. February 1985, i.e.: 7. The European Council requests the Council participation by the structural Funds for an (i) to take a decision on the Commission proposal for amounr of 2 500 million ECU; a framework Regulation before 30 June 1985. (ii) an additional budget contribution amounting to 1 500 million ECU which will permit the Com- mission to supply the additional funds for the European Council's position implementation of the programmes approved by on the report of the ad hoc rt; Committee on Institutional Affairs (iii) loans of 2 500 million ECU contracted by the regions concerned with the EIB and under the 1.2.9. The European Council held an initial exch- New Community Instrument. ange of views on the final report submitted to it by the ad hoc Committee on Institutional Affairs 4. The two first categories of resources will ben- in accordance with the mandate given to the Com- efit Greece for an amount of 2 000 million ECU. mittee at the Fontainebleau and Dublin meetings. The European Council feels that these figures and The European Council welcomed both the the accompanying provisions in this text meet once approach outlined in the report and the content of and for all the commitments undertaken by the thC interesting proposals pur forward, and Community concerning the integrated Mediter- expressed its warm appreciation of the Commit- ranean programmes. tee's excellent work. 5. The structural Funds will continue to operate Detailed examination of the Committee's pro- normally, on the basis of a Community-wide posals will continue over the coming months by regional policy, in accordance with the regulations means of bilateral contacts, in order to enable the which have recently been revised. European Council to arrive at final conclusions at its next meeting in June. The increases in real terms which will apply to the Regional and Social Funds and the EAGGF Guidance Section over the next seven years will Statements and comments help to finance the IMPs, but without adversely affecting transfers from these funds to other less- 1.2.10. The President of the Council, Mr prosperous and priority regions of the Community. Craxi, and the President of the Commission,

t4 Bull. EC 3-1985 Brussels European Council

Mr Delors, held a joint press conference technology and competitiveness and had after the meeting. encouraged the Commission to continue its work in this area, requiring to report to Mr Craxi pointed out that the IMPs agree- it every European Council on progress in this ment had been reached on the basis of an field. The new technologies, outline and a method proposed by the Com- said Mr Delors, were also a new mission, and this had enabled Greece to frontier for Europe and its young people. withdraw its reservations on own resources and enlargement. The Community was now Concerning the economic situation of the planning to expedite all the measures Community, Mr Delors said that, although needed to bring about the signature of the differences of interpretation remained, there agreements and their ratification by were several points of agreement which national parliaments. Regarding the final should be dwelt on at grearer length; the report the Dooge of Committee, Mr Craxi Community had decided to speak with a stated that the European Council had single voice on international finincial, mon- decided to ask the Presidincy.ro take the etary and trade issues and to play irs part matter further by means of bilateral consul- in counteracting world instability and tations to find areas of agreement which improving North-South relations not only would make it possible to settle contentious within Europe but also worldwide. issues and to prepare the broad discussion which would be held in Milan on insti- Mr Delors added: 'It is true that on econ- tutional reform. Thereafter the appropriate omic policy differences remain. We have decisions would be taken. been unable to reach a general agreement on how to use the room for maneuvre Mr Craxi referred again to the critical situ- enjoyed by some countries, or on an infra- ation in the countries affected by drought structure programme; but the door has not and famine. He emphasized what had alie- been closed, and on other points we have ady been done but also stressed the remain- obtained absolute agreement ing obstacles which justified the public between the Ten to go further'. He concluded: 'The demand for assurances that the aid was Brussels European Council has opened the reaching its destination and was being used door the as intended. to future'. Mr Delors said that the Council Presidency Mr Frangois Mitterrand pointed out thar the real still faced a very difficult problem, the insti- objective of this European Council tutional aspect, and he promised the Com- was enlargement and this had been achieved mission's support in the bilateral contacts. as a result of the elimination of the only He felt that the solution adopted had been remaining obstacle, that of the IMPs. France 'wise' in view of the Dooge Committee's was satisfied because it had always taken a conclusions and in the light of the differ- strong line in favour of enlargement and ences which existed. He added thar, as con- had worked to make it possible. In Milan vinced Europeans, they hoped that it would would be decided the future identity of be possible to hold a full day's clear and Europe. With a 12-nation Europe there fruitful discussion to choose the options would be an imperative need for more sol- which would enable the Community to go idly structured institutions to enable the beyond the Treaty of Rome and in parricu- Community to take decisions. lar to improve and accelerate its decision- Chancellor Kohl stressed the imporrance making process; this was essential the if attached Germany Community was to be able to face present- by to the conclusions day challenges. on the environment and observed that the decisions on the new technology rep- Mr Delors emphasized what he considered resented a major contribution to the efforts to be the most important point: the Euro- which were so important in the race against pean Council had considered the reporr on the United States and Japan.

Bull. EC 3-1985 15 Brussels European Council

Mrs Thatcher expressed satisfaction with March Council meetings several of the results of the European Coun- IMPs (which would cost cil: enlargement, 1.2.11. At the same time as the Com- United Kingdom less than UKL 10 the munity's budget dispute was being settled, million a year) and above all own resources. important results were being achieved in the The decision on this last point was vital for Council. On 11 and 12 March the Council the United Kingdom, since it would enable reached a general decision on changes to receive its budgetary compensation it to the agricultural structures policy; on 20 before the end of the year. March a policy agreement was reached by Mr Tindemans's general assessment dif- Environmtnt Ministers on the Com- fered in some respects from that of other mission's most recent proposals on motor participants. On the procedure for follow- vehicle pollution, including a timetable for ing up the Dooge Committee report, he said the introduction of 'clean cars'. The Indus- that he very much regretted the decision to try Ministers succeeded on 25 and 27 March terminate the woik of the Spaak II Commit- in finding a solution to the urgent and seri- tee. The Council Presidency was now taking ous problem raised by the implementation on a grave historical responsibility, since it of the aids code in the steel sector. was the Presidency which would have to Finally, on 19 March, the first-ever Council pave subsequent action by the way for meeting of Ministers for Foreign Trade means of bilateral contacts. Mr Tindemans adopted a statement in favour of a new be necessary to reopen the 1 felt it would round of trade negotiations in GATT. subject of the new technologies in Milan, as the European Council had not taken up The decisions taken enabled problems all the Commission proposals; more par- which had been outstanding for many ticularly, a figure had not been put on the months to be settled. In particular, the increase in Community resources to be decision on the adjustment of farm struc- devoted to research, because there had been tures brings to an end 18 months of nego- no agreement! Lastly, in the case of econ- tiation and fills a legal hiatus dating back omic policy, agreement had been reached to the end of last year. Moreover, several on thC objectives but not on the means of of these decisions pave the way for new implementing them. progress to be made: by adopting a state- of multilateral trade points of ment on a new round Dr FitzGerald put forward two negotiations, the Community is delcaring in the case of the IMPs, interest to Ireland: its willingness to take part; for the Council effect that the there was a clause to the of Agriculture Ministers, now that a settle- of the structural Fund appro- redistribution ment has been found to the problems con- priations Mediterranean in favour of the cerning changes in the system of milk quo- affect the other less-pros- areas would not tas, the wine market, new structural policy As perous countries of the Community. rules, and the allocations for the EAGGF people's Europe, Ireland would iegards a Guidance Section for the next five years, derogations in the matter be able to obtain way is open for the coming year's price for trav- the of increasing duty-free allowances review; finally, the framework created by ellers. the agreement on 'clean cars' enables work The Greek Prime Minister, Mr Papandreou, to go ahead on defining emission standards. was unavailable for comment in Brussels: constitutional commitments in Greece had obliged him to leave the European Council I of various decisions, see points 2.1.1 I I For details these ' before the end. 2.1.7 0, 2.122 and 2.2.12.

t6 Bull. EC 3-1985 3. The Commission's programme for 1985

1.3.1. On 12 March the Commission the new areas of cooperation (in politics, President, Mr Jacques Delors, presented the education, etc.) into clearer alignment, and Commission's programme for 1985 to Par- it will work towards strengthening the insti- liament. I In January, at the beginning of tutions and helping them to operate more its new term of office, he had made a state- smoothly. ment on the thrust of Commission policy over the next four years.2 The programme is in two parts: Part One Debate in Parliament sets out the salient features of the action and the groups' positions planned by the Commission, and Part Two contains a detailed analysis. The pro- 1.3.2. During the debate following the gramme witnesses to the Commission's introductory statement by the Commission desire to work for economic recovery, to President, which centred on four topics (enlargement affirm the Community's presence in the as an indicator of North- world, to prepare for the future (agriculture, South tensions within the Community, the development of less-prosperous regions, a world economy's need for a strong Com- strategy for research and innovation) and munity, reactivating the economic dyna- to make Europe tangible for its citizens. mism of the Community, institutional matters), the spokesmen for the political groups The Commission clearly states its aim of on the whole welcomed the Commission's achieving a fully unified internal market analysis and action planned but said they by 7992 and puts forward a programme would keep a watchful eye on the actual together with a realistic timetable. implementation of the programme. In the economic field, the Commission Mr Ernest Glinne (B), speaking on behalf wishes to convince Member States that they of the Socialist Group, called for a reduction can increase growth margins by further in working hours, renewed social dialogue, aligning their macroeconomic policies, and and wide-ranging discussion on the future it will work to achieve a major improve- outlook for agriculture in the Community. ment in the operation of the labour markets. By way of its spokesman, Mr Egon Klepsch The Commission plans to start preparing (D), the European People's Party placed for the future immediately by giving a new special emphasis on the completion of the direction to well-established Community internal market and the urgent need for real policies and by lending present policies their institutional progress. full weight-continuing to reform the CAP, implementing the instruments, procedures Sir Fred Catherwood (UK); for the Euro- and means of action provided in the new pean Democratic Group, also spoke in fav- ERDF Regulation, defining a strategy for our of the completion of the internal market research and innovation by creating a Euro- and of the United Kingdom joining the pean scientific and technical area and estab- EMS. lishing the infrastructure for post-industrial The Chairman of the Communist Group, society, adopting a Community-wide Mr Giovanni Cervetti (l), voiced his group's environmental policy, encouraging and reserved and critical judgment, which he Community awareness in national life, i.e. in political and social education in the Member States. I Supplement 4/85-Bull. EC contains the full text of \With an anxious eye on the future of the the programme, extracts from the President's statement introducing the programme and his reply to the debate in Community system, the Commission Parliament. intends to avail itself forthwith of the full 2 Supplement l/85-Bull. EC; Bull. EC 1-1985, point 1.1.1 scope of the Treaties. It wishes to bring et seq.

Bull. EC 3-1985 17 Commission programme said was occasioned by the lack of suf- strong criticism. Lastly, concern was repeat- ficiently specific policies. edly expressed regarding the cost of enlargement and its impact on various sectors such Mrs Simone Veil (F), Chairman of the Lib- as fisheries (Mr Jean Claude Pasty (EDAI eral Group, called on the Commission to F), Mrs Nicole Pery (SoclF)). overcome the present constraints and acknowledged the realistic approach of its programme. Resolutions adopted by Parliament Mr Gene Fitzgerald (IRL), spokesman for 1.3.3. Parliament adopted four resol- the EDA Group, was less enthusiastic and 1 expressed his concern about agriculture and utions which endorsed the main contents unemployment. of the programme but took up some of the detailed points of criticism expressed during The Rainbow Group, through Mr Benedikt the debate and requested the Commission Hdrlin (D), insisted even greater attention and the Council to implement the pro- should be paid to workers in view of the gramme's main commitments rapidly, with development of the new technologies. a clear timetable, especially those concerning the internal market. The resolutions Speaking for the European Right, Mr Pino were supported by all the main political (l) Romualdi called for more specific action. groups. Votes against were cast by members The groups and the 50 or so speakers in the of the British Labour group, the EDA, the debate did, of course, assess the programme European Right and the Rainbow Group. from their own particular viewpoints, high- (i) The joint resolution presented by the lighting what they considered to be its EPP, the Socialist Group and the European shortcomings. The left, in particular the Democratic Group (185 for, 59 against, 18 Communists, felt that priority should be abstentions) approved the main outlines of given to measures to combat unemployment the 1985 programme and welcomed the fact and get the economy moving again, prefer- that the Commission endorsed Parliament's ably in an atmosphere of social consensus objectives as regards institutional reform. (Mr (EDIUK), (Coml Tuckman Mr'Wurtz (ii) Another resolution from the Socialist groups F)). Members of all also expressed Group qualified its approval by regretting programme's some disappointment with the that the programme was not more specific proposals monetary policy (Mr Fernand on on social measures and asked that the Com- (EPPIB)), felt Herman which they fell short munity's autonomy be safeguarded against Delors's How- of Mr January statement. the overvaluation of the US dollar. ever, the criticism expressed in January of the Commission's apparent reticence on the (iii) A third resolution, presented by the question of European Union was largely EPP Group, stressed the need to complete dissipated by the clear commitment con- the internal market, to create a Community tained in the programme. currency, and to improve the competitiveness of industry and the convergence of the The most frequent specific criticism was economres. levelled at the absence of a true policy on (iv) Lastly, a resolution moved by the equal opportunities for women or of a fam- European Democratic Alliance affirmed ily policy (Mrs Nicole Chouraqui (EDA/ that one the essential requirements F)). As expected, of criticism was also voiced underpinning Commission's pro- concerning the Commission's proposals on the gramme should be progress towards Euro- farm prices (Mr Fitzgerald (EDAIIRL)), Mr pean Union. Chambeiron (Com/F)). The Commission's recent proposals on integrated Mediter- ranean programmes were also the target of t oJ c 94, 1s.4.1985.

18 Bull. EC 3-1985 \

\ \ PART TVVO ACTIVITIES IN MARCH 1985 1. Building the Community

Economic and monetary policy accordance with Article 2, of the convergence Decision of 18 February 1974. Council The Council broadly endorsed the Com- mission's assessment of the economic situ- 2.1.1. The Council meeting of 11 March ation and concluded that there was no need on economic and financial affairs (+ point at present to adjust the economic policy 2.1.117) dealt mainly with the problem of guidelines for 1985 which it had adopted financing the agricultural structures policy. in December 1984 in its annual economic After lengthy discussion, the Council report.3 adopted an opinion on the total amount (5 250 million ECU) to be made available Community loans to the EAGGF Guidance Section for 1985- 89, and on expenditure controls; the opin- 2.1.4. On 15 March Parliament delivered ion was transmitted immediately to the its opinion 4 on the proposal for a Regu- Ministers for Agriculture. It had no impli- lation concerning the Community loan cations for the financing of the integrated mechanism designed to sqpport Member Mediterranean programmes, which was not States' payments balances. r After approv- examined. ing in principle the modifications contained in the proposal and agreeing to the raising first-quarter The Council carried out its of the ceiling to 8 000 million ECU and to examination of the Community's economic the 50% limit on any one Member State's situation and for the first time discussed an loan entitlement, Parliament reiterated its Auditors on annual report by the Court of demand that borrowing and lending oper- the management of the Community budget ations be budgetized and urged that-as (the 1983 report) point 2.3.6). (+ one arm of the budgetary authority-it be associated in good time in the task of determining the general terms and arrangements Economic situation to be applied to the loans and formulating the economic policy conditions to be fulfil- 2.1.2. The European Council, meeting in led by recipient Member States. Brussels on 29 and 30 March (-+ points 1.2.7 and 1.2.3), discussed the Community's economic and social situation on the basis Monetary Committee of a Commission working paper (+ point 3.4.2).1 In its conclusions, the European 2.1.5. The Monetary Committee held its Council laid particular emphasis on four 31Oth meeting in Brussels on 21 March, with fields of action: action to achieve a single Mr Tietmeyer in the chair, and examined large market by 1992; action to encourage the economic and financial situation in the the creation and development of small and Netherlands. It also held a wide-ranging medium-sized undertakings; action to exchange of views concerning preparations adjust and adapt working conditions to the for the spring meetings of the IMF Interim new social, economic and technological cir- Committee and the World Bank/lMF cumstances in order to increase the Development Committee. efficiency of the labour market; specific action to expand employment.

2.1.3. On 11 March, on the basis of a t communication transmitted by the Com- 2 COM(85) 88 final. 27 February,2 the Council car- Bull. EC 2-1985, point 2.1.2. mission on 3 oJ L 4s,14.2.198s. ried out its first-quarter examination of the 4 oJ c 94, 1s.4.1985. economic situation in the Community, in 5 0J c 767,27.6.1984t Bull. EC 5-1984, point 2.1.3.

20 Bull. EC 3-1985 lnternal market and industrial affairs

2.1.6. Mr Jacques Delors, President of the Committee proposes immediate action Commission, emphasized to Parliament the (simplification of control procedures on scope of the agreement between central citizens of Member States at frontiers, prac- banks to strengthen the position of the tical arrangements in port and airport-con- 'official' ECU, i.e. ECUs held by central trol areas) and longer-term measuies aimed banks. He also indicated that the minisrers at achieving a'Europe without frontiers' by for Economic and Financial Affairs would 1992, as proirosed by Mr Delors. \flhere be presented with a package of proposals freedom of movement of goods (including that would enable cenrral banks of non- transport services) is concerned, the Com- member countries to hold ECUs and would mittee makes specific recommendations on provide for freer use of and higher interest increasing tax-free allowances for travellers, on official ECUs. granting tax exemption on small postal consignments, introducing measures to alleviate present border controls on road transport, avoiding double taxation on personal lnternal market and goods, and measures regarding currrency industrial affairs controls. The report then goes on to deal with Com- munity citizens' rights, in particular the Strengthening the internal market remaining difficulties in respect of employment and residence. For instance, theri are 2.1.7. The European Council welcomed still problems as regards the tax trearment the Commission's communication on of employees who reside in one Member strengthening the technological base and State and receive an income as employed competitiveness of Community industry workers in another (most of these arL wor- (+ point 3.4.3).1 endorsed number It a kers in border areas), of specific objectives, particularly that as regards the con- of ditions of employment in orher Community achieving complete unification the of countries and in respect of people whose internal market by the mutual recognition professional qualifications are recognized in of standards, the creation of European stan- their country of origin but not in the host dards where appropriate and allowing country. greater access to public contracts. With regard to the considerable difficulties impeding the mutual recognition of dip- People's Europe lomas in certain professions, the Committie considers that full-scale harmonization is 2.1.8. The ad hoc Commitree on a not a practical way of implementing the People's Europe adopted, and sent to rhe objectives of the Treaty in mamers relating European Council, a new report which to the right of establishmenr. proposes includes some practical conclusions.2 The Ir that the European Council should decide report makes a point of identifying specific that the general approach should be based ineasures capable of presenting a stronger on mutual recognition of diplomas and image of the Community its citizens to other examinations prior (-+ point 3.6.1). without harmonization. This seems the only possible way It begins by dealing with rules and practices of achieving a general system for ensuring which cause irritation to Community citi- the equivalence of diplomas in line with the zens and undermine the credibility of the conclusions of the Fontainebleau European Community. Council.3 These relate essentially to police and cus- t toms formalities for people and goods cross- coM(8s) 84 final. 2 Bull. EC 11-1984, point 3.5.1; Bull. EC t2-1984, point ing intra-Community frontiers. Where free 1.2.5. movement of persons is concerned, the 3 Bull. EC 6-1984, point 1.1.9 (Section 5).

Bull. EC 3-1985 lnternal market and industrial affairs

Finally, the Committee is convinced that ing Products (drawn up under Council of the right of a citizen of a Member State of Europe auspices). The area to which the the Community to live in another Member Agreement applies is fully covered by the State of this own choice is an essential Directives concerning detergents which the element of the right to freedom of move- Council adopted in November 1973.3 ment. The Committee considers that a political decision of principle by the European Foodstuffs Council on a general right of residence for On 8 March, to take account of all citizens of the Community would pave 2.1.11. technical amendments requested by Parlia- the way for a swift conclusion to the current December, a Commission discussions on a Commission proposal con- ment in the 5 its proposal for a Council Direc- cerning the right of residence. I amended tive concerning extraction solvents used in 2.1.9. The European Council examined the production of foodstuffs and food the Committee's report (+ point 7.2.7).lt ingredients.6 considered the contents and agreed both to 2.1.12. The Scientific Committee for Food the proposals for immediate implemen- published its report on emulsifiers, stabili- tation and to those relating to long-term zers, thickeners and gelling agents (15th objectives. It requested the Council to adopt series report EUR 9357). as quickly as possible any decisions within - its jurisdiction and called upon the Com- Pharmaceuticals mission to take whatever steps were required to put the report's proposals into 2.1.13. On 18 and 19 March the Com- practice. The European Council also called mission convened a meeting of a working upon the Council to report to it at its June party on biotechnolo gy / pharmacy, compo- 1985 meeting indicating what progress had sed of governmental and industrial experts been made in the areas covered by the Com- on vaccines and medicinal products for mittee's report. human and veterinary use. A consensus was reached on further regulatory measures to 2.1.9a. Corrigendurz. In Bull. EC 11-1984 supplement the five proposals already pla- it was erroneously stated at point 2.4.8 that ced before the Council which promote high- the Commission is represented on the Adon- technology medicinal products, par_ticularly nino Committee by Mr Nodl, its Secretary- those derived from biotechnology. / General. The Commission representative is Economic Social Committee fact Ripa Meana. For details of The and in Mr di endorsed the Commission's proposals at its the members of the Committee, see point 27 and 28 March session (--+ point 2.4.21). 3.6.7 of. the present issue. Small business-Business Free movement of goods Cooperation Centre-D istri butive trades

Removal of technical and Distributive trades administrative barriers to trade 2.1.14. The Bureau of the Committee on Industrial products Commerce and Distribution met on 14

2.1.10. On 4 March2 the Commission t OJ C 207, 17.8.1979; OJ C 188, N.7.1980. 2 asked the Council for authority to conduct 3 CoM(85) 63 frnal. negotiations to enable the Community to . oJ t- 347,17.12.1973; oJ L 109,22.4.1982. g oJ c 12, 14.1.1985. become a contractin party to the European 5 oJ c 77,23.3.t985; coM(8s) 79 final. Agreement on the Restriction of the Use of 6 oJ c 312,17.11.1983; Bull. EC 10-1983, point 2.1.16. Certain Detergents in Washing and Clean- 7 oJ c 293,5.11.1984; Bull. EC 10-1984, point 2.1.16.

22 Bull. EC 3-1985 lnternal market and industrial affairs

March and decided to convene a meeting quarter of 1985 3 to the Council for assent of the working party on external trade prob- and to the ECSC Consultative Committee lems (including the renewal of the MFA) in for its opinion. The ECSC Consultative April and a meeting of the working party Committee issued its opinion on 29 March on the internal market in May. The term (+ point 2.4.30). The Commission paper of office of the Committee members was notes that the outlook remains gloomy. extended to the end of the year. There will probably be very little change in demand for steel compared with the first !ndustry quarter and none of the seasonal upturn usual at this time of year. Therefore, where 2.1.15. On the basis of a Commission authorizing the level of steel production is communication on strengthening the tech- concerned, prudence is in order. nological base and competitiveness of Com- munity industry (+ point 3.4.3),1 the The stagnation is mainly due to the fact European Council approved a number of that the rate of use of steel in the principal specific objectives. These include adjusting manufacturing industries continues to the Community's external commercial pol- decrease and the present rise in investment icy to its objectives as regards new technol- is mainly in the service industries and those ogies, within the framework of GATT, and producing small consumer goods, none of achieving a breakthrough in telecommuni- which use much steel. To this must be added cations (--+ point 1.2.4). the tendency to draw stocks and the fact that-in the wake of the steel arrangements Council from non-Community countries -importsare likely to increase while Community 2.1.16. The Councilmeeting on industrial exports will be subject to the restrictive affairs on 26 and 27 March reached agree- measures introduced by the United States ment on a solution to the urgent problem (+ points 2.2.14 to 2.2.76). raised by the implementation of the steel aids code (--+ point 2.1.22).lt also examined Crude steel production will probably be no the Commission proposal for changes to more than 29 million tonnes compared with the present system of granting additional the 30.57 million actually produced during production quotas (+ point 2.1.18) and the second quarter of. 1984. Real consump- assented to the increase in minimum prices tion will probably be some 300 000 tonnes and the fourth amendment of the Com- lower than in the second quarter of last mission Decision concerning production year. Exports to non-Community countries certificates and accompanying documents are likely to fall from 5.35 to 5.80 million for deliveries of certain steel products. tonnes, while imports will probably In the information technology sector the increase from 2.47 to 2.60 million tonnes. Council adopted the Caddia programme (+ point 2.1..23). The movements in crude steel supply and It also issued a statement on the Com- demand are shown in Table 1. munity's relations with the United States in the steel sector (--+ point 2.2.74).

Steel2

t coM(85) 84 final. Forward programme 2 International relations are dealt with in the'Commercial policy' and'Relations with industrialized countries' sections 2.1.17. In March the Commission sent its of thc 'Enlargement and external relations' chapter. forward programme for steel for the second 3 oJ c 98, 18.4.1985.

Bull. EC 3-1985 23 lnternal market and industrial affairs

Table 1

million ,onnes

Outturn Forcast

l/8+ ll/84 lllt84 M84 I/85 IIl85

Real consumption 26.60 26.23 ?3.62 27.64 25.90 26.30

Stock change + 0.50 + 0.50 + 0.351 0.502 0.40 0.50

Imports 2.41 2.41 232r 2.402 2.50 2.60

Exports 6.13 5.35 6.92 5.50 6.60 5.80

Production 30.82 30.57 28.57 30.24 29.N 29.00

Provisional. Forward programme estimates

Crisis measures Minimum prices

2.1.19. After receiving the Council's Production quotas assent and the opinion of the ECSC Con- sultative Committee, the Commission 2.1.18. The Council examined a pro- decided, on 28 March,3 to raise the mini- posal I to change the present system of mum prices with effect from 1 April 1985 a granting additional quotas encourage by amending its Decision of 23 December to 5 rapid implementation of restructuring 1983 for the third time. measures under Article 14B of the Com- The following table gives changes in mission Decision of 31 January 7984 the extending the system of monitoring ECU per tonne in the mandatory minimum quotas.2 prices as compared with the guide prices. The Commission noted that the qualified majority needed for assent by the Council could not be obtained and therefore indi- I cated that it is considering withdrawing the 2 Bull. EC 11-1984, point 2.1.15. proposal since is not long until the end oJ L 29, 1.2.1984. it r oJ L 89,29.3.1983. of 1985, when the Decision extending the 4 Bull. EC 2-1985, point 2.1.18. quota system expires. 5 oJ L 373,31.12.1983; oJ L 260, 29.9.1994

24 Bull. EC 3-1985 lnternal market and industrial affairs

Table 2

Proposcd Guidc 1.1.84 1.4.84 1.10.84 prics from priccs 1.4.85

Hot-rolled wide strip 327 336 353 352 380 Hot-rolled narrow strip 3s8 358 367 376 380 Narrow strip obtained by slitting hot-rolled wide strip 331 3,10 358 367 380 Hot-rolled strip obtained by cutting hot- rolled wide strip 331 3,+0 358 367 380

Reversing-mill plate 331 3,+0 358 i57 397 Cold-rolled sheet 424 433 452 459 495 Sections and beams Category I 291 ,1 309 i26 Category IIa 344 353 357

P roduction certificate cation. The Member States expressed their and accompanying document concern with regard to the measures proposed, and the Council called upon the 2.1.20. On 28 March, having received the Commission to continue monitoring devel- Council's assent and the opinion of the opments in the market. ECSC Consultative Committee, the Com- mission amended 1 for the fourth time its 2 Decision of 23 December 1983 introducing Restructuring for steel undertakings and steel dealers a production certificate and an accompanying document for deliveries of certain prod- 2.1.22. In connection with the application ucts. 3 of the aids code,4 the Commission updated the figures relating to reductions in pro- The situation in the scrap market duction capacity for hot-rolled products completed by 20 March. For the Com- 2.1.21. On 20 March the Commission sent munity as a whole closures total some 25.2 the Council a communication on scrap sup- million tonnes ayear as compared with 21.9 plies. The Commission lists the practical million at the end of 1984. arrangements made to ensure that, in spite of higher exports, the Community steel The iollowing table gives the present pos- industry will receive regular supplies as a ition on capacity reduction under the aids result of undertakings made by scrap code. dealers to supply the necessary amounts. Consideration is also being given to the possibility of relieving a proportion of stocks held by users from tax in order to cushion sudden movements in the market I oJ L 89,29.3.7985. for this raw material. 2 oJ L 373,31-tz.t993; oJ L 332, 20.12.1984; oJ L 124, I 1.5.1984. The Council re-examined the situation on 3 Bull. EC 2-1985, point 2.1.20. 26 March on the basis of this communi- 4 oJ L 228, 13.8.1981.

Bull. EC 3-1985 25 lndustrial innovation and the information market

Table 3

1 ffi tonncs

Maximum Rcductions possrblc Closurc production Minimum completcd 1980 rcquircd Identificd by 20.3.85

Belgium t5 028 3 155 3 183 3 183 Denmark 941 66 66 65 France 26 859 5 311 5 311 4 t4i Germany 53 tt7 5 010 6 922 6 370 Italy 36 294 5 834 5 834 5 724 Luxembourg 5 215 960 1 045 I 04s Netherlands 7 297 950 7 432 82 United Kingdom 22840 4 500 5 t9t 4 654

Communityl 158 501 26786 28 984 N 267

I Excl. Grecce and lreland.

I nformati o n tech n o lo gy standardization activities will be under- a n d telecomm u n icatio ns taken by the Commission.

Interinstitutional networks

Adva nced ma n ufactu ri n g eg u ipment 2.1.23. In March the Council adopted,l on a proposal from the Commission,2 a 2.1.24. On22 March the Commission sent Decision concerning the coordination of the the Council a communication on advanced actions of the Member States and the Com- manufacturing equipmenr in the Com- mission relating to the implementation of a munity. a long-term programme for the use of computerized telecommunications for Com- munity information systems concerned with imports/exports and the management and lndustrial innovation financial control of agricultural marker and the information market orgainizations (Caddia).3 The aim of this programme is to speed up trade by automat- 2.1.25. The European Council discussed ing the customs procedures and the prep- the Commission's communication on aration of statistics through the electronic strengthening the technological base and linking of the Community's customs ser- competitiveness of Community industry vices and statistical centres. It will in conse- (+ point 3.4.3) and srressed the need- quence reduce the administrative costs, which ultimately fall upon rhe consumer t oJ L 96,3.4.199s. and the taxpayer. Caddia is part of the 2 oJ c 112,26.4.7984; Bull. EC 3-1984, point 2.1.28; OJ Community's overall information-process- C3 215, 16.8.1984; Bull. EC 7/8-1984, poinr 2.1.38. ing strategy. The cost of implemenring ir Coopcration in automation of dita and documentation be for imports/exports and agriculture. will borne by the Member States, while a Supplement 6/85 Bull. EC; Bull. EC 4-1985 (in prep- coordination of the programme and of the aration). -

26 Bull. EC 3-1985 lndustrial innovation and the information market which was vital for the future of the Com- atom), represented by the Commission, has munity-to improve the business environ- obtained the following six patents: 'device ment in order to help firms develop their for passive heat transport and integrated capacity for industrial innovation and their solar sollector incorporating same', in the commercial enterprise. United States; 'apparatus and method for leading to the identification of seals', in the Transnational measures to promote United Kingdom; 'apparatus for continuous innovation and direct measurement of the sea surface temperature', at the European Patent 2.1.26. On 6 and 7 Marchthe Commission Office; 'ultrasonic transducers', in the held a seminar in Luxembourg on develop- United Kingdom; 'Systdme de surveillance ing markets for new products and services d'une pluralit6 de conteneurs utilisant des through joint exporting by innovative small sceaux ultrasonores' (system for monitoring medium-sized was and firms, which a number of containers using ultrasonic attended by some 100 participants, mostly seals), in France; and 'apparatus and representatives of private consultancy firms, method for measuring the toxicity of pol- chambers commerce, trade associations of lutants for aquatic living organisms', at the and banks with a special interest in European Patent Office. exporting. Euratom currently holds 540 valid patents Since smaller firms find it much more diffi- for some 220 inventions. cult than large ones to overcome the various problems encountered when exporting their 2.1.29. The Commission took part in products, the aim of the seminar was to Inova '85, held in Paris from 11 to 15 March, find a way of solving these problems by at which it presented the following six setting up jointly financed and managed newly developed products of Community export schemes. research: an electronic pump for dangerous 2.1.27. As part of its plan for the transna- fluids; a rapid-action coupling device for tional development of the supporting infra- double containment fluid transmission sys- structure for innovation and technology tems; a variable-speed power supply for transfer I the Commission published synchronous motors; an isopipe high-ther- notice in the Official lournalz- announcing^ mal-precision heat-pipe furnacel the Scriba the organization-in cooperation with the software system (for conference organiza- European Association for the Transfer of tion); and the Mark 13-A flue-gas desul- Technologies, Innovation and Industrial phurization process. group work- Information-of a number of 2.1.30. The closing date for the sub- ing visits and secondments for staff of mission of proposals for the construction industrial information transfer agencies. and operation of a pilot flue-gas desulphur- The aim of the working visits (lasting about ization plant based on the Community's one week) and the secondments (lasting Mark 13-A process 3 has been pottpon.d between two weeks and three months) is to until 31 May 1985.aThe call for proposals enable staff of technology and management is otherwise unchanged. advisory centres in the different Member States to become acquainted one another, Specialized information study working methods used in other countries and explore the opportunities for 2.1.31. At its 48th meeting, held in Luxem- transnational cooperation between their bourg on 12 March, the Scientific and Tech- organizations. I oJ L 353, 15.12.1983. Utilization of research results 2 oJ c 64, 13.3.1985. r oJ c 317,28.11.1984; Bull. EC 1l-1984, points 2.1.26 2.1.28. In the last three months the Euro- and 2.1.151. pean Atomic Energy Community (Eur- 1 oJ c 7s,26.3.7985.

Bull. EC 3-1985 Customs union nical Information and Documentation General legislation Committee elected its officers for the next two years. It appointed Mr W. Renaud 2.1.33. On 7 March the Council, acting (Netherlands) Chairman and Mrs B. Grange on a Commission proposal,3 accepted on (Belgium), Mr Donth (Federal Republic of behalf of the Community a recommen- Germany) and Mr Ronai (France) Vice- dation of the Customs Cooperation Council Chairmen. concerning action against customs fraud relating to containers. 4 The Committee heard reports reviewing the work of its specialized working parties (information on agriculture, biomedicine Customs procedures w:th and health, the environment and energy) economic impact during the period covered by the third plan of action for information and documenta- 2.1.34. By a Regulation adopted on 12 tion (1981-83)l and their proposals for March the Commission introduced a pro- activities to be included as a marter of pri- visional measure 5 permitting the proiess- ority in the draft work programme for 1986- ing under customs control arrangements 87. brought in by a Council Regulation of 25 September 19836 to be applied from 15 After taking note of the results of task force March to 15 September 1985 for the pro- meetings to prepare the implementation of cessing of dichromium trioxide inro chro- priority activities under the 1984-85 work mlum. programme (information on patents, data banks on materials, information on biotechnology, industry and research, publication Common Customs Tariff and electronic document delivery), the Committee set up a Project Advisory Group Nomenclature (PAG) and appointed its officers. The PAG henceforth replaces the specialized working 2.1.35. For the purpose of ensuring uni- parties, and it held its inaugural meeting on form application of the CCT nomencliture, 13 March. the Committee on Common Customs Tariff Nomenclature decided on tariff measures in the form of a tariff classification decision and an agreement on rhe classification of Customs union goods respectively, concerning subheadings 18.05 C and 21.07 F I q. z

Simplif ication of customs formalities Economic tariff matters

2.1.32. On 7 March the Council decided Suspensions to accept on behalf of the Community three 2.1.35. March Annexes to the International Convention On2l the Council adopted a Regulation on the Simplification and Harmonization temporarily and totally lus- pending the autonomous of Customs Procedures.2 The annexes con- CCT duties on cern clearance for home use, outright exportation'and the repayment of import duties I oJ L 200,6.8.1981. and taxes. The Community's , I- 87,27.3.198s. acceptance is 3 oJ not without certain reservations, however, 4 Bull. EC5-1984, point2.1.37. notably to take into account the present oJ L 73,14.3.198s. s oJ L72,13.3.1985. state of harmonization of customs legis- 6 oJ L 272, s.10.1983. lation within the Community. 7 oJ c 74,20.3.199s.

28 Bull. EC 3-1985 Competition

certain types of polyethylene falling within recover steel scrap in Berlin and sell it to subheading ex 39.02 C I a). 1 local steelworks. Thyssen Sonnenberg and Ferrum are major Tariff quotas steel scrap distribution companies which belong ro rhe Thyssen and Otto '0ilolff 2.1.37. On 4 March the Commission groups respectively. However, this joint adopted a Regulation opening, allocating venture is limited in scale and is not liable to and providing for the administration of a have any noticeable effect on scrap supplies Community tariff quota for fresh or chilled and prices even in its local market. The tomatoes falling within CCT subheading Commission therefore concluded that the ex 07.01 M I originating in the African, transaction satisfied the tests of Article Caribbean and Pacific States and the over- 66(2). seas countries and territories (1985).2

2.1.38. The Council adopted a Regulation State aids opening, allocating and providing for the administration of a Community tariff quota General aids for carrots falling within CCT subheading 07.01 G II originiting in Cyprus (1985).3 Enuironmental aids

Community surveillance of imports Germany 2.1.39. On 4 March the Commission 2.1.41. On 13 March the Commission adopted a Regulation establishing ceilings decided raise no objection to the intro- and Community surveillance for imports to duction of a scheme notified by the Govern- of carrots and onions, falling within CCT ment of the Federal Republic of Germany heading No ex 07.01., originating in the to assist research and new technology in the African, Caribbean and Pacific States and environmental field. the overseas countries and territories (1985- A).2 The total budget for the programme amounts to DM 532 million up to 1987, and the programme is designed to improve scientific knowledge of the underlying Competition causes of existing threats to the environment and means of removing them. Most of rhe budget is to go to universities, research Restrictive practices, mergers institutes and other public institutions, and and dominant positions: 20-25o/o may go to private firms. The latter specific case would qualify for grants of up to 50% of the cost of projects, only the innovative parts of which would be considered. Joint ventures After scrutinizing the scheme the Com- F errum WRG W eissblecb -Recycling mission took the view that increasing technological and scientific know-how with a 2.1.40. On 8 March the Commission, act- view to improving environmental protec- ing under Article 55 of the ECSC Treaty, tion could be regarded as being of common authorized Thyssen Sonnenberg GmbH, European interest. The Commission felt Duisburg, to acquire 50% of the shares of Weissblech-Recycling Ferrum WRG I oJ L 81,23.3.198s. GmbH, a company which was recently for- 2 oJ L 64,5.3.198s. med by Ferrum GmbH, Saarbriicken, to 3 oJ L 89, 29.3.198s.

Bull. EC 3-1985 29

I Competition

that the measures envisaged would not Nationat monopoties adversely affect intra-Community trade to of a commercial character an extent contrary to the common interest. The Commission asked the German Cordless telephones in Germany Government to submit an annual report on 2.1.43. After intervention by the Com- individual cases of aid being given to private mission on the basis of Article 37 of the firms, including a description of the terms EEC Treaty, the Federal Republic of Ger- on which it was granted. many has abandoned its plans to extend the monopoly of the Bundespost (the Federal Industry aids Post Office) to cordless telephones. The German Government had intended to Steel issue a regulation permitting the Bundes- post to supply cordless telephones. The 2.1.42. At its 26 and 27 March meering Bundespost would thereby have had the on industrial affairs (+ point 2.7.22) the exclusive right to supply cordless telephones Council assented (Greece withdrew its res- for connection to primary telephones, them- ervation atthe2 April meeting of the Perma- selves a Bundespost monopoly, and to those nent Representatives Committee) to the private automatic branch exchanges Commission's proposal I to amend the aids (PABXs) which it had itself supplied. Pri- code2 by extending to the end of 1985 the vate competitors, including those from period for granting operating aids and by other Member States, would thus have been setting new time limits for notification and able to supply their devices to a restricted authorization of aid proposals additional to market only, in particular to users of pri- those the Commission had authorized on vately supplied PABXs. 19 June 1983.3 In these circumstances the Commission considered that even a partial Bundespost mon- The Council reached the following con- opoly over cordless telephones fell within clusions: the scope of Article 37(1), since it would '1. It is an absolute requirement that the deadline have prevented users of primary telephones of 31 December 1985 for the paymenr of all aid be or PABXs supplied by the Bundespost from strictly adhered to. No aid will be permitted after choosing freely between devices offered by that deadline expires. several suppliers, and would have prevented the suppliers from having direct access to 2. The deadline for rhe paymenr of aid approved this very substantial part of the market. conditionally in June 1983 for continuing oper-. ations shall be extended to 31 December 1985. After the Commission had informed the 3. With regard to the notification and authoriza- German Government of its objections, the tion of additional aid these applications must be latter declared that it no longer intended in accordance with Article 2 of Commission to extend the Bundespost's monopoly to Decision No 2320I81/ECSC. For example, the cordless telephones. It is now preparing an Commission shall ask for capacity reductions if amendment to the relevant regulation on they are necessary for viability or if they do not telecommunications so as to allow privately affect trading conditions. In addition, the capacity supplied cordless telephones also to be con- reductions should not disturb current resrructuring nected primary programmes in the course of implementation. to telephones and to PABXs supplied by the Bundespost. 4. Aid will be authorized in addition only for the further purposes of a financial restructuring towards reducing the debr service burden to the t Bull. EC 11-1984, point 2.1.43; Bull. EC l2-1984, point order of the burden carried now by firms which 2.1.67. were profitable in 1984 or ro cover costs incurred 2 OJ L 228,73.8.1981; Bull. EC 6-198I, point 1.4.3. because of capacity cuts.' 3 oJ L 227,19.8.1983; Bull. EC 6-1983, point 7.1.7 et seq.

30 Bull. EC 3-1985

( Employment, education and social policy

The Commission will examine any exten- The amendments are designed to increase sion of telecommunications monopolies in the tax-free allowances for travellers com- the Member States as to its compatibility ing from outside the Community, raising with the provisions of the EEC Treaty. In them as soon as possible to 100 ECU for general, it takes the view that an extension travellers over 15 and to 50 ECU for travel- including exclusive marketing rights for lers under 15. imported products from other Member States is a measure prohibited by Article 37(2). Direct taxes 2.1.46. On 27 March the Economic and Social Committee delivered a favourable opinion (--+ point 2.4.20) on the proposal Financial institutions for a Council Directive on the harmoniza- and taxation tion of the laws of the Member States relating to tax arrangements for the carryover of losses of undertakings.5 Financial institutions

Stock exchanges and othu institutions Employment, in the secuilties field education and social policy 2.1.47. The European Council (-r points Collective investment undertakings 1.2.1 and 1.2.3) discussed the economic and for transferable securities social situation in the Community on the basis working paper prepared the 2.1.44. At its meeting on 11 March the of a by (--+ point reiterated Council took note of a statement by Lord Commission 3.4.2).5 It prime importance each the Cockfield, Vice-President of the Com- the that of governments and attached mission, on the speeding up of proceedings the Community concerning the proposal for a Directive on to combating unemployment through sustained, more employment-intensive econ- the coordination of laws, regulations and growth. administrative provisions regarding collec- omic tive investment undertakings for transferable securities other than the closed-ended Employment type (CIUTS).1

Free movement of workers Taxation 2.1.48. A seminar organized by the Com- mission for employment service staff from lndirect taxes frontier areas was held in Brussels on 5 and 7 March to look into ways of gradually establishing permanent collaboration Tax-free allowances between the respective services involved. The long-term objective was to provide a T ax-free alloutances for trauellers

t oJ c 171,26.7.7976. 2.1.45. On 12 March the Commission, 2 taking account in part of Parliament's opin- 3 OJ C46,18.2.1985; Bull. EC l-1985, point 2.1.16. amended 3 its proposal for an eighth coM(85) 82 final. ion,2 'f oJ c 702,74.4.7984; Bull. EC 3-1984, point 2.1.59. Directive increasing tax-free allowances in 5 oJ c L53,20.9.1984; Bull. EC 9-1984, point 2.1.41. international travel. a 6 coM(85) 88 final.

Bull. EC 3-1985 31 Employment, education and social policy joint cross-frontier employment service for Commission told shipowner and union rep- workers and employers in border regions. resentatives that it was continuing its efforts to improve and extend its application (particularly with respect to Japan). Financiat instruments ' Finally, the two sides of industry agreed to resume talks (suspended for 10 years) on European Social Fund the setting-up of a joint committee on sea transport and entrust party 2.1.49. The Committee of the European to a working the task drawing plan a Social Fund, meeting on 26 and 27 March, with of up a for multiannual study programme on sea trans- examined applications for assistance from port. the Fund in 1985. It also gave its opinion on the Commission's draft guidelines, soon to be adopted, for the Equal rights for men and women management of the European Social Fund in 1985-88. 2.1.52. The Advisory Committee on Equal Opportunities devoted its ninth meeting, 2.1.50. On 15 March Parliament too held in Brussels on 20 and 2l March, to delivered an own-initiative opinion on the four important items. First, there was an guidelines. I It called for a more rigorous exchange of views on the adoption of codes selection of applications for assistance, con- of good practice designed to achieve equal- centration of assistance in regions worst hit ity of opportunity, one for employment by unemployment and a qualitative analysis (and thus aimed at all employers) and of the specific impact of projects carried another in the field of education (intended out. It thought that as a general rule the for all those involved in education-admin- management of the Fund should conform istrative staff, teachers, vocational guidance to Community priorities and that the bulk counsellors, parents, pupils, etc.). The of the funds should be allocated through second item was the drafting of an opinion the application of Community principles. on the implementation of equality of treat- Finally, Parliament hoped that the Com- ment between men and women in matters mission would continue to consult it at of social security with regard to benefits not regular intervals as provided in the Council subject to the Directive of 19 December Decision of 17 October 7983.2 l9TSlaying down general guidelines in this field (79/7/EEC).4 The Committee then examined a draft communication to the Living and working conditions Council concerning the Community's par- and socia! protection ticipation in the international conference to be held at Nairobi from 15 to 25 July 1985, Labour law and industrial relations which will examine and assess the results of the UN Decade for lWomen: equality, 2.1.51. At its meeting on 15 March the development and peace. The paper sets our advisory ad hoc joint working party on sea the stand the Commission will take at Nai- transport held preliminary discussions on robi on behalf of the Community. Lastly, it the memorandum concerning the establish- gave its opinion on the draft medium-term ment of a Community sea transport policy action programme on equal opportunities, (+ point 2.1.133). The shipowners' representatives were in favour of the guidelines set out memorahdum, sea- in the but the I oJ c 94, 1s.4.1985. men's unions were critical or even opposed. 2 OJ L 289, 22.10.19831' Bull. EC 10-1983, point 1.3.1 et seq. On the subject of the Memorandum of 3 Bull. EC 7-1982, point 2.7.74. Understanding on Port-State Control,3 the 4 OJ L 6, 8.1.1979; Bull. EC 12-197 8, point 2.1.67.

32 Bull. EC 3-1985 Culture which is to be put before the Council before concerning working conditions and the the end of the year. improvement of safety measures in coalmines, the mining disaster in Lorraine, and safety a_nd health in coalmines (--+ point 2.4.LD.s 2.1.53. On 27 March the Economic and Social Committee gave favourable opinions (--+ points 2.4.23 and 2.4.24) on the draft Health and safety (Euratom) recommendation on social security for vol- 1 2.1.57. On 12 March the Commission held unteer development workers and on the an information meeting in Luxembourg for proposal to amend Council Regulations officials from the Member States for the Nos 1408/7L and 574/72 on the applicarion purpose of assessing the progress of the of social security schemes to employed and work put in hand by the governments in self-employed persons and members of their order to bring national laws into line with families moving within the Community.2 the provisions of the Council Directive of 3 September 7984 layingdown basic measures for the radiation protection of persons Health and safety undergoing medical examination or treatment.5 Public health 2.1.58. In cooperation wirh a group of experts from the Member States, the 2.1.54. The Commission published Com- has a mission has put in hand the preparatory report entitled lndiuidual choice and work on a revision of the publication Tech- enabling structures-European directions nical recommendations monitoring the in care of the for elderly.3 This comprises the exposure of indiuiduals to external radi- texts of the papers presented dis- and the ation.T The updating was prompted by the cussions held at a seminar in Luxembourg adoption of the Directives of 15 1980 8 in September 1982,4 the purpose July of which and 3 September 19846 amending the basic was to make analysis an appropriate of the safety standards for the health protection problems associated guide- with, and the of the general public and workers against lines and measures to be adopted for, the the dangers of ionizing radiation andEy_-the development of a common policy the on appearance of new reports of the Inter- medical and social problems of the elderly national Commission on Radiation Units in the Community countries. and Measurements.

Health and safety (ECSC) Culture 2.1.55. An explosion of firedamp and coal dust occurred on 25 February at the Simon 2.1.59. The Commission published a pit in the Lorraine coalfield in France, as a notice in the Official Journal stating that it result of which22 miners died and a number of others were poisoned by fumes. An official t oJ c 16,17.1.1985; Bull. EC 12-1984, point 2.1.100. inquiry into the cause of the accident 2 has already been opened in France, but the 3 Bull. EC 1-1985, point2.t.24. Mines Safety and Health Commission of Document EUR 9605, available frdm the Office for Official Publications of the European Communities, L-2985 the European Communities will be examin- Luxembourg, ing the known facts and drawing whatever 1 Bull. EC9-1982, point 2.1.35. 5 conclusions are necessary to try to minimize 6 oJ c 94, 13.4.198s. the risk of similar accidents in future. OJ L 265,5.10.1984; Bull. EC 9-1984, point 2.1.55. 7 Document EUR 5287, available from the Office for Official Publications of the European Communities, L-2985 2.1.56. Following this disaster, Parliament Luxembourg. adopted three resolutions on 14 March- t OJ L 246, t7.9.t9&o; Bull. EC 7/8-1980, point 2.1.54.

Bull. EC 3-1985 Environment and consumers would provide financial backing for pilot 2.1.62. On 14 March Parliament adopted projecti to conserve the Community's archi- a resolution on the integrated Mediter- tectural heritage. I ranean programmes (-+ point 2.4.1D.4 This support will go to monuments and sites of European renown which illustrate some aspect of the national or regional architectural heritage of the Community. A Environment and consumers total of 500 000 ECU will be provided in 1985 to support a maximum of 12 pilot 2.1.53. On the basis of a communication projects. A decision on whether to provide from the Commission entitled 'A Europe- financial support will be taken by the Com- wide environment policy' (+ point 3.1.4)s mission, on expert advice, by 30 November requested at Dublin last December,6 the at the latest. European Council pointed out the need to continue to integrate environment policy with the Community's and Member States' economic and social policies, and the Regional policy importance of retaining prevention as the key objective of environment policy. It also reached the Second periodic report on the social welcomed the conclusions by and economic situation of the regions Council, particularly with regard to combating air pollution through the introduc- 2.1.60. On 27 March the Economic and tion of the 'clean car' (--+ point 1.2.5). Social Committee adopted an opinion (+ point 2.4.27) on the Commission's 2.1.64. At its March session the Economic second periodic report on the social and and Social Committee delivered a favour- economic situation and development of the able opinion (--+ point 2.4.22) on the com- regions of the Community.2 munication on the protection of the environment in the Mediterranean basin which the Commission had sent to the Financial instruments Council on 24 April 1984.7

Coordinated application of different Council financial instruments 2.1 .65. A Council meeting on environ- Integrated Mediterranean programmes mental matters was held in Brussels on 7 and 8 March; it was continued on 20 and 2.1.51. In line with the untertaking it gave 21. March (+ point 2.4.12). At this meeting, in June 1984,3 the European Council which dealt chiefly with matters relating decided to launch the integrated Mediter- to the 'clean car', the Council adopted a ranean programmes in favour of the sou- Directive on the lead content of petrol and thern regions of the present Community reached agreement on the question of air within the framework of the proposals pollution by exhaust gases from motor made by the Commission (+ point 1.2.1 et vehicles (--+ point 2.1.70). seq.). Adoption of the programmes, which will cover seven years and are intended to improve the economic structures of those 1 oJ 28,26.3.t98s. 2 c regions to enable them to adjust to the new 3 Bull. EC 3-1984, point 1.1.7. situation created by enlargement, permitted Bull. EC 5-1984, point 1.1.7. 4 oJ c 94,75.4.199s. reser- withdrawal of the last remaining 5 coM(8s) 86 final. vations regarding enlargement and own 6 Bull. EC 12-1984, point 1.2.3. resources. 7 oJ c 133, 21.5.1984; Bull. EC 4-1984, point 2.7.79.

34 Bull. EC 3-1985 Environment and consumers

It also adopted formally a Directive on air Titanium dioxide quality standards for nitrogen dioxide I on which it had reached agreement on 6 2.1.67. The Council continued its examin- December 19842 and the Decision concern- ation of the proposal for a Directive on ing the signature of a global framework procedures for harmonizing the pro- Convention for the Protection of the Ozone grammes for the reduction and eventual elimination of pollution caused waste Layer (--+ point 2.1.73). The Council also by s approved two Directives, one conc'erning from the titanium dioxide industry. It the assessment of the environmental effects asked the Permanent Representatives Com- of certain public and private projects mittee to examine the matter in greater (--+ point 2.1.77), the other containers of detail, with particular reference to a liquids for human consumption (-+ point compromise solution providing for the 2.1.80). The Council was also favourably application, on certain conditions, of qual- disposed towards two proposals for Direc- ity objectives for the environment. tives, one relating to restrictions on the marketing and use of certain dangerous sub- Pollution by oil and otber stances and preparations (-+ point 2.1.74), dangerous substances the other on limit values and quality objec- 2.1.58. The Commission and Council tives discharges for of certain dangerous have for some time been actively seeking to substances into the aquatic environment improve the way in which the control of (--r point 2.1.56). The Councilheld detailed oil pollution of the sea is organized. Its exchanges of views, without reaching con- experience leads the Commission to believe clusions, on two other matters on the that it is now necessary to extend certain agenda, pollution namely air caused by arrangements originally designed ro large combustion plants (+ point 2.1.72) improve the combating of oil pollution to and the reduction of pollution caused by other dangerous substances. Hence its waste from the titanium dioxide industry request to the Council on 25 March 6 to (--+ point 2.1.67). extend to other dangerous substances the Community information system relating to oil set up by the Council on 3 December Prevention and reduction l98l;7 the Commission also decided 8 to of pollution and nuisances extend the remit of the advisory commirtee it set up on 25 June 1980e to include these Freshwater and marine pollution other harmful substances in order to facilitate the implementation of Community measures and the coordination of national Limit uitlues and quality obiectiues and international measures. for discharges of certain dangerous substances Protection of the Rhine

2.1.65. The Council was favourably dis- 2.1.69. In March Parliament endorsedlo posed towards the proposal for a Direcrive 3 the proposal for a supplement in respect of on Iimit values and quality objectives for discharges of certain dangerous substances t oJ L 87,27.3.199s. 2 into the aquatic environment which are 3 Bull. EC 12-1984, point 2.1.125. included in List I in the Annex to rhe Direc- OJ C 70, 18.3.1985; EC t-1985, point 2.1.30. 4 oJ L 129, tq.s.1976; Bull. EC 5-1926, point 2?32. tive of 4 May 1976.4 It asked the Permanenr 5 OJ C 138, 26.5.1983; Bull. EC 4-1983, point Z.t.B2; O! Representatives Committee carry on C 167, 27 .6.1984; Bu I l. EC 6- 1984, point 2.1.7 5. to 6 work, in the light of the opinions delivered , CoM(85) tL3/2f.inal. by Parliament and the Economic and Social OJ L 355, 10.12.1981; Bull. EC 12-1981, point 2.1.81. 8 oJ L 89,29.3.199s. Committee, so that the Directive could be e OJ L 188,22.7.'t980; Bull. EC 5-1980, point 2.1.75. adopted at an early date. ro oJ c 94, 15.4.198s.

Bull. EC 3-1985 35 Environment and consumers cadmium to Annex IV to the Convention more general reservation. The result rep- for the Protection of the Rhine against resents a political agreement establishing a Chemical Pollution and the recommen- balance between the demands of environ- dation on the monitoring of cadmium dis- mental protection and a concern to allow charges transmitted to the Council by the European industry the time needed to adiust Commission in December 1.984.1 to emission values considerably more strin- gent that the limits currently in force. The Air pollution Ministers actually laid down a timetable for implementing European emission stan- lJnleaded petrol and noxious or harmful dards, these having to be specified by 30 this year, and the cylinder-capacity emissions from motor uehicles June categories of vehicles affected by these stan- 2.1.70. In accordance with the timetable dards. They also reached agreement on the laid down by the Dublin European Council limits to be placed on the financialcompen- in Decemb er !984,2 and in the light of sation which may be provided as an incen- Parliament's opinion,3 the Council tive to the introduction of 'clean cars'. The adopted a Directive on the approximation discussions necessary to translate this politi- of the laws of the Member States on the a cal agreement into a Directive are to go lead content of petrol, on which it had ahead as speedily as possible to enable the position last reached a common Directive to be adopted in June. December.5 The Directive provides for the compulsory According to this agreement the future introduction of unleaded petrol from European emission standards are to be as October 1989, which gives the oil and motor shown in Table 4. industries time to make the necessary investments. The Directive does not rule out the possibility of voluntary measures being taken to introduce unleaded petrol at an earlier date. It also provides that, as soon as they see fit, Member States will reduce in parallel the lead content of leaded petrol 1 oJ c 16,17.1.7985; Bull. EC 12-1984, point 2.1.121. from 0.40 g/l to 0.15 g/1. 2 Bull. EC 12-1984, point 1.2.3. 3 oJ c 12,14.1.1985; Bull. EC 12-1984, point 2.1.124. 4 The Council also reached agreement on the 5 oJ L 96,3.4.199s. question of air pollution by exhaust gases Bull. Ec 12-1984, point 2.1.122. 6 OJ C 178,6.7.1984 Bull. EC 5-1984, point 7.2.7 et seq; fiom motor vehicles,6 although one Mem- OJ C 291, 31.10.1984; Bull EC 9-1984, point 2.1.67i OJ C ber State was only able to agree subject to 318,29.11.1984; Bull. EC 10-1984, point2.7.77; Bull. EC 12- confirmation and another had to enter a 1984, point 2.1.123; OJ C 106,27.4.1985.

Table 4

Emission standards Vchiclc category (grams/test)

Ovcr 2lrtres 1.10.1988/ 1989 Euroocan standardl'2 1.4 to 2 lrtres t.10.199v193 European standardt'2 Less than 1.4 lrtrcs A.1.10.1990/1991 A. Mrnimum CO 45 HC + NOx l5 NOx 5 B. To be set by 1987 and rmplcmented not B. Europcan standardl later than 1993/94

1 These Europcan standards will bc adapted for thc vehicle categories in such a way that their cffect on thc European cnvironmcnt will bc cquivalent to the cffect of United Statcs standards. ) The European standards will be set before 30 June 1985 on the basis of addrtional technical investrgations whrch will bc carried out with a vicw to wnting prccise figures into thc proposal from the Commission rclating to Stagc II.

36 Bull. EC 3-1985 Environment and consumers

2.1.71. Parliament adopted a resolution any clause making its participation contin- on 4 March 1 in which it confirmed the gent on that of at least one Member State, as opinion it gave in December 79842 and certain non-member countries had wished. requested the Council and the Commission This outcome was made possible by the once again, having regard to the importance unity and solidarity of all Member States, of the planned Directives, to initiate the which spoke at Vienna with one voice thr- conciliation procedure in order for a Euro- ough the Community's representative. pean solution to these important matters of The conference also adopted a resolution common interest to be found and a political the protocol chlorofluorocarbons decision to be reached. on on (CFCs), substances which may deplete the ozone layer. Negotiations on this subiect Emissions from large combustion plants are to continue with a view to a protocol regulating the production and uses of these 2.1.72. The Council discussed pro- the substances being drawn up. To provide gress of work on the proposal for a Direc- guidance, a workshop of scientists and tive on the limitati

Bull. EC 3-1985 37 Environment and consumers were known, so that the Directive could be lations solely designed for the permanent adopted as soon as possible. storage or final disposal of radioactive waste; integrated works for the initial smelt- Toxic Substances Control Act ing of pig iron and for steelmaking; installations for the extraction, processing and 2.1.75. A further meeting with Member working of asbestos; integrated chemical States' representatives was held in Brussels installations; construction of motorways, on 22 March within the framework of the express roads and lines for long-distance negotiations between the Commission and railway traffic and of airports with a basic the United States on the control of toxic runway length of 2lC[,]. metres or more' substances. The subject discussed was a US ;;;;;..i;ii."pl't' ini""a *;i.;;";; document for regulating biotechnology. A and ports for inland-waterway""a traffic which memorandum setting out the Community's permit the passage of vessels of over 1 350 comments on the proposed rulemaking was tonnes; waste-disposal installations for the formally approved by the meeting and has incineration, chemical treatment or land already been sent to the US authorities. storage of toxic and dangerous wastes. provide a I The Directive does, however, for 2.1.76. Parliament delivered an opinion certain number of derogations in specific on the proposal for a Council Directive cases. on the permissible sound level and exhaust system of motorcycles transmitted by the Moreover, the Member States must require Commission in September 1984.2 While the assessment of the environmental effects projects approving the proposal, Parliament con- of other where they consider that siders that the Commission has proposed their characteristics so demand. These are projects agricul- quite inadequate reductions in the noise of relating, for example, to ture, the mining industry, the energy indus- small motoicycles (up to 125 cm3), which try, the metal-working industry. account for the majority of sales of new machines and cause the worst nuisance. Par- The purpose of the assessment is to identify, liament is also of the opinion that a shorter describe and assess the direct and indirect time limit is also possible for the 80 dB(A) effects of a project on the following factors: limit value for large motorcycles to be made human beings, fauna and flora; soil, water, applicable. air, climatic factors and the landscape; the inter-relationship between the above factors; material assets and the cultural heri- Protection and rational use tage. Member States must ensure that any of the environment and natural resources request for planning permission and information concerning the description of the project are made available to the public and Environment that those concerned are given the opportunity to express an opinion before a Enuironmental impact assessffient decision is reached.

2.1.77. The Council signified its agree- Flora and fauna ment on the Directive concerning the assessment of the environmental effects of certain Washington Conuention public and private projects. s This Directive 2.1.78. On 26 March the Commission is a basic text for a preventive policy for decided a to ask the Council to amend its the protection of the environment; under it Member States are obliged to submit the I following projects to an environmental oJ c 94,1s.4.r984. 2 oJ c 263,2.10.1984; Bull. EC 9-1984, point 2.1.72. impact assessment: crude-oil refineries; 3 oJ c 169,9.7.1980; Bull. EC 5-1980, point 2.1.85; OJ nuclear and thermal power stations and cer- C 110, 1.5.1982; Bull. EC 3-1982, point 2.1.58. tain other combustion installations; instal- 4 coM(85) 128 final.

38 Bull. EC 3-1985 Environment and consumers

Regulation of 3 December 1982 on the tainers, develop effective processes for implementation in the Community of the retrieving them from household waste, and Convention on International Trade in extend the outlets for materials recovered Endangered Species of Wild Fauna and from containers where economically feas- Flora.l The proposed amendments would ible; to encourage the technical develop- affect the annexes to the 1982 Regulation ment and placing on the market of new so as to leave three species of European types of container; and to maintain, and cyclamen in Annex C1 and add all other where possible increase, the proportion of species of cyclamen to those already refilled or recycled containers. included in Annex C2.

2.1.79. In March Parliament adopted a I nternati o na I coo peratio n resolution on Community trade in seal products and in particular products deriving 2.1.81. A conference of Ministers for the Environment and/or high-level representa- from the white-coat pups of harp and tives of OECD member countries, the Com- hooded seals (+ point2.4.1l).2 mission and Yugoslavia took place from 26 to 28 March4 at Basle with the aim of Natural resources reaching a political commitment to work out without delay an international control Containers of liquid for human system for transfrontier movements of haz- consumption ardous waste. Although the conference did not produce a binding definition of hazard- 2.1.80. The Council agreed, with one ous waste, it nevertheless adopted a rec- Member State expressing a reservation for ommendation in favour of an international examination, to the Directive on containers agreement on the subject being reached of liquids for human consumption.3 This before 1987. The recommendation will be Directive forms part of the attempt to estab- submitted to the ministerial meeting of the lish a better policy for waste management Environment Committee which is to be held and concerns environmental protection, in Paris on 18 and 79 June. Mr Clinton while seeking to reduce the consumption Davis, Member of the Commission with of energy and raw materials. Against this special responsibility for environmental pol- background, the Directive provides for a icy, stressed the importance of this problem package of measures to be carried out to the Community; he pointed to existing regarding the production, marketing, use, Community law on the subject and the recycling and refilling of containers of Community's interest in seeing rules in force Iiquids for human consumption and the dis- in a wider setting. posal of used containers. To achieve these objectives, Member States are to draw up programmes for reducing the tonnage or Consumers volume of containers of Iiquids for human consumption in household waste for final World Consumer Rights Day disposal. These programmes will be revised at least every four years to take account, in 2.1.82. On 15 March, to mark lUorld Con- particular, of technical progres-s_and chang- sumer Rights Day, Mr Clinton Davis, Mem- ing economic circumstances. Not only by ber of the Commission with special legislative or administrative means, but also responsibility for consumer affairs, paid by voluntary agreements, national or sectoral in scope, Member States will be able to 1 take measures designed inter alia to develop 2 oJ L 384,31.12.1982; Bull. EC 12-1982,point 2.1.105. consumer education; facilitate the refill- oJ c 94, 15.4.1985. to 3 OJ C 204, 13.8.1981; Bull. EC 4-1981, point 2.1.39; Bull. ing or recycling of containers; to promote EC 12-7984, point 2.1.133. the selective collection of non-refillable con- 4 oJ L 326,13.12.1984; Bull. EC 6-1984, point 1.4.1.

Bull. EC 3-1985 39 Agriculture tribute to the International Organization 86 marketing year was continued at the of Consumer Unions, which promoted this second meeting with a view to a decision as initiative, and reported on Community early as possible in April. It was decided objectives and achievements in this sphere that in the mean time the marketing years over the past 10 years. On 15 March 7962 for milk, beef/veal, sheepmeat and goat- President John F. Kennedy, in his annual meat, and dried fodder, all due to expire on address to Congress, set out the basic con- 31 March, should be extended.2 sumer rights: the right to safety, the right of choice, the right to be informed and the right to be heard. These principles still form the basis of consumer protection policies all 2.1.85. Parliament, after a substantial over the world including the Com- debate (--+ point 2.4.9), gave its opinion2 munity. To commemorate- this declaration, on the Commission's proposals on agricul- the International Organization of Con- tural prices and related measures for 1985/ 85.3 sumer Unions decided that 15 March should be designated'World Consumer Rights Day. It called for an increase in prices averaging 3.5% compared with the 2.5o/" proposed by Physical protection the Commission.

2.1.83. The Community system for the rapid exchange of information on dangers Economic aspects of the arising from the use of consumer products, common agricultural policy introduced by Council Decision of 2 March 1984,1 became officially operational on 7 Countervailing charge March this year. The system, designed to on French ethyl alcohol ensure a rapid exchange of information in the case of a serious and immediate risk 2.1.86. On 12 March the Commission to consumers' health and safety, covers all amended a its Regulation of 4 September products available to consumers through 1984 fixing a countervailing charge on retail purchase or hire. Under this system, imports into the other Member States of any Member State which decides to take ethyl alcohol from France,5 which were emergency measures to restrict the market- continuing to affect competition. The ing of products posing a serious and charge was increased from 0.04 to 0.075 immediate threat must forthwith inform the ECU per % vol per hectolitre, and changes Commission, whic[r will transmit this infor- to facilitate application of the Regulation mation to the other Member States and were also made. ensure that the information is followed up. A network of correspondents and a special Z4-hour telephone service have been set up. Market organizations

Milk and milk products Agriculture 2.1.87. As part of the programme for using funds accruing from the milk co- Council responsibility levy for 1985/86,6 the Com-

2.L.84. The Council met from 11 to 13 and from 25 to 27 March. At the first meeting I oJ L 70, 13.3.1984; Bull. EC 3-1984, point 2.1.111. 2 oJ c 94, 1s.4.198s. a comprehensive decision was reached on 3 adjustment the agricultural structures oJ c 67,14.3.1985; Bull. EC 1-1985, point 1.2.1 et seq. of 4 oJ L 73, 14.3.199s. policy (+ point 2.1.121). A thorough dis- 5 oJ L ?38,6.9.1984;Bull. EC 9-1984,point2.1.79. cussion of agricultural prices for the 1985/ 5 Bull. EC 11-1984, point 2.1.103.

40 Bull. EC 3-1985 Agriculture

mission adopted Regulations maintaining lation of table wine,I2 the Commission on the financing of measures that have proved 5 March initiated rhe 'support' distillation effective in enlarging the market foi Com- operation that is automatically mounted munity milk products: when compulsory distillation is intro- (i) sales promotion and publicity meas- duced.l3 The maximum quantity for sup- ures within the Community,l port distillation is 2.5 million hl, and prb- ducers may not cbnclude contracts for more promote (ii) measures to the sale of milk than 5o/o of the quantity of table wine they products of Community origin outside the produced in7984/85. Should the totalquan- Community,z tity of wine contracted for exceed- 2.5 (iii) improvement of milk quality' in Ire- million hl, contracts can be approved only land, Italy and Greece.l in respect of a percentage to be fixed by the Commission by 15 May ar the latest. Before a programme The for the uiilization of buying-in price the funds-accruing of wine is 80% of the from the co-responsibility guide price levy for the corresponding table wine for 1986/87 is launched, the Com- type. mission will analyse the effectiveness of the range of measures being implemented. Cereals and rice 2.1 .88. In response to Parliament's opin- 2.1.91. By Regulation 1 ion 3 the Commission on 22 March a adopted on March the Commission introdu-ed, amended a the proposal it had presented for the period 1 March 1985 to 28 February 1985, on 3 April 1984 for a Regulation on rhe a special arrangement designations used in the marketing of milk for the importation and milk products.5 into the Community of rice from-the ACP States and the overseas countries and territories. The exporting country will levy a Wine charge corresponding to a reduction in the Community import levy of 50% plus a flat- 2.1.89. Following a conciliation meering rate amount, and imports will be limited to with Parliament, the Council adopted in a quota of.722 000 tonnes of husked rice, a March four Regulations 6 forming part of husked rice equivalent being calculated for the wine sector reforms agreed in Febru- imports of rice in other forms, and 17 000 aryT in line with the conclusions of the tonnes of broken rice.14 s European Council in Dublin. The Regu- The arrangement is of interest mainly to lation on measures specific to Greecer 9 on Suriname and Guyana. which Parliament gave its opinion on 15 March and the Economic and Social Com- 2.1.92. On 7 March the Commission mittee on 27 March,lo was adopted on 1 amended2 its Regulation of 4 October 1984 April.tl The Council extended unril 31 March the I period during which sucrose aqueous oJ L 69,9.3.198s. in 2 oJ L d8, 8.3.198s. solution can still be used under certain con- 3 OJ C 72, 18.3.1985; Bull. EC 2-1985, point 2.1.29. ditions to increase the alcoholic strengrh of 4 CoM(85) t22final. 5 table wines and of quality wines produced 6 OJ C 111,26.4.1984; Bull. EC 4-1984, point 2.1.98. in specified regions. It also extended until 7 oJ L 88, 28.3.1985; oJ L 89, 29.3.199s. 31 December the period Bull. EC 2-1985, poinr 1.1.2. during which the 8 Bull. EC12-1984,point 1.2.15. coupage of German red wines with e oJ C 76,22.3.1985; Bull. EC 2-1985, point 1.1.2. imported red wines is authorized.ll to oJ C 94, 15.4.1985; poinr 2.4.25. rr oJ L 92,4.4.199s. 12 oJ L 15, 19.1.r985. 2.1.90. Following the decision taken on 18 ,, oJ L 67,7.3.1985; Bull. EC 1-1984, point 2.1.38. January to introduce compulsory distil- 14 oJ L 53, 2.3.1985.

Bull. EC 3-1985 4t Agriculture on the amount of the security for import trade problems led the Commission, in the licences for basic cereals in respect of which framework of the present budgetary disci- the levy is fixed in advance.l pline, to make marked reductions in the refunds applying to the most sensitive prod- Pigmeat ucts and destinations. An initial reduction of approximately 72o/o on preserves was 2.1.93. A new stage in the market organ- followed by the creation of a new subhead- ization was reached with the entry into ing, and a 14o/o drop, for 'Japanese' cuts, cuts were differentiated force on 1 January of the Council Regu- Lastly, refunds on lation determining the Community scale for geographically and reduced by over 50% on grading pig carcases.2 average for certain destinations.6

2.1.94. Under the Regulation of 31 March 2.1.97. The Community pig herd survey the time 1984 on the calculation and dismantling of in December 1984 showed for first the monetary compensatory amounts apply- since December 1983 an increase in total the ing to certain agriiultural products,3 a new numbers, of some 0.4"/o, as a result of method of calculating MCAs was intro- rapid reconstitution of the breeding stock, duced in the pigmeat sector when new green which is up by nearly 25%. These changes previous rates came into force for the Federal Repub- form part of a cycle, shown up by lic of Germany and the Netherlands on I surveys, that has shortened to some two years. Production forecasts on this basis January. Pigmeat is now treated as a product derived from cereals, and the MVAs, indicate a vigorous upswing in supply from which now correspond to those for cereals, next month, with figures climbing until have dropped by 50-80%. early autumn. The rise is particularly marked in Denmark (l31o), the Netherlands As the reintroduction of negative MCAs (11%) and the United Kingdom (5%). How- in France would have been an undesirable ever, according to the experts on the Advis- consequence of the change in the method ory Committee the effect on prices of the of calculating MCAs the Commission increase in production will be moderate adopted a Regulation on 8 January abolish- and, since feed costs are also reasonable at ing the MCAs applicable in the pigmeat the moment, 1985 looks like being a fairly sector in that country.4 good year for producers. The general distribution of pig rearing in the Community is 2.1.95. Since the end of last year the health little changed: of the Community's pigs of the Community's pig herd has deterio- 30o/o are to be found in the Federal Republic rated considerably. There have been several of Germany, 15% in the Netherlands,'1,4o/" dozen cases of foot-and-mouth disease in in France, llo/o inltaly,ll"/o in Denmark, Italy, and African swine fever has occurred 10o/o in the United Kingdom and 7o/o in at nine locations in Belgium. The restric- Belgium. tions on trade following these outbreaks have severely affected the regions con- Fruit and vegetables cerned, which have the highest concen- tration of pigs in the Community. The 2.1.98. On 26 March the Council Commission has therefore introduced amended 7 the Regulation of 15 May 19848 exceptional measures to support the markets question, the form aid for in in of 1 oJ r 264, s.10.1984. private storage differentiated according to 2 oJ L 301, 20.11.1984; Bull. EC 11-1984, point2.7.97. the economic impact of the outbreaks. s 3 oJ L 90, 1.4.1984. 4 5 oJ L7,9.1.1985. 2.1.96. The steady rise in Community oJ t- G3, 2.3.1985; oJ L 7s, 16.3.1985; oJ L 86, 27.3.1985. exports as a result of the extremely favour- 6 o1L7,9.1.1985; oJ L 58,26.2.1985; oJ L7B,z1.3.t9gs. able exchange rate for the dollar and the 7 oJ L 9r,30.3.1985. increasing risk that this would engender 8 oJ L 143,30.5.1984.

42 Bull. EC 3-1985 Agriculture

laying down the date for the entry into force Processed fruit and vegetables of the Regulations of 14 November 1983 adjusting the common organization of the 2.1.103. On 5 March the Commission market and laying down general rules for decided to pay provisional compensation the extension of certain rules issued bv oro- for dried grapes from the 1983 harvest still t ducers' organizations. held by the Greek storage agencies and to reduce the storage aid for these products, 2.1.99. On 27 March the Commission which will be sold for animal feed. a adopted Regulations setting the reference prices for apricots, cherries, courgettes, 2.1.104. On 72 March the Commission plums, peaches (including necrarines) and adopted two Regulations on rhe pur- table grapes for the 1985 marketing year.2 chase, sale and storage of dried- grapesind figs by storage agencies, and on itoiage aid The average increases over 1984 are: and financial compensation for unprocessed ^ courgettes 5.4o/o, dried grapes and figs.5 cherries 5.6o/o , apples 5.4o/o, Sheepmeat apricots 5.4o/o, 2.1.105. peaches 5.2o/o, On 27 March the Commission adopted a Regulation providing for the table grapes 5.1o/o . grant of private storage aid fixed at a stan- The maximum possible increase in the refer- dard rate in advance in respect of certain ence prices was fixed at 5.9o/o, this being cuts of lamb in region 2.6 The aid, for the rise in production costs recorded by the which applications must be lodged by 5 FADN. April and which is limited to a toral quantity of I 500 tonnes, has been introduced in view of the present difficulties on the French 2.1.100. On the same day the Commission market. adopted Regulations setting the Com- munity offer prices for the 1985 marketing year applicable with regard to Greece for Olive oil cherries, plums, peaches (including nectar- ines) and table grapes.2 2.1.106.' On 13 March the Commission laid down detailed rules 7 for the appli- 2.1.101. On 22 March the Commission cation of Article 4 of the Regulation of 22 adopted the Regulations setting the refer- September 19668 with regard ro the adjust- ence prices for tomatoes and aubergines for ment during the marketing year of the rep- the 1985 marketing year.3 The new prices resentative market price and the rhreshold proposed show average increases on 1984 of price for olive oil. 3.8% for tomatoes and 4.5o/o for aubergines although the increase in production cosrs in 2.1.L07. On the same date the Com- the fruit and vegetable sector recorded by mission also adjusted the representative the FADN for the marketing year in pro- market and threshold prices for olive oil.7 gress is 5.9o/o.

I oJ L 3zs,2z.tt.t9q3. 2.1.102. On 22 March the Commission 2 3 oJ L 88,28.3.1985. adopted Regulations setting the Com- 4 oJ L 81,23.3.198s. munity offer price for tomatoes applicable 5 oJ L 67,2.3.199s. with regard to Greece for the 1985 market- oJ L 72, 13.3.198s. 5 oJ L 80,22.3.198s. ing year and applying quality class III to 7 oJ L2s,10.3.1985. certain fruit for 1985/86.3 t oJ L 172,30.9.1966.

Bull. EC 3-1985 43 Agriculture

Both prices were increased by 11.93 ECU. for Agriculture reached by a qualified This reduced the consumption aid by the majority after 18 months of negotiations a same amount, i.e. 24o/o. comprehensive decision on adjustment of the igricultural structures policy.4 This comprises a Regulation on the amount of Sugar money (5 250 million ECU) that will be available from the EAGFF for the financing 2.1.108. On 9 March the Commission of the structures policy as a whole from adopted a Regulation on a standing invi- 1985 to 1989,s a new general Regulation tation to tender for the determination of (797/85) on improvement of the efficiency export refunds following the sale of white of agriculturaI structures,5 which will sugar held by the German intervention replace the 197 2 socio-structural Directives, agency. l and a number of joint measures to help Greece and the Mediterranean regions on This involves the sale of 62 900 tonnes of which broad agreement had already been sugar for export to non-member countries. reached.

2.1.109. A Commission Regulation of 13 2.1.112. This new policy, which is March 2 amended certain detailed rules for designed to tackle the structural problems storage costs for sugar, in the offsetting of of Community agriculture in the period up order to clarify the provisions on the time to 1.994, contains the following main limit for notification of particulars to the elements: Members States by persons entitled to reim- bursement of storage costs under the sugar (i) the replacement of the system of farm producers' self-financing compensation sch- development-in plans which had been intro- eme. These adjustments will also bring the duced 197i7 by a more flexible system Community provisions into line with the of farm improvement plans under which to practice in most Member States. obtain investment aid a farmer will merely have to show that the investments he pro- 2.1.110. On 28 March the Commission poses are worth while and will bring about adopted a Regulation fixing advance pay- a lasting improvement in the economic ments in respect o[ the production levies in results of his holding, or in certain cases the sugar sector for the 1984/85 marketing that the investments are necessary simply to year. 3 safeguard his existing level of income; (ii) an emphasis on aids for on-farm investments aimed at reducing production Structuies costs, qualitative improvements, improving living and working conditions, reconversion from surplus to deficit products and con- New measures and adiustment serving the environment; of Directives (iii) the adoption of the principle that aid may be prohibited or restricted in respect Adjustment of agricultural of on-farm investments aimed at increasing structures policy

oJ L 59,9.3.1985. 2.1.111. After taking note of the opinion oJ L73,14.3.1985. delivered at their Council meeting of 11 oJ L 89, 29.3.1985. March subject to the opinion of Parlia- Ol C 347,22.12.1983; Bull. EC 9-1983, point 1.2.1 et ment (--+- point 2.1.721) by the Ministers seq.; two of the proposals were adopted by the Council in - 1984: OJ L 180,7.7.1984; Bull. EC 6-1984, point 2.1.99. for Economic and Financial Affairs on the r oJ L 9s,z.4.t91s. overall budget for the EAGFF Guidance 6 oJ L 93,30.3.1985. Section for the period 1985-89, the Ministers 7 o! L 96, 23.4.1972.

44 Bull. EC 3-1985 Agriculture the production of products in structural the same period it adopted,3 after Parlia- surplus; the implemenration of this prin- ment's endorsement had been given,4 a cor- ciple in particular sectors is to be the subject responding figure of 1 343 million ECU for of future Council decisions, but in the mean Regulation (EEC) No 355/77 on common time specific restrictions apply in the milk, measures to improve the conditions under pigs and poultry sectors; which agricultural and fishery producrs are (iv) the introduction of financial aids to processed and marketed.5 Thii Regulation assist the first installation of young farmers was updated and extended by Council (i.e. those under 40 years of age) on agricul- Regulation (EEC) No 1932184,5 bur at the tural holdings; time the Council left the question of its future financing in abeyance. (v) the provision of a series of measures to encourage mutual aid between farmers, 2.1.115. The Council also adopted on 72 the establishment of farmer replacement March 7 two out of the three proposals for and farm management services and the Regulations sent by the Commission in May keeping of farm accounts; 1984 introducing measures specific to (vi) the strengthening of measures in fav- Greece. u The proposals adopted relate to our of farming in the mounrain and other an increase in the staff of the departments less-favoured areas of the Community; responsible for quality control of agricul- (vii) the improvement of aid for training tural products and to aid for the rrans- of persons engaged in agriculture, including humance of sheep, goats and cattle. the possibility of aid for the construction o-f The Council will continue iis discussions farm training centres in less-favoured areas; on the proposal for aid for the transport of (viii) the encouragement of afforestation means of production to certain islands. on agricultural land and the improvement of existing woodlands on agricultural hold- The Council adopoted two more Regu- lngs; Iations, extending the periods of validity of a common measure to improve public (ix) the authorization of the Member amenities in certain rural areas and of a States to pay national aids ro farmers in common measure for forestry in certain environmentally sensitive areas who adopt Mediterranean zones of the Community. T farming practices compatible with environmental objectives. Agricultural legislation 2.1.113. The Member States will have a period of six months (to 30 September 1985) to adopt the national measures needed to Veterinary and animal husbandry implement the new 'efficiency' Regulation legislation of 12 March. I the In 2 mean time the existing policy Directives and related measures, 2.1.116. On 25 March the Council, acring which the new Regulation will replace, will on a proposal from the Commission,g continue to apply with effect from 1 January amended its Decision 77/99 onthe financing 1985. This ensures the continued financing by the Community of the existing policy, t which had previously been extended only , oJ L 93,30.3.1985. up to 31 December 1984. oJ L 96, 23.4.197\ oJ L 108, 26.4.1976; o! L 2zo, 6.8.1981;3 OJ L 193, 3.7.1982. 4 oJ L 95,2.4.199s. 2.1.114. The Council also decided on an 5 oJ c 94, 1s.4.198s. estimated financial contribution by the oJ L s1,23.2.19n. 6 OJ L 180,7.7.1984; EAGFF Guidance Section 1 Bull. EC 6-1984,poim2.1.99. of 988 million 7 oJ L 86,n3.1.98s. ECU to cover the first five years (1985-89) 8 oJ c 135,23.5.1984; Bull. EC 5-1984, point 2.1.137. of application of the new Regulation. For e Bull. EC 2-1985, point 2.1.89.

Bull. EC 3-1985 Agriculture by the Community of certain emerge-ncy Italy measures in the fieid of animal health,l in order to extend such financing to the first l.Jmbria: regional bill on new agricultural 20 outbreaks in any epizootic of non-exotic credit measures; foot-and-mouth disease in a Member State. Assistance is conditional on the slaughter of Sicily: measures to help citrus growers who all animals of susceptible species on infected take part in the programme for the control farms. This is a first important step in coor- of pests and of 'mal secco'; Regional Bill dination of the measures for combating this No 692-716-732 A on the estimate for the reinforce disease in the Community and will 1984 financial year and the multiannual esti- the procedures applied in the Member mate for 7984-86;the Commission raised no States. objection to the granting of the aid provided for. Competition United Kingdom 2.1.1.17. Under Articles 92 to 94 of the EEC Treaty the Commission decided to Marketing make no comment on the introduction of Amendments to the Potato research and proposed schemes notified by: Scheme: aid for advertising, development and the promotion of exports by means of market prospecting and putting Germany buyers in touch with sellers.

Framework plan 1985-88: improvement of agricultural structures and coastal protec- Netherlands tion.

Hessen: aid to make the storm damage to Aid for reafforestation. private forests in November 1984. 2.1.118. The Commission decided to take no further action following withdrawal of Belgium a German aid, namely a measure by Lower Saxony to promote pollution control that Order granting an exceptional subsidy in fell outside the scope of the joint Federal part compensation for losses arising from Governmen tl Liinde r schemes. the impossibility of harvesting certain crops. 2.1.119. The Commission decided to terminate the Article 93(2) procedure in respect of the following aid schemes: Denmark

Adjustment of the pig-trade fund's budget Italy for the period 1 October 7984 to 1 Sep- tember 1985 (aid for the control of Auiesz- Emilia-Romagna Regional Act No 34 of 8 ky's disease). September 1981 providing for aid for the processing and marketing of fruit and veg- Greece etables, the Italian authorities having provided further information showing that the Financial aid to beekeepers and their coop- erative organizations for the harvesting, marketing and export of pine honey. I oJ L 96,3.4.1985.

46 Bull. EC 3-1985 Agriculture

aid was compatible with the common European Agricultural Guidance market. and Guarantee Fund

Greece Guarantee Section National aid to compensate for the cost of transporting tobacco from production to storage centres, the production centres hav- 2.1.120. The Commission has adopted the ing been recognized as intervention centres provisional accounrs of EAGGF Guaranree the. purposes for of Community pro- Section paymenrs 7984. Payments visions. I for amounted, fishery sector products included, to 18 346.4 million ECU (total appropri- Germany ations for financial year: 18 375.9 million ECU), an increase of some 760/o on 1983 Aid for the storage of morello cherries, the (15 811.5 million ECU). German authorities having decided nor ro grant it. Expenditure broke down as follows:

1983 1984 Expcnditurc Expcndrturc (mrlLon ECU) (mrlhon ECU)

Cereals and rice 2 534.1 15.0 1597.8 9.3 Milk products 4 396.1 27.8 5 441.7 29.7 Olive oil and oilseeds I 520.9 10.3 1752.0 9.5 Sugar 1 316.2 8.3 1631.5 8.9 Beef/veal, pigmeat and sheepmeat, eggs and poultry 2 i10.4 14.6 3 246.0 17.7 Fruit and vegetables, wine, tobacco 2 526.6 16.0 3 453.5 18.8 Other products 726.8 4.6 773.1 4.2

Total agricultural products 15 431.1 97.6 17 995.7 98.1

'Accession' compensatory amounts 0.3 0.0 0.3 0.0 Monetary compensatory amounts 488.3 3.1 375.9 2.0 Clearance of previous years' accounts - 108.1 -0.7 - 25.5 - 0.1

Grand total 15 81 1.5 100.0 18 346.4 100.0

Guidance Section The Ministers for Economic and Financial Affairs had given their 2.1.121. On 26 March the Council opinion on this subject on 11 March (--+ point adopted a Regulation amending Regulation 2.1.1). (EEC) No729/702 with regardlo the financial framework of the EAGGF Guidance t Section.3 The amount that may be charged oJ L 311,29.11.1984. 2 oJ L 94,28.4.1970. to the Guidance Section rhe period for 1985- 3 OJ L 95,2.4.1985. For the Commission's proposal see 89 is 5 250 million ECU. OJ C 13, 15.1.1985; Bull. EC 11-1984, point 2.1.115.

Bull. EC 3-1985 47 Fisheries

In an opinion delivered on 15 March Parlia- External aspects ment claimed that this amount was quite inadequate for requirements and also Bilateral relations deplortd the Council's decision to assign-to the Guidance Section the appropriations for Greenland the grubbing up of vineyards, declaring that since the purpose of the measures was to March the Council in wine they 2.1.124. On 26 restore balanie on the market adopted Regulation allocating Com- Guarantee Sec- a should be assigned to the catch quotas in Greenland waters tion. I -r.,itu for 1,9b5.2 This'Regulation replaces that of 19 December 1'9844 arid takes into account Greenland's withdrawal from the Com- munity on 1. February.5 Fisheries Norway and the Faeroes

Resources 2.1.125. Following Greenland's withdrawal from the eommunity the Council also adopted, on 26 March, two Regu- lnternal aspects lations2 amending the Regulations of 19 December 1984a concerning fishing in Com- munity waters in 1985 by vessels flying the Community measures flag of Norway and by vessels registered in the Faeroes. TACs and quotas for 1985 Madagascar 2.1.122. On 26 March the Council amendedz for the second time3 its Regu- 2.1.126. On 11 March the Council autho- persons lation of 19 December 1984 fixing, for cer- rized its President to appoint the tain fish stocks and groups of fish stocks, empowered to sign the Fisheries Agreement orovisional total allowable catches for 1985 between the Community and Madagascar 'and certain conditions under which they which had been initialled on 20 December may be fished. a This Regulation, which 1984.7 The Agreement will be concluded *"i dra*n up following trilateral consul- once Parliament has delivered its opinion. tations with Norway and Sweden, fixes the total allowable catches for several stocks in Gambia the Skagerrak and Kattegat and the by- catch percentage for herring caught with 2.1.127. On 11 March the Council gave small-meshed nets, other than those caught the Commission directives for the nego- during sprat fishing. The Regulation also tiation of a fisheries agreement with the raises-pr-ohibition on herring fishing in the Republic of the Gambia.s Skagerrak and Kattegat for certain periods and increases the quantities of this species available to the Community. I oJ c 94,15.4.1985. 2 oJ L 89,29,3.1985. Prohibition measures 3 13, 16.1.1985. 4 oJ I- 5 oJ L 1, 1.1.1985. 2.1.123. On 29 March the Commission oJ L 91,30.3.1985. 6 0J L 29, 1.2.1985l' Bull. EC 2-1985, points 1.4.1 adopted two Regulations to prohibit vessels 1.4.2. flying the flag of the Netherlands from fish- 7 Bull. EC 12-1984, point 2.1.185' ing for whiting and for sole and plaice. s 8 Bull. EC 1-1985, point 2.1.60.

48 Bull. EC 3-1985 Transport

Markets and structures Transport

Structures lnfrastructure

2.1.131. On 14 and 15 March the Trans- Implementation of structural instruments port Infrastructure Committee was consulted-as required by the Council Regulation 2.1.128. On 13 March the Commission of 19 December 1984 on a specific measure approved a project for exploratory mack- in the field of transport infrastructure3- erel fishing in United States waters, submit- concerning the granting by the Commission ted by the Netherlands pursuant to the of support for border infrastructure pro- Regulation of 4 October 1983 on measures jects. The Committee also embarked on the to encourage exploratory fishing and coop- technical aspects of drawing up a medium- eration through joint ventures in the fishing term programme. sector. I

lnland transport State aids

United Kingdom Railways

2.1.129. The Commission raised no objec- Improvement of the financial situation tion to the extension for two years, and in its present form, of a United Kingdom aid 2.1.132. On 72 March Parliament measure for the construction and modern- delivered its opinion 4 on two Commission ization of fishing vessels. The budget for proposals on the financial balance of the this aid amounts to UKL 20 540 000. railways.5 In the proposal for a Decision setting out the respective responsibilities of the State and of the railways concerning France coverage of infrastructure expenditure, Par- liament asked for an amendment with The decided 2.1.130. Commission that the regard to the replacement of public service scrutiny procedure provided in Article 93(2) obligations by contracts, whereby for a the EEC of Treaty, which had already been three-year trial period compensation should initiated in respect of measures taken and be permitted either through Regulation aid granted by the FIOM (an intervention (EEC) No 1191/69 of 26 June 19696 (which and market organization fund for fishery provides, subject to certain adjustments, for products),2 should be extended to cover the termination of public service obli- several new. FIOM measures and aids as gations) or through contracts. Parliament well as some amendments existing to FIOM also wanted Member States to be given two measures. These include special credit of FF years to give effect to the Decision from its 10 million to producers whose turnover was adoption by the Council. substantially reduced by the lorry drivers' strike in February 1984, the introduction of More generally, referring also to the pro- aFF 7 500 per day premium as an incentive posal for a Regulation on the granting of to Boulogne skippers who fish for non- quota species and the amendment, in 1985, I oJ r 29o,22.t0.1993. of the support arrangements under the with- 2 drawal price system for certain species Bull. Ec718-1984, point 2.1.164. 3 OJ r fi3,21.12.1,984; Bull. EC 12-1984,point2.7.799. (deletion species and of 20 from the list 4 oJ c 94, rs.4.t9qs. 'provisional retention' of the national sys- 5 oJ C 36, 10.2.1984; Bull. EC t-1984, point 2.1.100. tem for 9 species). 6 oJ L ts6,29.6.t969.

Bull. EC 3-1985 49 Energy

aids for transport by rail, road and inland solid fuels in the Community in 1984 and waterway, Parliament called upon the Com- the outlook for 1985' for transmittal to the mission to present a proposal for a long- ECSC Consultative Committee (--+ point term approach to the common transport 2.4.31). From this it emerges that, while policy which would define the roles of the energy demand increased by 4% in 1984, various modes of transport in relation to the share of solid fuels in the Community's each other, taking into account the public internal consumption fell to 21.8o/o from service obligations of the railways. It also 23.7o/o in 1983. called upon the railways to increase their peat production cost awareness and improve the efficiency Vhile brown coal and and of their operations. consumption increased slightly, hard coal production and consumption were down. The drop in the proportion of total energy Sea transport consumption covered by hard coal was due to both supply and demand factors. As 2.1.133. On 19 March the Commission regards supply, the British miners' strike sent the Council a communication entitled which began in March 1984 was a determin- 'Progress towards a common transport pol- ing factor: by the end of December United icy-Maritime transport', containing a Kingdom production levels were 55 million series of specific proposals. I tonnes lower than in 1983, having fallen from 115 million tonnes to 50 million. Simi- larly, the planned decrease in production in Energy Germany exceeded 5 million tonnes. The Community's total production was therefore reduced by 31% (157 million tonnes Council instead of 229 million). On the demand front, however, the stocklift by producers 2.1.134. When met on 15 March the it and large consumers (because demand in Council devoted much of its time to prepar- the steel industry and by power stations ing major decisions for adoption at its next increased) and the record levels of imports meeting, though it did adopt one resolution from non-member countries (78 million on the efficient use of energy in the building tonnes) limited the drop in the internal con- industry (+ point 2.1.1,39). As a result of sumption of hard coal, which fell from 293 the Council's discussions a broad political million tonnes in 1983 to only 259 million consensus emerged on the future of the in 1984. Forecasts for 1985 suggest a return European refining industry (--+ point to a situation similar to that in 1983.5 2.1..137). Theie was a brief discussion on the Com- Measures tahen by tbe States mission's report on the application of the in support of the coal industry energy - pricing principles in Member States. z Parliament adopted a resolution 2.1.135. In accordance with its Decision on the subject at its March part-session of 25 Februa ry L976,5 the Commission sent (--+ point 2.4.11).3 the Council on 13 March a memorandum for consultation purposes on the financial aids granted by the Member States to their Specific problems

Solid fuels t CoM(85) 90 final; Bull. EC-supplement 5/85; Bull. EC2 4-1985 (forthcoming). The solid marketa Bull. EC 9-1984, point 2.1.111. fuels 3 oJ c 94, 1s.4.1994. 4 For coal research activities, see point 2.1.1t15, 2.1.135. On 14 March the Commission 5 Bull. EC 3-1984, point 2.1.178. adopted a report entitled 'The market for 5 oJ L 63, 11.3.1976.

50 Bull. EC 3-1985 Research and development

coal industries in 7984 and on additional bility of settling the Community's oil bills aids granted in 1983.1 in ECUs.'

Taking the Community as a whole, these 2.1.138. On 27 March the Economic and aids decreased by 13.8%-from 3 764.4 Social Committee endorsed the proposal for million ECU in 1983 to 2727.0 million in a Regulation on a programme of support 1984. Nevertheless, aid per tonne produced for technological development in the hydro- went up by 25.9oh on averagr-from 13.81 carbons sectors (+ point 2.4.28). . to 77.39 ECU. These figures are provisional: final figures will not be available until the Energy saving and rational use end of the Coal Board's 1984/85 financial year in the United Kingdom. The increase 2.1.139. Referring to the resolution on the in aid per tonne is mainly due to the deterio- improvement of energy-saving programmes ration in the competitiveness of Community in the Member States passed in January,6 coal following the drop in the world market the Council on 15 March adopted a resol- prrce. ution on the rational use of energy in the building sector,7 having regard to the com- s Oil and gas munication from the Commission. The Council first recalls the economic Refining and imports importance of the building sector in the of oil products Community and the implications of a Com- munity policy in this field and then goes on 2.1.137. The Council examined the com- to outline measures such as promoting the munication sent by the Commission on 6 thermal auditing of buildings, improve- March on the situation in the oil-refining ments in techniques and regulations, max- industry and the impact of petroleum prod- imizing financial resources, and informing uct imports from non-member countries.2 and monitoring the behaviour of users. It concurred with the Commission's general approach: the rationalization and restructuring of the Community refining industry, which had proved effective, should be con- Research and development tinued (the Council expressed encouragement for this in 79783 and reaffirmed its Development of the common policy attitude in 1983 a ); the large consumer markets such as the Community, the United 2.1.140. The European Council (--+ point States and Japan should adopt compatible, 1.2.4) welcomed the Commission's memor- free-trade-oriented policies to deal with the andum on strengthening the technological extra volume of oil products coming in from base and competitiveness of Community the new refineries in the Middle East and industry (+ point 3.4.3). e It endorsed a North Africa; and exporting countries number of objectives, in particular the should be called upon to maintain the strengthening and more efficient use of the responsible attitude they have always Community's scientific and technological shown towards trade in petroleum products. The Council asked the Commission to prepare a report for the next Council meet- t coM(85) 6t final. ing in the light of the consultations to be 2 coM(8s) 32final. r held on these matters with other industrial- 4 Bull. EC12-1978, point 2.1.144. ized and exporting countries. Bull. EC7/8-1983, point 2.1.183. 5 oJ c 3L5,6.72.1984; Bull. EC 11-1984, poinr2.1.742. 6 oJ c 20,22.1.1985; Bull. EC 1-1985, point 2.1.68. During these discussions Mr Mosar, Mem- 7 oJ c z\,z6.3.t9gs. ber of the Commission with special a Bull. EC 11-1984, point 2.1.145. responsibility for energy, raised the possi- e CoM(85) 84 final.

Bull. EC 3-1985 51 Research and development potential and the full utilization of its Covering all branches of the exact and natu- human resources, by increasing the mobility ral sciences, this plan should facilitate the of students and researchers and recognizing creation of a European scientific and techni- certain high-level establishments as Com- cal continuum, which is the necessary con- munity 'centres of excellence'. dition for strengthening the competitiveness and creativeness of European R&D.

Framework programme I nternati o na I co o perati o n 2.1.141. On 72 March the Council formally adopted I seven multiannual R&D 2.1.144. The COST Committee met in Brussels 15 progress programmes on which it had agreed in prin- on March. A report was submitted on the iiple on 19 December 7984.2 follow-up to the conference of Research Ministers held in Paris The appropriations considered necessary on 17 September 1984 under the auspices of for carrying out these programmes amount the Council of Europe. a A proposal from to 1.225 million ECU, broken down as fol- Austria concerning advanced light-metal lows: 590 million ECU for controlled ther- materials for transport applications was dis- monuclear fusion (1985-89),55 million ECU cussed, and the Committee reviewed the for biotechnology (1985-89), 125 million status of the work on the draft agreements ECU for basic research in industrial technol- concerning wood, medical research and the ogies for Europe (Brite) (1985-89), 58 environment. million ECU for radiation protection (1985- 89), 62 million ECU for the management and storage of radioactive waste (1985-89), Sectoral R&D activities 60 million ECU for the plan to stimulate European technical cooper- scientific and Energy ation and interchange (1985-88) and 175 million ECU for non-nuclear energy (1985- 88). Non-nuclear energy

2.1.142. At its 27 and 28 March session 2.1.145. On 15 March the Commission the Economic and Social Committee published in the Official Journal a com- adopted an own-initiative opinion on munication concerning the areas covered by 'priorities for Community research initiat- the R&D programme in the field of non- ives: the next revision of the framework nuclear energy (1985-88),5 which the Coun- programme for Community scientific and cil adopted on 12 March (--+ point 2.7.147), technological activities' (-+ point 2.4.L9). and the conditions for participation in the programme. The aim of the programme is to develop lmproving the efficacy renewable energy sources (solar energy, of the Community's scientific energy from biomass, wind energy and geo- and technical potential thermal energy) and to promote the rational use of energy (energy conservation, the util- by 2.1.143. Following adoption the Coun- ization of solid fuels, the production and cil on 12 March of the plan to stimulate utilization of new energy vectors, optimiza- European scientific and technical cooper- tion of the production and utilization of ation and interchange (1985-88) (-+ point 2.1.141), notice published a was in the I Official lournal on 19 March setting out 2 oJ L 83, 15.3.1985. the opportunities for obtaining support for Bull. EC 12-1984, points 1.7.1 and 1.7.2. r oJ c 73, 19.3.198s. projects falling within the scope of the 4 Bull. EC 9-1984, point 2.1.117. plan.3 5 oJ c 69, 15.3.r985.

52 Bull. EC 3-1985 Research and development

hydrocarbons, and energy systems analysis whose performance and cost are genuinely and modelling). competitive at world level. Proposals must be sent to the Commission The RACE programme (R&D in advanced by 15 July 1985. The European dimension communications technologies for of the programme is underlined by the fact Europe),1 which was transmitted to the that preference is to be given to joint pro- Council on 18 March, stems from these posals submitted by bodies in different considerations. Its aim is to pool judiciously Member States. the resources of the PTTs and industry in order to introduce throughout the Com- munity, by 7995, integrated broadband Technical coal research communications in the context of the development of integrated services digital net- 2.1.145. On 27 March the Commission works (lSDNs). requested the Council's assent to, and the ECSC Consultative Committee's opinion on The RACE programme is to tackle the fol- (+ point 2.4.29), financial assistance under lowing major sectors the technology and Article 55 of the ECSC Treaty for the development of broadband- communication implementation of a programme of coal systems; users' needs; basic and support research. I From more than 90 proposals technologies; software: methods and appli- submitted, the Commission selected 54 pro- cations; and the technology of multiservice lects which go to make up the main pro- consumer terminals. gramme. The programme covers two areas: The implementation of this programme mining technology and product upgrading. (which is planned to proceed in successive It will cost a total of 31.6 million ECU, and five-year phases) presupposes that the RBc the Commission intends to provide support D tasks are precisely synchronized with a totalling 19 million ECU, including 70 000 timetable for the development of the broad- ECU the dissemination results and for of band communications defined in the pro- associated costs. gramme objective. In order to avoid delay in drawing up this timetable, the Member lndustry States are invited to adopt a RACE definition phase. This work, which will take about 12 months, should be undertaken as Telecommunications quickly as possible in order to attain the following objectives: 2.1.147. If it is to retain a position in infor- (i) the creation, thanks to a wide-ranging mation technology (lT) commensurate with cooperation effort involving the PTTs and its vital needs, Europe must coordinate its industry, of a reference model for broad- resources in this area as effectively as poss- band communications networks, services ible. The Esprit programme is the first and terminals; major step in this direction: it promotes cooperation between European R6CD capa- (ii) the Iaunching of certain R&D prolects cities for the mastery of IT fundamentals. in key areas. Broad agreement exists on the central role The whole of this work will require a of telecommunications as the infrastructure budget of some 40 million ECU. of an economy based on the use and exchange of information and as the driving force programme behind the development of IT. Brite In these circumstances, it is essential to 2.1.148. Following the adoption by the ensure that the Community has its own Council on 12 March of the Brite (Basic resources for implementing new telecommunications services and infrastructures I coM(85) 113 final.

Bull. EC 3-1985 53 Research and development research in industrial technologies for the ECSC Treaty for the implementation of Europe) programme (--+ point 2.7.141), a a programme of steel research.3 call for proposals was published in the Official Journal on 14 March, r setting 15 From 155 proposals received, the Com- May as the closing date for the submission mission has selected 70 projects costing a of proposals.2 total of 29.9 million ECU, for which it The principal aim of this new programme, intends to provide support amounting to which was prepared in close cooperation 79 1.1,5 000 ECU, including 34t 900 ECU for with industry, is to stimulate cooperation the dissemination of results and associated between European industries and thus costs. Four other projects, costing a total improve their future competitiveness in key of 1.3 million ECU and for which grants technologies such as laser technology, amounting to 805 000 ECU are requested, catalysis and particle technology, joining have been placed on a reserve list in case techniques, reliability and the reduction of additional funds become available during wear and deterioration, new methods of on- the year. line and computer-aided testing, new materials (composites, polymers, etc), and Priority has been given to projects aimed at new production technologies suitable for increasing the international competitiveness products made from flexible materials of companies by reducing costs, improving (notably textiles). product quality and developing product The Community should contribute applications, in particular corrosion protec- steels continuous- approximately 50% of the cost of selected tion for structural and precompetitive R&D proiects proposed by casting techniques. partners from two or more Member States, one partner at least being an industrial enterprise.

Technical steel research I 2 oJ c 66,14.3.r98s. 2.1.149. On 27 March the Commission The technical content of the programme and thc con- for participation were the subject of an advance requested the Council's assent to, and the ditions notice published in OJ C n, 29.1.1985; Bull. EC 1-1985, ECSC Consultative Committee's opinion point 2.1.73. on, financial assistance under Article 55 of 3 coM(85) 131 final.

54 Bull. EC 3-1985 2. Enlargement and external relations

Enlargement and negotiations on these items. The way is now clear for settling a large number of technical bilateral relations problems in these areas. with applicant countries

2.2.1. The European Council noted with Commercial policy great satisfaction that the accession negotiations with Portugal and Spain had largely been concluded 1-- poinr. 1.2.2). It asked Export promotion the Community authorities, together with the applicant countries, to complete the 2.2.5. Under the provision in the 1984 possible drafting of the accession treaty as soon as Community budget that made it possible so that enlargement could take for the first time to contribute funds to promote Member States' exports, 1 the place as planned on 1 January t986, Commission made a contribution towards the costs of a Cecimo (European Committee for Cooperation between Machine Tool 2.2.2. The negotiations with Industries) symposium held in Peking and Portugal and"...rrron Spain had been resumed in Shanghai, in the People's Republic of China, Brussels, in a 'marathon' session from27 to from 18 to 25 March. 29 March. The 40 European companies taking part in Agreement was reached between the Twelve this export promotion event demonstrated on the issues still being negotiated in the the capabilities and technical advances of four key chapters on 29 March, which Europe's machine tool industry in sectors meant that the process of Portugal's and specified by their Chirrese hosts. Spain's accession reached the point of no return (--+ points 1.1.3 and 1.1.4). lmplementing the common commercial policy Portugal Easing of restrictive measures 2.2.3. At the 27th negotiating meeting at ministerial level, held from27 to 29 March, 2.2.5. Under the Council Regulation of 14 all the outstanding institutional, social November 1983 on import arrangements for affairs and own resources issues were products originating in State-trading settled. In the case of fisheries and agricul- countries, not liberalized at Community ture, the major economic and political prob- Ievel,2 the Commission took the following Iems were cleared up, which means that measures: solutions can now be found to the points still outstanding in these areas. (i) Opening of quotas: Italy-Poland: bicycle tyres and inner - Spain tubes;3 Italy-People's Republic of China: 2.2.4. At the 29th negotiating meeting at women's hand-embroidered woven silk ministerial level, held from 27 to 29 March, nightdresses;3 the negotiations on social affairs, own resources and the Canary Islands were concluded. The agreement reached on agricul- I Bull. EC 6-1984, point 2.2.8. ture and fisheries represents a major step 2 oJ t- J46,8.12.1983. forward towards the conclusion of the 3 oJ c 68, 1i.3.1985.

Bull. EC 3-1985 55 Commercial policy

Benelux-Albania/North Korea: textiles, (iii) Change of import arrangemenrs: category 8;1 France-State-trading countries: suspen- Italy-souiet Union: aluminium alloyed sion until 31 December 1986 of the quanti- z waste recast into ingots; tative restrictions on the release for free Italy-German Democratic Republic.. sugar circulation of unwrought aluminium; abol- confectionery, not containing cocoa; syn- ition of quantitative restrictions on the thetic organic dyestuffs; 2 release for free circulation of watermelons from 1 July to 15 October. s Italy-Romania : bulked man-made viscose staple fibres;3 Trade protection Italy-Czechoslouah.ia: iron or sreel wire, whether or not coated but not insulared; a 2.2.7. The trade prorection measures taken in Italy-Hungarylsouiet lJnion: aluminium March are shown in Table 5. billets.5 1 oJ c 69, 16.3.t99s. (ii) Adjustment of quotas: , oJ c los,z6.4.t9ls. 3 oJ c n,z3.3.t9gs. Italy-German Democratic Republic: tex- 4 oJ c 79,27.3.198s. tiles, categories 7, 8, 15B and 16.2 , oJ c 86,4.4.1985.

Table 5

Commission

Ant i-dump ing p r o c e edings Ant i- dump ing p r o ce ed ings Amendment of definitive countervailing (i) Acceptance of an application for the refund of definirive anti-dumping duties concerning imports of: duties collected on certain imports of: Cotton yarn originating in Turkey Certain seamless tubes of non-alloy steels originating in Spain oJ L 89, 29.3.1985 (definitive oJ L73,14.3.1985 duty: OJ L 90,3.4.1982; Ol L 246,21.8.1982) (previous amendment: OJ L 115, (ii) Provisional anti-dumping duty on imports of: 30.4.1983) Certain hydraulic excavators originating in Japan Tube and pipe fittings of malleable cast oJ L 58, 8.3.1985 iron originating in Spain, and proposal on (notice of initiation: OJ C 201, 31.7.1984')' the definitive collection of the provisional duty (iii) Notice of an iniriation of anti-dumping proceedings con- oJ L73,14.3.1985 cerning imports of : (provisional duty: OJ L74, 17.3.1984) Container corner fittings of worked cast steel originating in Austria oJ c 55, 2.3.1985 Certain categories of glass into Greece originating in Turkey oJ c 55, 14.3.1985 Certain tube and pipe fittings originating in Brazil, Taiwan, Yugoslavia or Japan oJ c77,23.3.1985 Ball-bearings originating in Poland, Romania or the USSR oJ c77,23.3.1985

56 Bull. EC 3-1985 Commercial policy

Table 5 (continued)

Council Commission

(iv) Acceptance of undertaking given in connecrion with the anti-dumping investigation concerning imports of: Plasterboard of Spanish origin inro Ireland and Northern Ire- land, and terminating rhar investigation oJ L 89, 29.3.1985 (notice of initiation: OJ L 276, 16.10.1984)

Surueillance measures Notice of initiation of a Community proceeding to investigate the trend of imports into Greece of: Certain categories of glass whether figured or not, the conditions under which these articles are imported and the effects of the said imports on Community production oJ c 55, 14.3.1985

Sectoral commercial policy cable as well as those which could result measures from current proceedings. On 19 March the Member States adopted lron and steel products the definitive annual decision determining autonomous quotas for iron and steel products in respect State-trading countries. Steel: external measures of

L985 arrangements Textile products 2.2.8. In March the Commission completed negotiations with Spain and Agreements and arrangements Romania I which resulted in the renewal with non-member countries for 1985 of the voluntary restraint arrangements governing exports of steel products MFA countries to the Community. In the case of Spain, 2.2.9. The consultations begun in Febru- the arrangement (initialled on 4 February) Hong Kong number provides for a maximum level of deliveries aryz with on a of management issues were resumed on 20 to the Community of 778 550 tonnes, to March and resulted in the outstanding which could be added a further 18 350 issues settled. tonnes. being The Community also concluded, on 26 l.Z.lU.2.2.10. TheI he provlslonalprovisional limitsllmlts on exports March, a new arrangement Brazil I of shirts from Bangladesh to France and the with s covering rolled iron and steel products United Kingdom, introduced in December (other than cast iron). Under the terms of pending the outcome of the consultations this arrangement, Brazilian deliveries in 1985 will represent approximately three I quarters 1984 level; the Bull. EC 1-1985, point 2.2.10. of the in return, 2 Bull. EC 2-1985, point 2.2.10. suspend the Community will anti-dumping 3 Bull. EC 9-1984, point 2.2.13; Bull. EC 1-1985, Polnt and countervailing duties currently appli- 2.2.11.

Bull. EC 3-1985 57 Relations with industrialized countries requested by the Community with a view while working to achieve the broad consensus to reaching an agreement on annual limits requisite for its launching, will urge that the fol- for 1985 and 7986, expired on 17 March. lowing separate but related desiderata receive serious parallel consideration. Thus: Given the wish of both sides to continue the consultations, although it was not poss- (a) In order to ensure credibility, reaffirmation ible to resume talks immediately, the Com- will be necessary of the international commitments munity decided to allow more time for an variously accepted at the Williamsburg and Lon- agreed settlement to be reached and intro- don economic summits, and at the last meeting of OECD Ministers in Paris and of the GATT duced short-term quantitative limits for the Contracting Parties in Geneva: period to 31 July. (i) effectively to halt protectionism and resist 2.2.11. A further round of consultations continuing protectionist pressures (standstill); with Romania took place in Bucharest on (ii) to relax and dismantle progressively trade 28 and 29 March in order to continue the restrictions as economic recovery proceeds (roll- examination of problems concerning quotas back); which had been exceeded in the past and to (iii) to pursue the 1982 GATT work programme seek a solution that the parties had agreed as complemented by the decisions of the Contract- should be put to their authorities. ing Parties in November 1984. (b) Solutions to imbalances whose origin lies in the monetary and financial areas cannot be found in trade negotiations. Determined, concerted Relations with industrialized action is required to improve the functioning of countries the international monetary system and the flow of financial and other resources to developing countries. Results in the monetary and financial Multilateral aspects areas should be sought in parallel with results in the trade field. Neau round of GATT trade negotiations 3. Despite previous trade rounds, Japan's growth of imports of manufactured goods has nowhere 2.2.12. During the Council meeting of near matched her export growth. Like concessions Foreign Ministers held from 17 ro 2l March to Japan have not produced like results, and in the Ministers responsible for foreign trade consequence, an imbalance of benefits currently held a parallel meeting at which they had exists between Japan and her principal partners. detailed discussions, based on a Com- It is therefore a pressing political necessity for to bring her import propensity line mission communication, Japan into concerning a new with that of her partners, by means of domestic round of GATT trade negotiations. Follow- structural and other adjustments as well as by ing these discussions, the Council adopted measures at the frontier. the following statement: 4. As regards negotiations on agriculture in the '1. Suggestions for a new round of multilateral new round, the Community is ready to work trade negotiations have been the subiecr of careful towards improvements within the existing frame- international consideration for the past two years. work of the rules and disciplines in GATT covering They received particular attention at the meeting all aspects of trade in agricultural products, both of the OECD Ministers in May 7984, at the Lon- as to imports and as to exports, taking full account don economic summit in June 1984 and at the of the specific characteristics and problems in meeting of the Contracting Parties of the GATT agriculture. The Council is determined that the in November 1984. Such multilateral negotiations fundamental objectives and mechanisms both have been a regular feature of the GATT since its internal and external of the CAP shall not be rncePtlon. placed in question.

2. The Council recalls that a new round, while 5. On possible new topics for negotiation, the of the utmost importance to a strengthening of Council considers that trade in services seems suit- the open multilateral trading sysrem and to the able for inclusion. Problems of counterfeit goods expansion of international trade, will not of itself and the defence of intellectual property also be sufficient to such purposes. Thus the Com- deserve consideration. Other possible new irems munity, in the perspective of a new round, and should be examined on their merits.

58 Bull. EC 3-1985 Relations with industrialized countries

6. The Council affirms the need for reciprocity 'The Council has been informed by the Com- and a better balance of rights and obligations mission of the state of negotiations with the United as between all contracting parties. The Council States concerning, on the one hand, the "short considers that too selective an approach to individ- supply" clause provided for in the arrangement ual negotiating points should be avoided. A bal- governing imports of tubes and pipes I into the anced package of topics for negotiations should be United States and, on the other hand, imports of agreed in which all participants will find advan- products covered by the arrangement [of October tages for themselves. In principle items should be 1982 on carbon steel] which are not subject to negotiatied and the results implemented in parallel quantitative restrictions. 2 and not in succession. The Council holds the view that the position taken 7. Against this background, and in the light of by the US Administration cannot be reconciled the desiderata and other relevant considerations either with the letter or the spirit of the arrange- mentioned above, the Council considers that a new ments concluded between the Community and the round would help to promote world economic United States and cannot therefore accept that the recovery and growth and would reinforce the US Administration should present this position as multilateral structures and disciplines of the final and irrevocable. GATT. Subject establishmenr an to the of As regards th€ question of "short supply",3 the adequate prior international consensus on objec- Council asks the Commission to resume immedi- tives, participation and timing, the Community ately the consultations provided for in the arrange- declares its readiness to participate in the launch- ment. The Council points out that correct appli- such ing of a new round. The Community will cation of the "short supply" clause is one of the accordingly now enlist the support of its trading basic factors which led the Community to accept partners, particularly among the developing the arrangement. countries, to this end. The Community further proposes that the new round should be inaugur- Moreover, it asks the Commission to continue ated in Brussels. The Community recognizes that talks with the US Administration ro obtain full a precise date for the formal launching of a new compliance with the arrangements and to ensure round cannot be fixed now. A step-by-step that the European steel industry's share of the approach will best permit solid progress to be market is maintained, particularly in relation to made. To initiate the process the Community that of other suppliers. renews its proposal of last May for an ad hoc The Council strongly emphasizes that the Com- GATT meeting, in the coming months, preferably munity should act most forcefully against any uni- at the level of senior officials from capitals, to lateral measures which might be imposed and asks intensify consultations about a new round and the Commission to examine immediately all poss- with the objective that a broad consensus on sub- ible counteraction. ject matter and participation should be secured at the earliest possible date.' The Council draws attention to the fact that the increasingly obvious protectionist measures taken 2.2.13. The European Council stressed the by the United States conflict with the efforts undertaken to launch new round trade importance of this statement (--+ point a of GATT negotiations and increase the risk of a serious 1.2.3), which willmake it possible to launch deterioration in relations between the Community as soon as possible, in Brussels, a new round and the United States.' of multilateral trade negotiations which will constitute a major contribution to the fight Steel pipes and tubes against protectionism. 2.2.15. Consultations between the Com- mission and the United States authorities United States I Council statement on steel trade Bull. 11-1984, point 2.2.79; Bull. EC 12-1984, point 2.2.14; Bull. EC 1-1985, point 2.2.13. 2 Bull. Ec 2-1985, point 2.2.12. 2.2.14. On 26 March the Council exam- J The 'short supply' clause stipulates that imports into ined the grave nature of the difficulties the United States of steel pipes and tubes not produced which had arisen in trade in steel products by the American steel industry shall be additional to the quantitics provided for in the arrangement since they are with the United States and adopted the fol- not intended to replacc local production but to remedy a lowing statement: lack of supplies.

Bull. EC 3-1985 59 Relations with industrialized countries

resulted in agreement being reached on I ficient to resolve the problems the world March regarding the allocation of tonnages economy faced at present; there was a need in the interim period: 1 65% of the relevanr for parallel action in areas such as inter- tonnage would be charged against the 1985 national monetary and financial stability, quota and the remaining 35o/o against the freedom from new trade restrictions, spee- 1985 quota. dier implementation of previously agieed trade liberalization measures 2 and The American customs consequently lifted improved access to the market. their embargo on all the Community Japanese exports which had been held up in the United States. A formal exchange of letters Austria settling the question of the interim period was signed on 15 March. 2.2.17. On 14 March Dr Fred Sinowarz, the Austrian Federal Chancellor, paid an official visit to the Commission, Visit by Mr De Clercq where he had talks with Mr Delors. He also attended 2.2.16. During his visit to Washington on a working session chaired by Mr Delors, ar 2l and 22 March Mr De Clercq, Member which Mr Narjes, Lord Cockfield, Mr De of the Commission with special responsi- Clercq and Mr Pfeiffer were present. Dr bility for external relations and commercial Sinowatz also had talks with Mr De Clercq. policy, met Mr Malcolm Baldrige, Secretary The discussions chiefly concerned bilateral of Commerce, Mr William Brock, Rep- questions, relations between the Com- resentative for Trade Negotiations, Mr munity and EFTA (since Austria holds the Kenneth Dam, Deputy Secretary of State, EFTA Council chair for the first half of other representatives of the Administration the year) and world economic and political and a number of Congressmen. Discussions ISSUCS. covered in particular the overall Community/United States trade relation- As for bilateral matters, the Chancellor laid ship, moves by the US Congress to introduce particular stress on the problems created a general import surcharge, the new round for Austria by Community transit through and steel. Austrian territory. Solutions had to be found jointly with the Community, includ- Regarding the mutual trade relationship, ing new guidelines on transferring traffic Mr De Clercq emphasized that the Com- from road to rail. In addition, therC was an munity would react firmly against new US urgent need in Europe for measures relating protectionist measures; a case in point of to the environment (concerning acid rain, immediate importanci was rhe steel sector, Iead-free petrol and standards for exhaust where the US side gave no assurances of a gases). flexible position in relarion ro their interpretation of the short supply provision Austria's trade deficit with the Community, for pipes and tubes and their request ro rhe for farm products in particular, was alio Community to limit exports of carbon steel discussed at length. products so far not restricted under the Regarding relations berween the Com- October 1982 Arrangemenr. munity and EFTA, the main topic of dis- The US Government representatives felt cussion was the implementation of the Lux- confident that no general lmport surcharge embourg declaration and the first practical would be introduced. steps which could shortly be considered in such fields as frontier formalities, harmon- On the new round, Mr De Clercq explained ization of standards, simplification of the the Community's position in the Iighi of the Council statement of 19 March (--+ point

2.2.14) emphasizing that multilateral irade I Bull. EC 2-1985, point 2.2.14, negotiations by themselves were not suf- 2 Bull. EC tO-tfA+, point Z.Z.S.

@ Bull. EC 3-1985 Relations with other countries and regions

rules of origin and cooperation on research '1. The Council has listened to the Commission's and development. general positions on the enlarged Community's Mediterranean policy and has unanimously con- The Commission indicated its openness to firmed the importance of the current cooperation the most constructive possible mutual and association relations between the Community and the Mediterranean countries as well as its involvement with a view to establishing a intention of further strengthening these relations real European economic zone. with the enlargement of the Community. Other topics discussed. included general 2, With this in view the Council has therefore economic issues, particularly monetary reaffirmed the global concept of the Community's questions, and East-!ilest relations. Mediterranean policy, the objective of which is to contribute to the economic development of the The Chancellor's visit took place in an Mediterranean non-member countries and to pro- excellent atmosphere reflecting the close- mote the harmonious and balanced progress of relations with those ness of Austria's relations with the Com- and trade countries. munity.l 3. In this context the Community will seek mutu- ally satisfactory solutions regarding the worries repeatedly expressed by the Mediterranean non- Switzerland member countries concerning the possible conse- quences of enlargement for their traditional 2.2.18. During an official visit to the Com- exPorts. mission on 7 and 8 March, Mr Cornelio 4. The Community intends, on the one hand, to Sommaruga, State Secretary for External endeavour to maintain these traditional patterns Economic Affairs, had talks with a number and, on the other, to undertake initiatives designed to provide effective support for those countries' of Members of the Commission, notably efforts to reduce their agricultural and food deficit Mr De Clercq. and move progressively towards self-sufficiency in food and diversification of their production. He discussed various measures which could be taken to develop further the already very 5. The Mediterranean policy of the enlarged close relations between the Community and Community will have to be of an ongoing nature and, as regards trade in industrial and agricultural Switzerland, either on a bilateral basis or in products and in terms of economic development, the broader framework of the strengthening make for significant and stable results in the of cooperation between the Community and medium term. EFTA which was the theme of the Luxem- 5. From an overall and long-term point of view, bourg declaration. the Community will bend its efforts to pursuing financial and technical cooperation with the Medi- terranean partners in order to make an appropriate contribution to their economic and social develop- Relations with other countries ment. and regions 7. Recalling its statement of January 1983, the Council therefore agrees to step up its internal work on the enlarged Community's Mediterranean policy. The Council looks to the Commission to Mediterranean cou ntries submit as soon as possible negotiating directives for the adaptation of the Cooperation and Associ- ation Agreements.' Community policy Cyprus 2.2.19. On 30 March, at a Council meeting held while the European Council was in 2.2.20. At the same meeting the Council session in Brussels, the Foreign Ministers adopted a statement on EEC-Cyprus adopted a statement, based on a communi- relations: cation from the Commission, on the Medi- terranean policy of the enlarged Com- I Bull. EC 1-1985, point 2.2.19; Bull. EC 2-1985, poinr munity: 2.2.19.

Bull. EC 3-1985 6t Relations with other countries and regions

'Alongside its statement on the enlarged Com- Claude Cheysson, Member of the Com- munity's Mediterranean policy, the Council would mission with special responsibility for like to state that the commitment it made at the Mediterranean policy, on 11 March. Iast Association Council meeting with Cyprus on Their 17 December 1984 1 to adopt appropriate negotiat- talks were devoted mainly to the impli- ing directives in 1985 for the process into the cations of enlargement for Israel, but also second stage of the Association Agreement2 will dealt with the Middle East situation. Reiter- be honoured. ating his Government's concern about these It noted that the Commission would submit the implications, Mr Shamir insisted that meas- necessary proposals in good time.' ures should be agreed jointly before Portu- gal and Spain's accession to ensure certain 2.2.21. On2l March the European Invest- patterns of trade were not affected. ment Bank granted a loan of 26.5 million ECU together with an interest-rate subsidy of 2o/o towards funding water engineering Countries of the Gulf works on Cyprus aimed at better utilization and the Arabian Peninsula of the island's water resources (--+ point 2.4.37). This aid, the first granted under the Gulf Cooperation Council second Financial Protocol,3 will go towards financing construction of the Kou- 2.2.24. A second round of exploratory dis- ris impounding dam from which water will cussions took place in Bahrain on 1 and 2 be piped to the Nicosia, Famagusta, Limas- March between representatives of the Gulf sol and Larnaca areas, thus benefiting both Cooperation Council and the Com- communities on the island and completing mission.6 The purpose of these discussions the Vasilikos-Pendaskinos project which was to explore further the possibilities for received Community aid under the first formal negotiations on a cooperation agree- Financial Protocol.4 ment between the two regions. Both sides agreed it would be in their mutual interest c I unlsla' to aim to conclude a comprehensive agreement to foster commercial and economic 2.2.22. On 14 March Mr Delors received cooperation. The opening of formal nego- Mr Beji Caid Essebsi, the Tunisian Minister tiations is now being considered by both of Foreign Affairs. Their exchange of views sides. was mainly concerned with the multiplicity of links of all kinds between the Community Yemen Arab Republic and Tunisia and possibilities for increased cooperation in the future. Mr Caid Essebsi 2.2.25. The inaugural meeting of the Joint reiterated his Government's concern about Cooperation Committee between the Com- the possible effects of Community enlarge- munity and the Yemen Arab Republic took ment on certain patterns of trade. Mr place in Sana'a from 5 to 7 March. During Delors confirmed Community policy in this the meeting there were exchanges of views area, pointing to the steps being taken by on recent developments in both Yemen and the Commission to ensure that enlargement the Community, the Yemen delegation out- was accompanied by appropriate measures lining the country's economic and develop- answering to the expectations of the Com- ment objectives and priorities. Agreepent munity's Mediterranean partners. The Mid- dle East situation was also discussed at the I meeting. 2 Bull. EC l2-1984, point2.2.?3. 3 oJ L 133, 21.s.1973; oJ L 124,30.5.1981. 4 oJ L 85,28.3.1984; Bull. EC 3-7984,poinr2.2.29. Israel OJ L 332,29.11.1n8; Bull. EC lt-1978,poinr2.2.42. 5 For financial and tcchnical cooperation with southern and eastern Medrterranean countries, see points 2.2.50 to 2.2.23. The Israeli Minister of Foreign 2.2.52. Affairs, Mr Yitzhak Shamir, visited Mr o Bull. EC 11-1984, poinr 2.2.27.

62 Bull. EC 3-1985 Relations with other countries and regions

was reached on a number of joint schemes retary, Ministry of Trade and Shipping and to be undertaken in the fields of trade devel- head of the Sri Lanka delegation. opment, tourism, science and research, energy and training. Possibilities of indus- The Joint Commission examined the trade trial cooperation were also discussed. The promotion programme and prospects for meeting also reviewed existing Community cooperation in the fields of industry and energy. development projects in Yemen and a list of New sectors were discussed for new projects to be considered for financing. industrial cooperation: toys and handicrafts The Community indicated a readiness ro and certain branches of the electronics examine the possibility of concentrating its industry. The Joint Commission then aid to Yemen during the initial years of the reviewed the current development cooper- agreement. ation project backing the Mahaweli Ganga Scheme, and undertook to consider for In conjunction with the meeting, the Com- future implementation new projects of mission organized in Sana'a an exhibition financial and technical assisrance ro be sub- on relations between Yemen and the Com- mitted in the near future by Sri Lanka. munity and on the development of the Com- munity. The Community also undertook to continue food aid in cereals in 1985 and reiterated its intention to participate with other donors in the dairy project launched by the Asia World Bank.

Association of South-East Asian Nations Latin America 8

2.2.26. On 21 March the Council con- Uruguay cluded I the Protocol-signed in Dublin on 15 November 79842-extending the Coop- 2.2.29. In response to the Uruguayan eration Agreement between the EEC and President elect's invitation to Mr Delors, the Asean countries to Brunei Darussalam. Mr Cheysson visited Uruguay on 1 and 2 March to attend the inauguration-mark- Pakistan ing the restoration of democracy in Uru- guay----of President Sanguinetti. 2.2.27. On ll March the Commission pro- Mr Cheysson was received by the Minister posed to the Council the conclusion of the for Foreign Affairs, Mr lglesias, with whom Agreement for commercial, economic and he discussed Uruguay's debt and develop- development cooperation between the ment problems and EEC-Uruguay relations. Communityr and the Islamic Republic of In the latter connection it was decided to Pakistan. This Agreement is the outcome revive the 7974 EEC-Uruguay Trade Agree- of the negotiations conducted by the Com- 9 4 ment and to step up trade promotion aid, mission with Pakistan last January under the brief given by the Council in October 1984.s t oJ L 8r,2t.3.198s. 2 Bull. EC 11-1984, point 2.2.29. 3 oJ c 81,29.3.1985; coM(85) 68 final. Sri Lanka 4 Bull. EC 1-1985, point 2.2.?3. 5 Bull. EC 10-1984, point 2.2.28. 2.2.28. The seventh session 5 6 Previous session: Bull. EC 5-1984, point 2.2.27. of the Joint 7 Commission set up under the EEC-Sri lanka oJ L247,23.9.197s. I For financial and technical cooperation with Latin Commercial Cooperation Agreement 7 was America, see point 2.2.53. held in Colombo on 11 and 12 March, chai- e oJ L 333,4.12.1973 Bull. EC 4-1973, point 2314; Eighth red by Mr G. Cumaranatunge, Acting Sec- Gencral Report, point 443.

Bull. EC 3-1985 Development particularly in respect of non-traditional Venezuela products. 2.2.33. Mr Cheysson's South American tour concluded in Venezuela, where he had Argentina talks with government figures. 2.2.30. After leaving Uruguay, Mr Cheys- son paid an official visit to Argentina, where State-trad i ng countries he was received by President Alfonsin, the Foreign Minister, Mr Caputo, and the Min- China ister for Economic Affairs, Mr Sourrouille. Mr Cheysson proposed-as he had in Uru- 2.2.34. The Commission contributed guay-that a Commission technical mission towards the costs of a Cecimo symposium be sent to Buenos Aires so that a joint held in Peking and Shanghai in March appraisal could be carried out of the situ- (+ point 2.2.5). ation in the beef sector and of the possibilities for trade promotion to help Argentina develop its exports, especially of non-tra- Development ditional products. Community relations with Argentina had been 'put on the back 2.2.35. On27 March the Commission sent burner' for the duration of the military dic- the Council a report on Community aid tatorship. in relation to the situation of women in developing countries, l as requested by the Brazil Council in its resolution of 8 November 1982 on Community development aid in 2.2.31. On 5 March Mr Cheysson left relation to the situation of women in the Argentina for Brazil, where he had a long developing countries.2 The report contains private conversation with the President an analysis of measures taken in response elect, Mr Tancredo Neves. to the Council's recommendations, particularly as regards contacting women's organ- 2.2.32. A Commission delegation led by izations in developing countries and assist- Mr Cheysson went to Brasilia for the inaug- ing them, and the inclusion in evaluations uration of the new President on 14 and 15 of projects and programmes of a chapter on March. their effects on women. Mr Cheysson's presence demonstrated the 2.2.35. On 11 March Parliament adopted Community's gratification at the resto- a resolution on the conclusion of the third ration of democracy in Brazil. He took the Lom6 Convention (+ point 2.4.71.3 opportunity to pay his respects to the new President, whom he had already met in the course of his trip to Uruguay and Argentina. Commodities and world agreements During his stay Mr Cheysson had talks with the new Brazilian Foreign Minister, Mr Set[bal, at which both sides affirmed their Cocoa determination to strengthen links between 2.2.37. The third meeting4 of the UN con- the Brazil the areas Community and in of ference on cocoa, which had reconvened on trade and economic cooperation. They also expressed their concern at the current econ- I omic situation in Latin America, evidenced 2 coM(85) 109 final. pro- Bull. EC 11-1982, point2.2.79. most eloquently in the formidable 3 oJ c 94,1s.4.199s. portions of the individual countries' foreign a Bull. EC 5-1984, poim2.2.46; Bull. EC 7/8-1984, points debts. 2.2.43 and 2.2.44; Bdl. EC I 1-1984, point 2,2.37.

@ Bull. EC 3-1985 Development

18 February, concluded on 15 March in Jute Geneva with a decision to suspend the negotiation of a fourth International CoCoa 2.2.39. The third session of the Commit- Agreement. tee on Projects was held from 23 to 25 March in Dhaka, Bangladesh, followed by Despite considerable efforts by both pro- the third session of the Internarional Jute ducers and consumers, overall agreement Council. on the points at issue could not be reached. In particular, the uncertainty of the inter- The Council adopted a project for the pro- national monetary situation made agree- motion of sales of jute products in Italy, to ment difficult on the key questions of price be funded entirely by Italy. levels and price-review mechanisms, At the Community delegation's request, the although the distance separating the two Secretariat came up with a number of stud- sides was considerably reduced. The Chair- ies possibilities, particularly on the state of man of the conference, Mr Ren6 Montes of jute markets. This organization should in Guatemala, was asked to organize consul- time become the sole international tations prepare ground forum to the for the con- dealing with jute. clusion of an agreement at a future meeting. The Community, the dominant presence among the consumers in the absenie of the Emergency aid United States, will continue to make every effort, as it did in Geneva, to facilitate the Emergency plan for Ethiopia Chairman's search for a compromise-(among and the Sahel between consumers and producers whom the ACP states are in a majority) on 2.2.40. The European Council noted the the unresolved issues of price levels and swift implementation of the measures it had price mechanisms. Consultations to this end decided on in Dublin in December 79842 could be held in London in July during the to combat famine in Africa and urged that meeting of the Council of the International the efflorts already undertaken be sustained Cocoa Organization, at which it is to be (--+ point 1.2.6). decided whether the 1980 Agreement should again be extended for a year beyond its 2.2.41. At a press conference following the expiry date of 30 September. UN conference on the emergency in Africa held in Geneva on 11 and 12 March, Mr Natali, representing Tropical timber the Commission, underlined the major contributions in 2.2.38. At the Commission's recommen- emergency aid being made by both Com- dation,l the Council decided on 25 March munity and Member States. He emphasized the unique, and that the Community would apply the 1983 exemplary, character of the International Tropical Timber Agreemenr Community's links with Africa, particularly provisionally from its scheduled date of under the Lom6 Convention, and insisted entry into force. on the need for on-the-spot coordination and synchronization of aid. The Secretary-General of the United Nations, the depositary of the Agreement, 2.2.42. In the light of the results of the was notified on 29 March. Geneva conference, Mr Natali spoke in the European Parliament's debate on measures general As the conditions for participation to combat hunger in Africa, commenting were satisfied on 31 March, the Agreement on the emergency resolution adopted by entered into force provisionally on 1 April. The first session of the International Tiop- ical Timber Council is to be held in Geneva I 2 Bull. EC 9-1984, point 2.2.29. from 17 to 28 June. Bull. EC 12-1984, point 1 .2.7.

Bull. EC 3-1985 65 Development

Parliament on 14 March (--+ point 2.4.7\.r ism Fair held in Berlin from 2 to 8 March. He stressed that Community assistance Both Caribbean and Pacific 'villages' and would develop in two directions: towards the African countries' stands enjoyed even the progressive integration of aid into the greater success than last year with inter- individual countries' patterns of pro- national tour operators at the Fair. The duction, and towards a reappraisal, through Commission's contribution to ACP partici- operations planned under Lom6 III, of the pation was estimated at 350 000 ECU. policies of the signatory countries hit by drought. Holiday, Tourism and Leisure Exhibition, Brussels Emergency aid granted 2.2.45. Six African States, sponsored by 2.2.43. In response to the earthquake in the Community, took part in the Holiday, Chile and an appeal by Caritas, the Com- Tourism and Leisure Exhibition held in mission decided on 7 March to grant this Brussels from 23 to 31 March . organization emergency aid of up to 300 000 ECU. The money will go towards providing tents, mattresses, blankets, kitchen utensils ACP Protocols and medicaments for the earthquake victims and will be administered by the Com- mission Delegation in Caracas. Sugar On 14 March Parliament adopted a resol- 2.2.47. On 21, March the Commission ution on the earthquake in Chile (+ point asked the Council for authority to negotiate 2.4.7D.1 on behalf of the Community guaranteed cane sugar prices for the 1985/86 delivery period with the ACP exporting countries Emergency food aid and India.2 2.2.44. In March the Commission decided to make the following allocations of emergency food aid 34 100 tonnes of cereals to Financial and technical the Office of the United Nations High Com- cooperation missioner for Refugees for distribution in Sudan (12 483 tonnes) and Somalia (21 617 States OCTs tonnes); 10 000 tonnes of cereals and 2 000 ACP and Mozambique; 570 tonnes of legumes to 2.2.48. In March the Commission took tonnes of legumes and 570 tonnes of dried decisions on the allocation of fourth and fish to the United Nations Border Relief fifth EDF resources totalling 16 900 000 Organization the World Food Pro- via ECU to finance proiects, programmes and gramme for Kampuchean refugees on the emergency aid operations administered by Thai border; 5 000'tonnes of cereals, 1 000 it, 7.3 million ECU of the total to go tonnes of legumes and 500 tonnes of sugar towards rural production, 9.3 million ECU for Lebanon. on education and training and 200 000 ECU on emergency aid.

Trade promotion 2.2.49. Two allocations of emergency aid of 100 000 ECU each were made to victims lnternational Tourism Fair, Berlin

2.2.45. Some 50 tourism-oriented developing countries, sponsored by the Com- I oJ b 94, 1s.4.198s. munity, took part in the International Tour- 2 COM(85) 99 final.

6 Bull. EC 3-1985 Development of the recent devastating cyclone Feliksa in mittee on Aid to Non-associated Develop- Mayotte and the Comoros. ing Countries-to finance the following out of 1984 budget appropriations: So uthern and eastern Mediterra nean countiles Junta of the Cartagena Agreemsn|2-1s- gional programme of technical cooperation; 2.2.50. The Commission granted financial industry and subregional trade (auton- and technical aid totalling 5 820 000 ECU omous project): total cost 9 825 000 ECU, Egypt under the second EEC-Egypt to Community contribution 7 million ECU; Financial Protocol I in March. The aid will be spread over three projects aimed at lndia-development of water control sys- improving health protection and nutrition tems with a view to diversifying cropping for the Egyptian population and at making patterns in Maharashtra (autonomous pro- a significant improvement in the country's ject): terms of trade. total cost 52.8 million ECU, Com- munity contribution 15 million ECU. The Commission also decided to allocate the total funds available under the second EEC-Lebanon Financial Protocol l Oe million ECU), in the form of grants (11 Cooperation via non-governmental million ECU) or special loans (5 million organizations ECU, repayable in 40 years at 1%), as a contribution to the Lebanese Government's tWith regard to projects cofinanced programme to rehabilitate 7170 schools 2.2.54. which have suffered war damage. in the developing countries for the period from 1 January to 31 March 1985, the Com- 2.2.51. The Commission decided to grant mission committed 4.4 million ECU for 35 Jordan 2.5 million ECU for the extension of projects submitted by 31 NGOs. the Science Faculty at Yarmuk University. 2.2.52. An interest-rate subsidy for an EIB The Commission also contributed a total global loan of 7 million ECU was approved of 453 530 ECU towards nine campaigns for Tunisia's National Agricultural Devel- aimed at increasing awareness of develop- opment Bank, which is also to be granted ment issues among the European public. a 3 million ECU special loan from budget resources.

N o n - asso c i ated develo p i n g co u ntri es I oJ L 337,29.11.1982l' Bull. EC 11-1982, point 2.2.68. 2.2.53. The Commission decided in 2 Andcan Group (Bolivia, Colombia, Ecuador, Peru, March-with the endorsement of the Com- Venezuela).

Bull. EC 3-1985 67 3. Financing Community activities

Budgets under the preliminary draft budget for staff increases and material facilities.

General budget Reuenue On the revenue side, the estimates of tra- 1985 budget ditional own resources (agricultural levies and customs duties) have been increased by 2.3.1. On 1 April the Commission, in 232 million ECU. On the expenditure side, response to Parliiment's request, I sent the this means that the 10% repayment of own Colncil a third letter of amendment2 to resources to the Member States will rise to the preliminary draft budget for 1985,3 23.2 million ECU. drawn up in the light of the agreement As a result of the proposed changes in rev- reached by the Council on for ,financing enue and expenditure under the preliminary the budget by non-repayable advances 1985 draft budget,3 resources required will from the Member States (--+ point 1.1.5). exceed those available within the 1% VAT The Commission's proposal confirms the limit by 2903.7 million ECU. The Council preliminary draft as modified by letters of proposed that this difference be financed amendment Nos 1 and,2, subject to certain by non-repayable advances in line with the charges reflecting the new developments agreement reached in the Council. that have occurred in the mean time: Compensation for the United Kingdom Expenditure Following the Council's adoption of a com- EAGGF Guarantee Section. Additional mon position on own resources on 21 aoorooriations of 540 million ECU are March (--+ point 1.1.5), the Commission ri{uir.d for three reasons: deferment of entered the 1 000 million ECU correction payments from 1984 to 1985 (202 million for the United Kingdom for 7984 in the ECU), the impact of the Commission's 30 letter of amendment. This correction con- January proposals on prices and related sists of a reduction in the United Kingdom's measures for 1985/85+ 1t:A million'ECU) VAT payments and a corresponding and situation changes (450 million ECU). increase in the contributions from the other This amounts to total additional require- Member States, in line with the formula ments of 790 million ECU, against which agreed at the Fontainebleau European there will be an estimated saving of 150 Council of 25 and 25 June 1984.s million ECU as a result of the clearance of the accounts for 1980, 1981 and 1982, which Provisional twelfths for 1985 the Commission is due to decide in 1985. 2.3.2. Pending agreement the Food aid. An additional 40.5 million ECU within Council on a new draft budget for 1985, is required as a result of economic changes Parliament adopted three resolutions in 1984 and 1985, notably the rise in world requesting additional twelfths the prices. under provisional-twelfths arrangements on 14 Negatiue balance for 1984. The provisional March.6 estimate puts the figure at. 520 million ECU, this being the net effect of a shortfall in t partly offset OJ C 12, 14.1.1985; Bull. EC 12-1984,pointl.4.l et seq. revenue, which is by appropri- 2 coM(85) r3o. ations lapsing. 3 Bull. EC 5-1984, points 1.1.1 et seq. and2.3.l et seq. 4 Bull. EC 1-1985, point 7.2.7 et seq. In addition the Court of Justice has 5 Bull. EC6-1984, points 1.1.1 to 1.1.3. requested an additional 0.6 million ECU 6 oJ c 94,75.4.1985.

58 Bull. EC 3-1985 Budgets

Own resources marks and Japanese yen for the equivalent of 74.78 million ECU and an FF 800 million 2.3.3. On 2l March the Council adopted public issue at 99.53o/o for 72 years with a common position on a new decision on 12.2% interest. own resources (-r point 1.1.6), raising the maximum call-up rate of VAT to 7.4o/o and correcting budgetary imbalances in accord- Loans paid out ance with the conclusions of the Fontaine- bleau European Council. I 2.3.7. Acting under Articles 54 and 55 of the ECSC Treaty, the Commission made the following loans in March, totalling 55.41 Budget discharge million ECU. 2.3.4. On 15 March Parliament adopted lndustrial a resolution taking note of the proposal loans 2.3.8. Industrial loans (Article 54) paid ii:'::::l"ll f}; S;rH}"il.'ii ;liiiT out during the month amounted to 24.32 This in no way affects its decision 14 of million ECU. They were used to finance the November 1984 refusing to grant a dis- following projects. charge in respect of 1982.3

Germany

Annual report by the Court ROGESA GmbH,Dillingen: project to con- of Auditors for 1983 centrage pig and cast iron production at the R

Following its discussion it adopted a rec- Conuersion loans ommendation calling on Parliament to grant the Commission a discharge in respect 2.3.10. Conversion loans (Article 55) of its implementation of the budget. totalling 30.81 million ECU were granted to the following undertakings:

Financial operations Germany Saarland: Bergrohr GmbH, Herne, Dill- ECSC ingen works.

Loans raised I Bull. EC 6-1984, points 1.1.1 to 1.1.3. 2 oJ c 94, 15.4.1985. 2.3.6. In March the Commission made a 3 OJ C 337, 17.12.1984; Bull. EC 11-1984, point2.4.12. number of private placings in German 4 OJ C 348, 31.12.1984; Bull. EC 11-1984, point 2.4.23.

Bull. EC 3-1985 69 European policy

United Kingdom Dutch guilders for the equivalent of 69.9 West Yorkshire: Warwick International million ECU. Ltd, Leeds. Supraregional loan: Welsh Development Agency, Pontypridd. EEC-NCI

Euratom Loans raised Loans raised 2.3.12. In March the Commission made a 2.3.LL. In March the Commission made private placing in Dutch guilders for the two private placings in German marks and equivalent of 29.71million ECU.

4. Political and institutional matters

European political cooperation current issues informally. The President of the Council, Mr Bettino Craxi, said at his 2.4.1. On 25 March the Foreign Ministers press conference that discussions had of the Ten issued the following statement covered the Middle East, East-West on events in South Africa: relations, Latin America and South Africa. 'The 10 Member States of the European Community are deeply concerned at the increasing tension in South Africa created by the indiscriminate repression of black European policy and relations South Africans. between the institutions They roundly condemn in particular the behaviour of members of the security forces during the events in Uitenhage onZl March, European policy which led to the death of many black South Africans. Ad hoc Committee on Recalling the ministerial statement of 11 Institutional Affairs September 1984,1 the Ten reiterate their appeal for an end to apartheid and for dia- 2.4.3. The ad hoc Committee on Insti- logue leading to substantial reforms to meet tutional Affairs transmitted its final report the legitimate aspirations of black South to the European Council on 19 March for Africans.'2 discussion at its meeting on 29 and 30 March (-+ point 3.5.1). 2.4.2. The European Council adopted no conclusions on political cooperation at its March meeting in Brussels (+ point 1.2.1 et seq.). At dinner on29 March the Heads I Bull. EC 9-1984, point 2.4.1. of State or Government discussed major 2 Unofficialtranslation.

70 Bull. EC 3-1985 European policy

The text has kept to the same layoui as the As in the case of the interim report, certain interim report.l The section on the priority points gave rise to reservations or comments objectives of European Union has been on the part of Committee members. How- expanded, and improvements have been ever, a large majority were wholeheartedly made to the section on the institutions and in favour of all the proposed reforms. to the final part on the method for achieving the Union. 2.4.4. The Europian Council held a preliminary discussion on the report, welcom- The report argues that the objectives could ing both the approach it outlined and the be achieved through Community action in proposals it put forward (+ point 1.2.9). various fields, such as technology and social These will be discussed at length in the policy, and expresses support for the coming months at a series of bilateral meet- strengthening of the European Monetary ings, so that final conclusions can be System. It also reaffirms the principle of reached at its next meeting in own resources, suggests new areas of June. activity, including cultural activity, advo- 2.4.5. On 29 March Mr Ripa di Meana, cates the expansion of political cooperation Member of the Commission with special geared policy to a common external and responsibility for institutional matters, puts proposals security and forward on issued the following statement on the out- defence. come of the work of the ad hoc Committee As regards the institutions, the report calls on Institutional Affairs and the ad boc for easier decision-making in the Council Committee on a People's Europe (+ points with majority voting becoming standard 3.5.1 and 3.5.1). practice and the unanimity requirement being restricted to special cases, far fewer 'The new Community of Twelve must be in a position to operate efficiently and to develop on than in the existing Treaties, a move sup- the basis of clearly defined long-term objectives. ported by most Committee members. The The Dooge report should therefore pave the way Committee would also like to see the Com- for meaningful discussions on the future of Europe mission's functions strengthened, in par- leading to the convening of a conference to draw ticular by the extension of its executive up the text of a European Union Treaty. It is powers and the introduction of a new essential that the ground is properly prepared for appointment procedure, Parliament's role the Milan meeting and that the matter is not once again relegated to the usual diplomatic channels enhanced by effective participation in legis- and allowed to sink into oblivion, as was the case lative power (whose scope is to be specifi- with the Genscher-Colombo Act. Italy, as Council cally defined) in the form of joint decision- President, must play a decisive role based on the making with the Council, and the Court of firm commitment by President Mitterrand and Chancellor Kohl. The Commission is ready to Justice's powers expanded. assume its responsibilities in this matter, which it Lastly, as regards the method for achieving considers a top priority for the future of Europe,'2 European Union, the report calls for an intergovernmental conference to be convened 'in the near future to negotiate a draft Greek memorandum European Union Treaty, on the basis of the acquis communautaire', the Committee's 2.4.6. On 12 March the Council adopted report and 'the Solemn Declaration on two of the three proposals for regulations, European Union adopted in Stuttgart, and transmitted by the Commission in May guided by the spirit and method underlying 1984, on specific agricultural measures for the draft Treaty adopted by the European Greece (--+ point 2.1.15). Parliament.' The Commission would take part in the negotiations, and Parliament would be closely involved in the proceed- 1 Bull. EC 11-1984, point 3.5.1. ings and be informed of the results. 2 Unofficialtranslation.

Bull. EC 3-1985 7l Parliament

Relations between mers should be penalized twice by both a the institutions quota policy and a price freeze. As well as repudiating a common agricultural policy Visit by Mr Pflimlin bound solely by budgetary constraints, they challenged the idea that the Community 2.4.7. On 5 March, during his officialvisit should do as it was told by the United to Belgium, Mr Pflimlin, President of Parlia- States-an idea, which, they believed, was ment, gave a press conference at which he gaining ground in Europe and was illus- said that Parliament had four reasons for trated by Mr Emmanuel Maffre-Baug6 feeling pleased with itself: the Council had (Com/F) as the spectacle of Uncle Sam's accepted the need for a 12-month budget; Europe and his none to mild flirtation with the new Commission had gone along with Mrs Thatcher. Parliament's idea investiture of an debate' It was against that background that the the Commissio, hal k.p, ir; ;;;;,* i; rapporteur for the Committee on Agricul- present a detailed programme; and the work ture, Mr Pierre-Benjamin Pranchdre (Com/ of the Dooge Committee seemed be pro- to F), made his first point, when he asserted gressing satisfactorily. that the Commission's proposals 2 had He added that he attached a great deal acted like a red rag to the farmers, siilce of importance to Mr Delors's invitation to they would slash incomes and set new limits Parliament to act on its own initiative. on production, quite apart from the risks of a 'renationalization' of the common agricultural policy. As he saw it, the Fontaine- bleau 3 ind Dublin European Councils,4 lnstitutions and organs instead of correcting these tendencies, had of the Communities amplified them by using agriculture as a bargaining counter in a vain bid to establish other policies. Against the steamroller strat- Parliament 1 egy adopted by the Commission and its henchmen in the House, he proposed that steps be taken to ensure that the potential of Strasbourg: 1 I to l5 March Community agriculture was fully exploited, with more attention being given to the 2.4.8. The two high spots of the March impact of agriculture on the balance of part-session were the debate on the Com- trade, on the jobs it could create in other mission's programme 1985, presented for sectors and on the economy in general, at by Delors (--+ point 1.3.1), the Mr and a time when a job was being lost every debate on agricultural prices 1985/85. for two minutes on the land. There was one condition, however: to remedy the present Agricultural prices ills and put the CAP on a sounder footing, the first essential was to ensure adherence 2.4.9. The debate on the farm prices, to Community principles. The first of those harsh and contentious, and even verging on the stormy, saw the supporters (in the I majority) of a farming approach pitted The complete texts of the resolutions adopted by Parlia- against the advocates of a budgetary ment are reproduced in OJ C 94,15.4.1985, and the report of thc proceedings contained approach. is in OJ Annex 2-322. Thc Vhile they allowed that the pro- political groups and nationalities of members speaking in ducers concerned must be made to bear the debates are shown in brackets after their names; the key some responsibility for surpluses, the farm to the abbreviations can be found in Bull. EC 7/8-1984, points 1.2.5 and2.4.8 (footnote 1). Iobby considered prices policy to be vital to 2 incomes on the land; they argued that when oJ c 67,14.3.1985; Bull. EC 1-1985, point 1.2.1 et seq. 3 Bull. EC 5-1984, points 1.1.1 to 1.1.3, 1.1.7 and 1.1.9 there were surpluses-as there were with (paragraph 4). milk products-it was not right that far- 4 Bull. EC 12-1984, points 1.2.1 and 1.2.15.

72 Bull. EC 3-1985 Parliament principles was Community preference, now ture, he said, would be less than the rebate being extensively flouted: 55% of Com- granted to the United Kingdom for a single munity imports were coming in free of year, duty-the breaches of preferences being estimated by the Court of Auditors at some- In contrast, the rapporteur for the Commit- where between 2 000 and 4 000 million tee on Budgets, Mr James Elles (EDIUK), ECU-often to be processed into products endorsed the Commission's proposals, in surplus, as exemplified by the case of the describing them as 'courageous and appro- Netherlands, where 52% of. milk and meat priate', as long as they were backed by production was sustained by duty-free adequate structural measures. He was imports of substitutes for Community- against any restrictions on imports because grown cereals. Mr Pranchdre therefore pro- they would provoke American retaliation, posed a tax on oils and fats and restrictions and attacked the proposals of the Commit- on substitute products, and the revision of tee on Agriculture, which, in his view, certain importing agreements with other would cost an additional 700 million ECU countries, which were turning the Com- in 1985. On behalf of the Socialists, the munity into a dumping ground for by-prod- next speaker, Mr Eisso P. Woltjer (SoclNL) ucts of American industry. He then attacked called for a social agricultural policy that what he called the 'insufferable gift' to the would help small farmers and for a policy United Kingdom, a mockery of the principle on Mediterranean products. He went on of financial solidarity, and called for to attack the Committee on Agriculture's revision of the sheepmeat regulations to proposals as fanciful and those of the Com- remove the distortions of competition that mittee on Budgets as unduly punctilious. played mainly to the advantage of the The voice of austerity was heard from Mr United Kingdom. Condemning the attitude James Provan (EDIUK), who, savaging Mr Pranchdre's proposals, went so as say of the Committee on Budgets, which, he far to claimed, was acting here like the Com- that a 5% increase in the farm prices would benefit the Soviet Union! Recognizing mission's dedicated assistant, he maintained only problem that food prices in the Community had gone that the of agricultural surpluses was issue, wanted change up in line with the general rate of inflation, a world he no whatsoever in the sheepmeat arrangements whereas in the other OECD countries they since this was an area of special concern to had shot up more quickly; secondly, the the United Kingdom. Mrs Barbara Castle burden of net agricultural expenditure rep- (SoclUK) also took issue with the PranchAre resented only 0.55% of gross domestic report and wholeheartedly endorsed the product. He was. therefore proposing_-an . arguments of the Committee on Budgets, average increase in farm prices of 4.5o/o. only regretting that the Commission had Surpluses were in fact masking deficits: the not been tough enough and was still hanker- Community's agricultural trade deficit was ing after a tax on imported oils and fats. 23 6N million ECU, of which 5 800 million was for fruit and vegetables, 4 200 million At the other extreme Mr Emmanuel Maffre- for animal feeds, 3 500 million for oilseeds Baug6 (Com/F) supported Mr Pranchdre's and oleaginous fruit, 1 000 million for oils proposals and rejected any other approach and fats, etc. Pointing out that the recent that would make the farmers the scapegoats increase in average farming incomes had of so-called budgetary austerity and sacri- come after several years of substantial fice the principles of the CAP to the interests losses, Mr Pranchdre declared that the of the United States. Mr Thomas Maher decision on prices should be inspired mainly (Lib/IRL) condemned the flaw in the think- by a concern to help farmers improve their ing of those members who refused any position and stimulate production in sectors increase in farm prices simply because the where the Community was not self-suf- Council would not allow the necessary ficient. The additional cost to the budget of funds but nevertheless advocated launching the proposals by the Committee on Agricul- new policies without considering whether

Bull. EC 3-1985 73 Parliament

the Council was willing to finance them. As (falling demand because of lower birth rates an example, he highlighted the attitude of in the industrialized countries, and no larger the United Kingdom, which did not want proportion of household incomes being give any money for agriculture but did not spent on food); financial, with the demands hesitate to finance the Falklands war as a of budget discipline and the Community's matter of principle, ignoring the enormous present budgetary problems. Recalling the cost of the operation. Mr Reinhold Bocklet structural improvements already achieved, (EPPID) believed that the prices policy particularly in the wine-growing sector, and should be the mainstay of farmer's incomes the specific measures for milk products, Mr and called for an increase of 3.5oh. The Pandolfi told the House that the agri-mon- Commission's proposals did not aim to etary measures would continue, new reduce surpluses but only the number of internal (in industry) and external markets farmers. Having fully supported the would be sought, crop types would be ident- Pranchdre report, Mr Jean Mouchel (EDA/ ified for further development and a policy F) then concemned the strictly budgetary would be established which struck a balance approach of the CAP and the costly dero- between prices allowed to the various sec- gations from Community preference; he tors depending upon whether they were in wondered whether it was a case of knuck- surplus or not. ling under to American wishes and objected to making the farmers foot the bill. Mr Mr Frans Andriessen, Commission Vice- Michel Debatisse (EPP/F) saw a 3.5% President with special responsibility for increase as the absolute limit of any effort agriculture, rebutted the idea that only to which the farmers could consent. He budgetary considerations had counted in i"., p.i",.i1.1 irirn.i inionri*niy ori his proposals. He reminded the House that the part of the Commission, which called farmers' real incomes had grown by more for investment and adaptation but blocked than 7o/o since 1980 and that the Com- the financing of such operations by a price munity's agricultural exports had risen freeze. twice as fast its imports over the last 10 years. He then costed the Pranchdre pro- Various other speakers steered a middle posals in budgetary terms at 490 million course between the opposing lines. Mr ECU for 1985 and 1 170 million ECU for Bernard Thareau (SoclF) was equally con- 1985, but could not put a figure on the temptuous of an across-the-board prices proportion of the EAGGF guidance expen- policy that generated surpluses and a policy diture that would go to agriculture in the that penalized farmers both ways (on prices integrated Mediterranean programmes. and on quantities). Prices had to be modu- Asking the House not to express its position lated according to the size of farms and in terms of a specific percentage for price farmer's incomes, and the Community must rises, he suggested that it now take an resist the pressures of the American lobbies exclusively qualitative approach to farm which saw the European market as their prices. Acknowledging that the Com- own preserve. Mr Giorgio Rossetti (Coml mission proposals were restrictive and I) and Mr Natalino Gatti (Com/l) were sometimes involved reductions, he main- also in favour of modulating prices and a tained that they were the only ones possible cautious prices policy with regard to surplus considering the situation of the markets. products, Mr Gatti emphasizing that it Finally, he said he was opposed to taking should be supported by structural reform. any harder line on imports and exports. The CouncilPresident, Mr Filippo Pandolfi, At the end of the debate Parliament adopted found that European agriculture was under the Pranchdre report, with amendments, by a threefold constraint: political, with Article 137 votes to 123 and 13 abstentions and 39 of the Treaty. gua.ranteeing producer's rejected the Commission's actual proposals incomes; economic, with the transition that by 183 votes to 11 with 9 abstentions. The world agriculture was now going through EPP amendment proposin g an average 3.5"/o

74 Bull. EC 3-1985 Parliament increase modulated according to type of . a supplement to Annex IV to the Con- product to stimulate those in short supply vention for the Protection of the Rhine and backed by a co-responsibility policy for against Chemical Pollution and a rec- those in surplus was adopted by 149 votes ommendation by the International Com- to 139 votes with 9 abstentions; in another mission for the Protection of the Rhine amendment the House also insisted on the against Pollution (monitoring of cadmium gradual removal of the co-responsibility discharges) (--+ point 2.1.69); levy and a policy of incentives for voluntary . an amendment to the Directive of 23 reductions in production. It also adopted November 7978 on the permissible sound by 125 votes to 117 with 10 abstentions an level and exhaust system of motorcycles amendment by the French Socialists that (+ point 2.1.76); evaluated at 3 000 million ECU the sum to o zrl amendment to the Regulation of 21 be added to the Community budget to bear April 1970 as regard the amount allotted to the increase in farm prices, and by 121 votes the Guidance Section of the EAGGF to 111 with 4 abstentions an amendment by (--+ point'2.1.721); the German and Dutch Socialists stipulating that any change in import or export policy o ?n amendment to the Regulation of 2 must be decided under existing inter- August 1978 laying down general rules for national agreements. The introduction of a the financing of intervention by the Guaran- tax on imported oils and fats was reiected tee Section of the EAGGF; by 125 votes to 114 with 8 abstentions. On . an amendment to the Regulation of 15 the whole report and in respect of the 3.5% Feruary 1,977 on common measures to price increas-adopted by 1,49 votes to 139 improve the conditions under which agri- with 9 abstentions-the House was divided cultural and fishery products are processed both politically and nationally: a majority and marketed (-' point 2.1.114); of the Socialists (German, British, Italian, . an amendment to the Regulation of 4 Dutch, Danish and Greek) came out against June 1970 on the granting of aids for trans- that amendment with all the. European port by rail, road and inland waterway Democrat group, the majority (ltalians) of (+ point 2.1.131); the Communists and the whole Rainbow . an amendment to the Decision of 20 Group; on the other side, all the EDA Group May 7975 on the improvement of the situ- (French, Irish) and almost all the EPP Group ation of railway undertakings and the har- (except for the six Dutch abstentions) monization of rules governing financial endorsed this amendment, which was also relation between such undertakings and supported by a small majority of the Lib- States (--+ point 2.1.731); erals (French, Irish and two Belgians). The French, the Belgians, the Luxembourgers, 2.4.11. Resolutions were also passed con- the Irish and the Greeks massively approved cerning: this amendment, while almost all the British r the statement by the President of the and Danes rejected it, the members of other Commission and the Commission's pro- nationalities being more equally divided. gramme for 1985 (-+ points 1.3.1 to 1.3.3); 2.4.10. Parliament gave opinions on a o safety and health in coal mines: follow- number of Commission proposals, ing the mining disaster in Forbach, Parlia- including: ment called on the Commission and the . an amendment to the Regulation of 15 Council to grant emergency aid to the vic- March 1981 concerning the Community tims' families; it also requested the Mines Ioan mechanism designed to support the Safety and Health Commission to shed light balance of payments of Community Mem- on the causes of this disaster, so that the ber States (--+ point 2.1.4); Commission could propose improvements o guidelines for the management of the to safety standards in mines; European Social Fund for the years 1968 to o the integrated Mediterranean pro- 1988 (---' point 2.1.50); grammes: Parliament recognized the posi-

Bull. EC 3-1985 Parliament tive value of the Commission's undertaking the governments concerned to ensure that to create a real Community policy for all every effort was made ro solve all the prob- the Mediterranean regions; it considered lems still outstanding, parricularly ihose therefore that the provision of an additional relating to fisheries; in a third resolution appropriation of 2 000 million ECU over it considered that accession should be an seven years, equivalent to approximately opportunity for reviewing certain aspects of 285 million ECU per year, was inconsisrent the common fisheries policy but re(uested and quite inadequate when compared with that at the same time the principle of 'rela- the extra 1 1000 million ECU per year over tive stability' defined by the Ten be upheld six years envisaged by the original proposal; and the reconstitution of stocks safeguirded doubting the feasibility of allocating these at all costs; programmes a substantial proportion of the . conclusion of the third Lom6 Conven- resources from existing Funds, the House tion: welcoming the conclusion of the Con- asked the Commission to bring forward as vention and noting that it was a vital aspecr soon a possible a new proposal that took of the Community's developmenr policy, full account of the criterii ser out in its Parliament insisted that due attenrion be resolution of 29 March 7984;t paid to the Community's responsibilities at . Community trade in seal products: Par- world level with regard notably ro non- liament noted with concern that the ban associated developing countries in the imposed by the Council Directive of 28 broader context of the North-South dia- March 79$2on Community imports of logue; products derived from various species of the campaign against baby seals would expire on 1 October 1985; o hunger in Africa: deploring the fact it therefore called on the Commission to that the famine had claimed so many victims, Parliament decided put proposals to the Council as soon as send possible that would extend the Directive for to a delegation to certain disaster- an indefinite period; stricken countries to assess the extent of requirements and the effectiveness of Com- . opening of the conciliation procedure munity aid on the spot and make proposals on lead-free petrol: deploring the Council's for any additionalmeasures; the Committee failure to act on this issue and reaffirming on Development and Cooperation was its opinion of 12 December 1984,3 Parlia- given a watching brief and instructed in ment urged the Council and the Com- particular to monitor and assess all meas- mission to initiate the conciliation pro- ures taken or announced by the Com- cedure with Parliament and draw up a mission; research and development programme on technical alternatives to the catalytic con- o the eafthquake in central Chile: expressing its sympathy people, verter; with the Chilean -the the House requested the Council and . application of the Community's energy Commission to place one million ECU from pricing principles in the Member Stares: the Fund for disaster areas at the disposal of while endorsing the Commission's report the Chilean Church and other humanitarian of September 1.984,a Parliament called for organizations; more careful checks to be made in future in respect of the diversification of energy o the accounts of the Community in sources and demanded that adverse effects respect of the financial year 1982: Parlia- on the environment be taken into account ment decided to take note of the accounts in the calculation of cosrs; for the 1982 Community budger so as ro be o the results of the negotiations on the enlargement of the Community the and I problems involved in accession with resard OJ C 117,30.4.1984; Bull. EC 3-1984, point 2.1.90. 2 OJ L 91, 9.4. 1983; Bull. EC 3-1983, point 2.1.85. to fisheries: resolutions 3 in two Parliarient OJ C 12, 14. 1. 1985; Bull. EC 12-7984, poinr 2.1.124. called on the Council, the Commission and 4 Bull. EC 9-1984, point 2.1.111.

Bull. EC 3-1985 Council able to continue its work on the accounts Council for subsequent years; (compulsory o the second opinion expen- 2.4.12. The Council held seven meetings diture) and the third and fourth decisions March. The table below lists the num- (non-compulsory expenditure) authorizing in place date each meeting, additionaI provisional twelfths for the ber, and of financial year 1985: concerned to ensure the names of the Council President and that the institutions functioned normally Commission representatives and the main from the administrative point of view and items of business. A more detailed account that the Commission honoured its commit- of specific items can be found in the ments,'Parliament authorized additional sections of the Bulletin referred to in the provisional twelfths. footnotes.

Table 6 - CounZil meetings in March 1985

Number, placc and date of Subject Prcsident Commission Main items of business meeilng

990th Environ- Mr Biondi Lord Cockfield Air pollution by gases from engines Brussels ment Mr Narjes of motor vehiclesl 7 and 8 and Mr Clinton Dav Lead content of petroll 20 and2l March Containers of liquids for human consumptron' Titanium dioxidel Impact studiesl Second PCB/PCT Directivel Limit values and quality objectives for discharges of certain dangerous substancesl Convention for the Protection of the Ozone Layerl

99lst Economic Mr Goria Mr Christopher- Financing of agricultural structures Brussels and sen policy2 11 March financial Lord Cockfield First-quarter examination of Com- affairs Mr De Clercq munity economic situation3 Mr Pfeiffer Annual report by Court of Auditors for 19834 20th VAT Directive Export credits Collective investment undertakings for transferable securities5

992nd Agriculture Mr Pandolfi Mr Andriessen Structures policy2 Brussels Agricultural proce review 11 to 13 March Regional measure to help Sicilian wine industry EEC-Spain negotiations

Bull. EC 3-1985 77 Council

Number, placc and datc of Subiect Prcsident Commission Main items of business meetrng

993rd Energy Mr Altissimo Mr Mosar Oil refining6 Brussels Demonstration proiects (energy) 15 March Support for technological development in oil and gas Energy pricing Rational use of energy in building sector5 Use of substitute fuel components in petrol Solid fuels 994rh Foreign Mr Andreotti Mr Delors Enlargement negotiationsT Brussels affairs Mr Andriessen Integrated Mediterranean pro- 17 ro 2l and Mr Christopher- grammes" 28 to 30 sen March Mr Naries Own resourcesT Mr Natali Mediterran"::rn policy of enlarged Mr Cheysson CommunityE Mr De Clercq Preparation for OECD ministerial meeting----€xchange of views concerning new GATT trade round9 995th Agriculture Mr Pandolfi Mr Andriessen Conciliation meeting with Parlia- Brussels ment on adjustment of common 25 to 27 organization of wine market2 March Agricultural price review (1985/85) V/ind Starch and sugar/isoglucose Imitation products in milk sector 996rh Industry Mr Altissimo Mr Narjes Restructuring and amendment of Brussels Mr De Clercq aids codelo 26 and 27 Mr Sutherland Council statement on relations with March USA (steel)e Compensation for rapid implementation of restructuring measures 14B of Decision 234/84/ -ArticleECSCll Increase in minimum pricesll Scrap market situationll Advanced manufacturing equipment Integrated circuits

I Environmcnt and consumers. 2 Agriculture. 3 Economic and monetary pohcy. 4 Financing Communrty activities. 5 Financial instrtutions and taxation. 5 Energy. 7 Points 1.1.2 et scq.and 1.1.5 et seq. 8 Relations with othcr countries and rcgions. 9 Rclations with industriahzcd countries. lo Commtition- ll Intcrial markct and industrial affairs.

78 Bull. EC 3-1985 Court of Justice

Commission Community industry (+ point 3.4.3) and Community environment policy (-r point 2.4.13. The Commission welcomed the 3.4.4). highly satisfactory results achieved by the Council in March, leading to renewed confi- dence in the Community (political agree- D e ci s io ns, cotnmuni c ation s ment on the accession of Spain and Portu- and proposals gal, agreement by the European Council on the integrated Mediterranean programmes, 2.4.15. The Commission sent the Council and the adoption of a common position on a communication on maritime transportr 2 new own resources and funding for the containing a number of proposals for regu- 1985 budget) and paving the way for the lations and a proposal for a directive. settlement of a number of sensitive issues under discussion for several months, includ- It also transmitted a communication on ing the new Regulation on agricultural advanced manufacturing equipment in the structures, the timetable for the introduc- Community, containing a general statement tion of 'clean cars', changes to the aids code on the industry and a detailed analysis of for steels, and the new round of GATT the current situation and future prospects.3 multilateral negotiations. Lastly, the Commission presented the Activities Council with a proposal for the first stage of a Community programme for research 2.4.14. On 72 March Mr Delors presented and development in advanced communi- Parliament with the Commission pro- cations technology (RACE). gramme for 1985;1 this was endorsed by the House (--+ points 1.3.1 to 1.3.3). In response to requests made in Dublin in December 1984, the Commission sent three I memoranda to the European Council on the 2 Supplement 4/85 - Bull. EC. problems economic growth Supplcment 5/85 Bull. EC; Bull. EC 4-1985 (in prep- of and employ- aration). - ment (--+ point 3.4.2), the development of 3 Supplement 6/85 Bull. EC; Bull. EC 4-1985 (in prep- high technology and the competitiveness of aration), -

Court of Justicel

2.4.16. New cases

ECSC -Steel 76/85 Cockerill-Sambre SA v Annulment of the Commission's individual Article 33 ECSC Commissionl- decision of 20 February 1985 notifying the applicant of the production quotas granted for the first quarter of 1985

I For more detailed information, see the material published by the Court of Justice in the Official lournal and the European Court Reports, and the publications of its Information Office (e.g. the annual synopsis of the work of the Court or the information quarterly).

Bull. EC 3-1985 79 Court of Justice

Free movement of goods

29/85 Procureur de la R6pu- Is a national law imposing minimum prices for Article 177 EEC blique -v J. Maurice the sale of motor fuel contrary to Article 30 of the EEC Treaty?

50/85 B. Schloh v Auto Con- Do a first technical inspection in a Member Article 177 EEC tr6le SPRL- State of a new car manufactured in and imported from another Member State and a second technical inspection where the car is an 'estate car' constitute measures having an effect equivalent to quantitative restrictions on imports? Does the charging of a certain sum for such inspections continue a charge having an effect equivalent to customs duties?

54/85 Ministdre public v X. Does a national law prohibiting the sale of fruit Article 177 EEC Mirepoix- and vegetables treated before or after harvesting and having the effect of banning imports of such products from another Member State in which such treatment is authorized constitute a measure having an effect equivalent to a quantitative restriction on imports?

Customs union

34/85 Control Data GmbH v Annulment of 'scientific apparatus' Decision Article 173 EEC Commission- No 305/84 of 15 November 1984 finding that the apparatus described as'Control Data Com- puter System, model Cyber 205' may not be imported free of import duties

38/85 KG in Fa Bienengra- Interpretation of the term 'representations of Article 177 EEC eber &- Co v HZA Hamburg- human beings' within the meaning of Note 3 Jonas to Chapter 97 of the CCT, and of subheading 97.02 A with reference to the classification of figures displaying both human and animal features

57/85 Senelco GmbH v Oberfi- Interpretation of Notes 2 and 5 to Section XVI Article 177 EEC nanzdirektion- Miinchen and of heading No 85.17 of the CCT with reference to the tariff classification of plastic protective labels for the electronic protection of articles against shoplifting

58/85 Ethicon GmbH v HZA Applicability of Regulations (EEC) Nos 1152l Article 177 EEC Itzehoe- 79 and 1481/80 to yarn intended for the manu- facture of ligatures for surgical surures consisr- ing as to 90o/o of. polyglycollic acid and with an additional quantity of lactid (lactic acid) as to l0o/o, which has no effect on rhe properries and intended use of such producrs. If the-Regu- lations are not applicable, is the remporiry suspension of duties on yarn wholly of polyglycollic acid invalid and, if so, what are the effects of such invalidity?

80 Bull. EC 3-1985 Court of Justice

Taxation

39/85 Mrs Bergtres-Becque v Interpretation of Article 95 of the EEC Treaty Article 177 EEC Head -of the Inter-regional Cus- on the question whether the importation from toms Service another Member State of a used arricle ieceived free of charge is subject to the levying of VAT. If so, what is the taxable amount, how must the residual part of the VAT paid in the Mem- ber State of exportation be calculated, and where must it be credited?

Competition

55/85 Ideal-Standard GmbH v Annulment of Decision 85/45lEEC (relating to Article 173 EEC Commission2- a proceeding under Article 85 of the EEC Tre- aty) establishing that Ideal-Standard's distribution contract constitutes an infringement of Article 85(1) of the EEC Treaty

State aids

63/85 Wirtschaftsvereinigung Proceedings for failure to act on the grounds Article 35 ECSC Eisen- -und Stahlindustrie v Com- that the Commission failed to respond to the mission2 applicant's letter requesting it to take a decision, pursuant to Article 88 of the ECSC Treaty, against Italy on account ofthe granting of aids in Italy for scrap used in electric steelworks

67/85 and 57/85 R 1. Kwekerii Annulment of the Decision of 13 February 1985 Article 173 EEC and Gebroeders, Van der- Kooy BV;2. (concerning the preferential tariff for natural Article 83 of the J.W. Van Vliet v Commission gas accorded Dutch horticulturists) finding that Rules of Procedure of the financial advantage represented by the pref- the Court of Justice erential tariff is inconsistent with Community law. Application to stay implementation of the Decision until the Court has ruled on the sub- stance of the case

58/85 and 68/85 R Land- Annulment of the Decision of 13 February 1985 Article 73 EEC and bouwschap v Commission- (concerning the preferential tariff for natural Article 83 of the gas accorded Dutch horticulturists) finding that Rules of Procedure of the financial advantage represented by the pref- the Court of Justice erential tariff is inconsistent with Community law. Application to stay implementation of the Decision until the Court has ruled on the sub- stance of the case

70/85 and 70185 R Kingdom Annulment of the Decision of 13 February 1985 Article 73 EEC and of the Netherlands v -Commission (concerning the preferential tariff for natural Article 83 of the gas accorded Dutch horticulturists) finding that Rules of Procedure of the financial represented by the preferential the Court of Justice tariff is inconsistent with Community law. Application to stay implementation of the Decision until the Court has ruled on the sub- stance of the case

Bull. EC 3-1985 81 Court of Justice

Social security 50/85 M.E.S. van Vermoolen, Interpretation of Article 13(2) of Regulation Article 177 EEC n6e Luijten,- v Raad van Arbeid (EEC) No 1408/71with reference to the exclusive application to a self-employed worker of the law of the Member State in which he pursues a self-employed activity, to the exclusion of the law of the Member State in which he resides

Social policy 24/85 J.M.A. Spijkers v 1. Does the sale of buildings together with stock Article ln EEC Gebroeders- Benedik Abattoir CV; where the vendor's activities have ceased and 2. A. Benedik en Zonen-BV where there is no transfer of a circle of cus- tomers constitute a 'transfer of an undertaking' within the meaning of Article 1(1) of Directive 77/187/EEC?

Free movement of persons 297/84 l. H. Sahinler; 2. F. Annulment of the Commission's decision (let- Article 173 EEC Sahinler- v Commission ter) of 4 October 1984 in reply to a complaint concerning the refusal of the German authorities to allow the wife of a Turkish national to ioin her husband in Germany

36/85 F. Bonincontro v Lande- Interpretation of the concept of'public policy' Article 177 EEC shauptstadt- Stuttgart in view of the refusal of the authorities of a Member State to extend the residence permit of an EEC national on the ground that, through no fault of his own, he is receiving supplemen- tary benefit. Does such a refusal constitute an infringement of Article 7(2) of Regulation (EEC) No 1612/68?

59/85 State the Netherlands Is the refusal of a Member State to grant a Article 177 EEC - of (Ministry of Justice) v A.F. Reed residence permit to a national of another Mem- ber State having a stable relationship with a worker of that same Member State who is employed and resides in the first-named Mem- ber State inconsistent with Articles 7 and 48 of the EEC Treaty? Interpretation of Article 10 of Regulation (EEC) No 1512/68 with reference to the treatment of such a person as a 'spouse'

Infringements

52/85 Commission v kalyz Adoption of a national legislative provision Article 159 EEC - impeding the importation of foodstuffs

72/85 Commission v Nether- Refusal to comply with the provisions of the Article 169 EEC lands - Staff Regulations governing the transfer of pen- sion rights

82 Bull. EC 3-1985 Court of Justice

Disputes between the Community and its staff v Commission 7.3.1985 - 61/85 - Tamara Urhausen (n6e von Neuhoff von der Ley) v Commission2 21.3.1985 and74/85 R Jacqueline Remy v Commission3 21.3.1985 -74/85 Valerie Raganelli- v -75/85 - Commissiona

oJ c 99, 19.4.1985. oJ c 95, 16.4.1985. oJ c 107,30.4.1985. ol c 103,5.4.1985.

2.4.17. Judgments

Datc and casc Held

ECSC-Steel

5. 3. 1985, 25185 R Nuovo Campsider v Commission Application for the adoption of interim measures - dismissed 21.3.1985,66/84 Ferriere di Borgaro v Commissionl 1. The amount of the fine imposed on the appli- - cant is reduced 2. For the rest, the application is dismissed

Free movement of goods 27.3.1985, 73/84 Denkavit v Land Nordrhein- The combined provisions of Council Directive Westfalen2 - 79/373/EEC on compound feedingstuffs for animals do not prohibit Member States from maintaining veterinary controls on the presence of pathogenic agents

Customs union

7.3.1985, 5/84 and 30/84 Nicolet Instrument GmbH 5/84: Commission Decision 82/549/EEC is v HZA Frankfurt am Main- Airport3 invalid 30/84: Commission Decision 80/716/EEC is invalid 7.3.1985,32/84- Van Gend & Loos NV v Inspecteur The word 'sails' in CCT heading No 52.04 must der Invoerrechten en AccijnzenJ be interpreted as including sails made of synthetic textile fibres and specifically intended for sail- boards when they are imported separately from their supporting structure 21.3.1985,54/84- Michael Paul v HZA Emmericha The expression 'frontier zone', defined in the first indent of Article 5(5) of Directive 69/169/ EEC, as amended by Directive 72/230/EEC, must be interpreted as meaning a circular zone having a radius of 15 km and its centre at the customs crossing

27.3.1985,4/84 Johann \ilolfgang Goethe Universitit Commission Decision 82/83/EEC finding that v HZA Frankfurt- am Main AirporC the apparatus described as 'Quanta Ray Nd: YAG Laboratory Laser system, model DCR 1 A' may not be imported free of CCT duties- is invalid

Bull. EC 3-1985 83 Court of Justice

Date and car

Approximation of laws

28.3.1985, 96/84 Vereniging Slachtpluimvee-Export 1. A packer who wishes to affix the Com- eV v Rewe-Zentral-AktiengesellschafC- munity 'e' sign within the meaning of Council Directive 76/Zll/EEC and who merely checks the quantity of the product contained in each prepackage must, in order to be able to use the sign, apply the inspection procedures recognized by the national authority responsible for weights and measures either on the basis of general provisions or on the basis of individual decisions 2. A packer who demonstrates that he is applying inspection procedures which effectively guarantee the value of the contents of his pre- packages may rely on the provisions of Council Directive 76/2ll/EEC as against a national authority which refuses to recognize those procedures.

Competition

13.3.1985, 296 and 318/82 Kingdom of the Nether- Commission Decision 82/653/EEC of 22 July lands and Leeuwarder Papierwarenfabriek- v Com- 1982 on aid granted by the Netherlands Govern- mission5 ment to a paperboard-processing firm is declared void

20.3.1985, 4l/83 Italy v Commissiona The application is dismissed (annulment of - Decision 82/ 851 lEEC concerning proceedings for the implementation of Article 85 of the EEC Treaty)

28.3.1985, 298/83 Comit6 des industries cin6mato- The application is dismissed (annulment of the graphiques d-es Communaut6s- Europ6ennes (CICCE) v decision to take no further action on a complaint) CommissionJ

Social security

7.3.1985, 145/84 H.J.E. Cochet v Bestuur van de Section 2 of Chapter 6 of Title III of Council Bedrijfsvereniging - voor dq Gezonsheid, Geestelilke en Regulation (EEC) No 1408/71, and in particular Maatschapelijke Belangen3 Article 59 thereof, is not applicable to a wholly unemployed frontier worker who, on the termination of his last employment, settles in the territory of the competent Member State, that is to say the State in which he was last employed

27.3.1985, 249/8i Hoeckx v Social Welfare Centre, 1. A social security benefit which offers a gen- Kalmthout5 - eral guarantee of a minimum means of subsistence, such as that provided for by the Belgian Act of.7 August 1974, is not one of the matters covered by Council Regulation (EEC) No 1,108/ 71, as defined in Article 4(1) and (2) Z. A social security benefit which offers a general guarantee of a minimum means of subsistence, such as that provided for by the Belgian Act of 7 August 1974, constitutes a social advantage within the meaning of Council Regulation (EEC) No 1512168

84 Bull. EC 3-1985 Court of Justice

Datc and casc

Article 7(2) of the Regulation must be interpreted as meaning that the grant of such a social advantage may not be made conditional on the claim- ant's having resided within the territory of a Member State for a specific period if no such condition is imposed on the Member Srare's own nationals

27.3.1985, 122/84 Scrivener v Centre Public d'Aide A social security benefit which offers a general Sociale de Chastrd- guarantee of a minimum means of subsistence constitutes a social advantage within the meaning of Council Regulation (EEC) No 1612/68

Fisheries

21.3.1985, 86 and 87/84 Criminal proceedings In the present state of Community law, the deter- against I. Bout en Zonen4 - mination of the method of calculation of the 70 gross register tonnes adopted as a maximum tonnage in Article 14(3) of Council Regulation (EEC) No 171/83,laying down certain technical measures for the conservation of fishery resources, is a matter for the Member States

Transport

28.3.1985, 9l/84 Director of Public Prosecurions v Article 14a(2) (c) of Council Regulation (EEC) S. Hackett Ltd and- R.T. V/estons No 543/59, as amended by Council Regulation 92/84 R.C. Tetlow v P.G. Doveys (EEC) No 515/72 and by Council Regulation - (EEC) No 2827/77, musr be interpreted to the effect that 'local market' must be understood as meaning the market which, having regard to geographical circumstances, is rhe nearesr to a particular farm and at which it is possible to buy or sell, as the case may be, according to the needs of normal, average-sized farms which may be considered typical of the area in question

Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters

7.3.1985,48/84 H. Spitzley v Sommer Exploitation The court of a Contracting State before which SA - the applicant, without raising any objection, enters an appearance in proceedings relating to a claim for a set-off which is based on a conrract or on facts other than that or those on which the claims in his application are founded and in respect of which there is a validly concluded agreement conferring exclusive jurisdiction on the courts of another Contracting State for the purposes of Article 17 of the Convention has iurisdiction by virtue of Article 18 of the Conven- tion

Bull. EC 3-1985 85 Court of Justice

Date and casc Hcld

Commercial policy

20.3.1985, 264/82- Timex Corporation v Council and 1. Article I of Council Regulation (EEC) No Commission4 1882/82 is declared void 2. The anti-dumping duty imposed by that provision is to be maintained until the competent institutions adopt the measures needed to comply with the ludgment 21.3.1985, 172184 Celestri & Co. SpA v Ministry of It is unnecessary for the Court to give a ruling Financel - on the validity of the communication from the Commission of 29 December 1981 amending the basic prices for certain iron and steel products since that communication was not applicable to products imported in January 1982. According io Article l(2) of Commission Recommendation 3140/87IECSC of 20 December 1978, the applicable communication from the Commission was that of 30 December 1978

Infringements

13.3.1985, 93/84 Commission v FranceT By failing to comply within the prescribed period - with Commission Decision 83/313/EEC concerning aid to maintain maritime employment granred to fishing undertakings by the French Government, France has failed to fulfil an obligation under the Treaty

14.3.1985, 259183 Commission v FranceT By reserving, pursuant to Article D 21 of the - Code des Postes et T6l6communications, the preferential postal tariff to newspapers and per- iodicals thai are either French or printed in France, to the exclusion of newspapers and per- iodicals of other Member States posted and distributed in France, France has failed to fulfil its obligations under Article 30 of the EEC Treaty

28.3.1985, 215/83 Commission v Belgiums By failing to adopt within the prescribed period - all the measures needed to comply fully with Directive 75/129/EEC on the approximation of the laws of the Member States relating to collective redundancies, Belgium has failed to fulfil its obligations under the EEC Treaty

28.3.1985, 272/83 Commission v ltalys 1. By including among the conditions for the - recognition of producer groups, under Council Regulation (EEC) No 1360/78 on producer groups and associations thereof, the obligation for such groups to carry on business as representatives of their members, and by failing, with regard to part of its territory, to adopt the measures necessary for the full implementation of the Regulation, Italy has failed to fulfil its obligations under the EEC Treaty 2. The remainder of the application is dismissed

86 Bull. EC 3-1985 Court of Justice

Date and casc

28.3.1985, 274/83 Commission v Italys 1. By enacting Section 10(1), (3) and (5) and - Section 13 of Act No 741, Italy has failed to fulfil its obligations under Directive 7l/305/EEC 2. In addition, by failing to notify the Com- mission officially of the text of Act No 74l,kaly has failed to fulfil its obligations under Article 33 of Directive 71I305/EEC

28.3.1985, 275/83 Commission v Belgiums By deducting contributions from statutory pen- - sions for old age, retirement and survivorship payable to Community nationals who reside in another Member State, Belgium has failed to fulfil its obligations under the EEC Treaty

28.3.1985, 2/84 Commission v Italys Italy has failed to fulfil its obligations under - Council Directive 75/130/EEC, in particular Article 2 thereof, inasmuch as it requires a transport authorization for road vehicles registered in the Federal Republic of Germany whose destination is Italy and which are transported by rail to Lugano, when that is the nearest suitable rail unloading station to the point of unloading of the goods and the transporter is able to provide evidence of the distance covered by rail in accordance with Article 3 of the Directive

28.3.1985, 100/84 Commission v Unired Kingdoms By not levying customs duties on the importation - into its territory of fish caught during joint fishing operations in which vessels flying the British flag took part together with vessels flying the flag of a non-member country, the latter having performed the essential part of the operation of catching the fish and the former having merely raised the nets out of the water, the United Kingdom has failed to fulfil its obligations under Article aQ)$ of Council Regulation (EEC) No 802/68 and under Council Regulation (EEC) No 950/58, as amended by Regulation (EEC) No 3000/79

Disputes between the Community and its staff v Commission 21.3.1985,263/$1 - Judgment for the applicant 27.3.1985, l2/84s - Application dismissed 29.3.1985,74185 R8 - Application dismissed v Court of Auditors 21.3.1985,108/845 - Judgmenr for the applicant

Bull. EC 3-1985 87 Economic and Social Committee

Orders for removal from the Court register

5.3.1985, 340/827 - Commission v France 5.3.1985, 23/857 - Ministdre public v Pierre Quintin de Kercadio 20.3.1985, 184 and 185/845 - Commission v France 20.3.1985, 198/84s - Commission v Luxembourg 21.3.1985, 67/8G FGTB de Bruxelles-Hal-Vilvoorde Asbl v Agence Europ6enne pour la Coop6ration (AEC) -

oJ c 99, 19.4.1985. oJ c 103,25.4.1985. oJ c 105, 27.4.1985. oJ c 95, 16.4.1985. oJ c 80, 28.3.1985. oJ c 85,4.4.1985. oJ c 95, 17.4.1985. oJ c 107,30.4.1985.

Economic and Social Committee to base a European research, development and demonstration strategy. While it had to be acknowledged that progress had been 225th plenary sess/on made towards the programme's goals, it was nevertheless essential for the Council Com- 2.4.18. The Economic and Social to approve financial indications for the pro- mitee held its 225th plenary session on 27 gramme without delay. and 28 March with Mr Gerd Muhr in the chair. The Committee failed to adopt an opinion on the Commission's farm price Opinions on Commission pioposals. I The opinion of the Section for proposals and communications Agriculture, as amended at the plenary session, was rejected (42 votes for, 54 against, 9 Taxation abstentions), and the Chairman concluded: 'This year, the Committee has been unable 2.4.20. In an opinion adopted by a large the pro- to take up a position on farm prices'. majority, the Committee endorsed posal for a Council Directive on the har- However, the Committee did adopt an own- monization of the laws of the Member initiative opinion on priorities in the field States relating to tax arrangements- for the of research and a number of opinions- carryover of losses of undertakings. 3 It wel- nearly all unanimously-on Commission comed the fact that the Commission was proposals or communications. proposing further harmonization of nati,cnal taxation systems. This would help Own-initiative opinions to strengthen the international comPetitive- ness of the Community economy by improving the tax environment in which Scientific and technological actiuities companies operate. 2.4.19. In an own-initiative opinion, the Committee assessed the priorities to be set Medicinal products for Community research initiatives in the context of the next revision, for 1985, of 2.4.21. While suggesting several amend- (by 73 to 38, the framework programme for Community ments, the Committee adopted scientific and technological activities for the period 1984-87.2 I oJ c 67, 14.3.1985; Bull. EC 1-1985, points 1.2.1 to pro- 7.2.7 and 2.1.36. The Committee considered that the 2 oJ C 208, 4.8.1983; Supplement 5/83 Bull. EC; Bull. posals presented in the framework pro- EC 6-1983, point 2.1.248. - grammme provide a foundation on which 3 oJ c 253,209.1984;Bull. EC 9-1984, point 2.1.41.

88 Bull. EC 3-1985 Economic and Social Committee with 9 abstentions) a favourable opinion on of social-security schemes to employed per- the Commission's October 1984 proposals 1 sons, to self-employed persons and to mem- for: bers of their families moving within the Community and procedures for Council Directive on the approxi- the (i) a implementing the basic Regulation. 7 mation of national measures relating to the marketing of high-technololgy medicinal 2.4.24. The Committee was in broad products, particularly those derived from agreement, though it did make a certain biotechnology; number of comments, with the draft Coun- (ii) a Council Directive amending the cil recommendation on social security for Directive of 20 May 1975 on the approxi- volunteer development workers. 8 mation of the laws of Member States relating to analytical, pharmaco-toxicological Measures for Greece and clinical standards and protocols in respect of the testing of proprietary med- 2.4.25. The Committee adopted an opin- icinal products;2 ion on thq proposed Council Regulation introducing specific measures for Greek (iii) Council Directive amending the a agriculture and fisheries.9 The Committee Directive 28 September 1981 on the of approved the proposed Regulation, which approximation of the laws of the Member takes the same line as the recommendations States relating to analytical, pharmaco-toxi- in the various ESC opinions on integrated cological and clinical standards and proto- Mediterranean programmes and the pro- cols in respect of th-e testing of veterinary posed Council Regulations for the wine sec- medicinal products; r tor. However, the Committee felt that cer- (iv) a Council Recommendation on tests tain vineyard restructuring schemes should for the marketing of proprietary medicinal also take into account the possibilities of products; grafting the recommended vine varieties. (v) a Council Directive amending the Directive of 26 1965 on the 2.4.25. The Committee also approved a January proposal of agricul- approximation of provisions laid down by on the restructuring -the law, regulation or administrative action iural surveys system in Greece.lo relating to proprietary medicinal products. 4 Social and econornic deuelopment of the regions

Enu iro nm e nt al p r ot e ct i o n 2.4.27. The Committee expressed its satis- 2.4.22. In its opinion on a Commission faction with the quality of the second per- communication to the Council on environ- iodic report on the social and economic mental protection in the Mediterranean,5 situation and development of the regions of the Committee acknowledged the validity the Community.ll However, it called on the of the Community initiative but urged that Member States to cooperate in refining and the measures recommended by the Com- further harmonizing the data used to calcu- mission take greater account of the real environmental needs in the Mediterranean I oJ c 293,5.11.1984; Bull. EC 10-1984, poinr 2.1.16. and of other aspects, including the rehabili- 2 oJ L 147,9.6.797s. tation of the marine environment, the pro- 3 oJ L 317,6.11.1981. tection of biotopes and plant species, and 4 oJ L 22,9.2.1965. the problem of pleasure craft. 5 OJ C 133,21.5.1984; Bull. EC4-1984,point2.1.79. 5 Bull. EC 1-1985, point2.7.24. 7 oJ L 149, 5.7.1971. Social protection 8 0J c 76,17.1.1985; Bull. EC 12-1984, point 2.1.100. e oJ c 76,22.3.1985; Bull. EC 2-1985, point 1.1.2. 2.4.23. The Committee endorsed the ro oJ c 22,14.1.1985. Commission's proposal 6 on the application rr Bul[. EC 3-1984, point 2.1.89.

Bull. EC 3-1985 89 ECSC Consultative Committee

Iate GDP and asked the Commission to for Community imports was criticized as investigate whether the unemployment indi- being too high and it was suggested that cator might not be replaced by an employ- producers in non-member countries might ment indicator to reduce the risk of error see this as an invitation to export more to currently arising from part-time employ- the Community. Mr Kutscher pointed out ment and moonlighting. The Committee that the steel import restrictions imposed by stressed the point that a number of different the United States would lead the exporting indicators introducing qualitative aspects countries affected to seek new outlets for could be used. their products. For that reason, the figure for Community steel imports from non- Support for technological deuelopment member countries could not be considered too high. 2.4.28. In its opinion on a proposal for a It was stressed that unanimity among the support programme for technological devel- Ten would be a key factor in successfully opment the hydrocarbons sector, the in resolving the problems with the United Committee agreed the Community that States. should continue with its programme in this industry. While approving the fact that the Mr Kutscher reported on the outcome of proposal covers a five-year period and pro- the Council meeting of Industry Ministers vides for indicative expenditure of 200 held on 26 and27 March (--+ point 2.1.16). million ECU and a review after four years, It was stressed that Article 2 of the aids the Committee suggested it would be better code must be observed at all costs. to have a rolling programme subject to a The scrap problem was discussed again review every two years. (+ point 2.1.21), and the Commission was asked to take specific action to counteract the risks facing small businesses. ECSC Consultative Committee Solid fuels market 249th meeting 2.4.31. Mr Urbain, rapporteur for the 2.4.29. The ECSC Consultative Commit- Subcommittee for Markets and Prices, pre- tee held its 249th meeting in Luxembourg sented the Commission's report on the mar- on 29 March. It examined financial aid by ket for solid fuels in 1984 and the outlook the Commission under Article 55 of the for 1985. It was felt that the report should ECSC Treaty for two research programmes, contain a more long-term assessment, and one on coal and the other on iron and steel regret was expressed at the drop in con- (--+ points 2.1.746 and2.1,.749), the forward sumption of solid fuels in the Community. programme for steel for the second quarter A number of ways of improving the report of 1985 and the report on the market for were put forward, in particular a proposal solid fuels in the Community in 1984 and that, in future, a comparison with oil and the outlook for 1985. natural gas should be included. Certain basic issues were raised several Forward programme for steel times in the course of the discussion. One speaker referred to the excessive and 2.4.30. Mr Soule, Chairman and rappor- increasing dependence on energy imports teur of the Subcommittee for Markets and from sometimes unstable regions. The Prices, presented the forward programme effects on employment in the coal industry for steel for the second quarter of 1985 were also pointed out. Another speaker (-r point 2.1.17) and replied to commenrs stated that considerations of profitability by Mr Kutscher, representing the Com- should be only one element in the broader mission. During the discussion the figure context of an overall Community energy

90 Bull. EC 3-1985 European lnvestment Bank

policy in which coal must play an important energy-saving schemes: LIT 40 000 million part. These anxieties were reflected in a towards the completion of the Italian-Alger- draft Committee resolution on the role of ian pipeline for the construction of gaslines coal in a Community long-term energy pol- between Arezzo (Tuscany) and Minerbio icy which was adopted unanimously. (Emilia-Romagna); LIT 23 0N million towards expanding the gas transmission Mr Reichert, replying for the Commission, grid in the centre'and north of the country; pointed addition these short- out that in to LIT 40 000 million towards equipping the pub- term forecasts the Commission also three natural gas storage reservoirs in cen- periods, lished material covering longer tral and northern Italy (Ripalto and Tresi- such as the study of energy prospects to gallo) and the Mezzogiorno (Nuova year the 2000.1 He also stated that the Cupello); LIT 35 000 million towards the Commission did not intend to limit mining conversion of two exhausted gas fields into of Community coal; it was concerned more storage reservoirs in the Centre-north (Sab- with preparing scenarios, hypotheses and bioncello) and the Mezzogiorno (San computerized models to give the Council Salvo); and LIT 9 000 million towards the the necessary basis for discussion. The development of two natural gas fields in the Commission in fact took the view that new Mezzogiorno. objectives had to be set for energy policy to 7995 of 2000 and would consult the Com- To help rationalize energy consumption, mittee on this. two global loans totalling LIT 45 000 million were granted to Istituto Bancario Lastly, he said that since the current scheme San Paolo di Torino to be onlent for small for aids to coalmining would expire at the and medium-scale industrial. agricultural end of the year, the Commission had to and infrastructure schemes throughout the prepare for the future: both the Committee country. and the Council would be called upon to act under Article 95 in due course. In the telecommunications sector, LIT 15 000 million was lent to extend the facilities at a satelite earth station in Abruzzi. European lnvestment Bank The investment will not only help to improve international and national telecommunications but also to consolidate a Operations in March high-technology enterprise in an assisted area. 2.4.32. Loans announced by the European Investment Bank in March for investment Finally, an environmental scheme: LIT within the Community totalled 284.1 milli- 15 000 million was lent to Piedmont for ons ECUz 152 million in ltaly, 97.6 wastewater works in the River Po basin. million in the- United Kingdom,20.5 million in France and 4 million in the Netherlands. United Kingdom Outside the Community the Bank lent 31.4 'million ECU for investments in Cyprus and 2.4.34. UKL 59.5 million was lent in the 4.9 million ECU to overseas countries and United Kingdom, including 30 million for territories. the development of three gas fields in the UK sector of the North Sea. The fields are known as the Esmond complex and are Community due on stream in the summer, producing 5

Italy 1 Bull. EC12-1984, point 2.1.211. 2 The conversion rates at 31 December 1984 used by the 2.4.33. Loanss of LIT 222000 million EIB in statistics for the first quarter were I ECU : BFR were granted, including LIT 792 000 million 44.72,DKR7.99,DM 2.23, DR 91.04, FF 6.83,HFL2.52, to promote the use of natural gas and IRL 0.72, LtT t 37t,LFR 44.72, UKL 0.61, USD 0.71.

Bull. EC 3-1985 European lnvestment Bank

million cubic metres of gas daily for at least routes uneconomic for larger aircraft and, 10 years. at a later stage, for services to Denmark, UKL 17 million went towards the construc- Italy, Germany, France and the United tion of a newsprint factory near Wrexham Kingdom. in North \Wales. The factory will produce about 180 000 tonnes ayear of high-quality Outside the Community newsprint from UK-grown timber and will create 275 jobs in an area of high unemploy- Cyprus ment. 2.4.37. Under the second Financial Proto- UKL 10 million went to the South-West col, the Bank lent 25.5 million ECU for the Water Authority for sewerage and sewage development of water resources. The loan treatment works in rivers and lakes the in went towards construction of the Kouris Exeter, Crediton, Tiverton and Seaton areas water storage dam designed as part of a of south-east Devon. further 2.5 A UK scheme to collect water from the southern million went towards improving access to Troodos mountains and pipe it to the Nico- Felixstowe, the country's main container sia, Famagusta, Limasol and Larnaca areas port, and Harwich. in the south-east. Both communities on the France island will benefit from the scheme. 2.4.35. As part of the effort to improve Ouerseas countries and territories Member States' energy supplies, a loan of FF 140 million was granted for a new link 2.3.38. Under the Council Decision of 15 between the French and Italian high-voltage December 19801 which provides for spec- electricity grids in the form of a2 000 M\f ific assistance for overseas countries and overhead transmission line which will be territories having special links with certain connected up to the Albertville (Savoy) and Member States, the Bank lent 4 million ECU Rondissone (Val dmAosta) transformer sta- for the construction of an electricity trans- tions. The link is costed ar some FF 285 mission system to harness the hydroelectric million and will make it possible to substi- resources of Tahiti, the main island in tute electricity generated by nuclear or coal- French Polynesia. fired power stations for power produced The Bank also lent 0.9 million ECU to gas. using oil or natural The savings in improve the reliability of electricity supplies fuel are estimated at 250 000 tonnes of oil on the Eastern Caribbean island of equivalent per annum. Montserrat. The project centres on installation of a 1.5 medium-speed diesel Netherlands MW generating unit, together with associated 2.4.36. A loan of HFL 10 million was works and improvement of the transmission granted to the airline 'Netherlines' for the network. purchase of four 18-seater aircraft which will be used on interregional roures and I oJ L 36r,31.12.1980.

92 Bull. EC 3-1985 \

PART THREE DOCUMENTATION

\ 1, ECU

Values in national currencies of one ECU Representative rates ('green' rates)

29 Marchl Conuersion rates into national currencies for the ECU used in connection with Belgian franc and the common agricultural policy Luxembourg franc (convertible) 45.0079

Belgian franc and March Luxembourg franc (financial) 45.226t National currency German mark 2.23658 Dutch guilder 2.52306 Belgian franc and Pound sterling 0.584022 Luxembourg franc 44.9008r Danish krone 7.99418 46.41182

French franc 6.83117 Danish krone 8.234A0r 8.414992 Italian Iira 1428.77

Irish pound 0.717068 German mark 2.397923 2.410474 Greek drachma 96.7198 2.385162 United States dollar 0J27107 Greek drachma 77.2479r Swiss franc 1.89593 90.52812

Spanish peseta 125.208 French franc 6.937%4 6.49217r krona 6.48943 Swedish 7.105ed Norwegian krone 6.46762 6.858652

Canadian dollar 0.994319 Irish pound 0.72l,6901 0.75011G Portuguese escudo 126.153 Austrian schilling 15.7128 Italian lira 1 341.001 I $2.0e Finnish mark 4.66948 guilder 2.701783 yen 182.213 Dutch Japanese 2.715204 Australian dollar 1.03724 2.687492

New Zealand dollar 1.56032 Pound sterling 0.518655

I oJ c 82,30.3.1985 I For secds. 2 For othcr products. l For ccrcals and durum whcat. notes the ECU can be NB, Explanatory on and'green'ratcs 1 For mrlk and milk products. found in Bull. EC 7/8-1982, points 3.1.1 to 3.1.3, and Bull. 5 For pigmeat and winc, EC 10-1984, point 3.1.1.

94 Bull. EC 3-1985 2. Additional references in the Official Journa!

3.2.1. This section lists the titles of legal instru- Community regional development measure con- ments and notices of Community institutions or tributing to the improvement of the economic and organs which have appeared in the Official Journal social situation of the border areas of Ireland and since the last Bulletin was published but relating Northern Ireland to items appearing in earlier issues of the Bulletin; the references were not available when the Bulletin Proposal for a Council Regulation instituting a specific Community regional development meas- went to Press. ure contributing to the development of new econ- The number of the Bulletin and the point to which omic activities in certain zones affected by the this additional information refers is followed by implementation of the Community fisheries policy the title shown on the cover of the Official Journal, oJ c 70, 18.3.1985 the number of the issue and the date of publication.

Bull. EC 1.-198s Bull. EC 72-7984

Point 2.1.53 Point 1.2.1et seq.

Commission Decision of 19 December 1984 relat- Commission proposals on the fixing of prices for ing to a proceeding under Article 85 of the EEC agricultural products and related measures (1985/ Treaty (lV /29.725-Wood pulp) 85) oJ L 85, 26.3.1985 ol c 67,14.3.1985

Point 2.1.54 Point 2.1.30 Commission Decision of 19 December 1984 relat- Proposal for a Council Directive on timit values ing to a proceeding under Article 85 of the EEC and quality objectives for discharges of certain Treaty (lV/26.870 Aluminium imports from dangerous substances included in List in the Europe) - I eastern Annex to Directive 75/464/EEC oJ L92,30.3.1985 oJ c 70, 18.3.1985 Point 2.1.113 Point 2.1.31 Proposal for a Council Regulation amending Regu- Iation (EEC) No 2617180 instituting a specific Proposal for a Council Directive amending Direc- Community regional development measure con- tive75/439/EEC on the disposal of waste oils tributing to overcoming constraints on the devel- oJ c 58, 5.3.1985 opment of new economic activities in certain zones adversely affected by restructuring of the ship- building industry Bull. EC 2-1985 Proposal for a Council Regulation amending Regu- lation (EEC) No 219184 instituting a specific Com- Point 2.1.9 munity regional development measure contributing to overcoming constraints on the development Commission Directive of 18 February 1985 adapt- of new economic activities in certain zones ing to technical progress Council Directive 7lllZ7/ adversely affected by restructuring of the textile EEC on the approximation of the laws of the and clothing industry Member States relating to the rear-view mirrors Proposal for a Council Regulation amending Regu- of motor vehicles lation (EEC) No 2519180 instituting a specific oJ L 90, 29.3.1985

Bull. EC 3-1985 95 3. I nf ringement proced u res

Initiation of proceedings 1975,e 27 lune 1977,10 25 July 197811 and 18 for failure to implement directives December 197812 concerning the mutual recognition of diplomas, certificates and other evidence 3.3.1. In March the Commission sent Ietters of of the formal qualifications of doctors, nurses formal notice for failure to incorporate directives responsible for general care, dental practitioners into national law (the Commission not having been and veterinary surgeons respectively, with regard informed of national implementing measures) in to acquired rights (Germany, Ireland, Italy); the following five cases:

Council Directive of 26 January 198213 amending Internal market and industrial affairs the Council Directive of 15 June 1975 concerning the mutual recognition of diplomas, certificates 1 Council Directive of 22 July 1980 amending the and other evidence of formal qualifications in Council Directive of 4 June 1973 on the approxi- medicine, including measures to facilitate effective mation of the laws, regulations and administrative exercise of the right of establishment and freedom provisions of the Member States relating to the to provide services, and Directive 751353/EEC con- classification, packaging an-d labelling of danger- z cerning the coordination of provisions laid down ous preparations (solvents) (Belgium, Germany, by law, regulation or administrative acrion in Luxembourg, Netherlands); respect of activities of doctors 9 (France, Italy). Commission Directive of 10 June 19823 adapting to technical progress the Council Directive of 4 June 1973 on the approximation of the laws, regulations and administrative provisions of the Mem- ber States relating to the classification, packaging Transport and labelling of dangerous preparations (solvents) z (Belgium, Germany, Luxembourg, Netherlands). Council Directive of 21 December 1978 concerning minimum requirements for certain tankers enter- Environment, consumer protection ing or leaving Community portsl4 (Netherlands). and nuclear safety ,

Council Directive of 21 April 1983 a amending the Council Directive of 20 December 1979 on the limiration of noise from subsonic aircraft s (Ger- Taxation and financial institutions many); Second Commission Directive of 14 May 1982 on the approximation of the laws of the Member Sixth Council Directive of 77 May 1977 on the States relating to methods of analysis necessary for harmonization of the laws of the Member States checking the composition of comestic products 5 relating to turnover taxes-Common system of (kaly). value-added tax: uniform basis of assessmentls (Italy). Taxation and financial institutions

Council Directive of 30 May 1978 on the coordination of laws, regulations and administrative provisions relating to Community co-insurance 7 (Belgium, Italy, Netherlands). oJ L 229,30.8.1980. oJ L 189, 11.7.193. oJ L 213,2r.7.1982. Reasoned opinions oJ L 117,4.5.1983. oJ L 18,24.1.1980. 3.3.2. The Commission delivered reasoned opin- oJ L 185,30.5.1982. ol L 151,7.6.1978. ions in the following four cases: oJ L 385,31.12.r981. 9 o1 L 167,30.6.t975. l0 oJ L 176,15.7.t977. Internal market and industrial affairs ll oJ L 233,24.8.1978. l2 oJ L 362, 23.2.1978. IJ oJ L 43, 15.2.1982. Council Directive of 14 December 19818 rup- l4 oJ L 33,8.2.1e79. It plementing the Council Directives of 15 June oJ L 145, 13.6.1977.

96 Bull. EC 3-1985 4. Commission memoranda to the European Council

Brussels, 29 and 30 March 1985 2.2 At the world level economic recovery is also continuing. The slowdown in growth in the United States is currently proceeding relatively 3.4.1. The Commission sent three memoranda ro smoothly (1984: 6.80/o; forecast 1985: the European Council for its meeting in Brussels for 3.5%), although budget policy corrections have not yer been made on 29 and 30 March. They dealt with (i) the and leading indicators not provide pic- economic and social situation in the Community, do a clear ture, From the the European (ii) strengthening the technological base and com- viewpoint of economy, the erratic movements and upward trend of petitiveness of Community industry and (iii) a provide Europe-wide environment policy. the dollar exchange rate cause for concern in the short term, since they could lead to an undesirable rise in European interest rates. The dangers inherent in the continuing and increasing The economic and social situation budget and balance-of-payments deficits have in in the Community no way diminished. The higher the dollar rises and the longer the delay before deficits are cut, the greater could be the eventual adjustment problems. 7. Introduction This provides serious cause for concern as to the growth of the world economy and international 3.4.2. At its last meeting in Dublin, the European trade and as to the operation of exchange and Council underlined the priority given to the prob- capital markets. lem of unemployment. It considered that the guidelines embodied in the most recent 'Annual Econ- omic Report' should be speedily implemented and 3. Recent economic policy developments asked the Council to take appropriate action. The European Council asked the Council and rhe Since the Community's economic strategy, as Commission 'to report back to its meeting in adopted by the Council of Ministers in the last March on what measures might be appropriate for 'Annual Economic Report', is essentially a the Community or may already have been initiated medium-term strategy, it is not surprising that to assure the objective of a progressive increase there have been no major changes in economic in the actual and potential growth rate for rhe policy in recent months. Monetary policy, under- Community to the benefit of employment'. pinned by the EMS exchange-rate mechanism, continues to aim for stability, although the anticipated Such is the oblect of this working paper. rise in dollar interest rates has interrupted the downward trend in short-term rates in Europe. If the dollar continues to appreciate, there may be 2. Trends and prospects undesirable repercussions for domestic economies in the form of higher interest rates, as has already There is at present no evidence that rhe European happened in the United Kingdom. or world economic recovery is faltering. Budgetary policy remains one of consolidarion, 2.1. In the Community inflation rates are falling although in some countries budget deficits in 1984 and becoming more convergent. The current bal- turned out to be somewhat larger than hoped for. ance-of-payments situation has improved. GDP is expected to grow by 2.4o/o in 1984 and 1985. This The moderate rise in nominal and real wage costs figure is slightly higher than that assumed in the is likely to continue in most Community countries last 'Annual Economic Report.' in 1985. There has been no radical improvement in the employment situation. V/hile 1985 is likely to see Is there any room an economic a slight increase in employment over the Com- 4. for munity as a whole, unemployment is still ar a high policy that would be more beneficial level and may even be somewhat higher in 1985 to employment? (11.2o/o) than in 1984 (10.9o/o). The labour market situation therefore remains highly unsatisfactory. The Commission did not propose any adjustment Vith a continuation of recent trends, and without in the economic policy guidelines to the Council further measures, it is unlikely to become any more of Ministers. This does not mean that it is satisfied acceptable over the next few years. with the results achieved.

Bull. EC 3-1985 97 Commission memoranda to European Council

The task now is to implement the economic strat- affects the distribution of work, and even macroe- egy rapidly, to develop it further and to emphasize conomic matters such as reconciling moves to certain features. Further progress must be made bring costs under control with moves to underpin on the prices and balance-of-payments fronts in a demand. number of countries. For the Community as a whole, however, employment has first priority. (ii) There is broad agreement between Member There is therefore a continued need to achieve States'governments on the need further to improve supply conditions in the economy. Since the poli- higher growth than the forecast rate of iust under 2.5o/o on a healthy and sustainable basis, and in cies followed are slow in acting, this may hamper particular to bring about more employment-inten- their social acceptance. On the other hand, if economic activity were more buoyant, be sive growth with a higher rate of iob creation for it would each percentage point of growth. easier to improve supply conditions. Steps should be taken to add a dynamic element to the necessary The conditions for this have improved: policy mix of budgetary consolidation, monetary and wage-cost (i) the smooth functioning of the EMS exchange- stability moderation. This could be done by rate mechanism has led to a very distinct improve- aiming for stronger growth in public and private investment. countries ment in the convergence of policies and in the The in which the process of consolidating public results achieved, notably in terms of inflation and budgets has already balances of payments; made sufficient headway should make full use of the existing and future room for budgerary (ii) moderate wage settlements have improved manceuvre as a means of fostering investment. business profits and strengthened the propensity This would be a contribution to economic dyna- to invest in many Community countries, even mism and positive adjustment that would be not though too many firms still hesitate to make use only in the interests of each individual country but of their capacity for self-financing because of the also in the common interest. The Community can weakness of demand; itself play a part in the process. For this purpose, (iii) the two sides of industry, both employers consideration could be given to a furrher develop- and unions, seem more open to dialogue. This is ment of its borrowing and lending instrumenrs, at any rate the impression the Commission has especially as part of a programme of investment in gained from the dialogue which it has sought to transport and telecommunications infrastructures revive with and between them; commensurate with a large economic area in which internal frontiers have been dismantled. This (iv) the awareness has grown among those would contribute to attainment of the key obiec- responsible for economic policy that no Com- tive of creating a vast internal market. munity country can alone solve the problems of employment and employment-intcnsive growrh 5. To sum up, the Commission proposes to rhe and at the same time safeguard stability. No Mem- European Council that: ber State can secure a sustainable increase in growth simply by stepping up its exports to other (i) it should reaffirm the obiective of an appreci- Member States. It should be remembered that 50% able reduction in unemployment within a reason- of Member States' foreign trade is carried on able period, to be achieved with the help of higher between them. This underscores the degree of and, in particular, more employment-intensive interdependence that exists but also the limirs to growth that does not ieopardize monetary stab- any plan for underpinning growth in one counrry ility; by boosting demand in the others. Each country (ii) implementation Community's econ- must therefore focus more closely on bolstering of the omic policy strategy should be helped by reactivat- its own domestic demand? This therefore is a Community-wide problem. ing the industrial dialogue at all levels; as parr of the dialogue and, where appropriate, with the Use must be made of the economic and polirical Commission's support, employers and unions room for maneuvre created in this way. should draw up, in time for the European Council meeting in December 1985, proposals on how they (i) Implementation of the Community's econ- can contribute to attainment of rhe joinr objectives; omic strategy will be all rhe more effective rhe broader the consensus on which ir is based. (iii) the Member Srates and the Commission Hence the importance of the indusrrial dialogue should examine how each country can ensure that between the two sides of industry and of nego- control of expenditure and budget deficits is more tiations at all levels (e.g. at company level, at closely reconciled with economic dynamism; industry level, at national level and at Community expenditure that helps ro underpin acriviry and ro level). The fields in which progress would seem prepare for the future should be identified, possible include the introduction of new technol- together with the reductions in taxation that would ogies, the functioning of labour markers as it do most to boost investment and create jobs;

98 Bull. EC 3-1985 Commission memoranda to European Council

(iv) - the European Council should lend its supporr is more, through the effect of standards, technical to the Commission's intention of examining the regulations, aid to industry and public procure- extent to which the Community could iiself, ment, national policies in suppori of technology through its borrowing and lending operarions, tend to perpetuare the national character of indus- assist and foster this overall straregy. trial structures and the fragmentation of the common market. Within the narrow confines of national markets it is impossible for large com- Strengthening the technological panies to achieve economies of scale and-smaller base and competitiveness ones to specialize in specific market slots. of Community industry 2. It is unwise to embark without due caution on cooperation with US or Japanese multinationals. 3.4.3. The efforts made by the Member States to Excessive technological dependence could leave us restore basic macroeconomic balances have helped in a critical position should limits be placed on the to improve the growrh rate of the Communiiy's transfer of technology from the USA. When such economy, which has also been stimulated by ihe transfers are inevitable, they must allow European vigorous recovery in the United States. firms to make up lost ground. Even so,- economic growrh in rhe Community In the Commission's view, rwo main approaches remains lower than in rhe United States and in can be adopted to strengthen the technological Japan. One of the most srriking reasons for this base and competiriveness of Community induitry: poor performance is rhe way in which Community (i) firstly, improvemenr of the environment in industry as a whole has fallen behind those rwo which companies operate so as to encourage their countries in most high-technology indusrries. industrial innovation capacity and comhercial Although it is not fair to speak of in overall loss enterprise; of competitiveness or technological gap, there are worrying trelds in several branches with a high (!it secondly, better utilization of the Community technological inrensity. dimension by States and above all by companies so as to enable firms to develop in a compCtitive, In information technology, the Community's trade unified and open market. gap and technological dependance is steadily worsentng. On the basis of this diagnosis, the Commission proposes that rhe European Council select six main In telecommunications, up to now one of the Com- objectives: munity's strong points, there is a serious risk that the technological developments and rhe instal- Iation of the infrastructure needed for the high- 1. Achieving complete unification capacity networks of the turn of rhe cenrury will of the internal market not be pur in hand in time or in a sufficiently coordinated fashion. The Commission has already expressed its determination to abolish internal frontiers within the biotechnology, In on which in the long run the Community by 1992 in the interests of rhe citizens future of our fine chemicals, agriculture-and food and companies of Europe. This complete unifi- industries will all depend, the inadequacy of the cation of the marker will be carried out in stages, current basic research effort may well leave us very following a precise timetable. This programme vulnerable in the future, and this will be difficu[t calls for rapid progress----especially foithe benefit to remedy. of the high-technology industries-in the following areas: In new materials (resins, ceramics and special metals), the most important developmenrs arL tak- (a) European standardization with a world out- ing place in the United States and Japan. look is essential to put Europeans and their rivals in the outside world on an equal footing and to Our loss of ground in rhese advanced technologies give users a sufficienr degree of security to encour- is likely delay to their use in tradirional indusrries, age them to invest in high-technology equipment with the risk of losing markets and destroying and services: Community rules on industrial-prop- jobs. Also, if the European economies fall back on erty must create a framework guaranteeing invest- thg v/idfspread use of imported equipment they ment in information rechnology and biorechnology are likely to handicap their own new-technology and preventing abuse of dominant positions. industries. (b) Public contracts account for a major (and 1. It is obvious that no Member Srate can face often the most innovating) proporrion of demand up to the challenge of the new technologies on its in these sectors. It is therefore essenrial ro open up own: the cost of developing rhem is too high. What access to them. Some types of public contracts

Bull. EC 3-1985 99 Commission memoranda to European Council are particularly well suited to the formation of 3. Strengthening and making better consortia on a European scale provided that effec- use of theCommunity's scientific tive competition between them is guaranteed. and technological potential There must be specific procedures giving small and medium firms iccess to them under equivalent Although the Community's scientific base is com- conditions. parable" to that of the 0SA and Japan it is less efficient and is growing less rapidly. The enormous (c) Services must also benefit from the unification the Pentagon's R6

100 Bull. EC 3-1985 Commission memoranda to European Council

and exchanges 1985-88 meets these objectives. To establishment of databases and the transmission strengthen the Community's technological base it of data across frontiers. is necessary to adapt school systems and further training for adults along similar lines. Achieving a breakthrough (b) A programme designed to promote cooper- 6. ation between universities and industry so as to in telecommunications improve in both numerical and qualitative terms the training of personnel qualified in the use of High-capacity networks will be to the industry new technologies is now being prepared in the and services of tomorrow what the waterways, Community. The emphasis will be on the need to railways and motorways have been or are to the increase the mobility of students by facilitating industry of today. In particular, they will be a study periods or training in firms in a different source of new services (creating jobs), will improve Community country. the overall productivity of our economies and will allow better decentralization of production activi- Recognition as a 'Community centre of excellence' ties over the whole of the Community territory. for establishments giving additional training or Telecommunications conducting very advanced research in specialized can be to the Community areas would help towards the increased mobility what defence and space are to the United States consumer electronics of students and research scientists within the Com- and is to Japan. The Com- munity has here a base. munity. The European Council should express its significant strategic It must support for these types of activity, which will act rapidly to bring this base up to a level of promote the European identity in the eyes of the technological and industrial capacity that will place economic and social decision-makers of the future secure its on the world market. in the Community. Success here presupposes a number ofcoherent and complementary measures concerning the market 5. Promoting innovation, including (policy of common standards), the stimulation of demand (pilot projects such as videocommunica- database networks, and establishing tions) and the industrial technology needed to the information market establish the future advanced communications networks and services. Putting innovations into application is one of the weak points of European industry. The transition Suitable financing is also required for the infra- from the laboratory to the factory and from the structure investment that will not show a return factory to the market must be encouraged by gre- for some time and is in the nature of a public asset. ater flexibility and transparency of production structures and more effective rewards for good The RACE programme will be the first stage in management performances. The Community can the implementation in the Community of future- contribute to this. generation telecommunications services. (a) Innovating firms need a tax policy encouraging risk taking. The Commission intends to propose oblectives to be adopted lointly in various A Europe-wide env:ronment policy areas (company formation, tax arrangements applicable to venture capital, innovation financing 3.4.4. 1. The environment in which the citizens (NCI)). of the Community, and of many other parts of the world, live and work is deteriorating, in town and (b) The dissemination of knowledge is vital to countryside alike. This is the more regrettable since the use of government-financed research results the natural resources and facilities exist for making and the stimulation of innovation. The Com- better more livable. Protection and munity must play its part. The dissemination of life and improvement of the environment therefore must these results should be improved so that companies be a top Community priority. throughout the Community can benefit from them. The practices adopted for development of the 2. The European Council acknowledged this Esprit programme should be extended to other need when it decided at irs last meeting in Dublin sectors. to devote part of the next session to the subiect of (c) In the Community information should be a environmental protection. sector producing value-added and creating iobs, 3. Urgent action is imperative on several fronts. but its great innovation potential will not be exploited to the same extent as in the United (i) Air pollution from the burning of fossil fuels States and Japan unless the Community market is is causing the destruction of forests, the pollution unified: there should be complete freedom for the of lakes, the erosion of buildings and of our archi-

Bull. EC 3-1985 101 Dooge Committee report tectural heritage, and, sometimes, hazards to national policies and the use of the financial human health. armoury at the Community's disposal. (ii) Marine pollution is reaching alarming pro- 5. The Commission would like to see decision- portions in the Mediterranean and some areas of making in this area of policy prompted and influ- the North Sea. The absorptive capacity of the sea, enced by policy guidelines from the European where pollution discharged to water, land air or Council. Without going into ,detail, it asks the finally ends be swamped up, could if action is not European Council to endorse three main guidelines taken soon. for Community environment policy: (iii) The handling of dangerous chemicals has (i) protection of the environment is to be treated given rise to serious and tragic accidents in Europe as an integral part of economic and social policies and elsewhere. Though rare, these can be. utterly both overall (at macroeconomic level) and by devastating. individual sector (agricultural policy, industrial policy, (iv) Modern farming methods sometimes cause energy policy, etc.); the point must be made that grave ecological damage, even though agriculture, an active policy for the protection and improve- which has moulded the European landscape over ment of the environment can help economic centuries, still offers the best assurance of preserv- growth and lob creation; ing landscape features. (ii) Member States must recognize the necessity (v) The scale of environmental deterioration in of coherent actions within the Community frame- some parts of the Third \Uorld is such that they work, since piecemeal and isolated action would may well become permanently unable to supporr risk being ineffective and even harmful to the life: desertification, tropical deforestation and the cohesion and continuity of its policies; loss of wildlife, and hence genetic diversity, are among the worst problems of all. (iii) signal the importance the European Council attaches to Community policy for the protecrion 4. The seriousness of these problems is such that and improvement of the environmenr by deciding the Commission has given them prominence in the that the year 1987 will be the European Year of action programme it recently submitted ro the the Environment, and by inviting the Commission European Parliament, in which it states its inten- and Council to make every effort ro ensure that tion of laying before the Council a number of the year is marked by malor progress in the Com- proposals concerning legislation, scientific and munity drive for the protection of the environmenr technical research, the orientation of common and in Europe and the world.

5. Report from the ad hoc Committee on I nstitutional Affairs to the European Council, democracy and the respect for human righrs which Brussels, 29 and 30 March 1985 1 constitute essential elements for membership and is one of the constant objectives of its activities throughout the world-answered the complex and deeply felt needs of all our citizens. Preface 2'3 Although the Communiry decided to complete this construction as from the Summirs The Hague 3.5.L After the Second V/orld War Europe made in in 1969 and Paris 1972, a very promising start by setting up, firstly with in it is now in a state of crisis and suffers from serious deficiencies. the European Coal and Steel Community (ECSC) and then with the European Economic Community I (EEC), an unprecedented construcrion which could Thc Committce's interim report was publshed in Bull. EC point not be compared I l-1984, 3.5.1. with any existing legal entity. The 2 Scc Mr Mslle r's commcnrs in Anncx A. Community-based on the principles of pluralisr I Se Mr Papantoniou's commcnts in Annex B.

102 Bull. EC 3-1985 Dooge Committee report

In addition, however, the Member States have intergovernmental cooperation, the Community become caught up in differences which have Treaties, or new instruments yet to be agreed; obscured the considerable economic and financial o in keeping with the personality of each of the advantages which would be obrained from the constituent states. realization of the common market and from economic and monetary union. Furthermore, after 10 years of crisis, Europe, II. Priorityobi.ectives unlike Japan and the United States, has not ach-ie- ved a growth rate sufficient ro reduce the disturb- ing figure of almost 14 million unemployed. A. A homogeneous internal economic area

In this state of affairs Europe is faced with ever The aim is to create a homogeneous internal econ- more important challenges both in the field of omic area, by bringing about the fully integrated increasing industrial and technological compe- internal market envisaged in the Treaty of Rome as tition from outside and in the struggle to mainriin an essential step towards the obiective of economic the position of political independence which his- and monetary union called for since 1972, thus torically it has held in the world. allowing Europeans to benefit from the dynamic effects of a single market with immense purchasing Faced with these challenges, Europe musr recover power. This would mean more more pros- faith iobs, in itself and launch itself on a new common perity and faster growrh and would thus make the venture-the establishment of a political entity Community a reality for its citizens. based on clearly defined priority oblectives coupled with the means of achieving them. (a) Through tbe completion of the Treaty The Communiry has not lost sight of the fact that it represents only a parr of Europe. Resolved ro 1. By creating a genuine internal market by the advance together, rhe Member States remain aware end of the decade on the basis of a precise time- of the civilization which they share with rhe other table. countries of the continent, in the firm belief that This involves: any progress in building the Community is in keeping with the interests of Europe as a whole. o The effective free movement of European citizens;5 o a favourable climate for investment and inno- The Committee has pt...a i,r.tf firmly on the vation through stable and coherent economic political level, and without purporting to draft a ri*rli"i",,i;;;;;y p"u.iii ," ir,. M;b;; new Treaty in legal form, proposes to set our the States and the Community; objectives, policies and insritutional reforms which o pending the adoption of European standards, are necessary to restore to Europe the vigour and the immediate mutual recognition I of national stan- ambition of its inceprion. dards by establishing the simple principle that all goods lawfully produced and marketed in a Mem- 2'3 ber State musr be able to circulate without hin- I. A genuine political entity drance throughout the Community; It is not enough to draw up a simple catalogue of . more rapid and coordinated customs pro- measures to be taken----cven if they are precise cedures, including the introduction as planned of and concrete-since such exercises have often been a single administrative document by 1987; attempted in the past without achieving results. 'We o the early introduction of a common transport must now make a qualitarive leap and present policy; the various proposals in a global mannei, thus demonstrating the common political will of the Member States. the end At of the day that will I must be express-ed by the formularion of a genuine Mr Moller felt that the drfficukies facing the construction of z !11opc raultcd from a,farlurc to implement the cxisting-Trcaties political entity among European States: i.e. a fully ind could be remcdred by the strict apphcarion of thJTrcaties. European Union: He considered that the achieiemcnt of European Union, as already forcseen in cxisting statements, was thc obicirivc. o with the power to take decisions in rhe name z Rcservatron entercd by Mr Papantoniou, who suggcsted rcplac- process ing'a genuine polrtical entity'by'a gcnurne economic and polrtical of all citizens, by a democratic according entitv'- to their common interest in political and social J Mr Msller considercd that the expression'a gcnuine polrtical development, economic progress and security,4 entrty'shoulda be rcplaced by rhc exprcssion'European Union'. and according procedures which could vary Mr Msller considercd that the pornt security should bc hmited to t_o the polrtical and cconomic aspecti of sauriry. depending on whether the framework is that of i Dcalt with by thc Commrrlce on a Pcople's Europe.

Bull. EC 3-1985 103 Dooge Commiftee report

o the creation at an early date of a genuine tor internationally in the field of production and common market in financial services, including application of the advanced technologies. insurance;1 This means in particular: public 1 o the opening up of access to contractsl o that industrial enterprises in the Community o the creation of conditions which will favour must have at their disposal common European cooperation between European undertakings and standards and suitable procedures for advanced- in plrticular the elimination of taxation differences technology products; thit impede the achievement of the Community's o that international cooperation during the objectives; development phase must be strengthened; o the strengthening of European financial inte- r that public and semi-public contract Pro- gration, intei alia through the free movement of -apital cedures in the Community, concerning inter alia and the creation of a European financial the supply and use of electronic and communi- mirket, hand in hand with the-strengthening of cationi equipment, must be liberalized;7 the European Monetary System. I o that the exchange of services connected to the 2. Through the inc-reased competitiveness of the use of advanced technology must be liberalized;7 European economy.z o that a successful techno-industrial development in the technological community depends upon and life must be made fully com- European economic must increasingly allow for wider scope for indi- the fundamental prin- petitive through a return to vidual creativity and performance; ciple embodied in the Treaties of promoting eflicient producers, involving in particular: and, in addition the following specific activities: o the removal of all measures distorting compe- o the development of vocational education and tition in the common market, notably through an training; and Community compe- application of national o the encouragement of universities and research tiii,on rules, adapted to the new industrial situ- institutes to orient their activities more towards ation, and through strict control of national State the commercial sector and to ensure the transfer aids in complianle with the rules of the Treaties;3 of the results of their work; o introduction of the necessary transparency in o the coordination of research and development nationalized industries in order to safeguard the at national and Community level; principles laid down in the Treaties. o the promotion and support of greater industrial 3. Through the promotion of economic conver- cooperition between European companies, includ- gence.4'5 ing the launching of transnational proiects in key sectors; o the promotion of solidarity amongst the Member States aimed at reducing structural imbalances which prevent the convergence of living stan- I Reservation entercd by Mr Papantoniou, who considcrcd that dards, through the strengthening of specific instru- the introduction of thcsc policics should takc account of thc panicu' lar situation of national economies. ments and a ludicious definition of Community 2 In addrtron Mr Msller strcsscd that all thc measurcs in the policies; agricultural area whtch havc in rcccnt years bccn introduccd with tf,c intention of rcnationalizing the common agricultural pohcy dismantlcd. o the effective pursuit of integration and the should3 be that Rcscrvation entcred by Mr Papantoniou' who considercd that strengthening of Community institutions the apphcation of competition rules of thc Treaties should takc underlies it require positive action to counter the accouni of the particulai situation of thc lcss-dcvcloped cconomies. tendencies to inequality and promote the conver- a Reservatiori by Mr Papantoniou, who argued thai the text should strcsi more cxplicitly thC ned to rcinforcc the poLcies aiming at gence of living standards.6 cconomic con"crgenie, and should give a morc comprchcnsive dcfi- nition of thcir scopc. 5 Mr Ruhfus cntered a rcscrvation. He argucs that cconomic (b) Through the creation of a technological com' convergence by its vcry naturc is a convcrgcncc of economic pohcics munity aimingat the obicctives st out in Aniclc 104 of the Trcaty estabhsh- ing thi European Economic Community. It wrll thus hclp to improvc hving condrtions in thc indrvidual Member States. On this basis, The growth capacity of Europe, backed up by this positivc action is rcquircd to counter tcndencies to inequality and genuine internil market, will have to be based, io rcduce structural imbalanccs in thc Community. inter alia, on wholehearted participation in techno- Mr Van Eckclcn concurs with thc argumcnt of Mr Ruhfus. 5 Rescrvation by Mr Hcrman, who wishcs to se the text of the logical innovation, and must result in the creation srcond paragraph replaccd by a call for greater cohercncc bctwan of a technological community through, among thc cconomic pohcics of the Mcmbcr Statcs, which is a better other things, the introduction of faster decision- guarantee of a rcduction in thc drffercnccs in hving standards. 7 Rescrvation entercd by Mr Papantoniou who considercd that the making procedures. This process must enable introductron of thesc policies should takc account of thc particular European industry to become a powerful competi- situation of national cconomies.

7M Bull. EC 3-1985 Dooge Committee report

o the furthering of undistorted international additional expenditure which will necessitare exchange of technology and advanced technologi- transfers of resources, Such resources should be cal products through an active common commer- made available in the context of a clearly identifi- cial policy in conformity with GATT obligations. able Community financing system firmly based on the own resource principle. This system, that (c) By the strengthening of the European would come under review at reasonable intervals, Monetary System (EMS) should endow the Community with a stable revenue base for a sufficiently long period. The European Monetary System, which was created and set up pending restoration of the con- Actual transfers of resources will only be feasible ditions for the gradual achievement of economic if they are sublect to strict budgetary control and and monetary union, is one of the achievements if in most cases this is reflected in savings in the of the Community during the last decade. It has Member States. enabled the unity of the common market to be preserved, reasonable exchange rates to be maintained and the foundations for the Communitv's B. Promotion of the common values monetary identity to be laid. of civilization The time has come, however, to forge ahead towards monetary integration through: The contemplated European Union yill not rest o the closer coordination of economic, budgetary on an economic community alone. The logic of integration has and monetary policies with the aim of true conver- already led Member States to coop- gence of economic performance; erate in fields other than economic ones and will continue to lead them still further along that path. o the liberalization of capital movements and the The accentuation of this essential procCss will give I removal of exchange controls; a European dimension to all aspects of collective o the strengthening of the European monetary life in our countries. and financial market to make it attractive and To that end a number of measures must capable of supporting the growth and investment be under- effort; taken, whenever possible in close cooperation with European countries which are not members of o the participation of all the Member States both the Community and with rhe Council of Europe, in the EMS and in the exchange-rate mechanism, which makes a valuable contribution especially provided that the necessary economic and monet- with regard to the promotion of human rights and ary conditions are met; the common cultural identity. the increased but non-inflationary use the o of These measures are: ECU in transactions between central banks whether they are members of the system or not; 1. Measures to protect the enuironment o the elimination consistent with monetary stability of obstacles to rhe use of rhe ECU in private Pollution in most of its forms does not recognize transactions; frontiers and poses an increasing danger to the o the promotion of the ECU as an international environment and the health of people both within reserve currency; the coordination of exchange the Community and outside. High priority must policies with regard to third currencies and ln be given to the protection of the environmenr and particular the dollar and the strengrhening of the the improvement of working conditions and safety role of the European Monetary Cooperation Fund at work. (EMCF) by stages depe-nding on the progress made in the use of the ECU. z I Rescrvation cntcred by Through these measures as whole be Mr Papantoniou, who considcred that a it will the introductio_n of thcsc policics should take account of thc panicu- possible for the EMS to progress towards the lar situatron of national cconomics, second institurional phase envisaged in the decision 2 Rescrvation cntcred by Mr Ruhfus. He cmphasizcd that, for of the European thc ECU to bccomc an intcrnational rc*rvc curicncy, somc maior Council in Bremen in 1978. rcquisits arc strll lacking ar pr6cnt. A strcngthening of thc rolc of thc EMCF is primarrly dcpcndcnt on furthcr progrcss in thc Through convcrEcncc of conomic policics and on its consolidation through (d) mobilization of the necessary institutional dcvclopmcnt. 5 resources r Mr Msllcr considcrcd that thc increasc in thc VAT ccrhng agrad by thc European Councrl at Fontainebleau would scarccly bc Intensifying the efforts already undertaken, fram- sufficicnt for the promotion of ncw policics. ing new policies and delegating new the The sizc of addrtional rcsourc€s must be determincd by thc ned to tasks to contrnuc existing common policics and to dcvclop ncw ones, in Community will ofren, but not always, entail particular with regard to rcscarch and tcchnology.

Bull. EC 3-1985 105 Dooge Committee report

2. Gradual acbieuement of a European 4. The promotion of common cultural social area ualues

An integrated internal economic area must be European culture is one of the strongest links based not only on industrial, economic and monet- between the States and peoples of Europe. It is ary policies, but also on social policy. In this field, part of the European identity. The promotion of the Union will have to remain true to the obiectives the European cultural identity should be a compre- which the Community set itself from its inception hensive Cxpression of the cultural variety and each and will have to have the necessary powers and nation's individual values which form an integral means to act whenever social policy measures are part of it. level. required at European The promotion of common cultural values and the European-cultural identity requires: Progressive introduction of a European social area, as the logical follow-on from an economically inte- o the safeguarding of the European cultural heri- grated, dynamic and competitive Community with tage, the will to achieve full and better employment, support for cultural creation, entails: . . measures to overcome language barriers, o definition of frameworks for action, particularly in the basic fields listed in Article 118 of the o the development of new media in a European- Treaty, either by harmonization, by the adoption wide context, of loint decisions or by any other appropriate o the elimination of obstacles to the free circu- measures; lation of cultural goods and communication, . pursuance of a social policy that reflects the o an improvement-the in the level of knowledge medium-term social action programme and the about all peoples of the Community in all changing economic and social needs of the Com- their diversity and their different contributions to munity; European culture, I . development of the dialogue between o the intensification of exchange programmes. employers and employees at European level, which could result, where they ludge it desirable, in con- The European Foundation and the European Uni- tractual relations between them. versity Institute should be associated with these actions. Cooperation with third countries and in wider international context should also be encour- of a 3. Gradual establisbment aged. The practical realization of cultural cooper- h otnogeneous iudicial area aiion requires a coherent organizational framework. This means: o increasing protection of fundamental freedoms and rights as they derive from common basic prin- C. The search for an external identity2 ciples and the European Convention on Human Rights. The Court of Justice has played an essential role in this context and will do so even more in Europe's external identity can be achieved only action the future; gradually within the framework of common and European political cooperation (EPC) in o increased harmonization or approximation of accordance with the rules applicable to each of national laws in all the fields covered by the Euro- these. It is increasingly evident that interaction pean Union, insofar as these are consistent with between these two frameworks is both necessary the objectives of the Union; and useful. They must therefore be more closely aligned. The objective of European political coop- o envisaging, in certain areas of intergovern- eration must remain the systematic formulation mental cooperation, agreements between Member States which would, in cases where unanimous agreement be reached, apply among could not t those States having ratified them if the latter consti- Mr Ferri feels that mrnorrty culturcs chould be exprcssly mcn- tioned here, as their protcction is an achicvemcnt of democrattc tute a strong maiority; pluralrsm in its modern form. z Mr Moller entercd a general rcservation on all of this section. o a campaign against large-scale crime and ter- He considcred that, instead of structural changes, it is necessary to rorism by increasing cooperation between Member have a new pragmatic development of European polrtical cooperation on thc existing basc, which has alrcady shown itrlf to be States; effective to furrher thrs devclopmcnt. Partrcularly in rclation to sccurrty, it should be confrned to polrtical and cconomic aspccts. o further codification of Community law.

106 Bull. EC 3-1985 Dooge Committee report

and implementation of a common external 3. Member States and the Community should I policy. examine on a case-by-case basis the desirability of common representation at international insti- Similarly in the case security, of although a funda- tutions, especially in the UN framework and in the mental aim of European is indeed Union the cohes- countries where only a few Member States are iveness and solidariry of the countries of Europe rePresented. within the larger European and Western framt- work, be possible it will only to achieve that aim 4. Codification of EPC rules and practices. by paying special attention to the existing Alliances on the one hand, and the differing individual situ- (b) ations on the other, including the situarions of the Security'and defence3 two nuclear powers which are members and of The aim is to encourage greater awareness on the certain Member States facing specific problems in part of the Member States of the common this field. interests of the future European Union in matters of security. The relevanr Member Stares will make the (a) External policy fullest contribution both to the maintenance of adequate defences and political solidarity, and ro It should first of all be noted rhar common policies, the pursuit of security at the lowest possible level which have an external dimension, are provided of forces through the negotiation of balanced and for in the Treaties and already exist, along with verifiable measures of arms control and disarma- external policies such as the developmenr policy ment. and the commercial policy. any event, quesrion In particular, Community policy must be intensi- In this will have to take account of: fied, without prejudice ro rhe rraditional actions of the Members States. (1) the frameworks which already exist (and of which not all partners in the European On the diplomatic front several measures could be Community are members), considered initially which might allow progress to such as the Arlantic Alliance, the framework be made towards finding a common voice.2 for and basis of our security, and West- ern European Union, the strengthening of which, L The strengthening of political cooperation now under way, would enrich the Alliance with structures by: its own contribution;4 o the creation of a permanent political cooper- (2) the differing capabilities and responsibilities ation secretariat to enable successive presidencies and the distinctive situations of rhe Community to ensure greater continuity and cohesiveness of Member States; action; the secretariat would to a large extent use the back-up facilities of the Council and should (3) the existence of interests and obiectives which help to strengthen the cohesion between political Member States, while respecting their individual cooperation and the external policies of the Com- situations as regards defence.and.security, recogn- munity; ize as common, in particular the need for the Atlantic Alliance to maintain adequate military o the regular organization of EPC working meet- strength in Europe for effective dererrence and ings at the Community's places of work, while defence, in order to preserve peace and protect meetings of ministers should also be arranged in democratic values.5 the Member States' capitals. Accordingly, the following measures are proposed: 2. The improvement of polirical cooperation through: o an explicit undertaking by the Member States I Reservatron entered by Mr Papantoniou, who suggmted replac- to promote EPC by agreeing to a formalizarion of ing thc Iast scntcncc by: 'The obicctivc of Europcan polnical coopcration must_ re main the syste matic scarch for common positioni in the commitments to a prior consultation pro- cxternal affairs'. cedure: 2 Rcservation cntercd by Mr Papantoniou on pornts 1,2,3 and 4 of the-scction on cxternal poLcy. He argued in fivour of prescwing o seeking a consensus in keeping with the the informal character of prescnt EPC aiangements and siresrd thi maiority opinion with a view ro the prompt adop- importance'Mr of conscnsus in thc scarch for common oositions. 3 Doogc drd not agrre to the inclusion of the section on tion of common positions and ro facilitating ioint scurity and defcncc. measures; { Reservation cntcrcd by Mr Papantoniou, who suggcsted replac- ing pornt I by 'the framcworks which already existlind of which o adopting common positions in multilateral and not all partncrs in the Europcan Community arc membcrs), such as thc Atlantic Alhancc and rhe Western European Union'. inter-regional relations, particularly at the United 5 - Rcservation cntercd by Mr Papantoniou, who proposcd thc Nations. delction of'for the Atlanric Alliancei

Bull. EC 3-1985 707 Dooge Committee report

(i) Developing and strengthening consultation on A. Easier decision-making in the Council, security problems as part of political cooperation. Such consultation could involve in particular: which means primarily changes in practice and existings rules: o discussion of the nature of external threats to certain adjustments to the security of the Union; o less bureaucracy within the institutions, as national authorities have, through their exPerts' of the way in which Member States' o discussion gained too much ground over the last 10 years; in interests may be affected by the inter- security particular, the authority of the Permanent Rep- context, in particular by developments national iesentatives over the various working parties must in weapons technology and strategic doctrines, be strengthened in order to improve the prep- in relations between the great powers and changeJ aration of the Council's decisions and to focus its the progress of negotiations on disarmament and discussions on the most important matters; arms control; the growing number of areas of Community whenever possible, the o o an effort to harmonize, activity has led over the years to the Council meet- stances to be taken by Member States on the maior ing in a multiplicity of special compositions. The preservation peace in problems posed by the of Council must iemain a single institution in which Europe. a pre-eminent role of coordination and guidance preserved the ministers with general (ii) The stepping-up of efforts to draw up and must be for responsibllities (the'General Affairs' Council); adopt common standards forweapons systems_and equipment, taking account of the work being done o the rules and procedures governing the Council in the relevant bodies. should be rigorously applied in the interests of its own efficiency and internal cohesion; Particular attention is to be paid by Member States principles to: o concerning of voting: . rationalizing their military equipment research (a) The maiority of the Committee favour the and development; adoption of the new general principle that decilions must be taken by a qualified or simple high-tech- . support for production capacity for majority. Unanimity will still be required in certain can strengthen Europe's nology equipment which exceptional cases, which will have to be distinctly defensive capabilities. fewer in number in relation to the present Treaties, list of such cases being restrictive. (iii) A commitment by Member States to design, the develop and produce such systems and equipment In a spirit of a return to the Treaties, the Presidency lointly. must call a vote if the Commission or three Mem- ber States so reouest. The vote must be taken (iv) part the Member States to The will on the of within 30 days.2,j ,l create the technological and industrial conditions necessary for their security. (b) The minority of the Committee considered that more use will need to be made, especially in the context of the enlarged Community, of the III. The means: efficient majority voting provisions laid down in the Treat- and democratic institutions I ies. Once a reasonable time has been devoted to

European Union-like the Community today- 1 Rescrvation entercd by Mr Mollcr on this chaptcr. Mr Meller needi institutions which are entirely at the service considcrs that the problcms faccd by the Community arc not duc to farlure or imperfcctions of thc institutions of thc Cnmmunity systcm, of the common interest. Their functioning and On thc conirary, it may bc said that thc gradual dcviation and behaviour must clearly reflect the original nature derogations from thcse fundamcntal principlcs togcthcr with a lack their purpose, within the framework of their of po1rtical will to take decisions arc thc root of many of thc problcms of of ioday. Thc balancc bctwen thc institutions should accordingly bc specific powers. It is of primary importance that rc-cstablishcd by rapccting thc drstnbution of compctcnces betwcen Trcatics. the institutions should comply with and apply the thcm2 as laid down in thc rules of the Treaties. This proposal is supported by Mr Faurc, Mr Ferri, Mr Herman, Mr Ripa ili Meana, Mr Ruhfus and Mr Van Eekclcn. Mr Dondclinger acccprcd this bcausc hc considercd that this tcxt distanccd itsclf The trend towards the European Council's becom- lcast from thc orcscnt situation. ing simply another body dealing with the day-to- J M. Dooge, rhough in atrccmcnt with thc principlc undcrlying this text, fclt unablc to support thc text because, though not cxclud- day business of the Community must be reversed. ing thc plcadrng in cxceptional circumstanccs of a vital intercst, it Heads of State or Government should play a stra- drd not includc any cxplicit refcrcncc to thc protcction of vital tegic role and give direction and political impetus national intcrcsts in exccptional circumstanccs. 4 Mr Herman undcrlincs rhc considcrablc progress which dis- to the Community. For this purpose two European tinguishcs thcsc proposals from thc solutions cnvisagcd in thc intcrim Council meetings a year should suffice. rcport of thc Committee in thc matter of voting and thc vcto.

108 Bull. EC 3-1985 Dooge Committee report

the search for consensus, the Presidency should C. The European Parliament guarantor as a - of call for a vote. democracy in the European system6

Where the Treaties require decisions to be taken by unanimity, Member States should also make A Parliament elected by universal suffrage cannor, j greater use of the possibility of abstention in if the principles of democracy are Iogicaliy applied accordance with Articles 148(3) (EEC), 118 (EAEC) continue to be restricted to a consultative iole or and 28 (ECSC). to having cognizance of only a minor part of Community expenditure. That dooms it to obliv- When a Member State considers that its very ion or overstatement, and more often than not to important interests are at stake, the discussion both. should continue until unanimous agreemenr is reached. 1 An enhanced role will be sought for it in three areas: o in order to ensure the implementation of certain decisions, the use in excepiional circumstances (a) by effective participation in legislative power, of the method of differentiated Community rules, the scope of which will be specifically defined, in the joint provided such differentiation is limited in time, is form of decision-making with the Coun- based solely on economic and social considerations cil; to this end the Commission proposal will be and respects the principle of budget unity.2 discussed first of all by the European Parliament: the Council will deliberate on thC text adopted by the European Parliament; in the event of disagree- ment, a conciliation procedure will be initiated on strengthened B. A Commission the basis of a proposal of the Commission; the Commission will retain its power of initiative 7 The Commission guarantees autonomous rep- throughout the legislative proiedure; resentation of the common interest. Wedded ro the (b) by increasing its supervision of the various general interest whose guarantor is, Com- it the policies of the Union and its polirical control over mission cannot be identified individual with the Commission and over cooperation in rhe exter- national interests, nal policy field; the associ;rion and accession agreements negotiated by the If it is to carry out fully the tasks entrusted to it, Union will also be which make it the lynchpin of the Community, its powers must be increased, in particular through greater delegation of execurive responsibility in the I This proposal is supportcd by Mr Moller, Mr Papantonlou and context of Communiry policies. Mr Rrfkind. Mr Rrftind also considers that, in order (o Drevcnr abuse, a member of thc Councrl insisting that drscussion'should continue in this way should, through a spccial prcedure of the In the first place, its autonomy must be confirmed Councrl, explain fully and formally why his govcinment considers so that it can be completely independent in the thatI a vcry important interest is at stakc. performance of its duties accordance Reservation entered bv Mr Msller. in with the J Mr Rrllind considcri that thc other mcmbers of the college obligation specifically imposed upon ir and on should be nominatcd by Mcmbcr States, aftcr consultation wr"th each of its Members individually. thc President-dcsignate, and appointcd by common accord of the governmcnts of thc Mcmbcr States. a Mr Ruhfus entered a rcservatlon on this point. Hc argued that To this end ir is proposed that the President of such a change would not rmprovc thc supranaiional characier of the the Commission be designated by the European Commission and would considcrahly changc thc internal balancc, which has proved its worth ever sincc thc estabhshmcnt of the Council. Communitv. J Rescrvation by Mr Papanroniou, who suggcsted rcplacrng thc The other Members of the college shall be text of the four prccedrng paragraphs by thc following tcxt: 'To this appointed by common accord of the governments cnd rt is proposcd that the Prcsidcnt of thc Commission bc dcsignatcd unanimously by the European Councrl, and be consulted 6y thc of the Member States, proposal States acting on a - from tovernments of the Membcr prior to thc nomination of the President-designate.3 the Commissioners. The Commission-should bc composcd of one member per Member State'. 6 Mr Rrfkind entered a reservation on this sction. Hc considers The Commission must not include more than one that thc Europcan Parliamcnt should bc encouraged, within its national from any Member State.4 lreaty powers, to make a more cffectivc contrrbution to Community dccision-making. The Parliament should make more usc of its richi to put forward proposals for Community action. The Council shoild At the beginning of its term of office rhe Com- follow up resolutions with the Parhament, or explain its reasons for mission should receive a vote of investiture on the not doing so. Thcre should be improvemcnt and extension of the basis of its programme.5 concrhatron prccdurc, in parriculir by more effectivc consultation bctwecn thc Councrl and thc Parhamcnt at earher stagcs of the c_onsideration/ of proposals. Similarly, the Commission must now be acknow- Rcservation by Mr Papantoniou. He drd not agree with iornt ledged as an organ with full powers initiative, dccision.making bctwecn Parhament and Councrl in the legislativc of arca and a-rgucd in favour of improving thc concrlatron prcccdrrrc implementation and administration. and extcndrng its freld of application.

Bull. EC 3-1985 109 Dooge Committee report submitted to the European Parliament for o the European Commission will participate in approval; I the negotiations; (c) by giving it responsibility in decisions on rev- o the European Parliament will be closely associ- enue as the coping-stone of the establishment of a ated with the conference. Its outcome will be sub- new basic institutional balance; mitted to the European Parliament. o conciliation between Parliament and the Coun- The very decision of the Heads of State or Govern- cil would take place at the moment when the frame ment to convene such a conference would have of reference on the basis of multiannual planning great symbolic value and would represent the is defined; initial act of European Union. o decisions governing the development of own resources will be taken lointly by the Council and Parliament so that the latter may be able to have Annex A a hand in the balancing ofexpenditure by revenue. These developments should go hand in hand with increased representativeness of Parliament itself Comments by Mr Msller through the standardization of voting procedures to elect its members. I am not convinced that the overall approach in the report is the right one. I agree that the Community needs a new impetus, but, in my opinion, the D. Court of Justice following is required.

The binding nature of the law of the Union gives The decision-making process should be more powers between the the Court of Justice of the European Communities efficient. The distribution of an essential role to play in progress towards Euro- institutions, as laid down in the Treaties, must be pean Union. The Court ensures compliance with respected. The blurring of the powers should stop the rights, obligations and powers laid down in and be replaced by the clear logic of the Treaties. the Treaties. The Court must be consolidated in bringing its role of supreme arbiter in all matters coming The fundamental aim of the Treaty, the production must under the Treaties, including the protection of the about of an efficient structure, basic rights of individuals guaranteed under the be re-established, and distorting factors which Community legal order. To this end, the Court: prevent the attainment of this aim must be reiected. The gradual introduction of quota systems, pro- . must be relieved in an appropriate manner duction thresholds, etc., pose a danger to this of responsibilities incumbent upon it as regards principle. disputes between officials and the institutions; New common policies should be developed to . must be given jurisdiction for the interpretation supplement the common agricultural policy. The of agreements concluded within the ambit of the Community must have further financial means at Treaties as far as possible by means of a standard its for these policies. clause. disposal Our consultations within the framework of Euro- pean political cooperation must be intensified and IV. The method2 strengthened so that areas of common interest can be identified and agreement can be reached on an The Committee proposes that a conference of the increasing number of common positions. representatives of the governments of the Member States should be convened in the near future to New activities must be developed at European negotiate a draft European Union Treaty based on level, and participation in these should not be the acquis coffimunautaire, rhe present document limited to the present members of the Community. and the Stuttgart Solemn Declaration on European Union and guided by the spirit and method of the draft Treaty voted by the European Parliament: I Resrvation entercd by Mr Papantoniou, who suggcsted dcleting the last scntcnce of (b). o the parties to the conference will be the Mem- 2 Mrrr- PapantoniouD^^--.^^:^., and--i Mrrr- D.n,:-iRrftind ^^^-:t--consider that.L-, the.L- rcommen---^---- ber States; dations in this report should bc thc sublect of consultations betwecn the governmcnts bcforc the June Europcan Councrl, so that decisions o Spain and Portugal will be invited to attend as can be takcn by thc Heads of Government at that meting. full members on the assumption that the Treaties Mr Mallcr shaicd thcir vicw, but pointcd out that accordrng to the Committcc's terms of rcfcrencc lt was not rts task to put forward of accession have been signed prior to the opening rcommcndations on thc conclusions which the European Councrl of the conference; might draw from the rcport.

110 Bull. EC 3-1985 People's Europe report

Annex B Mr Jean Dondelinger Representative of Mr Jacques Sanrer, Prime Minis- ter of Luxembourg Comments by Mr Papantoniou Maurice Faure The report rightly identifies the main challenges Mr facing Europe at present. However, the approath Representative of Mr Frangois Mitterrand, Presi- dent of France followed, while containing many useful elements, does not pay sufficient attention to some important Mr Mauro Ferri points. The overall gains from economic inte- Representative of Bettino Prime gration are not only unevenly distributed, but may Mr Craxi, Minis- ter of Italy also disguise losses for the less-prosperous regions. The creation, therefore, of an integrated market Mr Fernand Herman and a technological community needs be to sup- Representative plemented by a very substantial effort io of Mr Wilfried Martens, Prime Minister of Belgium strengthen the Community's cohesion by promoting regional development and the convergence of living standards. Mr Otto Moller Representative of Mr Poul Schulter, Prime Minis- In the external field, the improvement of political ter of Denmark cooperation and the promotion of solidarity in security matters should take fully into account rhe Mr Ioannis Papantoniou particular situation and problems of each Member Representative of Mr Andreas Papandreou, Prime State, and the need for consensus in the search for Minister of Greece common positions. Mr Malcolm Rifkind Finally, institutional reform should reflecr the Representative of Mrs Margaret Thatcher, Prime existence of significant possibilities for improved Minister of the United Kingdom decision-making within rhe framework bf the Treaties, and recognize the necessiry of protecting Mr Carlo Ripa di Meana vital national interests when invoked by Member Representative of Mr Jacques Delors, President of States. the Commission

Mr Jiirgen Ruhfus Members of the ad hoc Committee Representative of Mr Helmut Kohl, Federal Chan- on Institutional Affairs cellor of the Federal Republic of Germany

Mr James Dooge (Chair) Mr Willem van Eekclen Representative of Dr Garret FirzGerald, Prime Representative of Mr Ruud Lubbers, Prime Minis- Minister of Ireland ter of the Netherlands

6. Report from the ad hoc Committee on a People's Europe

To the European Council, Brussels, 29 and (i) freedom of movement for Community citi- 30 March 19851 zens, (ii) freedom of movement of goods, including lntroduction transport services, 3.5.1. 1. This report deals with some imporranr topics relating to the 'people's Europe': I Point 1.2.7.

Bull. EC 3-1985 ttt People's Europe report

(iii) administrative formalities for border-area amongst other things some reasonable degree of traffic, fiscal harmonization (especially excise duties), the taxing points from borders to the (iv) wider opportunities for employment and transfer of interior of each Member State, the gradual appli- residence. cation of a common policy on third country citi- In dealing with these topics the Committee has zens and closer cooperation beteween the police been guided by certain principles which are rel- and ludicial services of the Member States. For evant to its task as a whole. the full and integral implementation of a 'Europe ('Europe sans frontitres'), Mr 2. The aim of the Committee is to propose without frontiers' President European Commission, arrangements which will be of direct relevance to Delors, of the Community citizens and which will visibly offer has recently proposed 1992 as the target year. It is programme on which work them tangible benefits in their everyday lives. indeed a very complex without delay. But in the mean Emphasis is laid on arrangements which have a has to continue measures which are summarized below realistic chance of being implemented in the rela- time the be upon now. tively short term. The goal should be an easing could and should decided of rules and practices which cause irritation to Community citizens. This is of great importance in making the Community more credible in the A.1. Freedom of movement eyes of its citizens. for Community citizens not a question of 3. Steps forward are always 6. The simplest case concerns land frontiers adopting new rules and regulations. Progress in between two Member States. The case of seaports citizens best obtained by the view of is often and airports, although not different in principle, implementing decisions already adopted and by is often more complicated in practice because it their administration in real-life situations. This can also involves more traffic with third country citi- be far more important than formal progress made zens. Therefore, one should not look for identical new uniform rules of little by the introduction of solutions on every detail immediately; but all for the Community citizen in or no consequence efforts should be undertaken without delay to life. consideration is relevant to his everyday This facilitate frontier traffic for the citizens of Europe, the institutions of the Community in fulfilling their taking into account the special situation of but for the responsibilities under the Treaties, also countries without common Community frontiers. themselves suppressing Member States by Care should be taken that progress already unnecessary formalities and by taking into account obtained in individual cases should not be set back the Community dimension both in their legislation by the introduction of rules of general application. in their administrative practices. and The European Commission has recently presented a draft directive to the Council covering all different aspects of these questions in a comprehensive A. Easing of rules and practices way, which the Commission considers should be which cause irritation to applied by 1 July 1985. Community citizens and 7. The specific recommendations of the Commit- undermine the credibil ity tee, on freedom of movement for Community citi- of the Community zens, are as follows: 4. The problems the Committee deals with in this chapter relate essentially to the freedom of 7.7. Immediate action movement of citizens and of their personal goods within the Community. The text of the Fontaine- Without waiting for the adoption of a directive by bleau mandate called for a study of measures the Council, the European Council should decide which could be taken to bring about'the abolition now that Member States should take all possible of all police and customs formalities for people practical steps on the road towards the more com- crossing intra-Community frontiers'. prehensive solution, such as: 5. The European Council should confirm this (i) at the land frontiers between two Member position at the same time as it takes the decisions States, they should proceed in the three months on immediate measures which are set out below. after the meeting of the European Council to the This is a necessary corollary of the programme for simplification of control of individual citizens of the completion of the internal market which has Member States of the European Community on received, rightly, the highest priority. With its road frontier posts preferably by direct observation manifold ramifications, however, this will require of vehicles travelling at low speed and of which time. Abolishing all formalities would presuppose the windscreens have been provided, as appropri-

tt2 Bull. EC 3-1985 People's Europe report ate, with a green label showing a white E (indicat- (ii) improved information and protection for ing that the occupants are in conformity with the tourists, including appropriate procedures for rules of the border police and the fiscal and cur- assistance and complaints; rency rules) with the possibility of more thorough (iii) road safety (1985 has been proclaimed 'Road at random ('spot checks') or in spe- investigation Safety Year'); cial situations; I (iv) encouragement of radio and TV broadcasts (ii) examination of the possibility and need for of news, weather and tourist information in langu- gradually combining control posts at land frontiers ages of other Community States. ind controls at them where this has not yet been these aspects be dealt done; Where appropriate, should with in cooperation with the Council of Europe, (iii) at seaports and airports, the Member States its member countries and, possibly, other third should introduce, as soon as and wherever feasible, countries. practical arrangements in control zones enabling a division of police and customs activities for, on the one hand, citizens of Member States of the A.2. Freedom of movement of goods Community and, on the other hand, citizens of including transport services third countries, with a view to facilitating as much possible passage of citizens of Member States as the 8. This part of the Committee's work covers a possibly sys- by simplified controls, and abolishing good number of specific rules and practices which tematic controls on the deParture of Community have already been the subject of repeated and citizens; lengthy discussions but limited action within the (iv) the uniform European passport, the intro- Community. These matters may not seem very duction of which has long been accepted by the important in themselves but the combined effect European Council, should be a very important on the citizen both as a traveller for business and to means of facilitating remaining frontier controls. traveller for pleasure can be disproportionate their material importance. Changes for the better should receive a favourable welcome. 7.2. Longer-term measures 9. On these questions, as on others, the Commit- tee considers that the right way forward is by a President Delors has proposed a 'Europe sans fron- combination of longer-term obiectives and some tidres' by 1992. ln order to achieve this obiective specific improvements here and now. Achieving a the European Council should approve a precise European Community in which goods and money 2 timetable for the completion of the single market can be freely moved by the citizen, whether as a and decide to put in hand now work on problems trader, professional man, worker or tourist, is a related to the effective cooperation between autho- big challenge but should be achievable within a rities responsible for the fight against crime, as definite time scale. well as to the definition and gradual application of a common policy concerning the entry, move- 10. First, we need to widen the understanding ment and expulsion I of foreigners, visa policy and of the advantages not lust of a common market the transfer of control of persons to the external without tariff barriers but of a smooth-running frontiers of the Community, and agreements with sinele market in which the full benefits of lower third countries on expanded cooperation in fron- cosis of transport and travel'(and associated ser- tier passage. vices such as insurance) can be realized for the benefit of the Community citizen as consumer. The priority lies in those areas where goods or serviCes have an obvious extra-national dimension 7.3. Tourism (e.g. air, road and rail transport and telecommunications). The Committee also draws the attention The European Council should invite the Com- of the European Council to the importance of munity inititutions and the competent authorities to give special attention to issues relating to tour- I ism, which is of particular importance to the Such a system ofgeneral appltcation should not bc applied whcrc it would sct back progrcss rlready obtained as statcd abovc (para. people of the Community, such as: 5). 2 This mattcr rs also dcalt with in thc report of thc Doogc Com' the efforts towards a more rational mittc. (i) extending I staggering holiday periods across the national Mr Kranidiotis argucd that such a policy should bc formulatcd of within thc framework of and accordtng to Articlc 235 of thc EEC borders on the basis of a regional analysis of Trcaty. At any cvcnt this policy should takc into considcration thc holiday traffic; special circumstances prevatling in cach Member Statc.

Bull. EC 3-1985 113 People's Europe report.

removing as soon as possible restrictions on trans- 13.2. The tax-paid allowance for still wine port services in accordance with Article 75 of the should be increased by 25"/o to 5 litres (which Treaty,of Rome, whereby the Council is obliged would cover a standard case of 5 bottles). to implement a free transporr market within ihe Community, Cheaper and improved rransport ser- 13.3. The limit for tax exemprion on small postal vices would both assist economic development and consignments should be increased to 100- ECU would help to bring the citizens of the Community from I 1985. A provision should be made to closer together. July review this figure at regular inrervals, e.g. every two years, preferably by simplified procedure in 11. Secondly, the individual citizen's situation order at least to maintain its value in real terms. should be eased by making some immediate and The appropriate authorities in Member Srates specific improvements. should be invited to remove cusroms clearance fees levied on rhe despatch or receprion of small 12. A common feature is that an individual, hav- parcels. ing already paid tax on goods purchased in a Member State, has difficulty extra oi incurs 13.4. Administrative hassle, delays and raxes lev- charges on travelling goods with his to another ied on newspapers and books sent to individuals Member State. Hence, an increase in allowances ?re a strong irritant for citizens, parricularly in in real terms would be a long-rerm obiective related border areas, and should receive due atrention to progress on fiscal harmonization. The Commit- from the Council. tee is not ploposing changes in duty-free shops or other-duty-free arrangements, which are genCrally popular with travellers. Ir considers, howCver, that the treatment and the administrative hassle relating Road transpoit to the movement of tax-paid goods within the Community could be significantly eased, wirhout giving rise to artificial trade flows. To avoid such In order to alleviate present border controls: artificial flows, existing arrangements to dis- tinguish between ordinary travelling and border trade arising from substantial diffeiences in rhe 13,5. Passenger transport travelling across fron- level of taxation, especially excise duty rates, tiers within the Community should be taxed for between Member States will have ro be maintained the whole of its journey by reference to its poinr for a certain period. of departure and the tax rate applicable in that Member State. z This solution should be adopted 13. In the light of these general considerations as soon as possible. the specific recommendations of the Committee on movement of travellers' goods and related 13.6. There should be no additional charge on issues are: the fuel in the standard tanks (up to 500 litres) of passenger buses crossing intra-Community frontiers from 1 July 1985. Similar problems'would Allowances and postal consignments need to be resolved in the furure for lorries.

13.1. The adult traveller's personal allowance for Avoiding double taxation tax-paid irems should be increased by 25% to 350 ECU from 1 July 1985, with an increase to 90 ECU for the child's allowance. These new allowances 13.7. Pracrical effect should now be given to the would indeed be similar to the original real value avoidance of double raxarion on personal goods jurisprudence of the allowances as esrablished in the late 1950s. in line with the of the Court of This decision would make it possible to relieve the Justice of the European Communities. Council of repeated discussions of these matters 13.8. The Commission should be invired to on its current agenda; but provision sub- should be mit proposals on the simplification of the adminis- made to review these figures at regular intervals, trative arr-angements for movements of goods on e.g-. every two years, preferably by simplified pro- changes of residence between Member States, and cedure in order to avoid at least a fall in theirleal on the temporary import of private motor vehicles. value over time. Genuine difficulties arising for particular Member States from their special situations should be I met by a derogation for a certain I time, taking account of differences in rates of Grdae currcntly has a transitional d.r"g;ti;;. 2 Spccial profisions wrll bc nccded for c"ounrrics not yct having taxation and excise duty. introduced VAT. tt4 Bull.- EC 3-1985 People's Europe report

Currency controls legal instruments of the European institutions. The questions of the social security of migrant workers 13.9. The formalities of currency controls at the and of the inclusion of their families also appear frontiers of those Member States which operate to have in the main been resolved staisfactorily. them should be simplified to the maximum. 17. Certain difficulties still do exist as regards 14. The adoption of the specific measures above the tax treatment of such employees who reside should be seen against the longer-term obiectives, in one Member State and receive an income as namely: employed workers in another Member State (most of these cases concern workers in border areas). By (i) greater recognition of the potential benefits taxation of these incomes in the State of activity, for Community citizens of a real and efficiently as is international practice, employees may suffer operating single market for passenger transport disadvantages stemming from the fact that most and travel; States have different systems for taxing residents (ii) the achievement of freer movement for a citi- and non-residents. These problems have been zen's goods and money within the Community in eased by a number of bilateral agreements and the perspective of the realization of economic and treaties to avoid double taxation. Still there are monetary union; many cases in which the employees in question (iii) priority for achieving sufficient harmoniza- complain of disadvantages in taxation. tion of national arrangements to reduce or remove 18. On a longer time scale, a comprehensive problems intra-Community frontiers trans- at for Community solution (the Commission has pur for- port services and communications. ward a proposal which was blocked for a long time but on which discussions have recently been A.3. Administrative formalities for border resumed) should be found for the taxation problems set forth above. The Community institutions area traffic are requested to intensify their efforts to this end. In the mean time, the European Council should 15. By nature of the Community's geographical set as the immediate aim the removal of taxation structure, border areas occupy a large part of its problems which could impede freedom of move- surface area. The problems set out under A.1 and ment, by way of national legislation or by bilateral A.2 acquire additional importance when viewed in agreements between Member States. The Commis- the context of border area traffic. What for other sion should undertake to inform Member States citizens is an occasional or intermittent nuisance on cases which have been brought to its attention has the nature of a serious daily problem for the and to advise on appropriate solutions. inhabitants of border areas. The European Council should instruct the relevant authorities ro have special consideration, when reviewing the imple- Right of establishment mentation of the recommendations under A.1 and A.2 above, for the special and urgent aspect of 19. In some branches of the liberal professions these questions in border areas. Problems deser- the mutual recognition of diplomas or other ving to be mentioned specifically are: examinations and/or formal requirements for the (i) the number of frontier posts at the disposal purpose of establishment and for the freedom to of border area residents and their hours of opening, provide services has been reached (e.g. doctors, and dentists, veterinary surgeons). In other branches the mutual recognition still encounters consider- facilities for across-the-border help in case of (ii) able difficulties. This depends, on the one hand, emergencies and accidents. on the variety of higher education diplomas (e.g. architects, engineers), and on the other hand also on the variety of branches of training which have B. Community citizen's rights arisen in the individual Member States (e.g. lawyers, chartered accountants, tax consultants). For many years there have been inconclusive dis- B.1. Wider opportunities cussions on proposals for these branches, which for employment and residence would lead to an equivalence of diplomas in all Member States by way of harmonization of training courses, diplomas and rules for access to Freedom of movement in working life professional life.

16. The main problems in the field of freedom 20. The Committee considers that although a of movement for workers have been dealt with by certain degree of adaptation may be desirable in

Bull. EC 3-1985 115 People's Europe report specific cases , a full-scale harmonization is not a reside in any other Member State of his free choice pratical way of implementing the oblectives of is an essential element of the right to freedom the Treaty of Rome in the field of the right of of movement. Discussions within the European establishment. The European Council should institutions since 1979 did not lead to final agree- decide that the general approach 1 should be based ment, because in particular the debate on evidence on a mutual recognition of diplomas or orher of sufficient resources to live on as a condition for examinations without prior harmonization. This unhindered residence failed to produce a solution. seems the only possible way of achieving a general Such evidence seems indispensable to avoid migra- system for ensuring the equivalence of diplomas tion motivated only by economic considerations, in line with the conclusions of the Fontainebeau because in particular the European social security European Council. It would facilitate the conclu- systems have not been harmonized. Citizens sion of the series of proposals already before the wanting to reside in a country other than their Council for an excessive period of time. Taking own should not become an unreasonable burden into account the fact that the specific levels of on the public purse in the hosr counrry. Where it training in the Community countries are of high is evident that such a citizen would incur a certain standard, this new approach would introduce the level of expenditure, it seems reasonable for the principle of mutual trust and build on the assump- host country to take into account wherher he is tion that certificates awarded in the Member States able to meet such expenditure. are basically comparable. The Community institutions should fix the oblective and introduce succes- The European Council should pave rhe way for a sively a scheme leading to a recognition procedure swift conclusion of the current discussions by for the various areas. This concept should cover taking a political decision of principle on a general the professional activities of self-employed persons right of residence for all citizens of the Community. as well as of employees, because numerous occupa- This right would of course be subjecr to require- tions for which a university degree and/or anorher ments of public order and security, in confoimity examination is indispensible may be practised with the principles of Article 55(1) of the Treaty of either way. Rome. A pracrical solurion to the abovementioned problems should be found by linking admission to If particular difficulties were to arise in cerrain exercise the right of residence with the precondi- areas owing to major structural differences bet- tion that evidence of adequate resources at the ween training courses, something more may be level of social assistance in the host country and of needed and it should normally suffice for the indi- adequate provisions in case of illness is provided. vidual citizen wishing to benefit from freedom of movement for the purpose of establishment to provide evidence of up to 2-3 years' professional Conclusion experience. 23. The Committee on a People's Europe invites ,\ Professional qualifications the European Council to ensuri that the Commu- nity institutions and the Member States adopt the 21. Problems arise as regards valid employment measures necessary to implement the recommenda- in other Community countries for those employees tions conrained in rhis report. The Committee whose professional qualifications are recognized notes that implementation of many of the proposed in their country of origin but not in the host provisions depends on decisions to be taken by rhe country. The European Council should invite the Council of Ministers; it is for this reason rhat the Community institutions : European Council is asked to requesr the Council (i) to intensify their efforts towards greater trans- to report back for its meeting in Milan on the parency of evidence of professional qualifications, progress made. building on the Commission proposal on the equivalence of professional qualifications alreidy under examination, Members of the ad hoc Committee a People's (ii) to consider the introduction of a European on Europe vocational training pass for craftsmen and woikers Mr Pietro Adonnino (Chair) with special qualifications. This would enable the Representative of Bettino Craxi, individual employee Mr Prime Minis- ro prove his professional ter of Italy qualifications in all Community countries.

Right of residence I 22. The Committee is convinced that the right of Mr Kranidrotrs argued that thrs approach do.a not pr".lrd.,h. possibrlrty.of.applying the relevant fiovisions of thc F.F.C Treaty a citizen of a Member State of the Community to whcrcvcr this is advisable.

176 Bull. EC 3-1985 People's Europe report

Mr T. Mailand Christensen Mr Eamon O Tuathail Representative of Mr Poul Schluter, Prime Minis- Representative of Dr Garret FitzGerald, Prime ter of Denmark Minister of Ireland Mr Max Gallo Mr Carlo Ripa di Meana Representative of Mr Frangois Mitterrand, Presi- Representative of Mr Delors, President of dent France Jacques of the Commission Mr Albert Hansen Mr Prosper Thuysbaert Representative of Mr Jacques Santer, Prime Minis- ter of Luxembourg Representative of Mr Wilfried Martens, Prime Minister of Belgium

Mr Yannos Kranidiotis Mr Edmund Wellenstein Representative of Mr Andreas Papandreou, Prime Representative of Mr Ruud Lubbers, Prime Minis- Minister of Greece ter of the Netherlands Mr Hans Neusel Mr David Williamson Representative of Mr Helmut Kohl, Federal Representative of Mrs Margaret Thatcher, Prime Chancellor of the Federal Republic of Germany Minister of the United Kingdom

Bull. EC 3-1985 tl7 '\I TflE !:) EUNOPEAN t-) COM}IUIYITY V- ftmbtc Strtre,Bcgl@sl rrlntnlrtIrtiit gtrX5 =.."ir1 r--l= l-I rl t- Ll EX= c IE .,--i U== l'r

=: I -d:l Now available: European Community maps

Administrative and theme maps

Two reasonably priced colour maps (uF to 12 colours) are now available. A third is in preparation. The European Community - Member States, regions and administrative units Size unfolded:1O2 x 136 cm Size folded: 25 x 1 5 cm Scale: 1:3000000 (1 cm:30 km) Printed in 12 colours 7 language versions: English. Danish, Dutch, French, German, Greek and ltalian. The black and white photograph above shows the administrative map, which covers the existing Community of 10 Member States (Belgium, Denmark, France, the Federal Republic of Germany, Greece, lreland, ltaly, Luxembourg, the Netherlands and the United Kingdom) and the two countries which have applied for membership (Portugal and Spain). There is an inset containing 78 block diagrams giving basic statistics on the individual Member States and on the Community, the United States and the Soviet Union. Woodlands of the European Community

Size unfolded: 75 x 1 05 cm Size folded: 25 x 1 3 cm Scale: 1:4000000 (1 cm:40 km) Printed in 7 colours 7 language versions (as for the administrative map). This unique map of Europe's woodlands shows, in green of course, all the woodlands of the Community right down to local level. The implicit message behind this map is that Europe's woodland must be preserved,

There are 1 65 million hectares of woodland in the Community covering one fifth of its total area. Al first sight this is a reassuring fact, but the situation varies a great deal from one country to another. There is an inset on the map containing a large number of diagrams giving statistics for each Member State and for the Community as a whole, together with comparisons between the Community and the other main wood-producing countries of the world. The financial assistance provided by the Community is also shown. This map is basically the same as the administratrive map shown in black and white on the facing page, with woodland areas added and the appropriate diagrams substituted.

Learn all about the Community from our European Community maps

M ap now in preparation: Agriculture in Europe

The maps are obtainable from: United Kingdom Canada Portugal Ordnance Survey Renouf publishing Co. Ltd Livraria Bertrand sarl Romsey Road 2182 St Catherine Street West Rua JoSo de Deus Maybush Montreal Venda Nova Southampton S09 4DH Ouebec H3H 1M7 Amadora Tel. (0703) 77 55 55 Tel. (514) 937 3519 Tel.97 4571 Telex 12709-Litran-p lreland Japan Ordnance Survey Office Kinokuniya Company Ltd Phoenix Park 17-7 Shiniuku 3-Chome Dublin Shinjuku-ku Tel. (1) 21 31 71 Tokyo 160-91 Tel. (03) 354O131 United States of America European Community Spain lnformation Service Mundi-Prensa Libros SA 2100 M Street, NW Castello 37 Suite 7O7 Madrid 1 Washington, DC 2OO37 Tel. (91) 2754655 rer QO2l 862 9500 Telex 49370-MPLI-E

Prices: Administrative map: ECU 3 BFR 120 IRL22 UKL 1.80 USD 4 Woodland map: ECU 5.45 BFR 250 IRL 4 UKL 3.20 USD 5