Bulletln of the EUROPEAN @MMUNITIES

rssN 0378-3693

Bulletln OF THE EUROPEAN @MMUNITIES

Commission

No 2 1986 Volu me 1 9 The Bulletin of the European Communitres reports on the acttvtties of the Commrssron and the other Community institutions. lt rs edited by the Secretarrat-General of the Commissron (rue de la Loi 2OO, 8-1049 Brus- sels) and publrshed eleven times a year (one issue covers July and August) in the official Community languages, Spanish and Portuguese.

Reproduction rs authorized provided the source is acknowledged.

The following reference system is used: the first digit rndicates the part number, the second digit the chapter number and the subsequent digit or digits the pornt number. Citations should therefore read as follows: Bull. EC 1 -1985, point 1 .1.3 or 2.2.36.

Supplements to the Eulletin 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 Eelgtum Bulletin OF THE EUROPEAN COMMUNIT!ES

ECSC_EEC_EAEG Commission of the European Communities Secretariat-General Brussels

No2 1986 Sent to press in April 1986 Volume 19 contents

FART OruH PEE$If['=, 1. Signing of the Single European Act 7 2. The Commission programme for 1986 10 3. Proposals for agricultural prices and related measures for 1 986i87 15 4. lmproving competitiveness and industrial structures in the Community 19

PART TWO fi,"IlYi#,5iRY 1e86 1. Building the Community 26 Economic and monetary policy 26 - - lnternal market and industrial affairs 27 - Steel 30 - Research and technology 34 - lndustrial innovation and the information market 38 Customs union 39 - Competition 42 - Employment, and social policy 45 - education - Culture 48 - A people's Europe 48 - Coordinated application of structural financial instruments 49 - Environment and consumers 49 - Agriculture 51 - Fisheries 66 - Transport 68 - Energy 69 2. External relations 71 - New round of multilateral trade negotiations 71 - Renewal of the Multifibre Arrangement 71 - Commercial policy 71 - Relations with industrialized countries 73 Relations with other countries and regions 74 - o Mediterranean countries 74 o Asia 75 o Latin America 76 o State-tradingcountries 76 - Development 77 - lnternational organizations and conferences 82 - Diplomatic relations 82 3. Financing Community activities 83 4. Political and institutional matters 84 - European political cooperation 84 - European policy and relations between the institutions 87 lnstitutions and organs of the Communities 88 - o Parliament 88 o Council 94 o Commission 95 o Court of Justice 96 o Court of Auditors 104 o Economic and Social Committee 105 o European lnvestment Bank 109

PART TH REE D'.UMENTATI.N 1. ECU 112 2. Additional references in the Official Journal 113 3. I nfringement procedures 114 4. European political cooperation Decision adopted by the Foreign Ministers on the occasion- of the signing of the Single EuropeanAct 115 L Supplements 1 986

1/86 Programrne of the Commission for 1986

2/86 Single European Act

3/86 Equal opportunities for women Medium-term Community programme 1986-90 -

4186 Community action in the field of tourism w&Rw'mNm SPECIAL FEATURES Bulletin information service

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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 text, thus (---r point 2.1.53).

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

Standardized abbreviations for the designation of certain monetary units in the different languages of the Community: ECU = European currency unit BFR = Belgischefrank / Franc belge DKR : Dansk krone DM : Deutsche Mark DR = Greek drachma ESC : Escudo FF = Franc frangais HFL = Nederlandse gulden (Hollandse florijn) IRL : lrish pound / punt LFR = Franc luxembourgeois LIT : Lira italiana PTA = Peseta UKL = Pound sterling USD = United States Dollar 1. Signing of the Single European Act

1.1.1. At a ceremony he.ld in Luxembourp major, complicated venture is being successfully on 77 February the Single European Act concluded; and by an equally unmistakable sad- opened Member ness-because the list of signatories is not as com- was for signing by the plete as we had hoped. However, before saying States of the Community. The following anything further about these various aspects, I persons signed: wish once again to pay tribute to the Luxembourg for the Kingdom of Belgium, Mr Leo Tinde- Presidency. It is this Presidency which carried the venture which throughout the mans, Minister of Foreign Relations; burden of this and second half of 1985 gave uninterrupted, deter- for the Federal Republic of Germany, Mr mined and intelligent guidance to the discussions, Hans-Dietrich Genscher, Federal Minister thus enabling the Heads of State or Government of Foreign Affairs; to conclude an agreement of principle in Luxem- bourg on 2 and 3 December 1985... for the Kingdom of Spain, Mr Francisco Fern6ndez Ordofrez, Minister of Foreign If asked to make an obiective judgment, I believe Affairs; we would all agree, now that we have been able to stand back and reflect more calmly onthe whole for the French Republic, Mr Roland matter, that, despite its unavoidable shortcomings, Dumas, Minister of Foreign Relations; the European Act definitely represents progress for Ireland, Mr Peter Barry, Minister of and a step in the right direction. Foreign Affairs; It is difficult to quantify the exact extent of this for the Grand Duchy of Luxembourg, Mr progress; however, I am confident that in practice Robert Goebbels, State Secretary, Minister it will prove greater than we believe it to be at of Foreign Affairs; Present.,. for the Kingdom of the Netherlands, Mr H. I would merely wish to highlight its two outstand- Van den Broek, Minister of Foreign Affairs; ing merits which would, in themselves, warrant a positive judgment. for the Portuguese Republic, Mr Pedro Pires de Miranda, Minister of Foreign Affairs; Firstly, the European Act is about, and amempts to give an answer to, some of the key questions for the United Kingdom of Great Britain facing Europe at present which will be decisive for and Northern Ireland, Mrs Lynda Chalker, its future, and therefore also for ours. Minister of State, Foreign and Common- wealth Office. The main oblective is the early achievement of a genuine, completely free market which will finally During the signing ceremony speeches were make the European dimension a realiry for the made by Mr Hans Van den Broek, President citizen and constitute a factor of economic dyna- In of the Council, Mr Frans Andriessen, Vice- mism and prosperity in all the Member States. order to achieve this, the Community's decision- President of the Commission, Mr Siegbert making power had to be strengthened, and this Alber, Vice-President of the European Par- we have managed to do by extending qualified liament, and Mr Robert Goebbels, head of majority voting. Simultaneously, the requisite soli- the delegation of the host country. darity between the Member States and the instruments available to the Community in this connection-namely the structural Funils-have been Speech by Mr Hans Van den Broek, given their rightful place in the Treaty. President of the Council A further challenge facing Europe at present has 'The time has come to complete the process to do with democracy. It has also been possible to initiated at the European Council in Milan, which, take account of this aspect in the European Act, after a period of thorough consideration and inten- at least partly, by involving the directly elected sive work, has culminated in the result which we Parliament more closely in legislation and giving have agreed to call the Single European Act. it a further possibility of influencing the content of decisions. My feelings at this juncture, as President of the Council, are mixed. They are characterized by a certain solemnity-because this is an important moment in the history of the Community; by an 1 Supplement 2/86 Bull. EC; Bull. EC 1-1986, point unmistakable sense of satisfaction-because a 1.2.3. -

Bull. EC 2-1985 Signing of the Single European Act

'We The third challenge is in the area of science and now have the first-ever single act covering both technology, which everybody regards as crucial the development of the Community throu[h the for the future. Here, roo the European Act has revision of the Treary of Rome and that of political something new to offer, namely a legal framework cooperation. The adoption of this single frame- which will provide a platform for the Community's work has made it possible to encompiss things future activities. The same is true for the protection economic and things political and to avbid the riJk of the environment. of disrupting the unity of the institutional system.

The European Act thus provides an answer, or the Thanks ro the Luxembourg agreement the Com- beginnings of an answer, to present desires and munity will be able to do more for its citizens. I requirements. am referring to the decision to create an area without frontiers 1992. To,my mind, a second merit of the European Act by The Act will also facilitate progress towards greater is the fact that it has managed to balance-conflict- economic and social cohesion by_ increasing economic ing or contrasting demands and aspirations, thus convergence, by safeguarding the future. improving the functioning of the structural Funds and by developing social policy. .The objective Contrary to what is sometimes superficially of economic and monetary union has now been thought, the European discussion is noi a simple enshrined in the Treaty. And, lastly, the Com- matter and cannor be reduced to the dualism which munity has given itself a new and much needed some would like to see in it. The Member States technological dimension, which will be underpin- Fay we,ll start from a common premise, but they ned by the large market. have different feelings, inreresrs ind aspirations as regards the building of Europe. To wish to deny To achieve these objectives the European Act pro- this out of hand would be tantamount to condemn- vides for improvements in the way our institutions ing the whole venture to failure. Being European are run. means also to accept Europe in all its divelsity The main target was to increase efficiency. and contrasts. The incomplete ceremony of this majority voting is now accepted in the areas afternoon is an example thereof... which are to form the basis for revitalizing the Com- It is the merit of the European Act that in it the munity (internal market, technological research always precarious balance between the possible and development, srrengrhening of cdhesion, social and the desirable has been struck, and in a fairly policy). It will be possible to adopt two thirds of short period of time----clear proof of how con- the decisions needed to create in area without vinced we all were that the time had come to acr. frontiers by qualified majority. But it is not enough to have amended the Treaties; majority voting The European Act has opened up avenues which ----one of the prerequisites for'bette, *o.. we must now strike out on with determination. It timely decision-making-must now become"nd a fact is first and foremost an instrument in the service of life. And that is not all: decisions muSt be of a political will which, I am convinced, will not translated into action. In this respecr, the Single falter at the critical momenr,.. Act provides the Commission with the meanslo implement Council decisions more efficiently. We have demonstrated the will to draft and adopt a European Act; now we must all be prepared to The other target of institutional rdform was to make the best possible use of it. Its realiignificance make-theCommunity more democratic. Some pro- lies in our hands.' gress has been made by giving the European parliament its first real power in the law-making process through Speech by Mr Frans Andriessen, conferring on it the right of amindment through the cooperation procedure. Vice-President of the Commission But we musr not forget on the occasion of its 'The Commission is pleased to be presenr today signingthat the Single European Act-the embodi- at the opening for signiture of the Single European ment of what is feasible in Europe-still falls short Act produced by the Intergovernmental Confer- of what we had hoped for. The eommission would ence. have liked more democracy in the decision-making process. It would also have liked the European Union not, Member will of course, be achieved States to display more courage in their commit- by.the Single European Act. The stage reached ment to the complerion of thelnternal market and today is more modest than that. But iJdoes bear the enhancing of the monetary dimension. Finally, witness ro rhe Community's vitality and capacity it regrets that nothing has been done for culture.' for self-renewal. So the results of the Confeience, which show just what is feasible in today's Com- Our task now is to make real progress within this munity of Twelve, must not be underestimated. new framework. The value and scope of the Act

8 Bull. EC 2-1986 Signing of the Single European Act now to be opened for signarure will be ludged the Treaties, such as transport policy, proceedings by the results. For its part, the Commission is have had to be instituted against the Council to determined to take advantage of what the Single make it act. Act has to offer and, to quote Mr Delors, to make rudimen- the compromise dynamic. The fundamental objection is the often tary or completely absent European dimension in Its implementation must mark a genuine return to the national governments. Nobody obiects to the the Community method, enabling each country to representation of national interests, but in fact benefit from the European dimension and laying many of these "national interests" are simply prov- the political and institutional foundations for incial selfishness. Everybody is in favour ofEurope renewed dynamism within the Community.' so long as it produces advantages and costs nothing. There is no European solidarity. But only in solidarity and by solidarity will we create the Statement by Mr Siegbert Alber, people's Europe we all wish to see... Vice-President of the European Parliament A people's Europe cannot be confined to reductions in frontier checks and minor increases 'We are today witnessing an historic event. The in dutv-free allowances. The individual wants to people of Europe expect the signature of the Euro- share in the variety offered'by Europe and its fean Act to lend impetus to the development of culture. He wants partnership and exchange, not ihe Community. It is only the shell. What will be iust at holiday time, but in his working life, edu- decisive is what is made from it. Only in retrospect cation, military service and so forth... will it be clear whether we saw history being made today, or the first performance of a pantomime. The European Act does not remedy the shortfall in demociacy. The national executive power still If not all the Member States have signed, this constitutes the European legislature. This arrange- merely reflects the internal divisions in Europe. ment would be unconstitutional in any Member Some feel that what has been achieved does not State. It is true that there will be a slight improve- go far enough, while others feel it only iust does. ment in the status of the European Parliament. In Some think it almost goes too far, and still others future we shall have the penultimate instead of the think it does go too far. antepenultimate word. The European legislative prociss not accord with our democratic prin- The European Parliament voted in favour of the does officials is not the same as Act, but None of us is satisfied with iiples. Law made by [rudgingly. law made by parliaments. In his maxims Chamfort what has been achieved, but we would rather have once said that some things are easier to legalize a bird in the hand than two in the bush. r0Ve know legitimize, but this does not the that the alternative to half a loaf is none. than to iustify perpetuation of an undemocratic state of affairs. Of course the obiectives of completing the internal Parliament's rights must be strengthened, and the market, including the currency, Europeanizing Council must become a genuine federal chamber, environmental and technology policy, and political with the Member States represented by appropri- 'cooperation are laudable. But many of these are ate numbers of seats and votes, in which the inter- old lnd oft-repeated demands. Without an internal ests of provinces and regions would also be better market the four freedoms already enshrined in the represented. Treaties of Rome would be pointless. As far back All have said shows that the real tasks still lie as 1972 the Paris Summit proclaimed political I ahead. The signature of the Act does not mark the union for 1980... close of a chapter, but the beginning of a new one. The most important matters still require una- What will count is how life is breathed into the nimity, and the statements by some ministers that Treaties. The European Parliament will play its this or that does not mean exactly what it says are part in bringing Europe to completion in a political a source of concern. Much has in fact been worded union; our Europe, the Europe of peace and the so as to mean all things to all men. Much is so future.' nebulous that it would look more appropriate in a climatology research programme than in a treaty. The texts can be used to produce sensible answers, Signing by Denmark, Greece and Italy or conflict and disunity. The crucial factor will therefore be the goodwill of those involved. Suc- 1.1.2. Following the positive outcome of cess is possible, but not guaranteed. the referendum on the Single European Act on 27 February (56.2% New elements are to be incorporated in the Treat- held in Denmark ies. That is a good thing. But it is not enough in 'yes' votes, as against 43.8o/o'no' votes), the itself. Even in matters which are already covered by Foreign Ministers of Denmark, Mr Uffe

Bull. EC 2-1985 Commission programme for 1986

Ellemann-Jensen, Greece, Mr Karolos through a phase of popular mobilization of the Papoulias, and ltaly, Mr Giulio Andreotti, kind hoped for by the European Parliament are signed the Single European Act in The not in fact correct,' Hague on 28 February. \D7hen signing the Single Act, Mr Giulio Mr Delors made the following statement on Andreotti asked to have a statemenr the outcome of the Danish referendum: included in the records of the Inrergovern- mental Conference, in which he pointed out 'I am delighted at the positive outcome of the Danish referendum. The result is encouraging for that objective analysis of the results of the all of us,_mainly because this referendum--organ- Conference showed that the Single Euro- ized by the Danish authorities to determine Den- pean Act was merely a parrial and unsatis- mark's position on the conclusions of the Inter- factory response to the need for substantial governmental Conference-has given rise a to progress in the direction indicated by the detailed debate on the future of the European Community. European Parliament and by the reports of the Dooge and Adonnino Committees and I am confident that this new stage in the Com- that he therefore had no choice but to munity's development, made possible by the express his deep dissatisfaction with it. amendments to the Treaty, will iurn out to be in the interests of the Danish people as a whole. However, Italy wished to reaffirm its deter- I earnestly hope that it will be possible to initiate mination to woik ro ensure that the limited the ratification process soon in all the Member reforms agreed upon were not only applied States and complete rapidly so can it that we in full but also, and above begin to implement the new measures, thereby all, that they were strengthening the Community.' carried out in such a way as to facilitate progress. Mr Ripa di Meana, Member of the Com- mission with special responsibility for insti- The Italian Government wished to make it tutional affairs, declared: clear that it would take all possible steps to.make citizens, parties 'We may well wonder whether those who are and sections bf convinced that the Community's citizens are more opinion more aware of the problems pro-European than their governments and that the involved in European Union and of the best revitalization of the European venture is passing ways of achieving it.

2. The Commission programme for 1g8O

1.2.1. On 19 February Mr Jacques Delors, Revitalizing the Community President of the Commission, piesented the Commission's programme for 7986 to Par- 1.2.2. Constituting as rhey do the base liament. I for revitalizing the Community, the large The programme divides into three parts: internal market, technological cooperation, revitalizing the Community, Community monetary cooperation, economic cohesion policies-the cenrral ones being a cooperar- ive growth strategy for more employment, I action to help small business and the com- Supplement 1/86 - Bull. EC; this Supplement contains mon agricultural policy-and the full text of Mr Delors's speech to Pariiamcnt, the Com- the Com- mission's programme for 1986 and Mr Delors's reply to the munity in the world. House at the end of the debate.

10 Bull. EC 2-1985 Commission programme for 1986 and the social dimension will be the Com- (i) a people's Europe: the general public mission's main concern in 1985. must perceive, in a tangible, symbolic manner, that real progress is being made As Mr Delors said in the House: towards the creation of a large market (simplification frontier formalities, immi- '1986 should be a year of stewardship but also a of year in which we implement the reforms agreed gration, visas, diplomas); upon. By laying the foundations for revitalization (ii) consolidating liberalization of the o[ the Community, sustained by a more effective institutional process, we will demonstrate, to our- market, with particular reference to the selves in the first place, that the Twelve-let me removal of barriers to the free movement of repeat, the Twelve-are capable of advancing goods and services (VAT and excise duties, together along the road to European Union'. plant-health regulations, etc.) ; 1986 will be a decisive year for the internal (iii) extending the policy of liberalization market and technological cooperation. The and harmonization: public contracts, har- Community will have succeeded in these monization of standards, strengthening strategic areas: competition policy, etc.

(i) if it meets the deadlines set in the White Cooperation and technological Paper on completing the internal market; I development (ii) if it adopts a framework programme (1987-91) for research and technological 1.2.4. 'The second [factor] relates to the links between the integrated market and closer cooper- and development; this must be clear in form ation in research and technology, either within conteni and attractive to firms and research Eureka, which shows great promise, or in the centres, encouraging them to cooperate, Community context. Under the timetable proposed suppofting their efforts to innovate and by the Commission and incorporated more or less become competitive, and permitting the unchanged in the Luxembourg agreement, 1985 integration of technological change into should see the adoption of the three-stage plan-a multiannual framework programme' Community European lifestyles; programmes and variable-geometry proiects- which will enable Community action to expand to the (iii) if the very real implications of serve our companies and research centres.' large market and the new technologies for industry and employment are discussed con- It should be noted that the multiannual structively with employers and trade framework programme, to be adopted unions.2' unanimously, will provide the basis for balanced overall development of Community action, while the Community programmes, The integrated market to be adopted by a qualified maiority, will define specific objectives, promote cooper- 1.2.3. On the integrated market, Mr ation between firms and research centres' Delors said: and allow participation by non-member countries. 'It would be easier to achieve if we could anticipate application of the decision-making process which forms pan of the Luxembourg agreement. s We Monetary cooperation need to convince ordinary citizens and everyone engaged in economic and industrial activity that 1.2.5. A monetary policy centred on inter- thCy must increasingly think in terms of a vast nal and external stability remains essential maiket based on the four freedoms guaranteed by the Treaty: freedom of movement for persons, goods, services and capital.' I Bull. EC 5-1985, point 1.3.7 et seq. 2 Bull. EC 11-1985, point 2.5.15. If the deadlines set in the White Paper are 3 Supplement 2/86 Bull. EC; Bull. EC 11-1985, point to be met, the Commission must advance 1.1.1; Bull. EC 12-1985,- point 1.1.3; Bull. EC 1-1986, point on three fronts: 1.2.3.

Bull. EC 2-1985 11 Commission programme for 1986

to revitalization of the Community. The say unattainable-wirhout some harmonization of European Monetary System (EMS) provides social legislation. Our ultimate aim must be the a tried and tested framework for cobrdinat- creation-of a European social area. This idea, may I remind- you, ing national monetary policies. Its import- was rejected as Utopian, dangerous, and irrelevant to the Community venturJa few ance was recently confirmed by agreement y€ars ago. Today its purpose is clear: to ensure on the insertion of a new chapter in the that economic and social progress go hand in Treaty.l The EMS, as the guirantor of hand.' monetary stability and predictability in sides Europe, must be strengthened. Both of industry srressed ar Val Duchesse last November that completion of 1985 the internal In the Council adopted a -cooper-package market, the cooperative growth extending the role of the ECU in strategy for more employment, and the ation between central banks. z ihis launching of several maior infrastructure coincided with a marked, spontaneous projects of Community interest constitute a increase in the private use of the ECU, package vital to economic and social pro- especially in trade. This should conrinue in gress. ) To this end, joint working parries of 1985. Moreover, the liberalization of capital trade union leaders and major industrialists markets could gather momenrum in t985 are to hold regular meerings, which will be and strengthen the cohesion of the EMS. attended by Commission representatives.

Economic and social cohesion Community policies 1.2.6. On the subject of economic and social cohesion, Mr belors said: A cooperative growth strategy for more employment '... Cohesion was discussed at length at the Euro- pean Council. It is a corollary of the integrated 1.2.8. In the year ahead the Commission market, a precondition for its completion...'- intends to exploit and expand, at Council The Community's strucural policies pro- and government level, the consensus vide the key here. in 1985 the Commisiion achieved on the 'cooperative growth strat- made significant progress rowards making egy for more employment',6 to press on the structural instruments more effective. with its efforts to promote coordination Gradual implementation of the new ERDF between the indusrrialized counrries and Regulation,3 adoption and launching of the improve the balance of the world economy, integrated Mediterranean programmes,4 to intensify its analytical work and iis and strengthening of internal coordination attempts,at persuasion with respect to the structures offer striking proof of this. These structural conditions needed foi a lasting efforts must be continued in 1986, nor least improvement in growth and employment, in response to the new situation created by and to give a new impetus to the fight enlargement. The Commission will present against poverty. a comprehensive proposal for harmonizing and simplifying the operaring rules of the Small business Funds. 1.2.9. As the environment is srill often The social dimension hostile to the start-up and expansion of small businesses (administrative and legal 1.2.7. '... The Commission can only welcome incorporation of the social dimension in the Lux- I Supplement 2/85 Bull. EC. embourg Treaty. Beginning this year promises it ol t- 290, 1.11.7985;- Bull. EC 10-198s, point to translate these aims into proposals 1 2.1.4. to demon- ol t- 169,28.6.1984; Bull. EC 6-1984, pbint 1.3.1. strate to the people of Europe thit the creation of I 1 ol I 197,27.7.1,985; Bull. EC 7/8-tgs5, pornt 2.1.106. a vast economic area, based on the market and 5 Bull. EC 1t-1985, pornt 2.5.15. business cooperation, is inconceivable-I would 6 Bull. EC 10-1985, point 7.3.1 et seq.

12 Bull. EC 2-1985 Commission programme for 1986 constraints, the tax burden, the shortage of (vii) to stimulate the development of new capital and so on), they must be helped to outlets, e.g. utilization in industry, yllele take full advantage of the large integrated this is sho*n to be economically iustifiable; use of market. Vocationil training and the (viii) to make farmers more aware of financial instruments are the Community's environmental problems. areas for priority action here. Special attention will need to be paid to strengthening In addition, a multiannual programme will the capital base of small businesses and be introduced to reduce public stocks of financing investments involving the appli- agricultural products to a reasonable level. cation of new technologies. In the future, even more than in the past, socio-structural policy must form an integ- ral part of the overall strategy for reform policy The common agricultural of the common agricultural policy. 1.2.10. Mr Delors restated the basic principles of the common agricultural policy: The Community in the world '... This is why I find myself repeating the basic orincioles asain and again: market unity, Com- 'munity Its contribution to the world economy prefJrence and financial solidarity' This is caution: any attempt to question why I' counsel 1985 maior, related prob- principles would be tantamount to tearing 1.2.11. In two these econ- up the contract which binds the Member States.' lems will continue to be the rate of omic growth and indebtedness. The Com- The euidelines adopted bv the Commission munity will endeavour to help solve these months of pro- in Dicember,l follbwing'several problems .through its revitalization on the Green Paper, z and its growth strategy consultations 4 gramme, its cooperative memoranda on milk, 3 cereals and beef/ ind its developmtnt cooperation policies. veal5 orovide a realistic assessment of the It will also pliy its part and assume its prorp..t. for the common agricultural pol- responsibilities in the appropriate inter- i., ouer the next few vears and constitute national economic and monetary otganiz' a tasis for action which should be exploited ations. without delay. The Commission has therefore set itself the Development cooperation following priorities: 1.2.12. The Commission will continue its (i) to reduce production in sectors in sur- efforts to encourage an adequate flow of plus, little by little, thereby bringing down international funds to the developing costs; countries, to offer them expanding markets in the industrialized world, and to help diversification (ii) to promote product them to adapt and develop their economies. adapted the and quality improvement to The Cooperation Agreement recently con- markets; internil and external cluded with the countries of Central Amer- s (iii) to support farming in areas where it ica is a step in this direction. is vital to regional planning, maintenance The third Lom6 Convention, which lays of the social fibric, ind conservation of the down guidelines for development cooper- natural environment and the landscape; ation between the Community and the 55 (iv) to address itself more systematically to the difficulties facing small family farms; I Bull. EC 12-1985, point 1.2.7 et seq. 2 Bull. EC7/8-1985, point 1.2.1 et seq. (v) to consolidate export capacity; 3 Bull. EC 10-1985, point 2.1.102. 4 Bull. EC 11-1985' potnt2.'l'.127 et seq. (vi) to contribute to the expansion of 5 Bull. EC 12-1985, points 2.1.155 to 2.1.159. industries processing agricultural products; 6 Bull. EC 11-1985, pointl.2.7 et seq.

t3 Bull. EC 2-1986 Commission programme for 1986

ACP signatory States over the next five another step towards multilateralism until we do years, enters into force in 1986 too. something about conflicts of interests between our- selves and the other powers in general and our The Commission attaches parricular major competitors, the United States and Japan, importance to the fight against hunger in in particular. The Commission does not looli for Africa. It will concentrate on three main trouble, but it has a duty to defend our industries fronts: direct action to combat hunger and our jobs, to challenge unfair practices and to enable Europe to remain an agritultural power, through food aid, contribution the a to which is open to quesrion today.' rehabilitation of broken economies through implementation of a 100 million ECU In 1985 triangular relations between the plan,l and the recent proposal ro the Community, the United States and Japan Council for a programme on the protection will remain vital to the smooth operation of natural resources and the fight against of the world economy. The Commission 2 desertification. will therefore endeavour to maintain and The Commission will also consider what improve dialogue with both partners. contribution the Community can make Dialogue with the United Stares should pre- towards solving the indebtedness problems vent the proliferation disputes of the countries of Africa. It will prepare of ind develop that multifaceted cooperarion the Member States' position for the special which is so important to the two sides. session of the UN General Assembly on the problems of Africa and will endeavour to The Community must also make an all-out supplement and reinforce Community effort to broaden and strengthen its links action by enlisting international support. with Japan. Multilateral trade negotiations The Community's general aim should be to encourage Japan in its efforts to integrate 1.2.13. 7986 Commission play ln the will more fully into the multilateral trading and a key role in the Preparatory Committee set payments system and to step up cooperation up by the Contracting Parties to GATT.3 with wherever appropriate, with a send the proposal Japan, It will Council a for a view to improving the overall balance of 'comprehensive approach' to the new round relations. of multilateral negotiations. It will also pro- pose that these should open in Brusseli on Although none of its bilateral relations will a date to be agreed at the GATT ministerial be neglected, recent developments in the meeting scheduled for September. Community (enlargement and the internal Negotiations for renewal of the Multifibre market) mean that the Commission will be Arrangement should begin during the first forced to concentrate on strengthening and half of the year, as soon as the Council has adapting certain links, norably with its approved the negotiating directives pro- immediate neighbours (non-member Medi- posed by the Commission at the end of terranean countries and EFTA countries). November.4

Bilateral relations 1 Bull. EC 10-1985, point 7.4.1 et seq. 2 Bull. EC l-1986, point 7.3.1 et seq. 1.2.14. 'Vigilance must be the watchword in our 3 Bull. EC 11-1985, point 2.3.52. bilateral relations too. We cannot contemplate 4 Bull. EC 11-1985, point 2.3.4.

t4 Bull. EC 2-1986 3. Proposals for agricultural prices and related measures for 1986187

Proposals in !ine with the continued consistently in the future so that Green Paper they can produce results. The other main thrust of the Commission's February the Commission 1.3.1.. On 12 initiative in this field is an improvement of its proposals on agricul- sent the Council the present situation as regards levels of prices certain related measures tural and intervention stocks, which have built up to 7986/87 marketing year (-r point for the high levels in recent years. Because of their the same time the Com- 2.t.107).1 At siie, these stocks are'tending to depress the placed the Council its pro- mission before markets and entail heavy charges on the posals adaptation of the market for the Community budget. In order to work them ctreals and beef/veal2 brganizations for down to more reasonable levels, the Com- had been advocated in two memor- which mission has announced its intention to pro- anda presented at the end of 1985.3 These pose an exceptional three-year disposal pro- those on action to encour- proposals follow gramme. age the permanent cessation of milk production which the Commission made in early November.4 Price levels This set of proposals, which constitutes a single indiviaibla whole, is in line with the foregoing, the Com- gui-delines proposed by the Commission fol- 1.3.2. In view of the the view that for the majority lowing the consultations held in connection mission takes products the common prices should be with ihe Green Paper, s which were the of the same level as in 1985/85. subject of a comprehensive document sent maintained at products prices will to ihe Council it the end of December However, for a few either upwards (peas 1985.5 have to be adlusted and field beans,lupins, cauliflowers, auber- Faced with the very disturbing growth of gines) or downwirds (certain- varieties of structural imbalances on the markets and iobacco, intervention prices for olive oil, the consequent growing cost to the budget, durum wheat and some fruit and veg- the Commission, rather than proposing etables). Furthermore, the agri-monetary stopgap and drastic measures which many adjustments proposed in connection with producers would find excessive, proposed a the dismantling of existing negative com- package of measures whose effectiveness pensatory amounts mean that the com- wilt depend on their being convergent, selec- mission's proposals entail an average tive and continuous. 'Convergent' in that increase in-prices of. 0.9o/" for the Com- action will not rely on one single instrument munity of Ten. Also, the 1986/87 marketing but involve all those instruments which are year ii the first stage in the alignment of available, directing them all towards the igricultural prices in Spain and Portugal same target: a better balance between sup- during the period of transition on the com- -demand ply and for agricultural. products mon prices. irr-sectots which are in surplus. 'Selective' in that, wherever possible and necessary, account will be taken of those problems 1 COM(86) 20 hnal. which affect certain groups of farmers, par- 2 0J c 53,7.3.1986; COM(86) 30 final; CoM(86) 31 ticularly those which are structurally in the final. 3 point 2.7.127 et seq.; Rull. EC 12- weakesl position. 'Continuous' because the BuU. EC 11-1985, 1985, point 2.7.154 et seq. measureJ will not merely involve an exten- 4 Bull. EC 10-1985, poinr2.7.102. sion of the reforms already introduced into 5 Bull. EC7/8-1985, point 1.2.1 et seq. the CAP in recent years but must also be 5 Bull. EC 12-1985, point 7.2.1 et seq.

Bull. EC 2-1986 15 Proposals for agricultural prices

Analysis by product reduction in the intervention price on farmers' incomes, it is also propoted that the 1.3.3. As regards cereals, the Commission aid.for durum be increased by 5.84%. As proposes first of all to give practical form regards common wheat, the Commission to three of the measures which it had sug- proposes that the reference prke be abol- gested in its Memorandum on adjustments ished so as to eliminare the incentive to to the common organization of the market production provided in the pasr by the spe- in cereals, I i.e. financial co-responsibility cial intervention measures for common of producers, emphasis on quality and wheat of minimum bread-making quality. adjustment of intervention mechanisms. 1.3.4. The system of guarantee thresholds The aim of the co-responsibility levy is to for rape and sunflower seed has not been make producers contribute to the cost of as effective as expected. The Commission the disposal of surplus production. This can therefore proposes that it be replaced by a be achieved by means of a levy on quanriries system of maximum quantities- at guaran- placed on the market or senr direcf to inter- teed prices similar to rhar applied for cot- vention by the producer, the first 25 tonnes ton, which entails a system of advances being exempt. The long-term aim is to make by means of which the consquences of the revenue from the levy match the burden exceeding the maximum quanlities (3.5 on the EAGGF budget caused by inter- million tonnes for rape and 1.7 million vention in respect of quanrities exceeding a tonnes for sunflower) can be felt during certain reference level. For L986/87, how- the marketing year. The institutional prices ever, the Commission proposes that the co- should remain unchanged. responsibility levy be 3olo. 1.3.5. In the beef/veal sector, in addition The emphasis on quality could be increased to a freeze on prices, the Commission pro- by providing less encouragement for rhe poses that the role of intervention as a safety production of feed wheat and introducing net be restored and that it be confined, from more stringent requirements as regards the 1 December 1987, to situations of serious specific weight of barley, accompanied by market disturbance. To compensate for the a scale of reductions. effect of this change, it is pioposed that a Lastly, it is proposed that intervention in single direct premium be introduced, to be this sector be confined ro parr of the market- paid only to producers specializing in beef/ ing year. veal. This single premium would comprise a basic amount for the first 50 carrl; (20 As regards the price proposals proper, the ECU per head) and a 'suckler co!v' amount Commission wishes to maintain the prices for all suckler cows (20 ECU per head). It applying in 7985/86 except in the case of would encompass the main elements of rhe rye (- 1olo), which is to be reincorporated present suckler cow premium. into the common intervention price iystem. Furthermore, since the price ratio between 1.3.6. As regards milk, the Commission durum wheat and common wheat seems to proposes that, in view of the market situ- have unduly favoured durum, the growing ation, the targer price should remain of which has been encouraged even in unchanged and the rate of the co-responsi- countries where it is not a traditional crop, bility levy f.or 7986/87 be kept at 2o/o bf the the Commission proposes that a more satis- target price. The Commission points out factory price ratio be achieved by narrowing that, despite the fall in milk deliveries since the gap between the inrervention prices for the introduction of rhe supplementary levy the two cereals. For 1985/87 this-will take and the activation of additional diJposal the form of a reduction in the price of durum wheat of around 4.4"/o. In order partly to attenuate the impact of the 1 Bulf . EC 11-1985, pint 2.1.127 et seq.

16 Bull. EC 2-1986 Proposals for agricultural prices measures, butter stocks have increased. To Agri-monetary measures reduce them, the disposal programme will have to continue for several years. Also, 1.3.8. The Commission proposes no stocks of skimmed-milk powder have fallen change in the existing positive monetary substantially, mainly because of the compensatory amounts, but would like to reduction in deliveries and the impact of the see adjustments made in the negative disposal measures. The Commission there- MCAs. For ltaly, the Commission proposes fore proposes that the gradual adaptation that the applied MCAs be dismantled by of the fatlprotein ratio be continued. It 2.5 points. For France, in accordance with takes the view that the fat component of the undertaking given by the Council on a3 the target price should be reduced further May 1985,1 the Commission proposes that and the value of the skimmed-milk the 1.5 point neutral margin which remains increased accordingly. The new fatlprotein for all agricultural products (except pig- ratio would be 46.13:53.87. The proposed meat, sheepmeat, wine and milk products, measure would reduce the intervention for which it has already been abolished) price for butter by 4.0%. The corresponding should now be discontinued. In the case of increase in the intervention price for skim- Greece, the Commission proposes a dis- med-milk powder would be 3.5olo. mantling of the applied MCAs which is in line with the general economic guidelines 1.3.7. For the other sectors, the proposed decided on by the Greek Government and adiustments to the common prices (ex- approved by the Commission when the dra- pressed in ECU) are as follows: chma was devalued on 14 October 1985; this Sugar. The basic price for sugar beet and would mean a dismantling of. 14.4 points. the intervention price for white sugar to Lastly, where the United Kingdom is con- remain unchanged. cerned, fluctuations in the value of sterling are such that the MCAs are sometimes posi- Oliue oil. The target price and the pro- tive and sometimes negative; the Com- duction aid to remain unchanged; a 5% mission intends to make a proposal at a reduction to be made in the intervention later stage in the light of the future perform- price so as to discourage massive deliveries ance of this currency. into intervention and promote greater flu- idity on the market. Fresh fruit and uegetables. The basic price Programme for disposal of stocks to remain unchanged except for cauliflowers (+ 1%) and aubergines (* 1%); the 1.3.9. The other area in which the Com- buying-in price to be reduced by 2.5o/o for mission intends to take decisive action is citrus fruit, 5% for apricots, tomatoes and that of intervention stocks, the total value peaches; the buying-in price for pears, of which reached 19 500 million ECU at 30 apples table grapes remain and to November 1985. Stocks of milk products unchanged. and beef account for more than half of Tobacco. Norm prices and premiums to this figure. The Commission feels that an be frozen for varieties in greatest demand, additional programme for the disposal of reduced by 2"/o for varieties in some old stocks of butter and beef should begin demand, reduced by 4"/o for intermediate in 1986. The programme provides for the varieties and by 6o/" for varieties difficult to disposal of an additional2T0 000 tonnes of dispose of. butter and 200 @0 tonnes of beef and entails expenditure estimated at 1 155 Pigmeat. Prices to be frozen. million ECU for 1986. Sbeepmeat. Prices to be frozen and the ewe premium to be paid only on the first 5@ ewes, except in less-favoured areas. I oJ L 137,27.5.1985; Bull. EC 5-1985, point 2.1.89.

Bull. EC 2-1986 17 Proposals for agricultural prices

Economic and financial implications and of budget costs. Owing to the nature of the arrangements currently in force, the 1.3.10. The Commission estimates that its new proposals would, for some products, proposals on prices and related measures prove far less satisfactory than the present would yield a saving to the budget in 7986 proposals from the point of view of their of 408 million ECU. However, allowing for impact on farmers' incomes. the extra expenditure entailed by the deterioration in the economic situation (in 1.3.12. Unveiling the Commission's proposals the press, particular the fall in the dollar compared to the Commission Vice- President with original forecasts) and by the cost of with special responsibility for Andriessen, the additional programme for the disposal agriculture, Mr stressed that they follow up the Green Paper. of old stocks, the Commission concludes that, as far as can be seen for the moment, He pointed out that the level of prices pro- an additional appropriation of 790 million posed was designed to take account of the ECU will be needed for 1986. real market situation without ieopardizing farmer's incomes. The seriousness of the situation on certain markets might other- wise have justified drastic reductions in the Conclusions prices of a number of productg.

1.3.11. In making its proposals, the Com- As regards the related measures, Mr mission stressed the indivisible nature of the Andriessen confirmed the Commission's package-the proposals to adapt current decision to implement the measures already announced legislation, particularly on milk, cereals, at the end of 1985 concerning beef/veal and oilseeds, and the price pro- adjustments to the market organizations for posals proper. The Commission is asking beef/veal and cereals; for cereals a co- the Council to adopt the decisions relating responsibility levy of 3"/o for producers has proposed. to each of these product groups before the also been beginning of the relevant marketing year. Furthermore, Mr Andriessen underlined the Failing this, and if the decisions relating to need for a specific programme to reduce the the adaptation of current legislation are not heavy stocks of products in surplus in the taken in time, the Commission will be obli- course of 7986,1987 and 1988. ged to withdraw some or all of its proposals and replace them with others based on cur- 1.3.13. The Council started its scrutiny of rent legislation but achieving the desired the Commission's proposals on 24 and 25 results as regards the control of production February (+ point 2.1.106).

18 Bull. EC 2-1985 4. lmproving competitiveness and industrial structures in the Community

Commission commun ication a reduction in its share of high-demand S to the Counci! markets. The renewal was marked by a recovery in business profitability, the faster spread of 1.4.1. On 26 February the Commission new technologies, the continued restructur- sent the Council a communication entitled ing of certain industries in difficulty and a 'Improving competitiveness and industrial recovery in investment, though we will have structures in the Community'. I This was to wait and see whether the latter represents drafted in response to requests by the Euro- a long-term trend. Renewal was facilitated pean Council meeting in Brussels in March by efforts within the Community to pro- 19852 and in Milan in June 19853 that mote a more favourable environment for the Commission prepare a report on the business and by the convergence of political European economy and on its shortcomings priorities on industrial development. How- in terms of growth and employment. It ever, it has not yet led to a significant develops the analysis set out in the Com- reduction in unemployment. mission's papers 'Strengthening the techno- The most prominent features of the frame logical base and competitiveness of Com- of reference for Community industry are: munity industry'a and 'Towards a Euro- pean Technology Community'.s It pays (i) the far-reaching changes affecting greater attention to the international industry through the emergence of new pro- environment and to the social dimension of ductive sectors and fundamental changes in the problems. economic structures (the black economy and the expansion of barter trading); The document aims to provide the two sides of industry, the Member States and the (ii) diversity within the Community, Community institutions with a basis for which has increased with enlargement; discussion from which to develop proposals (iii) the openness of the Community mar- for action. It is part of the overall process of ket outside competitors, means reflection on economic and social strategy, to which that European industry is constant com- comprising not only work on strengthening in petition its is the Community's technological base but with international rivals; this reflected in the import penetration rate on also_ work on completing the internal mar- the Community market, which stood at ket 5 and implementing a cooperative l3o/" f.or industrial products (com- growth strategy for higher employment, T in 1985 pared with l7o/o in the United States and and it is to be followed by a detailed analysis 5% in of a social strategy for lob-creation at Com- Japan). munity level. 1.4.3. The Commission goes on to identify the position and the specific characteristics The general industrial context in the Community t coM(86) ,to final. 2 Bull. EC 3-1985, point 1.2.4. 3 Bull. EC 6-1985, point 1.2.6. 1.4.2. The Commission observes that 4 EC 3-1985, point s Bull. 3.4.3. Community industry has, since the begin- 6 Bull. EC 6-1985, point 7.5.7 et seq. ning of the 1980s, entered a new and 7 Bull. EC 5-1985, point1.3.7 et seq. dynamic stage of growth, following a diffi- Bull. EC 10-1985, point 1.3.1 et seq. 8 Bull. EC 1-1986, point 2.1.2. See also European Economy cult decade when it experienced relatively No 25, Office for Official Publications of the European slow growth in the high-growth sectors and Communities, L-2985 Luxembourg.

Bull. EC 2-1986 Competitiveness and industrial structures of Community industry in the international costs expressed in a common currency fell context and the strategies pursued by the in the Community and rose substantially in other main industrial powers (the United the United States and to a lesser extent in States, Japan and the Pacific region). Japan, while Community unit labour costs expressed in national currencies rose at a ratt halfway between those of the United F a ctors d eterm i n i n g i nd u stria I States and Japan. However, differentials in competitiveness in the Community productivity growth meant that labour costs per unit of output in the United States and 1.4.4. The Commission draws the follow- the Community developed in a comparable the ing conclusions from its analysis of fashion, while those of Japan declined sub- industrial situation in the Community: stantially. t0Uith the current volatility of the exchange markets, these positions can be (i) In general, European industry has quickly reversed, therefiore remains started to recover, with its cost competitive- and it ness improving, investment picking up appropriate to use real unit hbour costs markedly and exchange-rate fluctuations expressed in national currency as an indi- working until 1985 in its favour. cator of cost developments in the short term, confirming advantage This improvement- should- not lead to an the of Japan underestimation of the structural adjust- over both the Community and the United ments which are still required since States. Japanese industry still enioys comparative Changes in the cost of capital are harder to advantages in most areas, especially invest- measure than changes in the cost of labour. ment rate, cost of capital and unit labour Real long-term interest rates affect com- costs. panies differently, particularly because of (ii) Industrial competitiveness is increas- the great differences in conditions for ingly determined by technology, and here depreciation. In contrast to the situation the Community's performance leaves room observed in several Community countries, very interest rates now prevailing for improvement. Community industry is the high still handicapped by its relative slowness in in the United States have been borne almost incorporating technological progress into entirely by consurners, since the real burden its production processes and its lack of suc- to industry has been cut through the implementation new rules governing cess in converting its technological potential of into industrial and commercial gain. How- depreciation and investment tax credits. ever, th€ situation varies so widely that this general verdict must not be allowed to 1.4.6. Although cost trends are an impor- obscure the revival now under way, particu- tant factor determining compethiveness, the larly in the capital goods industries. capacity to develop new prodrcts and to meet demand is of even greater significance. In turn, the level of investment is a very important indicator of the state of the pro- General factors ductive apparatus: since 1973, the rate of investment in European industry has been 1.4.5. The level and trend of costs, both declining steadily while investment in for labour and for capital, are among the American (and to a lesser €lcent, Japanese) most important quantifiable factors affect- industry has been increasing. ing competitiveness. The domestic trend in labour costs (of which wages are only one This slowdown in industrial investment is of several factors) is only to a small extent such that the upswing now under way in reflected in international competitiveness, the Community in no way conpensates for because exchange rates have become the accumulated handicap. The structure of sharply out of line with purchasing power investment is of particular importance for parities. Between 1972 and 1985 unit labour competitiveness. Thus it is in the high- m Bull. EC 2-1986 Competitiveness and industrial structules growth sectors (computers and office revealed differences between sectors, in machines, electrical and electronic goods, terms of both the current situation and the chemicals and pharmaceuticals) that the trend. slowdown has been most marked in the Community and the acceleration most sig- As far as manufacturing industry is concerned, the Community has serious weak- nificant in the United States and Japan. nesses; in particular, it is too little involved in the highest-growth sectors (particularly computers and electronics) and in the fast- Technological factors expanding markets. Community industry has even been losing market share within 1.4.7. The research and development the Community: between 1973 and 1982 the effort for the Community as a whole is, as rate of external penetration of these sectors a proportion of GNP, comparable to that rose from 10% to t7o/o for the Community, of Japan and of the United States. However, but from 6.30/o to L0.2o/o for the United it concentrates on basic research, while our States and from 4.2.o/o to 5.2o/" for Japan. main competitors have directed their efforts more towards R&D with a view to later In the service sector, however, the situation practical industrial uses. This has meant is potentially satisfactory. The integration that Community industry is lagging behind of the Community internal market appears its main competitors in crucial areas to be one of the essential factors for further semiconductors, new materials, chemistry- improving competitiveness not only in the and biochemistry. service industries themselves, but also in other industries using their services. 1.4.8. As far as production technology is the Community has, after a rela- concerned, Opposing strategies tively slow start, been able to catch up with and even overtake the United States and narrow the gap with Japan in the use of 1.4.10. The increased awareness of Com- industrial robots. I It nevertheless has much munity industry should not, however, mask progress to make in better integrating new the challenge to European industry of grow- information technology into the production i.rg international competition and the process in all sectors (flexible manufactur- growth strategies of its maior industrial ing, reliability of machinery and simplifi- competitors. cation of new production systems). As far as product technology (the incorporation of new technologies in the product itself) is Japan: a systematic strategy concerned, Japanese industry had proved second to none, especially in high-value- Analysis our competitors strat- added consumer goods. For its part, Euro- 1.4.11. of egies has shown that success will pean industry has often been too late in Japan's the main challenge to the launching new products or introducing new continue to be industrial development of her competitors. product specifications: for reasons relating is based on the extremely high economic in panicular to the structure of Community It the system R6(D, product innovation has been too and social unity of Japanese and the concentration of her productive slow. on structures and exports, and is reflected in the high level of investment and the capture of the home markets. Sectoral aspects

1.4.9. The Commission's study of the 1 Supplement 6/85 Bull. EC; Bull. EC 41985, point competitiveness of Community industry has 1.1.1 et seq. -

Bull. EC 2-1986 2t Competitiveness and industrial structures

Just as much as the unity of the Japanese succumbing to the fiercer comperirion economy, the efficient method used by linked to the growth (4% per annum until Japanese business and by the public auth- the year 2000) of the newly industrializing orities to promote industrial and techno- countries in this region, whose type of logical development and the priority given industrial specialization has more in com- to industrial growth at the expense of other mon with that of the Community than with objectives, particularly in the social sphere, that of the United States or Japan, without have been, and still are, key factors in the being able to exploit the advantages of success of the Japanese economy. access to their new markets. This method consists in systematic cooper- US trade with the Pacific countries has al- ation between all parties concerned (i.e. ready overtaken US trade with Europe and industry, government, laboratories and uni- will be double it by 1995 if current growth versities) to set and attain clearly defined rates are sustained. If the Pacific countries industrial and technological development are going to take a growing share of the objectives. world market in the years ahead, whar can be done to ensure adequate outlets for Euro- pean industry on heavily protected markets, American aspirations against competitors with a series of major advantages over European firms for histori- cal (Japan) or geographical (USA) reasons? 1.4.12. The United States'aim of restoring Secondly, how the technological domination and vigour can the Communiry respond to the growth of the newly industrializing of its industry, particularly by means of countries and its impact on competition on measures in the areas of fiscal and tax pol- the world market, terms icy, civil and military research, commercial in both of the' direct effect qf exports policy, deregulation and industrial cooper- from those counrries on the world market and the possible ation, could also have consequences of serious towards for Community industry. shift a new division of labour within the Pacific region, a trend which The intensification of Japanese competirion already seems to have started and which led the American Administration to carry would further consolidate the Pacific out an assessment of the competitiveness of countries' competitive position? Japan is United States industry which reached the already gaining most from this growth in following two conclusions: first, that US the Asian countries, to which it can sell industry's competitiveness is being eroded, capital goods and components in return for particularly in high-technology industries; raw materials and food. In this way it is second, that the main challenge to the helping to speed up rhe growrh of their United States is posed by Japan and the exporting industries and at the same time Pacific region, not by Europe. Industrial expanding those branches of its economy cooperation between US and Japanese com- which are complemenrary to those of its panies has spread from the moror industry 1 near neighbours. to many others, especially high-technology industries. 2 The Community awakening

The emergence and development 1.4.14. The Commission concludes its of the Pacific axis communication by saying that the Com-

1.4.13. The emergence of the Pacific axis I is a third area of concern for the industrial Supplement 2/81 - Bull. EC; Bull. EC 6-1981, point future of the Community. 2.1.22. The chief prob- 2 For advanced manufacturing equrpment, see Sup- lem for Community industry is to ivoid plement 6/85 Bull. EC. -

22 Bull. EC 2-1985 Competitiveness and industrial structures

munity will be able to meet these challenges (iv) promoting the adjustment of pro- and achieve dynamic growth in its industry, duction structures; taking due account of social needs and respecting international balance, only by (v) encouraging the revitalization of Euro- better exploiting its industrial, technologi- pean industry; cal and commercial advantages. It identifies eight areas to be examined with (vi) making a firm commitment to achiev- a view to improving the Community's ing the objective of economic and social industrial competitiveness: cohesion in the Community; (i) completing the internal market of the making adapt the Com- Community; (vii) it easier to munity's human resources; (ii) reaffirming the Community's commitment to free international trade; (viii) stimulating dialogue and consul- (iii) strengthening the industrial base of tation on economic and social matters in the Community; the Community.

Bull. EC 2-1986 23

W&&ry'YWffi ACTIVITIES IN FEBRUARY 1986 1. Building the Community

Economic and monetary policy lem remains as serious as ever, despite the improvement in the general economic situation. It emphasizes the urgent need for Economic situation rapid.implementarion of thi cooperative grgwrh straregy for more employmint pro- 2.1.1. At the beginning of March the posed by the Commission in bciobera and Commission, acting in accordance with adopted by the Council in December.3 The Article 2 of the Council Decision of 18 Commission therefore invites the govern- February 1974,1 sent the Council a comments and the two sides of indusrry to munication on the economic situation in the examine the following questions: Community in the first quarter of 7986.2 (i) Has social dialogue been embarked This document, which is sent each year at upon in the Member States with the necess- the same time and which does not isually ary resolve with a view to implementing alter the main economic guidelines adooted that strategy? by the Council during th1 previous year,3 (ii) Does rhe is given much greater impoitance this year foreseeable development of by two major question-marks affecting consumers' real incomes and of the struc- the ture world economic situation: the exchangJrate of demand correspond, in all Member States, to of the dollar and the extent of the Tall in the common objective of promoting employment-creating the price of oil. These factors have led the investmeni? Commission to make substantial revisions (iii) How should economic policv reac to all the major in componenrs of its previous member countries where the^decline forecasts. in oil prices causes a loss of wealth in the Despite these uncertainties, by comparison economy? with its October esrimates,4 the Com- (iv) Is the room for mancuvre for econ- mission expecs that the Community will in omic policy being exploited correcly in 1986 see a sharp fall in inflation (to 3.3%, those countries as compared where it exists or is with 3.9o/o in irs October esti- growing? mate, from 5.3% in 1985 for the Com- munity of Ten and to 4.0o/o from 5.8% for (y) Is sufficient headway being made in the Community of Twelve), a reduction in the adjustment of publii finari'ce in the interest- rates, which should follow falling countries where the deficit is particularly prices, faster growth (up f.rom 2.2o/o in 1985 high? to 2_r8o/o in.1986, for borh the Communiry of Ten and the Community of Twelve, as against 2.5% in the October esrimate), as European the result of a greater increase in houseiiold Monetary System consumption (3.3% as compared with2.7o/o in the October estimate for-the Ten) and an Operation of the EMS Yp_surge in investment (by 4.5o/o, while only 3.7o/o was forecast in October). Unemploy- 2.1.2. On 20 February Parliament adopred ir expecred to fall only slighdy (by T9l.t a resolution on the European Monetarv Svs- 0.3'/.) to 10.9o/o, as - compared.witli-thi esti- tem (+ point 2.4.19).5 mate of 7l.l% in October for the Com- munity of Nine since harmonized fisures for Greece, Spain and Portugal are no"t yet t available. oJ L 63, s.3.1974. 2 coM(86) 114 final. Ol f 377,31.12.1985; However, this fall in unemploymenr, which ] Bull. EC 12-1985, point 2.t.2. I Bull. EC 10-1985, point t.3.1 et seq. is quite unsatisfacory, shows that this prob- t oJ c 68,24.3.1986.

26 Bull. EC 2-1986 lnternal market and industrial affairs

Community borrowings For the Commission, Lord Cockfield, the Member with special responsibility for the gave details of the pro- Loan to Greece internal market, posals to be presented in the coming 2.1.3. In February the Commission carried honths. In conclusion the Council stressed out a fourth Community borrowing oper- how important it felt it was to pursue the ation, for SFR 227 million (-+ point 2.3.6), discussions energetically-in so that the dead- thus completing the financing of the first lines laid down the \0hite Paper could instalmeni (875 million ECU) of the loan be met. grant which the Community decided to The Council adopted a decision on lhe Greece for balance-of-payments support in coordinated development of computeriTed November 1985. administrative procedures (CD proiect) (+ point 2.1.45) and took a favourable Economic Policy Committee view of the conclusion of the International Convention on the Harmonized Com- 2.1.4. At its 165th meeting, held on 6 Feb- modity Description and Coding System for ruary with Mr Milleron in the chair, the Use in International Trade (--+ point Economic Policy Committee examined the 2.1.s3). effects of the fall in oil prices. The Spanish The Council discussed the findings of the members of the Committee presented a intersovernmental conference on the Com- report on the state of the Spanish economy muni"ty patent held in Luxembourg from 4 at the time of Spain's accession to the Com- to 18 DCcember,3 with particular reference munity. to the date on which the Convention would enter into force. It became clear in the Monetary Committee course of the discussions how Member States' positions had changed since the con- 2.1.5. The Monetary Committee held its ference. 320th meeting in Brussels on 13 February, The Council continued its discussion of the with Mr Tietmeyer in the chair. It discussed proposal for a Regulation abolishing certain a the problems posed by international indebt- irosial charges fJr c,rtto-s presentation edness, on which the Chairman of the Com- and the proposal for a Directive on the mittee was to report to the next Council limitation of noise emitted by hydraulic and meeting on economic and financial affairs. rope-operated excavators and- by dozers, loiders and excavator-loaders. r lnternal market Free movement of persons and industrial affairs and freedom to provide services

Council Mutual recognition of diPlomas and access to occuPations 2.1.6. On 4 February the Council took note of a progress report from the Presi- Veterinary surgeons the iction programme proposed dency on 2.1.7. At a meeting held on 11 and t2 in the Commission's White Paper on com- February the Advisory Committee on Veter- oletine the internal market.l The Council had &reed on the principle of a regular 1 point et seq. review"of such reporti on 7 October 1985.2 2 Bull. EC 5-1985, 1.3.7 covered both progress Bull. EC 10-1985, point 2.1.11. This first repori 3 Bull. EC 12-1985, point 2.1.22. made in achieving the objectives set for 1985 4 0J c 202, 10.8.1985; Bull. EC 7/8-1985, point 2.1.36. and some prospects for 1986 in the areas 5 0J c 356,31.12.1980; Bull. EC 10-1980' point 2.1.50; covered by the White Paper. Bull. EC 72-1985, point 2.1.15.

Bull. EC 2-1985 lnternal ma*et and industrial affairs

inary Training heard an initial series of five 2.1.10. On 2l February Parliament reports, each on a different Member State, adopted a resolution on the renamins of and a general review of the aims and scope horses and ponies, something which mlkes of continuing rraining in the Member Srates. it difficult for studbook organizations to The- reports, together with those to be given document the pedigree of theie animals and at the Committee's next meeting, provide so constitutes an obstacle to their free move- the basis on which the CommitteJwill dra* ment (+ point 2.4.19).4 up a report, possibly accompanied by recommendations. Removal of technical and The Committee also exchanged views on administrative barriers to trade the initial work undertaken io follow up the report and recommendations adopted Indusrial products at its meetingon 12 and 13 February 1985. 1 2.1.11. On 2l February Parliament 2.1.8. The ad hoc Group of Senior a Officials endorsed the Commissiofs proposal to responsible for the fiee movement the j of veterinary surg€ons held a wide-ranging Council of. 22 Mays foi second discussion on the implications of -th6 amendmenr ro the Directive of ?2 November 1973 on accession of Spain and Portugal at its meet- the apDroximation of the laws of the Member ing on 13 February. It also discussed the Stites relating to detergents.6 situation of each Member State as regards locums in veterinary medicine at narional and Community level, and completed the Foodstuffs statistics on rh-e migration of veteiinary surgeons in 79842 (see Table 1). 2.1.12. In accordance with the provisions of the Council Directive of 15 Juiy 1980 on the exploitation_and marketing of natural Free movemont of goods mineral waters,7 which enterei into force on 17 July 1984,8 the Commission received a second supplement to the list of natural Safeguard measures for Greece mineral waters recognized by the United Kingdom. e 2.1.9. Together with the Greek authorities, the Commission made the first quar- 2.1.13. On 19 July 1985, in the dispute terly general review provided for in its between the Communiry and the United Decision of 22 November 1985 authorizing States over pasta products, the Council Greece to take certain safeguard measures, adopted-a Regulation concerning export in particular to require a diposit upon-At the retunds for macaroni, spaghetti and similar importation of various goods.3 the products which gave t-he Commission request of the Greek Government, the Com- authority to apply different rates of refund mission authorized a number of changes in the lists of goods concerned: so-e Jf th" pr-oducts for which a deposit of.80"/o of the I Bull. EC 2-198i, z point 2.1.6. cif value was required hive been transferred The tables showing statistics on thc migration of doc- to the list of those subject to a deposit of tors, nurses iesponsible for general care, dental practitioners and midwives 40%. Other products have been removed are in Bull. EC l2-198S, point 2.i.12. of 373,31.12.198s; from ] I Bull. EC rr-ises, point 1.3.3. the lists. In conjunction with the Greek n oJ c 68,24.3.1986. authorities, the Commission also j Ol C t39,z.6.t9BS; examined . Bull. EC 5-1985, poinr 2.1.11. the effect of such measures on the Greek , oJ L 347,12.12.1n3. economy. 8 oJtz99,3o.g.1,ggo. , Bull. EC7/8-1984, point 2.1.18. oJ c 37,78.2.1986; OJ C 2,(), 21.9.7985; OJ C 110, 4.5.1985.

28 Bull. EC 2-1985 IE autborization in 7984' under tbe tr Number of ueterinary surgeons who are Community. ttdtionqk a1d obtained Table I belout, - ueterinarn'surs,eons Direciiuis, to practise in one of ihe Member States listed at the head of the colurnns lT, o after obtainini, their basic qualification in anotberr t) \o 6 Luxem- United- Ircland Denmark Grece o\ Germany Francc Italy Netherlands Belgium borrg2 Kingdom

9 Total 9 9t I 5 2 7 5 I

1 Nationals of : Germany 1 3 2 1 France 2 I Italy I 1 1 Netherlands 2 2 1 3 2 1 Belgium 1 82 z 2 Luxembourg 4 United Kingdom 2 1 Ireland Denmark 9 Greece 2 2 1

qualified in: Who I GermanY 1 1 2 I France 3 1 9 Italy I 1 I o= Netherlands 2 1 I 2 o) Belgium 1 85 4 2 I 3 Luxembourg o United Kingdom 2 1 4 o* Ireland o Denmark CL :, Greece 2 I 1 CL oc ffits,dcsnotincludeCommunrtynationalswhoacqurredtherrqualrficationtnaMembcrStetcwhoscnationalitythcydonotpos*ssandinwhichtheywcre =.o_ to practiscoractisc in thatihat State. L--,- -L---f^-- -^. L- i--!,.,lJ ;- rh. tahla o o, a' \ot\) Steel

I for exports to different destinations. From Table 2 Definitiue rates of abatement 1 November 1985 the conditions on which - for establishing the production these products could be imported into the quotas for the first quarter of United States were altered to an extent that 1985 provided grounds for Commission action that would enable Community exporters to compete fairly on the US and Canadian Share of markets again. the quota which may be To effect this, the Commission dehvered adopted-down a in the Regulation on 21 February laying common detailed rules for granting export refunds market on certain agricultural products exported in the form of go-ods not iovered by Annex II Hot-rolled flat strip, includ- to the Treaty.2 ing hoop and sheet Ib Cold-rolled sheet

2.1.16. On 24 February the Commission 2.1.14. On 25 February the Commission adopted the provisionai abatemenr rates sent the Council a communicarion entitled which will be used as a basis for establishine 'lmproving y comperitiveness and industrial production quotas for the second qr"rt.r. structures in the Community' (+ point 1.4.7 et seq.). Table 3 Rates of abatement for estdb- - lishing the production quotas for the second quarter ol OSe Steel Sharc of the quota which may be delivered The Community steel industry in the common market

Market management Ia Hot-rolled flat strip, including hoop and sheet 48 49 Ib Cold-rolled sheet 42 4t Crisis measures Ic Galvanized sheet l6 24 II Reversing-mill plate 42 49 Production quotas II Heavy sections 50 54 'I(ire IV rod 36 39 2.1.15. On 3 February rhe Commission VI Merchant bars 40 40 adopted amended abaremenr rates for the first quarter of 1,9863 (provisionally adopted on 27 November 19854), slightly -hot- I reducing the production quota for OJ L 188, 20.7.1985; Bull. EC 7/8-1985, pbint 2.3.14. 2 rolled flat srrip (Ia) and rhi share of the oJ L 45, 22.2.1986. 3 oJ L 31, 6.2.1986. quota of cold-rolled sheet (Ib) which 4 may OJ L 3.+O, 78.72.1985; Bull. EC 1l-198S, potnt2.t.26. be delivered in the common marker. 5 oJ L 48, 26.2.1986.

30 Bull. EC 2-1986 Steel

Statistics Market situation

C orntnunity production con- 2.1.17. On 24 February the Commission 2.1.18. Production in the Community tinues to be stable. For the Twelve, pro- adopted a Decision designed to provide a duction December 1985 was 70.132 legal basis for the statistical survey on the in million tonnes, compared with L0.349 iron and steel industry. million tonnes in December 7984; for the Community less Greece, the corresponding In view of the continuing precarious stitua- figures are 70.037 and 10.273 million tion in the industry, the administration of tonnes. Production in January 1986 was which, in the enlarged Community, will be 11.088 million tonnes (10.941million tonnes increasingly dependent on the rapid avail- in January 1985). ability of reliable data on production, raw According to the latest available statistics materials and energy supply, orders crude steel production for the whole of 1985 received, deliveries and employment, the in the Community of Ten was 120.4 million Commission must have access to reliable tonnes, i.e. very slightly higher (0.4%) than statistics within the shortest possible time in 1984. in order to discharge its responsibilities Table 4 shows crude steel production by under the ECSC Treaty. Member State since 1980

Table 4 Crude steel Prcduction - million tonres

1980 1981 1982 1983 1984 1985

Belgium 12.3 12.3 10.0 10.2 11.3 t0.7 Denmark 0.7 0.6 0.6 0.5 0.5 0.5 Germany 43.8 41.6 35.9 35.7 39.4 40.5 Greece 0.9 0.9 0.9 0.9 0.9 0.1 France 23.2 2t.2 18.4 17.6 18.8 18.8 Ireland 0.0 0.03 0.1 0.1 0.2 0.2 Italy 26.5 24.8 24.0 21.8 24.t 23.6 Luxembourg 4.6 3.8 3.5 3.3 4.0 3.9 Netherlands 5.3 5.5 4.4 4.5 5.7 5.5 United Kingdom 11.3 15.3 t3.7 15.0 15.2 15.5

EUR 9 t27.7 tz'.t 110.5 r08.7 119.2 t20.4 EUR 10 128.6 125.t ttt.4 109.5 120.1

The average capacity rate increased from Based on these provisional data, import 67.6o/o in 1984 to 69.7"/o. On the basis of penetration increased year on year from the external trading figures for 11 months, 9.2o/o to 9.7o/o and is levelling out below the imports are estimated at 9.8 million tonnes 10% limit which the Commission has set (3.2% up on the previous year) and exPorts itself. at 29.4 million tonnes (11.4'/. up on 1984), A (seasonally adjusted) increase of 5% over which means that consumption was some December 1985 can be expected in January 101 million tonnes (2.2"/o down on 1984). 1986. AIso, according to early returns pro-

Bull. EC 2-1986 31 duction in the Nine will be 9.5 million consumption. The prospecs for 1986, how- tonnes in February less than the 9.78 ever, are less encouraging and most million tonnes of January- and about the countries forecast a slight drop in consump- same as the 9.54 million tonnes of February tion, quite apart from the effect of the falls 1985. in the oil price and the dollar. World crude steel production in 1985 The world market in 1985 exceeded 1984 levels by 10 million tonnes U.4%) and the very poor 1982 outturn by 2.1.19. The 1985 balance sheet for the 75 million tonnes (ll.60/0l. Nevertheless, ii world steel marker, drawn up by the United is still 3.5% below the 1979 record. Nations Economic Commission for Europe, Table 5 shows developments in world steel shows a slight increase in production and production.

Table 5 - World steel production 1(XX) torrrg's

19t5 t9t4 1979 85:84 (7o) 85:79 (%)

World production 719.9 709.9 74.5 + 1.4 3.5 USSR and Eastern-bloc countries 2t5.4 2t4.2 209.4 + 0.5 + 2.8 China and other State-trading countries 55.2 50.2 fi.2 +10 + 37.3

Total, State-trading countries 270.6 264.4 249.7 + 2.3 + 8.4

Western world 449.4 +45.6 495.8 + 0.9 9.5 Developing countries 75.0 70.0 54.3 +7 + 38.1 Industrialized countries 374.4 375.5 4/,2.5 0.3 - 15.4 United States 80.4 83.9 123.7 4.3 -35 Japan 105.2 105.5 tlt.7 0.3 5.8 The Ten t20.7 120.2 14t.1 + 0.4 - 14.5 The Twelve 135.5 t34.4 154.0 + 0.t -12

Accession-related measures tion of the Commission, to granr aid to steel undertakings for periods o-f five and three Deliuery of Portuguese and Spanish years respectively from the date of steel products in the Comrnunity market accession, deliveries of ECSC steel products originating in Portugal and Spain ro the rest 2.1.20. On 10 February the Commission of the Communiry market are ro be subiect requested the Council's assent to and the to quantitative limits for the seid periods ECSC Consultative Committee's opinion on and. that the Portuguese and S-prnish auth- two draft decisions establishing thi delivery oritie,s ale to supervise deielopments levels of ECSC steel products of Portuguese strictly. The Commiision is therefoie pro. and Spanish origin onto the rest of the posing that, in 1985, deliveries of ECSC common market. steel products of Spanish origin into the rest of the Community market, excluding The Portuguese and Spanish Act of Portugal, may not exceed 827 500 tonnes; Accession provides that, in rerurn for allow- Portuguese deliveries (excluding Spain) may ing Portugal and Spain, with rhe authoriza- not exceed 80 000 ronnes.

32 Bdl. EC 2-1986 Steel

Accompanying document and 'One of the parties involved in this matter has to production certificate keep its cool. The economic stakes are too high for us to indulge in irresponsible escalation of restrictive measures. It would be disastrous if inter- Also L0 February, technical 2.1.21. on for national trade problems were to be turned into a reasons, the Commission sought the assent fighting match. of the Council and the opinion of the ECSC Consultative Committee with a view to As regards the conflict over steel, the Community extending by an additional period two had no choice but to react, as it had said it would, of to the unilateral measures taken by the United months (up to 28 February) the deadline for States against exports of semi-finished products the application to deliveries originating in, from the Community. These measures were econ- or sent to, Portugal and Spain of the omically unlustified and contrary to the Arrange- Decision of 23 December 1983 introducing a ment negotiated on 31 October 1985. production an certificate and accompanying rWe regretted having to do this and we constantly document for deliveries of certain prod- reiterated in our contacts with the United States ucts. 1 authorities that we were prepared to seek a more satisfactory solution for both sides. A period of 45 days elapsed before our measures entered into force, more than time enough to resume the dia- Trade with non-member countries logue on this problem. The US authorities nevertheless considered that Exports the time was not ripe for this. Let common sense prevail. The Community is open to discussion in order to find a negotiated, Retaliatory measures against reasonable solution....' the United States in respect of semi-finished products Parliament adopted resolution 2.1.22. The retaliatory measures decided 2.1.23. a on 20 February on the American restrictions by the Council in 2 in response to January semi-finished steel products the unilateral measures taken by the United on imports of States in respect of semi-finished products from the Community in which it notes with concern increasingly protectionist became effective on 15 February. Up to 15 the (--r November 1989 imports into the Com- behaviour of the United States point munity of fats of bovine cattle, fertilizers 2.4.7\.4 and coated paper originating in the United States will remain subject to quantitative Special steels restrictions. On 14 February the Com- mission allocated the 1986 import quotas 2.1.24. The United States terminated the for these products to the Member States.3 safeguard measures it had applied since 1984 to exports of stainless steels (or special For their part, on 19 February the American under authorities adopted retaliatory measures in steels) originated in the Community general response to the Community's which relate the arrangement on Community mainly to the management of the quota for steel exports,s and the Community has semi-finished products. therefore not renewed the retaliatory meas- Following this escalation of restrictive measures Mr \D7illy De Clercq, Member of t OJ L 373,31.72.1983; Bull. EC 12-1983, point 2.1.15; the Commission with special responsibility OJ2 L 89, 29.3.1985; Bull. EC 12-1985, point 2.1.30. for external relations and trade policy, 3 oJ L 30,5.2.1986; Bull. EC 1,-7986,point2.1.20. statement Com- oJ L fi,ts.z.t9&6. made a setting out the 4 oJ c 68,24.3.1986. mission's position and the frame of mind in 5 Bull. EC 11-1985, point 2.7.341 OJ L 355, 31.12.1985; which it will conduct further discussions: Bull. EC 12-1985, point 2.1.36.

Bull. EC 2-1986 Research and technology ures it adopted on 6 February 1984 and ning schemes for approval as a matter of extended to 28 February 1986.r priority. a These different schemes involve nearly 80 research teams in virtually all the Member States. The projects relate in lmports particular to modelling studies on the circulation of ocean waters, the study of the Autonomous measures modes of soil aggregation under the influ- ence of non-crystalline mineral colloids and 2.1.25. Under Article 71(3) of the ECSC organic compounds of plant or microbial Treaty, Germany and the Benelux countries origin, the analysis of the structure of have asked the Commission to authorize materials through the study of valency elec- the application of safeguard measures to trons, and the synthesis and spectroscopic imports of products originating in Eastern- study of bioactive peptides, hormonal poly- bloc countries and released for free circu- peptides and proteolytic enzyme inhibitors. lation in another Member State. 2.1.28. On 20 and 2l February the Com- 2.1.25. The Commission also initiated an mission, in coniunction with the publishers anti-dumping procedure in respect of cer- Autrement and the newspaper I* Soir,held tain iron or steel sheets and plates imported a symposium in Brussels on the topic of from Yugoslavia.2 The share of the market science and technology in Europe: infor- in these products accounted for by imports ming and communicating. The symposium from Yugoslavia increased from 0.1% in was attended by 250 people involved in the 1980 to 7.2o/o in 1984 and2.8oh in the first problems of information in research and half of 1985. Prices are between 160/o and technology: public relations officers of pri- 33% below those charged by Community vate and public research centres, national manufacturers. and international officials and journalists. The different speakers and participants endeavoured to identify the problems Research and technology associated with the specific nature of information on research and technology and to pick out the best ways of making the general Community R&D policy public more familiar with European research, and more particularly Community Stimulation of European scientific research. and technical cooperation and interchange I ntern ati o n a I co o perati o n 2.1.27. Meeting in Brussels on 2l Febru- ary, the Committee for the European Devel- 2.1.29. On 25 February the Council adopted a Decision 5 concerning the con- opment of Science and Technology (Codest) 5 examined the problem of the budgetary clusion of an Agreement extending and fluctuations that are liable to affect the amending the Agreement between the Com- implementation of the 1985-88 stimulation munity and Switzerland on a concerted- plan.3 It was concerned that such fluctuations might lead to the rejection of too many proposals this year. The proposals t oJ L afi,11.2.1984; Bull. EC 2-1984, point 2.2.18; Ol L already submitted represent a total of 50 59, 27.2.1985; Bull. EC 2-7985, point 2.2.13. 2 oJ c 38, 19.2.1986. million ECU, and more are expected. , OJ L 83, 25.3.1985; Bull. EC 1,2-1.985, points 1.7.1 and 1.7.2. From the projects that the Commission is 4 Bull. EC 1-1986, point 2.1.23. currently considering the Committee drew 5 oJ L 7s,20.3.79s6. up a list of L3 research grants and 14 twin- 6 Bull. EC 11-1985, point 2.1.184.

34 Bull. EC 2-1985 Research and technology

action project in the field of the detection nominal capacity of 5 million watts, was of the tendency to thrombosis. 1 recently connected to the machine and has operated successfully: it has already sup- COST proiects plied 4.4 million watts to the plasma for five seconds. 2.1.30. On 4 Februarv the Council 2 3 Although not yet highly significant from adopted a Decision concerning the con- a purely scientific standpoint (the power clusion of an Agreement extending until 31 injected is still relatively small and the dur- December 1986 the Communiry's concertation insufficient), the results obtained are ed-action programme in the field of shore- extremely encouraging: the plasma density based marine navigation aid systems (COST has doubled with respect to ohmic heating Project 301) and the corresponding Com- conditions, and the temperature at the cen- 4 munity-COST Concertation Agreemenr. tre has increased by some 10 million degrees. This is a technical achievement of some merit, the fruit of close cooperation 2.1.31. On the U"ri. the reports pre- between JET, the associated laboratories sented by Mr Rolf Linkohr"f during Parlia- and European industry. ment's first October part-session, which was chiefly devoted to Europe's response to lndustry technological challenge,5 on 21 February Parliament adopted a resolution on tech- 2.1.33. On 25, 26 and 27 February the nology transfer l--+ point 2.4.7il.7 Commission held in Marseilles, in conjunction with the Centre for Studies on Advanced Systems and Technologies, .a Sectoral R&D activities symposium on research and technology in extreme environments. The symposium Energy brought together researchers from the Com- munity, other European countries, Canada, Japan and the United States. It was intended Nuclear fusion energy to enable the participants to compare the status of their respective programmes, their Latest acbieuements of JET organizational and management methods and their technical achievements and pro- 2.1.32. In order to reach, in tokamak- jects in space, the oceans and the nuclear type devices such as JET,8 the temperature field. of 100 million degrees Celsius that is necessary for a sufficient number of fusion reac- The mastery of 'extreme' environments - tions to be set off, it is essential to sup- whether they occur naturally, as in space or plement the heat source constituted by the at the bottom of the sea, or are the result plasma current itself (ohmic heating) with of human activities, as in the case of radio- additional heat sources. Operation of the activity - calls for the implementation of JET machine therefore includes a pro- highly complex technological systems that gramme of additional heating which in 1988 integrate the latest developments in robot- will deliver a total of 25 million watts to the plasma: 15 million watts through the t emission of electromagnetic radio frequency 2 oJ L 78,25.3.1980; oJ L 83, 29.3.1982. waves and 10 million watts through the 3 oJ L 33, 8.2.1986. injection of neutral particles. 4 Bull. EC 11-1985, pornt 2.1.187. 5 oJ L 378,31.12.1982; Bull EC 12-1982,point2.1.779. While 6 million watts of radio frequency Bull. EC 10-1985, point 2.5.15. 6 Bull. EC 10-1985, point2.5.8 et seq. heating had already been installed, the first 7 oJ c 68,24.3.1986. neutral particle inlection line, which has a 8 Bull. EC 5-1985, point 2.1.158.

Bull. EC 2-1985 35 Research and technology ics, electronics, materials science, etc. The Standardization aim of the symposium was to share experi- The Commission also announced ence with a view to enhancing the methods 2.1.36. proposals for of devising and implementing the techno- the outcome of the call for logical systems developed in each of the the establishment of European conformity different fields. testing services for information technology and telecommunications. This initiative will facilitate the application of standards to New technologies products by providing harmonized conformity testing facilities at a number of sites in the Community. lnformation te cb nology Some 15 centres have undertaken to develop the necessary facilities and procedures, with Esprit programme co-funding of nearly 10 million ECU from the Community during the start-up period, 2.1.i4. The Commission published in the after which the centres are expected where 1 Official Journal a call for proposals for possible to continue the work on a commer- the organization in 1986,7987 and 1988, cial basis. Data relating to equipment pass- in close cooperation with it, of an Esprit ing the agreed tests could be exchanged Technical \trfleek, to be held in Brussels and throughout the Community; such equip- attended by 1 000 specialists it will invite. ment could be covered by the current proposals for mutual recognition of type It is planned to hold the L986 Esprit Techni- 2 approval in the IT and telecommunications cal iVeek in Brussels from 2i September fields when they are adopted. a to 3 October. Traditional industries Telecommunications Technical coal research RACE 2.1.37. In accordance with Article 55 of the ECSC Treaty, the Commission decided 2.1.35. On 25 February the Commission on 25 February to transmit to the ECSC announced the results of the call for pro- Consultative Committee, for opinion, and posals for RACE definition phase Part II to the Council, for assent, its draft technical (technology evaluation and eiploration),3 coal research programme for 1986.5 The which is intended to establish the broad programme comprises 50 proiects (selected lines of a future Community network for from 90 applications), whose total cost integrated broadband communication and amounts to 36.6 million ECU, some 50% define the technology necessary for putting of which will be financed by assistance from it into effect in the 1990s. the ECSC operating budget, i.e. 22 million ECU, including 104 200 ECU for the dis- Over 80 proposals were submitted, of which semination of knowledge and associated 3t have been selected, involving more than costs. The programme is mainly geared to 100 organizations. All the contracts have the following objectives: reducing costs and now been negotiated and cover a total cost increasing productivity in coal mines; the of some 40 million ECU, to be cofinanced by the Community, and work has begun on t the majority of the projects selected. The 2 oJ c &,21.2.1986. RACE definition phase is scheduled to last 1985 Esprit Technical Week: Bull. EC 9-1985, point results be used by 2.1.137. 18 months, and its will 3 oJ c 249,1,.10.1985; Bull. EC 9-1985, point 2.1.139. the Council in making further strategic 4 oJ c L)2,12.9.1985; Bull. EC 5-1985, point 2.1.21. decisions towards the end of.1986. 5 coM(86) 107.

36 Bull. EC 2-1985 Research and technology rational utilization of existing deposits; the proposal for three multiannual research upgrading and rational use of products and orolrammes in the field of the environ- by-products; improving working con- rn.rit,3 which relate to environmental pro- ditions, safety and environmental protec- tection, climatology and maior technologi- tion; and the rapid application of research cal hazards. results. As far as environmental protection is con- The largest amounts are devoted to the cerned, Parliament regrets that the Com- following subsectors: roadway drivage sys- mission, when presenting its proposal, did tems, rirethods of working and techniques not take advantage of the opportunity to of coal winning, modern management, review the entire research action pro- preparation and iransport of products, and gramme on the environment. a It wishes to coking of coal. Iee closer integration of the various research programmes ind a coordinated timetable Raw materials ior ihe research action programme and the proposes that 2.1.38. 27 February Parliament framework programme, and On be reviewed in the course adooted an ooinion 1 on the Commission's the programme year take account of the proiosal relaiing to a multiannual research of the second to icti,on programme on materials (raw new approach adopted in the JRC pro- (1987-90) and the framework pro- materiali and advanced materials 1985- gramme gramme (1987-91). 89) 2 and on a support policy for -research and development in the new materials sec- Parliament broadly agrees with the pro- tor. Parliament agrees in general with the posals for the climatology programme, but proposed by-the content of the programme wishes to see the JRC involved in that area Commission, which is subdivided into four of research. subprogrammes: raw materials, secondary raw miterials, wood as a renewable raw Lastly, Parliament is opposed, for the time material, and advanced materials. beine. to the inclusion of an extensive sec- major technological hazards, as this that the fourth sub- tion"on It nevertheless regrets largely covered by direct programme, devoted research on aspect is aiready to carried out by the Ispra not been given pri- research JRC's idvinced materials, had therefore calls on the and therefore calls on the Com- Establishment. It ority, when it comes to review the carry out a full assessment of Commission, misiion to rese-arch REcD capacity in that sector and JRC's multiannual Programme European the programme on -t.t. advanced itlt+-t21, to integrate estimate the -.dirt hazards into the pro- requirements of European indus- maior technolosical materials on industrial hazards that is al- try, so that the programme can be adapted nrr-.. carried out at the and to to the needs of international competition ieadv beine JRC with the task of coordinat- a genuine Community policy pursued .ntrurt thelatter and research. in that-area. At all events' Parliament rec- ing the necessary contractual to ensure that ommends the Commission 2.1.40. The Economic and Social Com- out under the multiannual research carried mittee too adopted an opinion (-- point programme complements rather than com- 2.4.34) on the Commission proposal for a petJs with progrhmmes on industrial tech- Decision adopting multiannual research nologies (Brite), information technology and developm-ent programmes in the field (Esprit) and high-temperature materials and of the environment (1986-90). i materials fromwork conducted at the JRC's Petten Establishment. I oJ c 68,24.3.1986. Environment 2 0J c 220,30.8.1984; Bull. EC 7/8-1.985, point 2-1.224. 3 0J c 301, 25.11.1985; Bull. EC 7/8-1.985, pornt 2.1.230. 2.1.39. On 79 February Parliament 4 oJ L 101,11.4.1981. adopted an opinion 1 on the Commission's r oJ L 3,5.1.1984; Bull. EC 72-1983,point2.7.225.

Bull. EC 2-1985 37 lndustrial innovation and the information market

Health and safety structure for innovation and technology transfer, 2 on February 2.1.41. In the contexr of the 1985-89 radi- 2l the Commission published the ation protection research programme, 1 in Official lournal3 a third call proposals trom 17 to 19 February rhe Commission, in for for the prcmodon of transnational conjunction with the Karlsruhe Centre for cooperation between technology Nuclear Research, held a seminar on the and innovation managemenr advis- risks of tritium for man and the environ- ory services to small and nredium-sized ment. enterprises.4 Tritium contributes to the total radioloeical The appropriations available are intended dose from the nuclear fission cycle and will to- cover up to 50o/o o[ the specific costs be produced in any future nuclear fusion of cooperation. The closing date for rhe reactors. It diffuses rapidly in the environ- submission of proposals is 10 May 1985. ment and can be transformed into many organic compounds whose transport, meta- Tecbnology fairs bolic behaviour and toxicity vary considerably. It is not yet possible fully to assess rhe 2.1.43. Under the plan for rhe transna- risks presenred by tritium during rourine tional development of the supporting infra- operations or uncontrolled emissions. The structure for innovation and technology aim of the Karlsruhe seminar was ro take transfer,2 on 13 February the Commissiin stock of existing knowledge in the area. published in the Official Journal a call for It emerged that whereas the fate of rritium proposals. for- the organization of group contained in water is now well established, visits for heads of firms from one MJmber much remains to be learnt about the behav- State to technology fairs in other Member iour of elementary tritium and tritiated States.5 The available appropriations hydrocarbons. If the mechanisms governing (200 000 ECU) are intended to cover up to the oxidation of elementary tritium in the half the costs of organizing some 20 visits soil and the transformation of tritium in the to fairs in 1987. The closing date for the environment are to be understood, research submission of proposals by public or privare is still-necessary on the incorporarion and innovation and technology-transfer-advis- half-life of this element in molicules of bio- ory agencies is 31 May 7986. logical significance. Close coordinarion with the Communiry's Multilingual proiects fusion programme 1 and cooperarion with the !-lnited Stares, Canada and-Japan should 2.1.44. As part of its fourth plan of acion enable the researchers taking part in the (1986-90) for the improvemeni of the rrans- radiation prorection programme ro build fer of information between European the dynamic models thar are necessary for languages,5 from ll to 14 Februarv the determining the doses received by man. Commission held a world conference on the Systran sysrem in Luxembourg. In addition to lndustrial innovation the Commission departmenis responsible for the development ahd implemeniation of and the information market machine translation, representatives of all the companies and institutions using Transnational measures to promote innovation

Technology transfer and innouation I ol I 83,25.3.1985; Bull. EC 3-1985, point 2.1.141. L_313,15.12.1e83;Bull. management i 9.1 EC rr-11s3, point2.1.29. aduisory seruices , oJ c q,2t.2.ts96. to small business 1 ol C 125,22.5.198s; Bull. EC 12-1,g1s, pornt 2.1.42; OJ 2.1.42. plan c 210, 10.8.1984. Under the for the rransna- , oJ c 33,1J.2.1986. tional development oT the supporting infra- 6 Bull. EC 10-1985, point 2.1.36.

38 Bull. EC 2-1986 Customs union

Systran in the United States, Canada, Japan sons, whether natural or legal, who are and Europe took part. authorized to exchange data by electronic means with them; In the first part of the conference the various aspects of the operation of Systran at the (ii) data element descriptions, codes, Commission, in Europe and throughout the message formats and transmission stan- world were presented. In the second part, dards for use in these exchanges; participants four workshops discussed in (iii) minimum standards to ensure physi- quality translations, the equip- ihe of the cal protection against unauthorized access entering, revising and meni required for to data subject to such exchanges. transmitting texts, and recommendations for the coordination of future efforts and These measures will be adopted in conform- the pooling of existing resources, software ity with guidelines for the use of infor- and multilingual thesauri. mation technology standards laid down by the Caddia Steering Committee.4 The Commission representatives presented plans for a modern and efficient infrastruc- As regards intra-Community trade, the iure aimed at making Systran available to Decision provides that in implementing the all Commission translators in the coming CD project the Commission and the Mem- years. ber States must have due regard to the implications and results of all actions aimed at achieving completely and effectively the conditions for a single market in the Com- customs union munity by 1992 at the latest.

Simplification of customs Single document formalities 2.1.46. In February the Economic and Social Committee gave its opinion (+ point Computerizing administrative procedures 2.4.31) on the proposal foi a Regulatlons in intra-Community trade amending that of 8 July 1985 introducing Community export and import declaration 2.1.45. On 4 February the Council forms.5 adopted a Decision relating to the coordinated development of computerized administrative procedures (CD project).I Noting General legislation the proposals 2 presented by the Com- missi,on pursuant to its resolution of 15 May Accession-related measures 7984,3 the Council made the Commission responsible for the coordination necessary 2.1.47. On 20 February the Commission for implementation of the proiect. adopted a Regulation on methods o[ admin- to provide during the also set up a committee to assist the istritive cooperation It period for free movement of Commission in the execution of the various transitional tasks involved. Via the committee pro- goods in trade between the Community as cedure, the Commission will adopt standards in a number of fields: 1 oJ L 33,8.2.1,986. (i) syntax rules for the purpose of data 2 0J c 15,16.1.1985; Bull. EC 1l-1984, point 2.1.27; OJ exchange between the Commission and C 167, 5.7.1985; Bull. EC 6-1985, point 2.1.39; Ol C 329, Member States, between the customs 19.12.1985; Bull. EC 12-1985, point 2.1.45. I C 137,24.5.1984; Bull. EC 5-1984, point 2.1.5. and OJ administrations of one Member State t OJ L 96,3.4.19851, Bull. EC 3-1985, point 2.1.23. another, and between the Commission or 5 0J c 348,31.12.1985; Bull. EC 12-1985, point 2.1.44. national customs administrations and per- 6 OJ L 179,1,1.7.1985; Bull. EC 7/8-1985, point 2.1.35.

Bull. EC 2-1986 39 Customs union

constituted on 31 December 1985 on the States for such time as customs duties are one hand and Spain and Portugal on the levied in such trade. s other, and in trade between the two new Member States.l In accordance with the Act of Accession, Common Customs Tariff the Regulation establishes arrangements designed to ensure that goods fulfilling rhe Acce s s io n- relate d me asure s necessary conditions are able to benefit from the dismantling of tariffs between 2.1.51. On 24 February the Council Spain, Portugal and the Ten. adopted a Regulation on rhe basic duties to be used by the Ten for the purpose of work- 2.1.48. On 28 February the Commission ing out the successive tariff reductions adopted a Regulation laying down tran- necessary in connection with the accession sitional measures for trade within the Com- of Spain and Portugal.6 munity in goods obtained in Spain, Portugal or another Member State under a procedure 2.1.52. On 26 February the Commission providing for the suspension or lefund of adopted a similar Decision concerning customs duties or other charges---compen- ECSC products originating in Spain. T satory levy.2 The Regulation allows- the goods in question to qualify for the appro- Nomenclature priate Community treatment in another Member State during the rransitional period, while ensuring that a levy is paid 2.1.53. On 4 February rhe Council came on down favour any third-country components incorporated in of the conclusion of the International Convention in the goods without customs duty having on the Harmon- ized Commodity Description and been charged in the Member State of manu- u Coding facture. System and agreed to adopt a formal decision once the necessary procedures had been accomplished. Customs procedures with economic impact 2.1.54. On 2 and 11 February the Com- mission adopted two Regulations to ensure uniform application of the CCT nomencla- Processing under customs control ture, classifying:

2.1.49. On 17 February the Council (i) a preparation of uncooked bovine meat adopted a Regulation 3 amending the lisr under subheading 16.02B III b);e annexed to its Regulation of 26 September (ii) pants for the use of by incontinent 1983 on arrangements permitting goods to persons under subheading 48.21 F II.10 be processed under customs control before being put into free circulation. a The Committee on Common Customs Tar- iff Nomenclature also approved an agree- Accession-related measures

2.1.50. On 10 February I oI L 46,2s.2.1986. the Commission 2 adopted Regulation 3 oJ L 52, 28.2.1986. a on transitional J oJ L 43, 20.2.1986. measures 4 for inward processing, outward OJ L 272,5.10.1983; Bull. EC 9-1983, point 2.1.27. processing and processing under customs 5 oJ L 36, 12.2.1986. control in trade between Member States of 6 oJ L 50, 28.2.1986. 7 oJ L 51, 28.2.1986. the Community as constituted on 31 8 December OJ C 120, 4.5.1984; Bull. EC 4-1984, point 2.1.31. 1985 and Spain or Portugal and 9 oJ L 30, s.2.7986. also in trade between ihe two new Member l0 oJ L 39, 14.2.1986. fi Bull. EC 2-1986 Customs union ment on the classification of goods in head- and providing for the administration of ing32.12.1 Community tariff quotas in respect of certain-w-ines falling within CCT subheading in Spain (1985-86); Acce s s ion-rel ate d me asur e s ex22.05 C, originating (ii) repealing Regulations Nos 1523/85_, 2.1.55. February the Council s On 25 7524/8s, 7525 /85,- 7526/85 and L527 /85 and adopted a Regulation authorizing Spain opening, allocating and providing for the Portugal to include national subdivisions administration of Community tariff quotas agricultural products within the for certain in respect of certain wines falling within Customs Tariff nomenclature. z Common CCT subheading ex 22.05 C, originating in Portugal (1985-85);3 Economic tariff matters (iii) amending Regulation No 1531/85 6 opening, allocating and providing for the administration of a Community tariff quota quotas Tariff in respect of ferrophosphorus-falling within CCT subheading ex 28.55 A;r 2.1.56. In February the Council adopted a Regulation opening Community tariff quo- (iv) amending Regulations Nos 3132185, tas for Spanish imports of fishery products 3130/85 and 3131/857 opening, allocating falling within CCT heading or subheading and providing for the administration of 03.01, 03.03, 15.04 and 23.01 B, originating Community tariff quotas in respect of cer- in the Canary Islands (1986).2 tain products falling within CCT headings 08.03 and 55.09 and Chapter 27, originating 2.1.57. The Council also adopted a num- in Spain (1986).4 ber of Regulations opening, allocating and providing for the administration of Com- munity tariff quotas in respect of: Origin

(i) certain fishery products falling within 2.1.59. In accordance with Protocol No 2 CCT heading or subheading 03.01, 03.03, to the Act of Accession of Spain and Portu- 16.M and 23.0LB, originating in the Canary gal, the Council adopted a Regulation on (1986);2 Islands 25 February on the definition of the concept (ii) certain types of polyvinylpyrrolidone of originating products and methods of falling within CCT subheading ex 39.02 C administrative cooperation in trade XIV a);3 between the customs territory of the Com- munity, Ceuta and Melilla and the Canary (iii) coffee, unroasted and not freed of Islands. caffeine, falling within CCT subheading 09.01 A I a), and cocoa beans, whole or It is largely based on the existing Mediter- broken, falling within heading 18.01;2 ranean agreements (e.g. with Yugoslavia or Morocco) and includes a cumulation pro- (iv) certain polyethylene terephthalate vision. This system should facilitate com- films falling within CCT subheading ex pliance with the rules and means that when 39.01 C III a).4 i product has been manufactured in one of thl territories concerned operators can take

Ac ce s s i on- r el ated me d sur e s t 2.1.58. To take account of the accession oJ c 37,18.2.1986. 2 oJ L s0,28.2.1986. of Spain and Portugal, the Council adopted 3 oJ L 43,20.2.1986. Regulations: 4 oJ L 44,2t.2.r986. 5 0J L 150,8.5.1985; Bull. EC 5-1985, point 2.1.29. (i) amending Regulations Nos 1520/85, 6 OJ L 747,6.6.1985;Bull. EC 6-7985,point2.7.47. 1,521/85 and 1522/85 s opening, allocating . 7 0J L 304, 15.11.1985; Bull. EC 10-1985, pornt 2.1.43.

Bull. EC 2-1985 4l Competition

account not only of stages of processing depot at Ludwigshafen. It should conrribute carried out within that territory but of any to restructuring and consolidation by intermediate products or raw materials increasing the efficiency and profitability of coming from one o[ the other territories. the two parent companies, which is necessary following the reduced profitability from To avoid trade deflecrion motivated by rhe sales ovet the last four yeais. Consideration possibility of obtaining a 'drawback', ihere of the venture under Article 56 shows that is a clause which excludes the mere carrying the share of the market the Federal out of the 'minimal operations' concerning in Republic of Germany (the only country in origin in these territories. which the loint venrure and thi two paient The lists of specific exceptions to the criteria companies operate) served bv the two for change of tariff hCading (List A and depots to be merged is extremely small, List B) are modelled on the EEC-Yugoslavia amounting to only 0.3o/o. Even allowing for Agreement for agricultural products 1 the possible group effect on the German (Common Customs Tariff Chapters 1 to 24) market of the rwo groups indirectly and the EFTA Agreements for industrial involved (Rcichling and Sicilor, which car- products.2 ries on business in Germany not only through Possehl but also through Saarluxi, A new provision is laid down in the their market share represents approxi- explanatory_ not€s to take care of the special mately 4.8% of total salel. On rhat market, situation of fishing vessels in the Cinary the parties face keen competition from Islands. many larger steel companies, both members of groups and independent operators. The Commission therefore authorized the Competition formation of Stahlcenter Rrichling-Possehl considering that it satisfied the-rests of Article 66(2). The authorization granted Restrictive practices, mergers under Article 55(2) concerns an accompany- positions: ing agreement between the parent'com- and dominant panies in which specific case they undertake not to compete on the market of the joint venrure. The Commission considered this agreemenr to Mergers be an essential accompanying-measure to the formation of the loint veniure and that Rdchling-Possebl its only aim was to ensure thar it was viable and to avoid compromising the positive 2.1.60. On 5 February3 the Commission effects hoped for. it therefdre authorized authorized, under Articles 55 and 66 of the the agreemenr until 31 December 1993, tak- ECSC Treaty, the formation of a joint ven- ing the view that it satisfied the tests of ture, named'Stahlcenter Rrichling-Possehl Article 55(2). 9-blt &-Co KG', Mannheim, by Rochling Eisenhandel KG, Ludwigshafen, and Pos- State aids sehl Eisen- und Stahl GmbH, Mannheim (a wholly owned subsidiary of Saarlux). It also Regional aids lpproved the accompanying agreemenr despite the restraint it imposed oi compe- Germany tltlon. 2.1.61. On 19 February the Commission The transaction aims to concentrate the took a final decision under Article 92(l) of commercial activities of the two companies in the Mannheim/Ludwigshafen aria by 2I Ol l- 41,14.2.1983; Bull. EC t-1983, point 2.2.21. operating a single depot (the EFTA origin rules: see OJ L 385,31-.l2.l9BZ: Bull. EC Possehl depot 7 / 8-1982, point 2.2.49. at Mannheim) and closing the Rochling , oJ L 39, t1.2.1996.

42 Bull. EC 2-1986 Competition the EEC Treaty finding against assistance cedure initiated in respect of State assistance granted under the ioint Federal taking the form of a capital injection of Government/ Liinder programme ('Gemein- BFR 125 million in a company in Tournai schaftsaufgabe') for the improvement of manufacturing equipment for the food regional economic structures I in the labour industry.3 market regions Landsberg and Mies- of The Belgian Government had informed the bach,2 on the grounds that the latter were Commission that this represented the not particularly disadvantaged. Neverthe- release of part of the participating interest less, applications for these aids may con- of BFR 145 million which it had decided to tinue until30 1985. This decision does June take in the capital of the undertaking in not concern assistance to tourism and infra- 1982 and which had been the subiect of structure. the Commission Decision of 17 April7984 However, the Commission authorized the requiring the aid to be discontinued. a granting of assistance in the Kleve-Emmer- ith labour market region, in respect of which it had also initiated the Article93(2) Aluminium procedure, until 31 December 1985, taking into account the recent sharp increase in Belgium unemployment there.2 It will then review the situation in the region. 2.1.64. On 26 February the Commission decided to terminate the Article 93(2) pro- France cedure initiated in respect of aid of 500 2.1.62. On 19 February the Commission million which the Flanders region intended initiated the Article 93(2) procedure in to grant to a manufacturer of semi-finished respect of assistance towards job-creation aluminium products. The information sup- in four areas within the Nord-Pas-de-Calais plied to the Commission led it to conclude region. This assistance involves the French that the intervention by the Flanders region Government paying part of the wages in in the form o[ a participating interest of BFR respect of new jobs created in those areas 250 million in the capital of the company of the Nord-Pas-de Calais most severely instead of the BFR 500 million originally affected by the restructuring of the steel, planned did not include any forms of assist- coalmining, shipbuilding and textile indus- ince falling within Article 92(1) of the tries, for a period of three years. The Com- Treaty. mission does not consider the link between problems the regional employment and Agricultural machinery reitructuring of those industries to have been demonstrated as regards the areas of Bruay, Douai and Boulogne. In the Rou- France baix-Tourcoing area the unemployment 12 February the Commission rate is not much higher than elsewhere in 2.1.55. On Article 93(2) procedure in the region, and the area also borders on a initiated the plan grant assistance Belgian area where regional assistance has respect of the to agricultural recently been prohibited, which increases towards restructuring an the risk of distortions of competition. machinery firm located in St Dizier, Angers and Croix, notified by the French Govern- ment. The proposed assistance would con- Industry aids sist of a low-interest loan of FF 135 million Food industry equipment

Belgium t OJ C 316,4.12.1981; Bull. EC 11.-1981,point2.7.37. 2 Bull. EC 1-1985, point 2.1.11. 2.1.63. On 26 February the Commission 3 Bull. EC 10-1984, point2.1.47. decided to terminate the Article 93(2) pro- 4 oJ L n6,D.10.1984.

Bull. EC 2-1986 43 Competition together with FF 40 million in subsidies. mission therefore considered thcse measures The information so far supplied to the to be incompatible with the common mar- Commission by the French Governmenr ket within the meaning of Article 92. does not disclose factors rendering the aid justifiable. Paper manufacturing

T e I e c o mmuni cat io n s e quip ment France

France 2.1.58. On 25 February the Commission decided to terminate the second Article 2.1.66. On 12 February the Commission 93(2) procedure I which it had initiared on initiated the Article 93(2) procedure in 28 September 19842 in respect of aid respect of the proposed granring of invest- amounting to some FF 2 300 million which ment aid to a telecommunications equip- the French Government had intended to ment firm, notified by the French Govern- grant to the main French newsprint and ment. These funds are intended for moder- coated paper producer, situated in Upper nization of the company's subsidiaries, Normandy (La Chapelle Darblay). This modernization of various sections and the assistance had not been notified pursuant stepping-up of computer-aided design facili- to Article 93(3). The French Government ties, automation of manufacturing equip- informed the Commission that the assisr- ment and the development of office auro- ance would permit rhe restructuring of the mation products. company and a large investment programme and stressed that it would lead to The proposed assistance forms parr of a reductions in the workforce and production general programme and would consist of capacity. an interest-rate subsidy and a two-year period of grace before repayments started. Following several changes to the restructuring plan, including a substantial reduction The Commission considered thar most of in the proposed aid, the Commission con- the investments concerned straightforward cluded that the remaining assistance (in the modernization. Furthermore, on the infor- form of FF 1 100 million of equipment sub- mation supplied by the French Governmenr, sidies and a loan of FF 250 million on it could not identify any aspecs that might extremely favourable terms) could qualify justify grant part the of of the assistance. for exemption under Article 92(3)(c).

Hollow glass Man-made fibres

France Italy

2.1.57. On 72 February the Commission 2.1.59. On L2 February the Commission, decided to initiate the Article 93(2) pro- after hearing the parties concerned as procedure in respect of assistance to a hollow vided in Article 93(2) and,having scrutinized glass manufacturer ar Albi. This consists of the proposal of the Italian Government to subsidies of FF 30 million granted by the grant financial assistance ro a nationalized public authorities, rogether with loans at producer of man-made fibres and yarns preferential rates of inrerest totalling FF 30 with production facilities in Pisticci, Ottana million, designed ro rescue the fourih-larg-- and Porto Torres, decided to withdraw its est French manufacturer of hollow glass. reservations and to terminate the procedure Hollow-glass producs are traded berween Member States and there is competition 1 ol l- 273,76.70.1984; Bull. EC 9-1984, point 2.1.33. between Community producers. The Com- 2 Bull. EC 9-1984, point 2.1.34.

4 Bull. EC 2-1985 Employment, education and social policy which it had initiated on 20 February 2.1.71. On 20 February, Parliament 1985.1 The Commission took the view that adopted four resolutions on, specific the modifications of the initial aid scheme employment measures, action taken on a proposed by the Italian Government during spetial European plan for employment, a ihe course of the procedure altered the plan European employment strategy and giving so substantially that the amended proposal a sotial dimension to the Community oualified for exemDtion under Article (+ point 2.4.1\.s dZ(E)(.) and could therefore be considered market' compatible with the common Education and vocational training Under the amended proposal only investment projects relating to conversion to poly- Cooperation in education ester non-woven products, to general services directly linked to such conversion and 2.1.72. In response to the Council resol- to RBrD activities equally outside the tra- ution of 3 June 1985 on equal opportunities ditional man-made fibre and yarn field are for boys and girls in education,6 a working- to be aided. party composed of representatives of national equal opportunities agencies was Taking the view that the amended proposal appointed io implement the resolution, in now conforms to the Community principles paiticular the coordination and assessment eovernins aid to the man-made fibre and bf Comm,rnity action. The working palty longer larn indistry,2 the Commission no held its first meeting in Brussels on 5 and 7 opposes-loans the granting of LIT 17 375 million February, at which participants described in at ieduced interest rates and of the positive actions under way in their LIT 5 939 million in grants for the benefit couniries. They also indicated how each part a of the above proiects, which form of Member State proposed to give effect to the total investment amounting to LIT 100 790 action programme set out in the resolution. million. They fro[osed various measures which could bl undertaken iointly by severalMem- ber States in cooperation with the Com- Employment, education mission. and social policy Youth exchanges 2.1.73. On 5 February the Commission Employment adopted for transmission to the Council a proposal for the 'Yes for Europe' pro- Employment and the labour market gr"*-. (Youth exchange scheme for Europe)7 accompanied by a proposed 2.1.70. A ioint meeting of the Sedoc3 Council Decision designed to stimulate and group and the group-offiiials on exchanges of place- improve the quality of youth exchanges- in menf service between Member the Communiiy. The programme is a fol- States was held on 12 February, at which low-up to experience acquired by the Com- the 14th programme of exchanges 4 was mission since 1954 in the management of approved.-ThE programme covers 1986 and piovides for exchanges of some 400 bfficials, including frontier placement ser- I Bull. EC 2-1985, point 2.1.39. vice officials and Sedoc officials and instruc- 2 0J c 171, 10.7.1985; Bull. EC 5-1985, point 2.1.35. 3 vacan- tors. It was decided to organize exchanges European system for the international clearrng of provide technical aid for labour market cies and apphcations for employment. to 4 Bull. EC 4-1985, pornt 2.1.51. orginization in Greece and Portugal. The 5 oJ c 68,24.3.1986. tra-ining programme for Sedoc office staff 6 0J c 166, 5.7.1985; Bull. EC 6-1985, point 2.1.69. in Greele-, Splin and Portugal was adopted. 7 coM(86) 52.

Bull. EC 2-1986 Employment, education and social policy

exchange programmes for young workers I Living and working conditions and the adoption by the European Council and social prctection in Milan of the report of the Ad Hoc Com- mittee on a People's Europe.2 Fight against poverry The'Yes for Europe'programme has been 2.1.74. In granting financial allocated 30 million ECU for the first years aid for four projects for marginal groups, the Com- (7987-89), which should enable at least mjssion brought to a close the first stage 3 80 000 16 to 2S-year-olds to stay for one of Community acrion to combat poveity, week or more in another Member State, in is part of the programme adopted by direct contact with its economic, social and ryhich the Council a cultural environment. on 19 December 1984. A rotal of 55 prolects were included in the first At present, three countries-France, the stage, receiving Community aid amounting Federal Republic of Germany and the to some 18 million ECU. The rask of coordi- United Kingdom-play a preponderanr role nating and assessing the profects and disse- in youth exchanges in rhe Community minating the findings is in the hands of two through their political and financial efforts research institutes in the Federal Republic in this field. The 'Yes for Europe' proof Germany and the United Kingdom under gramme is designed ro extend iuch contract to the Commission. exchanges to all the Member Srates, stimulate young people's individual development Equal rights for men and women and make them aware of the Eurbpean dimension of the society in which rhey-live, 2;1.75. In February the Council approved and organize exchanges among those who the guidelines for the Community's partici- have few opportunities of this nature. pation in the United Nations Commission on the Status of Women held in Vienna on The exchange operations will accounr for 24 February to 5 March 1985. 80% of the proposed budget and will be administered by agencies in each Member 2.1.75. A seminar on income raxarion and State, to each of which will be attributed equal treatment for men and women in the objectives in proportion ro the size of its Community took place in Oxford, United youth population. The programmes selected Kingdom, on 17 and 18 February. This was will be required to conform ro certain stan- the first phase of a rethinking 6f ideas on dards: in particular, they should increase this subject as provided for-by rhe new )igung people's awareness of the European Community medium-term action pro- dimension, maintain a certain balince gramme on equal opportunities for menind between young people from different social, women (1985-90).5 economic and cultural backgrounds, and Three aspects were examined: the Member concern regions of the Community which are States' tax systems, their effect not strongly represented in youth exchanges. on women's The Commission will moniror employment and the possible reform of th. these systems implementation of the programme. with a view to reducing bias as regards women's employment. Thl dis- To guarantee rhe quality of the exchanges, cussions clearly showed that many tax sys- a number of complementary measures tems are based on outmoded priniiples and up the remaining 20% of. the allo- attitudes and thus include fearurei which -takingcation-are also envisaged: support for information and promotion activities carried out by national agencies; aid for seming 1 Bull. EC t2-1984, point 2.1.93. 2 up non-governmental organizations to r Bull. EC 5-1985, point 1.2.3. organize yourh exchanges; aids for training Bull. EC 10-1985, point 2.1.53. o_l I 2, 3.1.1985;Bull. EC 12-1984,point2.1.95. youth workers and finincing exchanges oT 1 5 Supplement 3/86 Bull. EC; Bull. EC 12-1985, point experience. 2.1.106. -

4 Bull. EC 2-1986 Employment, education and social policy have a negative impact on women's employ- No 1408/714 invalid. Under this provision ment. This was particularly true of systems workers subject to French law receive ben- based on the aggregation of the spouses' efits for members of their families residing incomes. In the interests of equal treatment' outside France on the basis of the provisions all direct discrimination against women had applying in those countries rather than to be done away with, while only a system under which individuals were taxed separ- :l::",n::t;',*tl'"ffi ',TL'.i:'Js',:iil,.I ately could prevent indirect discrimination. 2.1.77. The first meeting of the Steering Paul Finet Foundation took Committee on Women and Television 2.1.80. The Executive Committee of the place Brussels on 11 February. Represen- in Paul Finet Foundation examined 302 appli- personnel management of iatives of senior cations for study grants and awarded 255 stations 12 Community television in all grants totalling BFR 4 238 689. countries met to discuss the promotion of equal opportunities within their organizations. Social aspects of sectoral policies The establishment of the Steering Commit- 2.1.81. The Joint Committee on Social tee was one of the recommendations of the Problems of Agricultural rtrflorkers held a Television held in Seminar on Women andI plenary meeting in Brussels on 25 February Brussels in June 1985 and was accordingly ittended for the first time by Spanish and requested in the new medium-term action Portuguese representatives. The Committee programme on equal opportunities for reviewed its work in 1985. It adopted a women.' report on the determination of minimum The Committee's role will be to act as a sa-fety requirements for the use of plant forum for the exchange of information and protection products and decided to transmit ideas, to stimulate positive actions' to pro- it to the Commission and continue its work vide a mechanism for the regular monitor- in this area. It also adopted an opinion ing of the employment situation of women, calling for the improvement of agricultural an-d to stimulate the organization by tele- statistics, particularly on trends in the vision stations of cooperative action at employment of permanent or seasonal wor- national or regional level with equal oppor- keri, and statistics on Spain and Portugal. tunities agencies, women's groups and trade unlons. Health and safety Social integration of handicapped people 2.1.78. In response to the conclusions Public health reached by the Council and the Ministers 2.L.82. The second meeting of the ad hoc on of Education meeting within the Council committee of experts responsible for draw- organized 4 June 1984,3 the Lommission ing up scientific recommendations on meas- February the first in Brussels from 12 to 14 ures to be taken against cancer was held group the ioint meeting of the liaison on in Paris on 19 and 20 February (--+ point people the problems of handicapped and 2.1.9t). working Broup on educational integration of disabled pebple. The discussions mainly concerned the coordination of Community I Bull. EC 5-1985, point 2.7.76. action for disabled people in the education 2 Supplement 3/85 Bull. EC; Bull. EC 12-1985, point and social sectors. 2.1,.106. - 3 Bull. Ec 5-1984, point 2.1.58. Social security for migrant workers 4 oJ L 149,5.7.1971. 5 0J c 39,20.2.1986; Bull. EC 1-1985, point 2.4.25.The 2.1.79. A judgment by the Court of Justice iudgment will be analysed in detail in the quarterly review recently declared Article 73(2) of Regulation of cases in the 'Court of Justice' section of Bull. EC 4-1985.

Bull. EC 2-1986 A people's Europe

2.1.83. On27 February the Economic and Denmark in implemenrarion of the Council Social Committee delivered a favourable Directives of 15 July 1980 3 and 3 September opinion (--+ point 2.4.32) on the Com- 19844 amending the Directives laying down mission's communication to the Council of the basic safety srandards for the-health 13 December 1985 concerning action protection of the general public and wor- against cancer. 1 kers against the dangers of ionizing radiation. 2.1.84. In the contexr of health education, with particular reference to rhe prevention 2.1.87. On 20 February Parliament of. psychotropic .drug abuse, ihe Com- adopted four resolutions on the recent dis- mlsslon ls partlclpatlng m a programme charges of radioactive material from the org_anized jointly by the Council of Europe Sellafield reprocessing plant in the UK and ttrTorld on the false information given respec and the Healrh Organization. in - of Although the programme cenrres on a those emissions (+ point 2.4.19).5 groqp of schools, the educational campaign 2.1.88. A seminar held in Luxembourg has been enlarged ro cover the local admin- from 19 to 21 February on the correct medi-- istrative area and the immediate social cal treatment for overexposure to ionizing environment. Two meetings were held, one radiation was attended by some 50 experts at Arese, near Milan, in ltaly and one at from different disciplines in the Member Newcastle in the UK, at which the status of States. This meeting made possible to the pilot projects, the difficulries encoun- it update existing medical and scientific tered and appropriate remedial measures knowledge of the subiect. were discussed.

Health and safety at work Culture 2.1.85. In accordance with rhe decisions Transnational cultural itineraries taken at the plenary meeting of the Advisory Committee on Safety, Hygiene and Health 2.1.89. On 77 February the Ministers Protection at ltrUork held on 28 and 29 responsible for cultural affairs meeting November 7985,2 two ad lroc groups met within the Council formally adopted the in Luxembourg. resolution on the establishment oflransna- tional cultural itineraries 6 which thev had The ad hoc group on informarion relating approved in December. T to safety, which mer on 4 February, drafted an opinion concerning the establishment of a system for the rapid exchange of infor- people's mation on the dangers arising from the use A Europe of certain products at work. Youth, At its meeting on 10 and 11 February, the education, ad hoc group on parhogenic substances exchanges and sport examined the problems posed by the prorec- Youth tion of workers in the biorechnology sector exchanges and of workers handling pathogenic sub- 2.1.90. On 5 February rhe Commission stances. adopted a proposal for a programme and a

I Health and safety (Euratom) Bull. EC 12-1985, point 2.1.41. 7 Bull. EC 12-1985, point 2.1.115. 2.1.85. Acting under Article 33 the J OJ L 24, 17.9.1980; Bull. EC 7/8-1980, point 2.1.54. of 4 OJ L 255, 5.10.1984; Bull. EC 9-1984, point 2.1.55. Euratom Treary, the Commission delivered 5 favourable oJ c 58, 24.3.1986. a opinion on a draft radiation 6 oJ c 44, 26.2.1986. protection measure to be introduced by 7 Bull. EC 12-1985, point 2.7.724.

48 Bull. EC 2-1986 Environment and consumers

Council decision on the introduction of a study costing UKL 20 000 for the integrated three-year programme (1987-89) to promote operation in Belfast, Northern lreland. youth exchanges in the Community under the title 'Youth exchange scheme for Europe' (-+ point 2.L73). Environment and consumers Health and social welfare Environment Action against cancer 2.1.91. On 19 and 20 February, at the New directions initiative of the Commission, the ad hoc 2.1.94. As part of the follow-up to rhe expert committee held its second rneeting European Council meetings in Brussels 3 and in Paris; this group was set up to make LuxembourB,4 on 25 February the Com- recommendations on action to be taken at mission sent the Council a communication Community level the in fight against can- setting out new directions in environment cer. I Mr Delors, Mr Narjes (Vice-President policy. s rIfith European Year of the with special responsibility research for and Environment coming up in 1987, the Com- science) and Mr Marin (Vice-President with mission has now set out general guiding prin- special responsibility for social affairs and ciples for Community action in this field. employment) represented the Commission. Mr Delors spoke of the four areas for action The Council is due to start discussing the which would shortly be the subiect of com- communication on 5 March. The Com- munications to the Council: mission paper stresses that a strict environ- policy just (i) prevention, including the campaigns ment is not compatible with but essential which will form part 'Europe against is in fact to long-term economic o[ jobs. cancer'weeks; growth and can create Beyond that, the Commission declares that it will take due (ii) training, mainly directed towards gen- account of these new directions when draft- eral practitioners and cancer specialists; ing the fourth Community action pro- (iii) research: special action on cancer is gramme on the environment. In the mean- planned for the next medical research pro- time the Commission calls on the Council to gramme; support a series of priority objectives, (iv) harmonization of legislation in the including: fields of drugs, consumer protection and (i) expand the 'polluter pays' principle working conditions. and apply it more widely; 2.1.92. On27 February the Economic and (ii) retain prevention as one of the key Social Committee adopted a favourable objectives of environment policy; opinion (--+ point 2.4.321on the communi- (iii) take account of environmental needs cation on action against cancer transmitted in national and Community legislation; by the Commission to the Council on 13 (iu) assist with the implementation of December 1985.2 environment policy in disadvantaged regions and declining industrial areas; Coordinated application of (v) make big cuts in air pollution and discharges of pollutants into the sea, and in structural f inancial i nstruments

Integrated operations 1 Bull. EC 12-1985, point 2.1.41; Bull. EC 1-1985, point 2.1.78. Studies 2 Bull. EC 12-1985, point 2.1.41. r Bull. EC 3-1985, point 1.2.5. 2.1.93. On 3 February the Commission 4 Bull. EC 11-1985, point 1.1.1. approved a grant of UKL t5 000 towards a 5 coM(85) 76 final.

Bull. EC 2-1986 Environment and consumers particular into the North Sea and the Medi- First, the importing countries would be terranean Seal forewarned of any exports planned (prior (vi) formulate worldwide codes of prac- notification). tice for hazardous chemicals, wastes and Second, after 1988 the importing country plants; would have 50 days to refuse the product (vii) adopt appropriate environmental entry to its territory, based on the'informed regulations for the biotechnology field; choice' principle (prior consent). If the (viii) support completion of the internal intended country of destination does refuse, market by harmonizing product standards the Community would ban exportation of in the Community by 1992 with a view to the product. At present, neither the Com- protecting the environment; munity nor most of the Member States have the power to prevent exportation in such (ix) launch a five-year demonstration pro- cases. ject programme to explore the job-creating potential of environmental policies; Finally, the proposal includes rules on pack- (x) bolster the Community's international aging and labelling and on imports of the role, particularly in relation to the special products in question into the Community. problems facing the developing countries. At the same time, the Commission is also proposing a campaign within OECD and UNEP to secure international agreement on Environment and the EEC Treaty the 'prior consent' principle. 2.1.95. On 17 February Parliament adopted a resolution criticizing the vague- Major-accident hazards ness and inadequacy of the Single Act 1 in defining Community environment policy. It 2.1.98. On 18 and 19 February the authori- also specified the amendments to the EEC ties responsible for implementing the Treaty which it felt were necessary to take Council Directive of 24 June 1982 on the account of this policy (+ point 2.4.7il.2 major-accident hazards of certain industrial activities a agreed to a Community-wide exchange of information on hazardous European Year of the Environment industrial activities. Details of industrial activities covered by Article 5 of the Directive 2.1.96. On 17 February Parliament are to be sent to the Commission. They adopted a resolution on the European-Year will remain Commission of the Environment (-+ point 2.4.79).2 confidential, but the will give the other Member States general details to allow Community-wide compari- Prevention and reduction son of notes on the measures taken to prevent of pollution and nuisances major-accident hazards and on how the rules laid down in the Directive are working. Chemical products 2.1.99. In February the Economic and Social Committee' endorsed (-+ point Foreign trade 2.4.36) the amendment to the Council Directive this subject, a proposed 2.1.97. On 12 February the Commission on as by the Commission on 21 October 1985. s transmitted a proposal for a Council Regu- lation designed to minimize the risks inherent in the export of certain pesticides and other dangerous chemicals to non- I Supplement 2/86 Bull. EC. 2 oJ c 68, 24.3.1986.- co-untries, particularly Community develop- 3 coM(86)77. ing countries.3 A series of arrangements 4 OJ L 230, 5.8.1982; Bull. EC 6-19t2, pant 2.1.92. have been proposed. 5 OJ C 305, '25.11.1985; Bull. EC 10.1985, point 2.1.88.

50 Bull. EC 2-1986 Agriculture

Protection and use of rcsources and redress imbalances in bargaining strength by appropriate legislation. Natural resources Consumer information, education 'Silua' conference and reprcsentation 2.1.100. The International Conference on Trees and Forests ('Silva') was held in Paris Education from 5 to 7 February (- point 2.1.135). 2.1.105. In February the Economic and 2.1.101. On 19 February Parliament Social Committee gave an Opinion (--+ adopted a resolution on agriculture and the point 2.4.35) on the draft resolution environment (+ point 2.4.7\.1 concerning consumer education in primary and secondary schools sent by the Com- mission to the Council on 5 August 1985.5 Consumers

Physical protection Agriculture and product safety Council Cosmetics 2.1.106. On 24 and 25 February the 2.1.102. On 28 February the Commission Council discussed in detail the Com- again amended a number of annexes to mission's proposals on agricultural prices the Commission Directive of 27 luly 7976 and related measures for 1986/87, including concerning the approximation of the laws the proposals for changes in the common of the Member States relating to cosmetic organization of the markets in cereals and products,2 to take account of technical beef and veal (-- point 1.3.1 et seq.).6 developments in this field. The new amend- Ministers were rather critical of the pro- ment contains a revised version of the list of posals. In particular they felt that farmers substances and colouring agents permitted would be disappointed by the short-term until3l December 1985. nature of the solutions offered (no socio- structural proposals), that insufficient Accidents caused by products account had been taken of the problem of agricultural incomes, and that some meas- 2.1.103. On 21. February ParliamentI deli- ures were unfair. Budgetary and inter- vered a favourable opinion on the pro- national constraints were discussed at posal transmitted by the Commission to the Iength. Council in January 1985 on the introduction of a Community system of information on There was broad political agreement on accidents involving consumer products. 3 the outlines of a compromise concerning production refunds for starch products and sugar used in the chemical industry. T Protection of economic and legal interests t oJ c 69,24.3.1,996. 2 oJ L 262,27.9.1976. Unfair terms in contracts 3 oJ c 117,11.5.1985;Bull. EC l2-r984,point2.t.t37. a Supplement 1,/84 Bull. EC; Bull. EC 2-1984, point 2.1.104. Parliament 2.1.94. - On 2l February 5 adopted a resolution (--+ point 2.4.79)t on oJ c 238,19.9.1985; Bull. EC 7/8-1.985, point 2.1.133. 6 point 72- unfair terms in contracts, a which it Bull. EC 11-1985, 2.1.727 et seq.; B]uJl. EC in 1985, point 2.7.154 et seq. stressed the need to afford consumers better 7 OJ C 347,27.12.7984; Bull. EC 77-1984, point 2.1.96; protection against unscrupulous suppliers Bull. EC 9-1985, point 2.1.95.

Bull. EC 2-1986 51 S Table 6 Price proposals for indiuidual agricultural products Gt - o=. 1985/86 Proposals 1986/87 Sparn Portugal c c Product and type of pnce or amount Amounts ECU/tonne Amounts ECU/tonne Amounts Amounts % o (Period of apphcatron) ECU/ ECU/ increase increaw increase tonne tonne 1985/86 1986/87 1985/85 1985t87

I 2 3 4 5 6 7 8 9 t0 11

Common wheat 1.7.86-30.6.87 o Target price 254.98r t.6r 256.16 0.5 L56.16 Common single intervention price 779.44r 1.91 179.4 0.0 773.57 774.41 ; Reference price for bread wheat average quality - 20930r 1.91 Barley 1.7.86-30.6.87 o 'Iarget price 232.67r t.6r 2l3.86 0.5 233.86 o Common single intervention price 779.441 1.81 779.44 0.0 764.34 766.50 ; Maize 1.7.86-30.6.87 o Target price 232.61r 7.61 233.86 0.5 233.86 o Common single intervention price 179.44r 1.91 179.44 0.0 173.57 174.41 ; Sorghum 1..7.86-30.6.87 o Target price 232.6t1 t.6r 233.86 0.5 233.86 o Intervention price 179.44r 1.gr 179.4 0.0 164.34 166.50 ; Rye 1.7.86-30.6.87 o Target price 234.671 7.6r 233.86 - 0.3 L33.86 o Intervention price 181.23r 1.91 179.44 - 1.0 769.14 169.16 * Durum wheat 1.7.86-30.6.87 . Target price 357.70r 0.01 357.70 0.0 357.70 o Intervention price 312.081 0.01 298.23 - 4.4 211.00 215.45 2.r o Aid2 101.311 0.01 108.24 6.8 15.46 Rice 1.9.86-31.8.87 . Target price husked rice 548.37 t.6 548.37 0.0 s4b37 -price paddy rice 314.19 0.0 314.19 0.0 248.64 258.00 ; o Intervention - Sugar 7.7.86-30.6.87 E! 0.0 E o Basic price for sugarbeet 40.89 0.0 40.89 0.0 s2.89 52.74 - 0.3 42.45 42.45 :- o Intervention price for white sugar 541.80 1.3 541.80 0.0 688.30 685.00 - 0.5 528.00 531.70 0.7 rr, o Olive oil 1.11.85-31.10.87 i.J r Production target price 3 225.6 2.0 32N.6 0.0 3 225.6 3 225.6 0.0 3 225.6 3 225.6 0.0 \o 1 7 40r.2 3.4 2 2 132.8 0.4 6 o Intervention price 2276.2 0.0 2162.4 -5 355.1 125.2 o\ Production aid3 709.5 2.0 709.5 0.0 92.6 154.6 66.4 0 71.0 - ttp Rape seed 1.7.86-30.6.87 :- o Target price 4&.lr - 1.91 464.1 0.0 414.3 419.3 1. #.1 #4.t 0.0 olr, o Intervention price 421.51 - 1.91 421.5 0.0 371.7 376.7 1.3 421.5 421.5 0.0 f.J Sunflower seed 1.8.86-31.7.87 \o 6 o Target price 573.5 - 1.5 583.5 0.d 416.9 432.6 3.8 508.4 574.9 1.3 o\ o Intervcntion price 524.7 - 1.5 534.7 0.d 358.1 383.8 4.3 459.6 ffi.| 1.4 Soya beans 7.9.86-31.8.87 o Guide price 575.8 1.0 575.8 0.0 424.7 439.8 3.6 575.8 575.8 0.0 r Minimum price 506.7 1.0 506.7 0.0 355.6 370.7 4.2 506..7 506.7 0.0 Dried fodder o Fixed-rate aid t.4.86-37.3.87 8.49 1.0 8.49 0.0 0 t.2l 0 t.2t o Guide price t.4.86-37.3.87 178.92 1.0 178.92 0.0 143.78 148.80 3.5 178.92 178.92. 0.0 Peas and field beansa L.7.86-30.6.87 o Activating price 506.4 t.2 509.6 0.5 500.2 504.1 0.8 506.4 509.6 0.6 o Guide price 324.8 1.9 328.0 1.0 320.8 324.6 1.2 324.8 328.0 1.0 o Minimum price peas 283.5 1.9 286.3 1.0 279.5 282.9 1.2 283.5 285.3 1.0 - field beans 273.5 5.4 276.2 1.0 273.5 n6.2 1.0 n3.5 n6.2 1.0 - Lupins r.7.86-30.5.87 o Activating price 482.5 0.9 485.0 0.5 458.2 W.O 482.5 485.0 0.5 o Minimum price 317.9 0.0 321.1 1.0 305.4 310.3 317.1 321.1 1.0 Flax r.8.86-31.7.87 r Guide price (seed) 554.1 1.0 554.1 0.0 445.3 46,0.8 3.5 554.1 554.1 0.0 o Fixed-rate aid (fibre) (per ha)3 355.09 1.0 3s5.09 . 0.0 50.73 50.73 Hemp 7.8.86-31.7.87 o Fixed-rate aid (per ha)3 322.48 1.0 322.48 0.0 45.O7 46.O7 Silkworms 1.4.86-31.3.87 o Aid per box of silkseed3 t08.67 1.0 108.67 0.0 15.52 15.52 Cotton 7.9.86-31.8.87 o Guide price 960.2 2.0 960.2 0.0 960.2 [email protected] o Minimum price 912.3 2.0 912.3 0.0 912.3 912.3 Milk 1.4.86-31.3.87 o Target price n8.4 1.5 n8,4 0.0 Buaets e Intervention price 3 t32.0 - 2.0 3 006.7 - 4.0 3 886.0 3 664.6 Skimmed-milk powdets !O o Intervention price =. t7N.4 4.9 1 800.9 + 3.5 2 687.4 2 614.5 co Grana padano cheese 30-50 days6 E I o Intervention price 3 889.3 1.9 922.3 + 0.8 a Table (continued) 5 GI c6' 1985/86 Proposals 1985/87 Sparn Portugal E (D Product and type of prrce or amount Amounts Amounts Amounts ECU/tonne Amounts ECU/tonne (Perrod of applicatron) ECU/ ECU/ rncrea* rncreas tonne tonne increase increase 1985/86 1986/87 1985/86 t9E6/87

1 2 3 4 5 6 7 8 9 10 71

Grana padano cheese 6 monrhs6 o Intervention price 4 803.3 1.6 4 838.1 + 0.7 Parmigiano-Reggiano 6 months6 o Intervention price 5 291.9 1.5 5 326.7 + 0.7 Beef/veal 1.4.86-1.4.87 oa Guide price for adult bovines 2 050.2 0.0 2 050.2 0.0 1831.7 1863.0e L7 oa Intervention price for adult bovines 7 845.2 0.0 1845.2 0.0 t 647.6 I 676.7 7.7 SheepmeatT 5.1.87-3.1.88 o Basic price (carcase weight) 4 323.2 1.0 4 323.2 4 323.2 4 323.2 0.0 4 323.2 4 323.2 0.0 Pigmeat 1.11.86-37.10.87 o Basic price (carcase weight) 2 033.3 0.0 2 033.3 2 033.3 2 033.3 0.0 (J96lle (2033.3) (+3.7) Fruit and vegetables Basic price 'o Cauliflowers - 1.5.86-30.4.87 1.0 1.0 a Tomatoeslo 11.6.86-30.1 1.86 - 3.0 0.0 a Peacheslo 1.6.86-30.9.86 - 1.5 0.0 a Lemons 1.5.86-31.5.87 - 3.0 0.0 a Pears 1.7.86-30.4.87 0.0 0.0 a Table grapes 1.8.86-31.10.86 0.0 0.0 a Apples 1.8.86-31.5.87 0.0 0.0 a Mandarinsll 16.11.86-28.2.87 - 3.0 0.0 o Sweet orangesll 1.12.86-31.5.87 - 3.0 0.0 a Apricots 7.6.86-37.7.85 - 1.5 0.0 a Aubergines 7.7.86-3t.t0.86 1.0 1.0 'able t! Tr wine 1.9.86-31.8.87 tra Guide price Type R.l 3.12 0.0 3.12 0.0 1.98 2.t9 10.6 =.a Guide price Type RII llt 3.42 0.0 3.42 0.0 1.98 2.19 10.6 ii. Guide price Type RIII 53.30 0.0 53.30 0.0 30.86 34.07 10.4 P. Guide price Type AI 3.77 0.0 3.77 0.0 1.83 2.02 10.4 G. Guide price Type AII 71.02 0.0 71.02 0.0 N.98 45.27 10.5 H. Guide prrce'I'ypeprice Tvpe AIII 81.11 0.0 46.80 51.70 10.5 IE Raw tobaccol2 1985 harvesc o ForchheimerHavanna, Beneventano, Price - 2.5 Price -6 orn Mavra, Tsebelia Premium - 4.0 Premium -6 i.J a Burley Ferm. Price Price -6 Premium \o a Havana Esp. Premium -6 6 o\ a Badischer Geudertheimer Price - 1.0 Price -4 Paraguay, Nijkerk, MissiLnero, Premium - 1.0 Premium -4 Round-Tip, Xanti-Yaka, Perustitza, Erzegovina, Kaba Koulak (non-classic) a Santa F6 Price -4 Price -4 a Round Scafati Premium -4 Premium -4 a Badischer Burley, Price 0.0 Price -2 Burley I, Burley GR, Virginia GR, Premium 1.0 Premium -2 Kaba Koulak (classic) Zichnomyrodata, Myrodata Agrinion Burley Esp. -2 Price -2 Burley P. -2 Premium -2 Virgin D, Bright, Virgin GR, Basmas, Price 0.0 Maryland, Katerini, Kentucky Premium 1.0 o Virgin Esp. 0 Price o Virgin P. 0 Premium

Seedsl3

I Interrm Commrssion decrsion.

pnor to accessron and 13.4"/o for the other regions tn Greece. I In the case of Greece lor 1985/86: Ohve orl production ard was ahgned on the Communtty level (an increase in ECU of 28.9ol.); Flax frxed-rate- ard was ahgned on the Community level (an rncrease ln ECU of 27.8"/"1; Hemp- frxed-rate ard was ahgned on the Communtry level (an rncrease rn ECU ol 27.8%l; Srlkworms- ard was ahgned on the Communrty level (an lncrease tn ECU of 13.4ol"). a The reductions- at thc begrnnrng of 1985t86 were due to the rntroductron of a system of monthly rncreases. 5 Taking rnto account the change rn the oil content of the standard qualrty.

ECU/t (carcase werght). t AsfortheTen,iheseprrcesrelatero'hvewerght'.Theycorrespondroinrerventronprrcesforcarcasewerght(R3)ol 3072.8ECU/Ifor1985/86and3l25.2ECU/.for1986/87. e Basrcprrce ESC290.607 x 0.@674624 (rateinforcesrnce18.12.85) = 1950.5ECU/I.

pnce ratlo rs proposed in the related measutes.

proposals-The was the average of the 1983-85 guaranteed prices. tJ Council decrded that the ards would remarn unchanged for 1985/86 and 1986/87. @ c=.C) c (D H Table 7 Agri-monetary proposals - 1.985/97 @ co=. Pre*nt situationr New situation c o Monetary gap gap Monetary Revalu- Effect Sector ation/ on Gieen rate Green rate Dismantling Devalu- prices (1 ECU :) (l ECU -) of gap atron (Ll real apphed real applied real applied

France Milk/pigmeat/ wine/sheepmeat 7.t0590 0.0 0 7.t0590 Other 7.0N89 - 1.500 0 - t.478 + 1.500

kaly2 All sectors t 482.00 - 5.548 - 4.5 1 511.00 - 3.514 - 2.0 2.034 2.5 - 1.919 + 1.957

Greece2 All sectors 102.345 - 37.053 - 35.3 1t4.626 -22.360 -20.9 14.693 14.4 - 10.714 + 12.000

I Ar 3.2.1985. 2 Reference penod: 22 to 28.1.1986.

E! E otn N \o 6 o\ Agriculture

The President reported on the International tural prices and related measures for 1986/ Conference on Trees and Forests (+ point 87 (; point 1.3.1 et seq.). For most prod- 2.1.135) and stressed that the future of Euro- ucts thC 1985/86 prices are maintained, but pean woodlands would continue to be a some adjustment is desirable or necessary subject for Community attention. Mr in several cases. Taking account of the agri- Andriessen, Commission Vice-President monetary adjustments proposed by the with special responsibility for agriculture Commission, the average price increase and forestry, confirmed that the Com- resulting from the proposals is 0.9% on the mission would shortly be presenting pro- preceding year. posals in this connection. The Council noted a request by Italy for Table 8 Consequences of the Com- aid to help Italian olive growers who had - mission proposais on agricul- suffered as a result of bad weather in Jan- tural support prices in ECU and uarv. The Commission drew attention to national currency the fact that it had recently sent a proposal to the Council on aid for the replanting 9o changc in pricesl and conversion of olive groves damaged by rn natronal I in ECU2 frost. currency3 The proposal for a Council Regulation on the designations used in the marketing of Belgium 0 0 milk and milk products was also dis- Denmark 0 0 cussed.2 The Council heard statements by Germany 0 0 several Member States on the desirability of Greece - 0.4 tl.6s Community measures to restrict sales of France 0 0.8 imitation milk products. The Commission Ireland 0 0 confirmed that it would report on this Italy - 0.5 1.46 before I April. The Council also noted a Luxembourg 0 0 request by tle German delegation for meas- Netherlands 0 0 ures to harmonize national provisions on United Kingdom 0 0 minimum standards of protection for inten- sively reared calves. The Commission said EUR 10 - 0.1 0.9 it would look into the matter. 1.8 In preparation for the application from 1 Spaina 1.8 March- of the provisions of the Act of Porrugala 2.1 2.1 Accession of Spain and Portugal on agri- I Percentage dilference betwan the suPport Pnces proposed for culture, the Council formally adopted more 1986/87 and the support prics rn force when the proposals were than 50 regulations and directives on the adootcd, ln the case of Spatn and Portugal: percentege ditference between the pnes ptoposed tor 1986/87 and the prrces apphcable application of the market organization rules from 1 March l98O io the begrnnrng of 1986/87' products, the 2 Common prrces in ECU lintcruentron of equtvalent prtce) foi the various agricultural werghted accoidrng to the relattve tmportance of the vartous products arrangements for rade between the Ten on ihe value of agrtcultural productton subiect to common Prtces. 3 Common pncis rn ECU converted into nauonal currency at the and the two new Member States and for green rates glven tn these proposals. trade between the latter and non-Com- { T"k,ng mto acco.nt the effect of the altgnment of Grck, Portu- guese and Spantsh pnces on common pnces due to accesslon arrange' munity countries. Two of the instruments ments. concerned agrimonetary matters (--+ point 5 Calculated on the basis of a drsmantling of 2.5 pornts of MCA (rcference rertod: 22 to 28.1.1986). 2.1.108). d Calculated on the basts of a drsmanthng of 14.4 Pornts of MCA (refercnce penod: 22 to 28.1.1986). Agricultural prices and related measures for 1986/87 t COM(86) 88 final. 2.1.107. On 12 February the Commission 2 0J c 111,26.4.1984;Bull. EC 4-1984, point 2.1.98; Bull. sent to the Council its proposals on agricul- EC 3-1985, pornt 2.1.88.

Bull. EC 2-1985 57 Agriculture

Economic aspects of the common wheat available on the Community market agricultural policy in 1985/86 are still 3 million tonnes lower than in the precedingyear. Agrimonetary measures However, carryover stocks at 31 July 1986 will no doubt be higher than a year earlier 2.1.108. On a Commission proposal, the because price increases on the Council fixed the agricultural cbnversion Community market have reduced the quanrities of com- rates for the peseta and escudo to be applied from mon wheat used in animal feed and because 1 March, the date on which the iom- world market mon agricultural policy would effectively demand has declined, especially because apply to Spain of an increase in USSR and Portugal. production. In order to avoid monetary compensatory amounts being applied immediitely, the The cost to the Community budget will no doubt be greater rates were set on the basis of the average than in lgfA/8S because of higher market rates recorded on 24 and 25 Febr - storage costs and an increase in the ary, multiplied by rhe correcing factor average level of exporr refunds due to the applicable in the agrimonetary sysrem.l fall in the dollar and the drop in world market prices for agricultural products (72.2 ECU per tonne for the first iix months of Market organazations the year, compared with 40 ECU per ronne for 1984/85 as a whole)

Cereals 2.1.111. In 1985 Community production of durum wheat was consideribly below 2.1.109. The Commission proposals to the the 1984 figure (5.3 million ronnes com- Council on agricultural prices f.or 1986/87 pared with 5.1 million tonnes). The area included measures relating ro the adjust- under durum wheat in 1985 was much the ment of the common organization o[ the same as in 1984, but yield per hecare was market in cereals (--+ point 1.3.3). lower (23.5 quintals compired with 27.5 quintals in 1984). Market situation

2.1.110. According to the figures available Beef/veal to the Commission departments, the quantity of usable common wheat producid in 2.1.112. The Commission's agricultural 1985/86 was 50.5 million ronnes, compared price proposals for 1986/87 included meas- with 70.3 million in 1984/85. This diop is ures relating to the adjusrment of the com- due to two factors: mon organization of the market in beef and veal (+ poinr 1.3.5). (i) the area under common wheat was reduced as a resulr of damage due to the hard winter in 1984/85 (10.7 million hec- Market situation tares compared with 11.4 million in 1984); 2.1.113. Like the previous year, 1985 was (ii) yields fell because weather during the a very difficult one for the beef growing period was less favourable market. The thin in slaughtering the previous year (55.4 quintals of dairy cows in response to per hectare the introduction quotas-in compared wirh 61.7 in 1984). of milk 1984 went on well into 1985, adding further Despite an increase of 5.8 million tonnes in pressure to an already weak market. carryover stocks ar 31 July compared with 31 July 1984 (14 million tonneJcompared with7.2 million), the quantities of common I oJ L s1,28.2.1986.

58 Bull. EC 2-1986 Agriculture

The average Community market price at imports may be reduced by 20 000 to 30 000 the beginning of 1985 was 77.5o/o of the tonnes following adiustments made in some guide price and remained at this relatively of the preferential import schemes. throughout the first half of the low level Exports in 7986 will be affected by the year, only to decline even further towards continuing disposal of intervention meat as the end of the year. undertaken by the Commission in the con- Total production of beef and veal in 1985 text of its Green Paper. Exchange rate is estimated at 7.3 million tonnes' exceeding movements and the buying power of the consumption by 300 000 to 400 000 tonnes. Community's trading partners will be Imports stood at about 490 000 tonnes equally determining factors for the volume whtreas the 1985 export performance is of 1986 exports. estimated at about the same level (approxi- Market prices are expected to recover in the mately 800 000 tonnes) as in 1984, without course of the year, though the average level any increase in the level of export refunds. will still be well below the guide price. In order to support the market the Com- Consequently, operators will continue to mission boughf hindquarters and fore- turn to intervention to sell their products; quarters into intervention on a permanent however, in view of the proposed adiust- basis. For three weeks in October inter- ments in the intervention system (+ point vention was extended to carcases and half- 1.3.5), the quantity to be purchased is fore- carcases, but despite an intake of the order cast to be loo 000 tonnes lower than the of 115 000 tonnes in that period prices 1985 intake. hardly showed any movement. The above observations do not take account The total intake in 1985 amounted to of the accession of Spain and Portugal, but approximately 450 000 tonnes. Sales from the structure of production' consumption intervention, assisted to a large extend by and trade in those two Member States is special selling conditions for export not expected to have any significant impact adopted by the Commission in autumn on the Community market. 1985, amounted to approximately 400 000 tonnes. End-of-year intervention stocks totalled 734000 tonnes, up 50000 tonnes Milk and milk products from the end of L984. Market situation In the management of the market the Com- intro- mission on two occasions in 1985 2.1.114. The period to October of aid for private January duced temporary schemes 1985 saw reduqtions, compared with the one in April storage of beef. Under the corresponding period in 1984, of 23o/o in (which was open to all categories) 72 000 milk iollection, 5 % in butter production under the tonnes were contracted, while and 10% in production of skimmed-milk scheme (for male ani- August-November powder. Thes-e figures are distinctly higher contracts were made for L72 mals only) W than those for the first six months of 1985, 1.985 approximately tonnes. At the end of which had shown a significant drop on the 100 000 tonnes were still in store under previous year's figures. The trend is still those schemes. upward and reference quantities allocated In 1985 production will start to be influ- t6 milk producers and purchasers under the enced by the reduction in the dairy herd, additional levy scheme could be exceeded and any new measures in the dairy sector at the end of the year in Belgium, France, could have further adverse effects on the Germany, Ireland, Luxembourg and The beef market due to increased slaughterings. Netherlands. Consumption in 1985 is forecast to increase Provisional figures for 1985 show a marked only slifihtly from the 1985 level, while drop in commercial exports of butter/but-

Bull. EC 2-1986 Agriculture

teroil compared with1984 (down 27.8o/o at ized6 the release for consumption, until 30 September 1985). This is due to sharper stocks were depleted, of wini of Com- competition from other exporring counriies munity origin produced before 1 September such as New Zealand and Ausiralia. The 1985 and wine originaring in non-member figures at 30 September 1985 indicate an countries imported before 1 September 1987 increase of 8.9o/" in skimmed-milk powder provided that rheir sulphur dioxide contenr exports compared with the previous year did not exceed the level fixed before 1 Sep- and a drop of 7.8o/o for whole-milk powder, tember 1985. 0.5 % for condensed milk and t4.lo/o for cheese. On 18 February the Commission extended !,V-three weeks rhe final dare for presenting Intervention stocks (public and private) in delivery contracts for the preveniive distil- February 1986 were as follows-(February lation of table wine in the currenr year 1985 figures in brackets): butter 114742 to ensure that quantities were sufficient to tonnes (882190 tonnes); skimmed-milk enable the target figure to be attained. T powder 597 347 tonnes (505 112 tonnes); On 25 and February cheese 94 580 tonnes (80 500 tonnes). 27 the Commission fked the special rares for the conversion of free-at-fronrier 2.1.115. On 24 and 25 February the and reference prices for Council considered imported liqueur wines into natironal cur- the Commission'i pro- 8 posal on compensation for the definitive rencies. I discontinuation of milk production. Finally, on 28 February rhe Commission announced its intention The Council recognized that the imbalance to introduce com- pulsory disdllation of table wine for 1985/ between production and outlets on the milk 85. e The measure market, together with the level should become effective of currenr during March. stocks, gave cause for concern, but there were still differences of opinion as to how the proposal should be applied. Accession-related measures Parliament gave its opinion on the Com- 2.1.117. Following a proposal from the mission's proposal on 21 February.2 t${rhile Commission, on 25 February the Council noting that the proposal incorporared some adopted a number of regulations necessi- comments which ir had made earlier, Parlia- tated^ by the accession of Spain and Portu- ment still had reservations and put forward gal.10 These included the feneral rules on a number of amendments. the regulatory amounts iniroduced by the Act of Accession on imports into the Ten of wine from Spain duiing the period of Wine successive price alignments,t l.adaptation of average prices on representative markets in 2.1.116. As a result of the recent Dro- Spain dlring the same period,12 fixing of the longation of one of the periods duiing quota for imports into Portugal of certain which wine-growers had to fulfil certain distillation requirements in order to be eli- gible I Bull. EC 10-1985, point 2.1.102. for intervenrion aid,3 rhe Commission 1 was obliged on February oJ c 68, 24.3.L986. 3 to adjust the 3 oJ L290,1.11.1985. regulations governing. intervention during I oJ L 29,4.2.1986. the period concerned.4 5 oJ L 320, 29.11.1985. 6 oJ L 38, 1,3.2.1.986. On 12 February, to alleviate any problems 7 oJ L 42, 19.2.1,986. caused by the lowering, from 1 September 8 oJ L 48, 26.2.1986. 9 oJC47,1.3.1986. 1986,s of the maximum total leveli of sul- 10 phur oJ L 54, 1.3.1985. dioxide in wine other than sparkling lt coM(85) 78. and liqueur wines, the Commission author- l2 coM(85) 57.

Q Bull. EC 2-1986 Agriculture wines from the Community in the period 1 fibres, on 5 February the Commission March to 31 December 1985 during which adopted a Regulation enabling private stor- such wines ate subiect to quantitative age-aid to bi granted to holders of such restrictions, 1 and the list of wines produced fibres in the Community. treated as quality wines in Portugal and The Regulation provides that storage con- produced in specified regions. z tracts may be concluded before 31 March On 5 February, following the accession of for three, four or five months. It should be Spain, the Commission stipulated that the possible to restore market balance for the vilidity of licences for viticultural products next marketing year. originating in Spain should be valid until 28 February 1986, by way of derogation Seeds and propagating material from the usual validiry of four months from the date of issue.3 In addition, the Com- 2.1.120. On 27 February the Commission mission stipulated that holders of licences adopted a Decision authorizing the use of 28 Feb- whose initiil validity went beyond EEC labels in certain cases where seed pack- reimburse- ruary could, on request, obtain ages from non-member countries are re- ment of their security. labelled within the Community; it also On 18 February various technical adfust- adopted a Directive limiting the marketing ments were made to a series of regulations of s-eed of certain species of fodder plants on account of the accession of Spain and and oil and fibre plants to 'basic' and 'certi- Portugal. a fied' seed. Proposals were made to the Council provid- Sugar ing-for the progressive inclusion of Spain and Portugal in the existing Community 2.1.118. On2l February Parliament com- seed arrangements. mented 5 on the Commission proposals to amend the Regulation on the common organization of ihe sugar market. s Parlia- Structures mJnt protested vigorously against the decision in principle on the amended pro- 2.1.121. At the end of February the posal taken- by the Council at its 9 and Council agreed in principle, pending formal i0 December meetingT without consulting decisions after receipt of Parliament's opin- Parliament with the result that its opinion ion, on three proposals for specific regiohal became merely a formality. measures to overcome the structural handi- caps to farming in certain areas. s The It nevertheless made a number of comments underlying purpose is not only to safeguard and suggestions-to which it asked the Com- employment but also to protect the environ- mission include in future proposals, ment. emphasized its intention to monitor closely devtlopments on the sugar market both A sum of 47 million ECU over a period of inside and outside the Community, six years is to be granted for the improve- demanded to be consulted on any revision ment of beef-cattle farming in certain less- in two years' time of the quotas and levy, in as orovided for in the Council's decision 1 principle, and stated that it would take no 2 coM(86) 51. then. coM(86) 82. final decision until 3 oJ L 31,6.2.1986. 4 oJ L 48,26.2.1986. 5 oJ c 68, 11.3.1986. Flax and hemp 5 oJ c 219,29.8.1985; Bull. EC 7/8-1985, pornt 2.1.155; Bull. EC 12-1985, point 2.1.164. 2.1.119. In view of the problems encoun- 7 Bull. EC 12-1985, point 2.1.165. tered in the marketing of flax and hemp 8 Bull. EC 1-1986, point 2.1.104.

Bull. EC 2-1986 Agriculture

favoured areas of the Massif central, Plant health legislation France. 2.1.123. In December the Council adopted A total of.74.4 million ECU will be granted amendments 5 to the Community p'lant over years six for the promotion of agri- health rules introduced by Directivi 77 /93/ culture in the mountain areas of Friuli- EEC,' to simplify-procedures for updating Venezia Giulia, Veneto, Trentino-Alto a large number of technical provisi,ons, in Adige, Lombardy, Valle d'Aosta and Pied- particular those relating ro plints and plant mont, northern Italy. products originating in non-member countnes. Lastly, 25 million ECU for a period of five years will be granted for the promotion of On 19 December 1985 the Commission agriculture in the islands off-the northern qdopted- a decision modifying the con- and western coasts of Scotland, with the ditions for authorizing^imports of oak logs exception of the Outer Hebrides. from North America.3 This had become necessary because of difficulties in the implementation of the previous provisions Legislation and because of recent-technical developments. The Commission also proposed Veterinary and animal husbandry that the Council should pro- legislation I amend cerrain detailed visions of the plant health regime to iake account 2.1.122. of the siruation in the new Member The outbreak of foor-and-mouth States. 8 disease in Italy persists. Some foci are due to a different virus strain from that detected in the initial foci. Between December and Competition February the Commission therefore 2.1.124. adjusted the restricrions on exporrs of Under the rerms of Articles 92 to 94 the cattle, pigs and meat from Italy- of Treaty the Commission decided to take to make account of the new developments.2 no comment on the introduction of the following proposed schemes which The situation as regards foot-and-mouth had been duly norified. disease in Argentina has improved, and in December it was possible to icale down the Germany protective measures against offals from that Bauaria: country.3 A review of the epidemiological situation showed that classiCal swine fever (il replanting of vineyards destroyed by had been eradicated from certain parts of frost; Germany, which were therefore ri-estab- (ii) lished as 'officially measures ro improve agricultural free' or 'free' of the structure, especially disease. 4 ' with a view to landscape conservation. The Commission approved the third amendment presented by Italy a and the I second amendment presented by Greece 5 , Bull. EC 11-1985, point2.t.t44. to their plans for the accelerated iradication oJ L 379, 31.12.19ss; oJ L zt, 28.1.19e6; ol L 72, classical 15.3.1986. of swine fever. Under the Com- 3 oJ L 379,31.12.198s. munity arrangements to finance certain o oJ L 334, 12.12.198s. , emergency veterinary measures, the Com- . oJ L 68, 11.3.1985. mission decided to contribute towards com- oJ L 372,31.1,2.198s, oJ c 18d, 1,3.7.1984i8u11. EC 6- 1984, point pensation for damages 2.L.709. due to African swine , oJ L 26, 31.1.1977. fever in Belgium.3 E coM(8s) 284 fnal.

62 Bull. EC 2-1986 Agriculture

Baden-Wilrttemberg: aid for promoting 2.1.127. In February Parliament adopted consumer information about agricultural resolutions on agriculture and the environ- products and the improvement of product ment and on the genetic diversity of culti- quality. vated plants and trees (+ point 2.4.19).r Schleswig-Holstein: aid for the purchase of private *oodlands and land for afforest- Forestry ation. 2.1.128. In February the Commission was France active on two fronts. On 10 February it sent the Council a complementary memor- Aid from Ofival for stimulating production andum 2 to its discussion paper of last of horse meat and rabbit meat. December;3 the complementary memorandum and the discussion paper together Denmark form what is known as the 'Forestry mem- Aid for rabbit farming. orandum' and are the subiect of far-reaching discussions with the various Com- 2.1.125. The Commission decided to munity institutions and Community-level initiate the Article 93(2) procedure in organizations representing the main interest respect of the following aids: groups. The Commission will lay specific propbsals before the Council when all the Italy consultations are completed. Sicily: Act to amend Regional Act No 15 of The Commission took an active part in 2 March 1981 concerning: the International Conference on Trees and Forests ('Silva') in Paris from 5 to 7 Feb- (i) subsidies for the sterilization of soil ruary. in glasshouses (50% of costs); the rate of subiidy has been increased to 600/o for small The complementary memorandum farmers and 80% for cooperatives and associations thereof (Sections 2 and 3); 2.1.129. The complementary memor- (ii) interest rate subsidies of i.5olo to coop- andum on Community action in the forestry eratives which had not received operating sector presents a general picture of the state credits in several preceding years (Section of woodlands throughout the Community, ls). outlines the forestry policies and programmes of the Member States and Abruzzi: amendment of Regional Act No describes the Commission's activity hitherto 31 of 3 June 1982 by Regional Act No 25 in this field. of 11 April 1985 concerning: It then sketches out a strategy for the Com- (i) a two-year extension to the aid scheme munity in the future, placing emphasis on (Section 66) for the purchase of feeding- improved protection of forests and wood- stuffs; land, measures to increase the added value promotion of the (ii) aid (Section 20) for the purchase of of forestry resources and forestry. breeding poultry (male). development of 2.1.126. The Commission decided to ter- Recent Community dctiuity minate partially the Article 93(2) procedure 2.1.130. After underlining that forests will in respett of a regional aid scheme in Italy have a vital role to play in the implemen- (Calabria) involving the refinancing in 1985 of Regional Act No 21 of 2 June 1980 on certain measures to assist agriculture. I oJ c 68,24.3.7986. 2 coM(86) 26 final. 3 Bull. EC 12-1985, points 2.1.171 and 2.7.772.

Bull. EC 2-1986 63 Agriculture

tation of the changes needed to resolve their direct and indirect implications for the present socio-economic problems, the Com- whole forestry industry. mission points out thar the number of measures it has recently taken in this connection Some of tbe measures enuisaged reflect its growing interest in a sector long 'Without overlooked in the process of European inte- 2.1.132. presuming as ro the gration. choices it will make and the priorities it will adopt when it puts forward new proposals Since there is no specific Community policy after current consultations, the Commission forestry, on the measures have been- insti- lists in its memorandum some.I0 measures tuted under a variety of other policies (agri- which could remedy certain shortcomings cultural policy, research policy, regional in the Community's policy, foresrry sector and help environment policy, development to solve some of the major problems facing policy). it. Particular menrion may be made of the following: Some 470 million ECU has been spent by the Community in the last five years to (i) Forest prorection: establishment of a promote afforestation of marginal land, the network for monitoring the state of health improvement of derelict woodland, foresr of Community woodlands, increasing plant development and forest protection, the safe- health protection, srrengrhening systems for guarding and extension of forested areas in the prevention and control of forest fires, the developing countries and the develop- developing an emergency plan to cope with ment of forestry research. forest disasters, establishing a code of good ecological conduct for forests and intrbdu- The European Investmenr Bank has also cing rules to promote a more balanced contributed with loans for Community for- relationship between sylviculturc and game estry measures part-finance to a number of shooting. afforestation/reafforestation schemes in the Community and some other countries. (ii) In an effort to increase added value in the forestry sector, the Commission pro- Lack of a Community policy: poses to encourage private owners to draw basic forest managenrent need for rnore intensiue up plans, to coordinated tnedsures improve maintenance, to practisc more systematic thinning and to form groups to obtain advice and services relevant to forest 2.1.131. The Commission feels that is it management. acceptable for the Community to develop forestry activities through non-forestry poli- The Commission also recommends meas- cies since the introduction of a true Com- ures to improve efficiency of operation in munity policy on forestry still encounters the wood-based industries, the oiganization intransigent opposition from certain mem- of the cork industry, experimentiand dem- ber countries. However, this approach onstration profects to promote non-wood requires more active coordination at Com- forest products, and incentives for the for- munity level if the activities are ro be more mation of forestry/shooting associations. coherent and effective from the forestry point of view. (iii) On the subject of foresr development, the proposed measures concern afforest- Because of the manifold functions that ation of land hitherto used for farming. woodlands are called upon to fulfil and the Two types of measure are envisaged: complexity of the forest ecosystem, it is important that the various measures be con- (a) measures to encourage farmers to ceived not only in relation to their specific extend farm woodlands (reinforcemenr of importance for the policies under which the forestry provisions in the March 1985 they are implemented but in relation to Regulation bn improving the efficiency of

64 Butl. EC 2-1986 Agriculture agricultural structures);1 setting up pilot parallel with efforts to find fundamental and demonstration projects concerning solutions to the socio-economic challenges wood production; introduction of financing now facing the Community. arrangements to ensure income continuity for farmers engaging in afforestation on Attendance at'Silva' conference some of their land; (b) measures to stimulate specific afforest- 2.1.135. The Commission took an actiye ation schemes, pafticularly maior undertak- part in the International Conference on ('Silva') ings of European interest and the creation Trees and Forests from 5 to 7 Feb- of woodlands around urban areas. ruary. The Conference, which came at the end of a long series of events organized (ir) On the question of forests in develop- throughout the world in 1985, the Inter- ing countries, the Commission proposes a national Year of the Forest, was attended Community strategy for tropical forests, by several Heads of State or Government with demonstration proiects in French and numerous ministers, representing 53 Guiana. countries, international institutions and organizations. The Conference was also In conjunction with this memorandum the attended by observers from 32 other Commission presented a memorandum on countries and international organizations. measures to combat desertification in Africa,2 including measures to develop for- Particular attention was given to problems estry in countries facing the problem of affecting trees and forests in Europe and the spreading desert due to deforestation. arid regions of Africa. It was therefore of special concern to the Community. Need for accofipanying measures Mr Clinton Davis, the Commission Mem- special responsibility the 2.1.133. These forestry measures should ber with for environment, spoke in plenary session and be accompanied by measures to ensure their the working parties Europe and effectiveness, including measures to pro- in for Africa. He stressed the considerable risks of mote forestry research, to ensure the dis- ecological disaster facing mankind as the semination of research findings through result of the curent practice of destroying demonstration proiects and advisory ser- immediate benefit basic vices, to set up a Community programme for the -resources which should assure- the survival of forest statistics, a bank of forestry data of mankind in the future. He referred to the at European level and the encouragement Commission's memoranda on forests and of advanced research into the economic and desertification and outlined Com- taxation aspects of European forests. the munity's strategy in these matters. Conclusions Mr Delors, in an address given at the closing session, said that in the effort to combat 2.1.134. The Commission hopes that the desertification in Africa aftention would be wide-ranging consultations on its memor- concentrated on two priority tasks, namely: andum will lead to further progress towards the inclusion of forestry among the Com- (i) special schemes to encourage reaffor- munity's preoccupations. estation of the Fouta Diallon, an upland plateau in Guinea where the maior rivers of It feels that the era of sporadic and patchy !0est Africa all take their source; forestry measures by the Community is over schemes combat the adverse conse- and that the forestry sector, together with (ii) to quences of indiscriminate use of fuelwood, all the upstream and downstream activities, should from now on be considered as an industry in its own right which rnust be 1 oJ L 93,30.3.1985; Bull. EC 3-1985, point 2.1.11. safeguarded, developed and enhanced in 2 Bull. EC 1-1986, point 1.3.1 er se4.

Bull. EC 2-1986 65 Fisheries

for instance by the introduction of new (ii) on 27 February, a United Kingdom types of energy in urban areas. Order making a number of technical adiustments to the text of the original Order under On the subject of Europe's woodland heri- the Inshore Fishing (Scotland) Act 1984, tage and its protection against present-day which applies to certain fishing zones along hazards, President the of the Commission the Scottish coast up to six miles from the described the three main lines of approach baselines and which the Commission to the problem: approved in draft form on 3 June 1985.2 (i) protection of existing woodlands by efforts to combat the true causes of deterio- Measures stricter than Community rules ration and to return to original and traditional practices which have proved their 2.1.137. On 3 February the Commission value in ensuring that forests offer a favour- took note of a Danish Order introducing able environment for the people; with effect from 24 August 1985 rules to govern the inspection of catches of indus- (ii) better use of Community forests by a trial fish. Referring to certain control meas- cooperative approach, accompanied by job- ures applicable to landings of industrial fish creation measures; under this Order, the Commission found these rules to be compatible with Article (iii) general enhancement of the country- 20(1) of Regulation (EEC) No 171183. t side by the designation of natural woodland reserves and forest parks. External aspects Stressing the need for solidarity between Europe and Africa, the President of the Commission launched an appeal for a pro- Bilateral relations gramme to involve young people and volun- teers in measures to renovate forests and Senegal prevent desertification and famine. 2.1.138.. On 24 February3 the Council approved the conclusion of an Agreement in the form of an exchange of letters con- Fisheries cerning the extension until30 April L985 of the Protocol establishing the fishing rights and financial compensation provided for in Resources the Fisheries Agreement between the Com- munity and the Government of the Republic of Senegal. a The Agreement had been in- lnternal aspects itialled on 13 January.5

Madagascar National measures 2.1.139. On 24 February the Council Protection of local stocks approved 6 the conclusion of the Agreement between the Community and the Demo- 2.1.136. The Commission, acting under cratic Republic of Madagascar on fishing Article 19 of Regulation (EEC) No 171183,1 off the coast of Madagascar. The Agree- approved the following measures:

(i) on 25 February, a French 31 t oJ L 24,nJ.1983. Order of 2 October 1985 amending a 1983 Order laying 3 Bull. EC 6-1985, point 2.1.142. down conditions to govern trawl fisheries oJ L 7s,20.3.1996. 1 oJ L 361,31.12.1985; Bull. EC t2-t985,pint2.t.t/7. in the Pertuis Breton, the Pertuis d'Antioche 5 Bull. EC 1-1986, point 2.1.119. and the Courreau d'Ol6ron; 6 oJ L73, 18.3.1986.

6 Bull. EC 2-1986 Fisheries ment had been signed in Antananarivo on Regulation of 77 December 1983 8 as l 28 January. regards the guide price for Atlantic sardines and anchovies. e Japan 2.1.143. Pursuant to the provisions of the 2.1.140. On 24 January the Council Act of Accession the Commission also approved a Regulation establishing, for the adopted: period from 3 March to 30 June 1986, cer- (i) on 11 February, a Regulation laying tain measures for the conservation and down detailed rules for the grant of a stor- management of fishery resources applicable age premium for certain fishery products;lo to vessels flying the Japanese flag in waters falling under- the sovereignty or jurisdiction (ii) on 13 February, a Regulation introdu- of Portugal.2 cing a temporary derogation from the Com- munity reference price system for fishery 1 Guinea products imported into Portugal;l (iii) on 28 February, Regulations: 2.1.141. On 24 February the Commission sent to the Council a proposal for a (a) fixing, for the 1985 fishing year, the Decision 3 on the conclusion of an Agree- overall foreseeable level of imports for the ment in the form of an exchange of letters, products subject to the supplementary trade initialled on 28 January,4 concerning an mechanism in the fisheries sector;12 interim extension of the Protocol annexed (b) fixing, for the 1986 fishing year, the to the agreement between the Government annual import quotas for the products sub- of the Republic of Guinea and the Com- ject to the rules for the application by Spain s munity on fishing off the coast of Guinea and Portugal of quantitative restrictions on for a period of six months from 8 February fishery products; 1986. (c) laying down detailed rules for the cal- culation of withdrawal and selling prices Markets and structures and fixing, for the period I March to 31 December 1985, the withdrawal and selling prices of certain fishery products lisred in Market organization Annex I A and E to the Regulation of 29 December 19817 and amending the Com- mission Regulation of 23 December 198513 Accession-related measures as regards the withdrawal prices for Atlan- 2.1.142. In the context of the Com- tic sardines and anchovies;12 munity's enlargement, the Council, acting (d) fixing the reference prices for certain on a proposal from the Commission, fishery products for the period 1 March to adopted: 31 December 1986;12 (i) on 17 February, a Regulation laying I down rules for the application by Spain 2 Bull. EC 1-1986, point 2.7.722. and Portugal of quantitative restricions on 3 oJ L s0,29.2.1986. products;5 CoM(86) 103 final. fishery a Bull. EC1-1986,point 2.1.121. 5 oJ L 111,27.4.1983; Bull. EC 3-1983, point 2.1.133. (ii) on 25 February, a Regulation fixing, 6 oJ L 43,20.2.1986. for the period 1 March to 31 December , ol L 379,31.12.1,981,; Bull. EC t2-198r, point 2.1.140. 1986, the guide prices for certain fishery 8 OJ L 3tA,21,.12.1985;Bull. EC tZ-1985, point 2.1.201. e OJ L 54, 1.3.1986; Bull. EC 1-1985, point 2.1.123. products listed in Annex I A and E to the 10 Regulation 29 December 19877 (and oJ L 39, 14.2.1996. of rr oJ L q, [.2.1986. included in the Act of Accession of Spain 12 oJ L 66,8.3.1996. and Portugal) and amending the Council 13 oJ L 351,28.12.7985; Bull. EC t2-t98s,point 2.1.203.

Bull. EC 2-1985 67 Transport

(e) fixing the reference prices for intra- munity institutions, officially proclaimed Community trade in anchovies and Atlantic the opening of European Road Safety sardines for the 1985 fishing year;1 Year.6 (0 fixing the compensatory allowance for Other events were also held in the Member Mediterranean sardines; 1 States. (g) fixing the storage premium for certain fishery products for the period from 1 2.1.147. On 21 February Parliament March to 31 December 1986,1 adopted a resolution on the implementation of common measures under the Com- (h) amending the Regulation of 23 munity's Road Safety Year pregramme to December 1985,2 by reason of the accession reduce the number of road accidents of Spain, in respect of the list of fishery (-r point 2.4.1il.7 products for which a carry-over premium is granted. 1 2.1.144. Lastly, given the continuing risk Sea transport of disturbance on the French market for yellowfin tuna intended for industrial pro- ships cessing, the Commission extended, by a Registration of Regulition of 10 February,3 the validity of the surveillance system applicable to 2.1.148. On 7 February the UN Confer- imports of this product into France until 31 ence for the Registration of Ships approved more March 1986.4 a convention aimed at regulating effectively the use of open registry facilities. The convention would require establishment of a'genuine link' between the vessel, Transport its owner and the flag State. Every country, including those which permit open registry, lnland transport would have to keep a shipping register recording all ships flfing its flag. Railways The agreement will come into force when it has been ratified by 40"/" of the hundred ECSC rail tariffs or so signatory countries, representing at least 25olo of world tonnage. Some pro- 2.L.145. On 19 February the Commission visions of the convention may be incompat- sent to the Council a draft fifth supplemen- ible with Community law because they may tary agreement to the Agreement of 2t introduce discrimination on grounds of March 1955 on the establishment of nationaliry between seamen from the Mem- through international railway'This tariffs for the ber States. carriage of coal and steel. s draft has to be approved by the Representatives of The Commission is currently considering the Governments of the Member States of ways in which a conflict between the con- the ECSC meeting within the Council. vention and Community law may be avoided. Road tnnsport 1 Technical aspects oJ L 56, 8.3.1986. 2 oJ L 351,28.12.1985; Bull. EC 12-19&5, pornt 2.1.203- 3 oJ L 3s, 11.2.1986. Road safety 4 oJ L 299, 13.11.1985; Bull. EC 11-1985, point 2.1.157. 5 coM(85) 51 final. 2.1.146. In February France, Greece and 6 Bulf . EC 1-1%6, point 2.1.727. Luxembourg, in coniunction with the Com- 7 oJ c 58, 24.3.t986.

68 Brll. EC 2-1986 Energy

Harmonization of the conditions As regards seaport policy in general, Parlia- of competition ment repeated the appeal which it made on 11 March 19834 for the Community to 2.1.149. On 17 February Parliament deli- focus its efforts in developing a common vered its opinion 1 on the following Com- transport policy not only on capacity and mission proposals to the Council:2 rate policy measures but also on the harmonization of social legislation, specific (i) a Directive amending the first Council taxes, technical regulations, infrastructure Directive of 23 July 1962 on the establish- policy and the removal of frontier barriers ment of common rules for certain types of and checks. carriage of goods by road between Member States (carriage to and from a Community seaport of goods imported or exported by Multimodal transpoft sea); 2.1.150. At its February part-session Par- (ii) a Regulation amending the Regulation liament delivered a favourable opinion 1 on of 1 December 1983 liberalizing the fixing the proposal for amendment of the Council of rates for the carriage to and from a Directive of 17 February 1975 on the estab- Community seaport of goods imported or lishment of common rules for certain types exported by sea; of combined transport of goods between Member States. J (iii) a Directive on the organization of the markets for the carriage to and from a Com- munity seaport of goods imported or exported by sea. Energy Parliament welcomed the fact that the Com- mission was taking greater account of sea- Specific problems ports in transport policy and hoped that it could help through its proposal to put an end to discrimination in transport services Solid fuels between seaports and their hinterlands. Market situation On the question of capacity policy, Parlia- ment considered it vital, in view of the 2.1.151. On27 February the Commission judgment of the Court of Justice of.22 May approved a report on 'The market for solid 1985,3 that there be comprehensive new fuels in the Community in 1985 and the arrangements for access to the transport outlook for 1986,6 for dispatch to the market, both at national and Community ECSC Consultative Committee for an opin- level, and called on the Commission to take ion. This document states that the contri- all action required to enable the Council to bution of solid fuels to internal energy con- decide without delay on comprehensive new sumption stood at 22.7"/o in 1985 compared arrangements for market access. with 22.0o/o in 1984.lnternal consumption of hard coal in the Ten rose to 290 million On rates, Parliament considered the part ronnes in 1985, an increase of 117o over of the Commission's proposal dealing with 1984. For the Twelve, consumption of hard this matter to be a first step towards harmonization of the conditions of competition between Community seaports and empha- I oJ c 68,24.3.7996. 2 oJ c 14,16.1.1985; Bull. EC 72-19{!4, point 2.1.203. sized the need for the inconsistencies I inherent in such a partial solution to be oJ c 144, 13.5.1985; Bull. EC 5 1985, point 1.1.1 er 9-1985, point 3.4.1. kept minimum and deemed a number seq.; Bull. EC to a 4 oJ c 96, 11.4.1983; Bull. EC 3-1983, point 2.4.14. of amendments to the proposal to be necess- 5 oJ c 139,7.6.1985; Bull. EC 5-1985, point 2.1.105. ary to that end. 6 coM(86) r15.

Bull. EC 2-1985 Energy

coal in 1985 reached 314 million tonnes, an ever, these two fuels rank high in primary increase of 30 million tonnes or 117o over energy consumption: lignite accounts for 7984. about l0o/o of consumption in the Federal Republic of Germany, 24o/o in Greece and The accession of Spain and Portugal has 13olo in Spain, while peat has a share of boosted Community coal potential, adding about 13% in lreland. Anothcr important 19 million tonnes of coal equivalent in pro- factor is that production and consumption duction and 26 million tonnes in consump- are concentrated in the same countries. tion. In 1986 the continuing recovery in the Thus the figures for 1984 show that 68"/o of United Kingdom and the steady flow of Community lignite (Europe of the Twelve) imports from non-member countries should was extracted and used in Germany, 17"/o . bring coal supply to 324 million tonnes, in Greece and L3o/" in Spain, which explains the level attained by the Ten in 1979-82; why there is very little cross-frontier trade production of lignite and peat is likely to in these two fuels. The lignite and peat fall slightly. Total demand from all sectors industries are generally profitable, so that (power stations, coking plant, industry and these fuels remain competitive. In some residential) should expand by about 3o/o in cases lignite generates electricity at a cost 1985, unless there is a prolonged drop in oil comparable to that of nuclear energy, fuel prices. oil or even imported coal. By contrast, it is The Community coal industry has to take still doubtful whether peat can compete world coal prices into account in its own with imported coal in electricity generation. sales policy, and these prices are falling. In The Commission has reached the con- view also of the continuous decline in the clusion that the Community financial dollar since April 1985, the gap between instruments previously used (ERDF, EIB) prices of imported coal and production should continue to be used to facilitate the costs in the Community is steadily growing. investment necessary for the development of lignite and peat. r0Uith regard to the finan- Lignite and peat cing instruments available for the future, the Commission drew attention to the launch of the new Community energy programme 2.1.152. In response to the mandate given 3 by Energy Ministers on 11 November 1985, (Valoren) financed by the E[DF- and to the Commission sent to the Council on 25 the importance of the specific Community February its second report 1 on the lignite measures planned under the integrated and peat industries of the European Com- Mediterranean programmes. The Com- munrty. z mission stressed that, under the new ERDF Regulation, the initiative in the case of most Lignite and peat may be insignificant in Regional Fund funding lies mainly with the terms of total energy production and energy Member States and not with the Com- consumption in the Community, together munity. accounting for no more than 3.8% (38.5 tonnes the million of oil equivalent-toe) of I COM(86) 95 final. 7 primary energy consumption of the Twelve First repon: Bull. EC 10-1982, point 2.1.120. (991 million toe). In some countries, how- 3 Bull. EC 1-1986, points 2.1.80 and 2.1.82.

70 Bull. EC 2-1986 2. External relations

New round of multilateral the Commission proposals will, however, trade negotiations have to be studied further at technical level before the next Council meeting.

Meetings of Preparatory Committee 2.2.3. Z7f.Ururry Parliament adopted 2.2.1. The Committee set up in November On a resolution on the possible renewal 1985 by the 41st meeting of GATT Con- of the point2.4.L9).4 tracting Parties to prepare the new round MFA (+ of multilateral trade negotiations met on 4 and 5 February and again on 25 and 26 l February. Commercial policy It continued January's discussion of subjects for possible inclusion in the new round, among them trade in agricultural lmplementing the common products, dispute settlement procedures, commercial policy tropical products, quantitative restrictions measures, and other non-tariff tariffs, struc- C o mmerc i a I po I icy i nstr uments tural adjustment and trade policy, trade in counterfeit goods, textiles and clothing, and exchange-rate fluctuations and their effect Easing of restrictive measures on trade and services. 2.2.4. Under the Regulation of 74 The Community stated its position on each November 1983 on import arrangements for topic, having due regard to The Com- products originating in State-trading munity's previous declarations in GATT countries, not liberalized at Community s and the Council statement of 19 March.2 level, the Commission took the following measures: The Preparatory Committee is due to make recommendations in time for a ministerial (i) Opening of quotas: meeting called for September to decide on Italy Romania: yarn of regenerated tex- the opening of new trade negotiations. tile fibres;- bulked man-made viscose staple fibres;6

U?ly yarn of regenerated textile Renewal of the Multifibre trbres;--Bulgaria: / Arrangement Italy H-ungary: organic and inorganic chemicals;8- (ii) Changes in quotas: Negotiati ng d i rectives United Kingdom German Democratic Republic: textile products;- 8 Council discussion

2.2.2. On 18 February the Council gave 1 Bull. EC 11-1985, point 2.3.52. 2 detailed consideration to the Commission's 3 Bull. EC 3-1985, point 2.2.72. negotiating directives for renewal of the Bull. EC 11-1985, point 2.3.4; Bull. EC 12-1985, point (MFA) 2.3.9. Multifibre Arrangement and the 4 oJ c 68,24.3.1986. 3 bilateral agreements. 5 oJ L 346,8.12.t983. 5 oJ c 27,7.2.1986. General agreement was reached on a num- 7 oJ c 34,14.2.1986. ber of important points. Other aspects of 8 oJ c 41,22.2.1986.

Bull. EC 2-1986 7t Commercial policy

(iii) Changes in import arrangements: Trade protection Benelux State-trading countries.' removal 2.2.5. The trade protection measures of quantitative- restrictions on the release taken in February are shown in Table 9. for free circulation of a number of industrial products. l t oJ c 30, 11.2.1986.

Table 9 - Trade protection tneasutes

Commissronl

Definitiue anti-dumping duty and defini- lnitiation of an examination procedure concerning illicit com- tiue collection of prouisional duty on mercial practices consisting of exclusion from the United Stitzs imports of: tnarbet of: Certain types of clogs originating in Certain kinds of aramid fibre manufactured by Akzo NV or Sweden its affiliated companies outside the United States oJ L 32, 7.2.t986 oJ c 25, 5.2-1985 (provisional duty amended: OJ L 333, Acce?tance of undertahings and termination of anti-dumping 1 1.11.1985) inuestigation concerning itnport of : Roller chains for cycles originating in Certain kinds of clogs originating in Sweden China oJ L 32,7.2.1986 oJ L 40, 15-2.1986 (provisional duty amended: OJ L 333, 11.11.1985) (provisional dury: OJ L 217,14.8.1985) Roller chains for cycles originating in China Extension of prouisional anti-dumping oJ L 40, 15.2.1986 duty on imports of: (provisional duty: OJ L 217, t4.8.1985) Certain kinds of electronic weighing Fibre building board originating in Finland or Sweden scales originating in Japan oJ L 45, 25.2.1986 oJ L 32,7.2.L986 (reopening of procedure: OJ C 5, 9.1.1985) (provisional duty: OJ L 275, 15.10.1985) Certain categories of glass originating in Turkey, Yugoslavia, Romania, Bulgaria, Hungary or Czechoslovakia and imported into Greece oJ L 51, 28.2.1986 (initiation of procedure: OJ C 55, 14.3.1985)

T ertnination of anti- dump ing pro ce eding concerning imp orts of: Electronic typewriters manufactured by Nakaiima AII Precision Co Ltd originating in Japan oJ L 40, t5.2.t985 (provisional dury: OJ L 265, 9.10.1985)

Expiry of anti-dumping d.uty on imports of: Mechanical alarm clocks (other than travel alarms) originating in the Soviet Union oJ c 35, t5.2.t986 .(definitive duty: OJ L 344,19.12.1980)

I For steel products rc pornr 2.1.25.

72 Bull. EC 2-1986 Relations with industrialized countries

Export aedits Japan needs to develop further in order to mitch more closely EEC-US relations, the 2.2.6. On 28 February the Commission Commission recommends measures that sent the Council a proposal for a Decision 1 will: on implementation of the agreement (i) intensify dialogue and cooperation between participants in the OECD Arrange- with ment on Export Credits-concerning export Japan; credits for civil aircraft.2 (ii) ensure further opening-up of the Japanese market; (iii) restore a proper balance to economic Sectoral commercial policy relations between the two partners; 3 measures (iv) increase Community efforts to improve its performance in Japan; Non-ferrous metals (v) introduce new procedures and working methods within the Community. 2.2.7. On 10 February the Council adopted the Regulation allocating th-e Com- On 18 February the Council held an initial munity quantititive export quotas for cop- policy debate on the question of relations p.r ash and residues and *alt. and scrap a with Japan, based on the recent Com- under the export arrangements in force for mission tommunication. Broadly speaking, overall 1986 s for ceitain types of non-ferrous metal the Member States endorsed the waste and scrap. approach proposed by the Commission.

European Free Trade Association Relations with industrialized 2.2.10. On 22 February the Community countries and the EFTA countries completed negotiations for the adaptation of their free trade Agreements consequent upon enlargement Canada and initialled the agreements. The outcome of the negotiations was fully in line with 2.2.8. The Industrial Cooperation and guidelines issued between of the Council General and Preparatory Subcommittees December and-February, S and the Com- Com- the EEC-Canada Joint Cooperation mission guidelines contained in its initial mittee met in Ottawa on 24 and 25 Febru- e proposali of July 1985. The results are of arv. Coooeration activities since the last prime imporiance to the Community-from meetines in Decembe r 19846 were reviewed ihree points of view economic, political potential new areas of cooPer- and thJ for and legal: - ation (ores and metals, rational use of energy, forestry products and the food Economic aspect. The negotiations con- induitry, information technology, biotech- cerned relations wirh countries to which the nology, research on the environment and Community annually exports goods worth energy, etc.) was explored.

1 COM(86) 108 final. Japan 2 Bull. EC 1-1986, point 2.2.5. 3 For steel products see points 2.1'.25 and 2.1.26. 2.2.9. On 5 February the Commission 4 oJ L 36,12.2.1986. 5 Bull. EC 12-1985, point 2.3.12. adopted new proposals to the Council con- 6 0J I- 351,28.12.1985; cernine future relations between the Com- Bull. EC 12-1984, point 2.2.15. T 7 Bull. EC 10-l985, point 2.3.12. muniti and Japan. Arguing that Japan is 8 Bull. EC 12-1985, point 2.3.21; Bull. EC 1-1986' point still insufficiinily integrated into the world 2.2.15. economy and that EEC cooperation with e Bull. EC7/8-1985, pornt 2.3.19.

Bull. EC 2-1986 Relations with other countries and regions

some 80 000 million ECU, i.e. equivalent to official host Mr Thage Peterson, the Swed- the value of exports ro rhe United States ish Industry Minister. and Japan combined. Both sides stressed the need for broader Political aspect. It had become a matrer relations between the Community and of urgency to break rhe deadlock in the Sweden, particularly in the tight bf the negotiations, as it could have become criti- recent accession of Spain and Portugal. It jeopardized cal and the Community's was recognized that the Luxernbourg Dec- relations with a group of countries whiih, laration of 9 April 1984 would serve as a along with the Community, was committed basis for industrial cooperation between the to the creation of a European economic Community and the EFTA countries in gen- zone. eral, and Sweden in particular.2 Legal aspecrs. It had become vital to reach lD7ith regard to science and technology, rhe a solution before 1 March.l Failins this. a talks centred on the implementation-of the legal vacuum - would have become inivitable framework agreement for scientific and and might have been filled by unilateral technical cooperation between the Com- measures highly damaging to the Com- munity and Swedfn, signed in Brussels in munity. January last year. : The possibility of Swed- ish firms participating in Community R&D Austria programmes was discussed in this context.

2.2.11. Mr Leopold Gratz, Ausrria's For- eign Minister, visited the Commission on Relations with other countries 24 February. During the visit, he and Mr and regions '07illy De Clercq, Member of the Com- mission with special responsibility for exrer- nal relations and trade policy, reviewed Med iterranean countries their economic relations wirh the United States, Japan and the State-trading countries and held detailed discussions on Mediterranean policy bilateral relations between the EEC and of the enlarged Communiry Austria (extension of free trade Agreements to cover Spain and Portugal, and future Morocco cooperation in the numerous fields agreed on in Luxembourg in April 1984).r Mr 2.2.13. Following the initial meeting in Gratz also held discussions with Mr Narjes, May 1985 at which the Commission pre- Vice-President of the Commission with soe- sented to Morocco the Community's offer cial responsibility for industrial affairs, concerning economic adaptation of the research and science, on Agreement and proposals for srrengthening the subject of EEC- a EFTA cooperarion in research and develop- cooperation, a preliminary round of nego- m-ent, and also with Mr Cheysson, Member tiations took place in Brussels on 25 Feb- of the Commission with special responsi- ruary. bility for North-South relations, on the The Moroccan delegation was led by grave Mr situation in a number of regions in A. Guessous, Deputy Minister in the Prime the southern hemisphere. Minister's Office, with responsibility for relations with the Community; foi the Sweden I 2.2.12. During his visit to Sweden on l0 2 Bull. EC 12-198i, point 2.3.21. and 11 February Bull. EC +1984, point 1.2.1, et seq. Mr Narjes held detailed 3 Bull. EC t-1985, point 2.1.25. talks on industrial resrrucuring with his 4 Bull. EC 5-1985, point 2.2.30.

74 Bull. EC 2-1986 Relations with other countries and regions

Commission, Mr Cheysson, Member with resented by Mr Cheysson. The Egyptian special responsibility for Mediterranean delegation was headed by Dr Abdel policy, took part in the opening session. Meguid, Deputy Prime Minsiter and For- eign Minister. Cyprus The discussions on EEC-Egypt cooperation were preceded by a general statement on the 2.2.14. A second negotiating session on Middle East by the Deputy Prime Minister, the implementation of the second phase of who repeated President Mubarak's pr9- the Agieement between the Community and posal that a European contact group be Cyprus took place on 2l February.l The iet up to enhance the peace, process and Cypriot delegation presented a series of confiimed Egypt's support for an inter- counterproposals to the position set out national conference on terrorism. by the Community at the first session in The two sides then reviewed the implemen- December.l The Community delegation a promised to study these in detail. tation of the Cooperation Agreement, expressed their satisfaction at the progress achieved and discussed ways of strengthen- Malta ing and developing EEC-Egypt cooperation in the future. 2.2.15. A loint team of Commission and European Investment Bank officials visited The Community also took due note o[ Malti from 5 to 7 February. The purpose of Egypt's request for a review of the Cooper- the mission was to identify proiects which ation Agre-ement, with particular reference could be financed from the 13 million ECU to trade and financial assistance, subjects of funds outstanding under the first finan- which were covered under the separate pro- cial protocol and the 29.5 million ECU cess of negotiation to adapt the Agreement availible under the second financial proto- following-the accession of Spain and Por- col, signed on 4 December 1985.2 tugal. a reiterated its 2.2.15. Mr Cheysson paid an official visit The Egyptian delegation in food aid and the to Malta on 13 and 74 February. He had requests for an increase on the talks with the Prime Minister, Mr Mifsud conclusion of long-term agreements products, and Bonnici, covering bilateral relations supply of agricultural need a social protocol to between the Community and Malta, in par- stressed the for the ticular financial cooperation and the adap- cover Egyptian nationals working in tation of the Agreement following enlarge- Community. ment. During the visit an exchange of letters to Asia take account of the accession of Greece was signed as well as a ioint memorandum on Pakistan thi programming mission carried out by the eommission and the Bank the previous 2.2.18. During his visit to Pakistan from week. 31 January to 2 February, Mr Cheysson mer President Zia, Mr Junejo, the Prime Egvpt Minister, Mr Ghulam Ishaq Khan, Presi- dent of the Senate (who is also Chairman 2.2.17. The fourth meeting of the EEC- of the \florld Bank and IMF DeveloPment Egypt Cooperation Council3 was held in Lulembouig on 17 February under the I Bull. EC 12-1985, point2.3.24. chairmanship of Mr Van den Broek, the 2 Bull. Ec 11-1985,90int2.3.17. Netherlands Foreign Minister and President 3 Third meeting: Bull. EC 4-1984, point 2.2.L3. of the Council. The Commission was rep- 4 oJ L 266,28.9.1978.

Bull. EC 2-1986 75 Relations with other countries and regions

Committee), the Speaker of the National Latin America Assembly and several ministers. 2.2.20. On 20 February Parliament The restoration of democracy (following adopted a resolution on rhe Caraballeda the ending of martial law and the lifting of message for peace, security and demoJcracy the state of emergency on I January) was a in Central America (+ point 2.4.2q.2 topic brought up by all those who had talks with Mr Cheysson. State-trading countries Other questions reviewed included the state of EEC-Pakistan bilateral relarions, notably Pakistan's trade deficit, the forthcoming Council for Mutual Economic Assistance MFA textile negotiations and financial and 2.2.21. On 31 De Clercq, technical January Mr cooperation. Both sides recog- Member of the Commission with speciil nized that the Community and Pakistan responsibility for external relations and needed and would benefit from more reg- trade policy, received the Romanian ular consultations on world political and ambassador in Brussels (Romania is current economic issues. president of the Council for Mutual Econ- omic Assistance) and handed him a lener Bangladesh addressed to Mr Sychov, Secretary of the CMEA, together with a separare letter addressed to the Romanian Foreign Minis- 2.2.19. During his visit to Bangladesh ter. During the first few days of February from 2 to 7 February, Mr Cheysson had Mr De Clercq received the ambassadors meetings with President Ershad and a num- in Brussels of the other European member ber of his ministers and addressed the countries of the CMEA and gave them simi- Dhaka Chamber of Trade and Industry. lar letters addressed to their Foreign Minis- The emergence of the new SAARC regional ters. organization, which came into being at the The letter to Mr Sychov states that rhe Dhaka summit meeting of December 1985, Community shares his objective of estab- was welcomed and the prospects for coop- lishing official rclations between the EEC eration with the Community discussed.l and the CMEA. The Commission is ready to examine with the CMEA Secretariar the In discussions on bilateral relarions, Bangla- various ways of achieving that objective, desh made clear its appreciation of the sub- including the idea of a joint declaration stantial aid received-from the Community proposed in Mr Sy-chov's lefters of and (development cooperation and food June aid in September 1985.3 However, the Com- particular). Mr Cheysson outlined the shape munity considers that it would be pointless of broader cooperation measures: two new to establish relations with the CMEA in the financing agreements were pro- signed and absence of bilateral relations between its visions agreed concerning food aid for 1985; member countries and the Community. The in addition, Bangladesh would benefit Commission is therefore shortly conracting these from an exrension of the Stabex countries (only the European countries system to cov€r the main unprocessed agri- initially) to obtain rheir views on normaliz- cultural (jute, exports tea, hides and skins); ing their relations with the Communiry. in the longer term, the development of an overall food strategy would enable Bangla- desh to move closer to its objective of self- 1 South Asian Association of Rcgional Cooperation, com- sufficiency. Vith regard ro rrade in textile prising: Afghanistan, Bangladesh, Bhutan, Burma, Maldives, products, it was found that there was scope Nepal and Pakistan. , oJ c 68,24.3.1986. for Bangladesh to increase and diversify its 3 Bull. EC 6-1985, point 2.3.37i Bull. EC 7/t-1985, point exports to the Community. 2.3.38; Bull. EC 10-1985, point 2.3.29.

76 Bull. EC 2-1985 Development

The letters addressed to the governments of General Assembly on Africa to be held in the East European members of the CMEA New York in May met from 20 to 25 Febru- ask for each government's views on the ary with Mr Edgard Pisani in the chair. normalization of its bilateral relations with being the EEC; they recall the Community's readi- In the absence of the basic document African ness to conclude trade agreements with each prepared by the Organization of country and express the opinion that an Unity, the Committee could not formally overall normalization of relations between adopt the agenda for the special session. An the EEC and East European countries exchange of views was held, however, on would contribute to improving economic the basis of the document prepared by the and political relations in Europe. United Nations Secretariat. The Community's position, with particular reference to the special session, on the prob- Development lems of Africa's medium and long-term development will form the subiect of a com- North-South relations municition which the Commission will shortly present to the Council. The developing countries debt problems 2.2.22. The developing countries' debt Colloquium on regional cq)peration problems were discusied on the sidelines of and food strategies in Africa ihe Council meeting on general matters at the end of January. The Council heard a 2.2.24. The Community took Part in a statement from Mr Ruding, Finance Minis- World Food Council colloquium in Dakar ter of the Netherlands, in his capacity as from 30 January to 1 February on regional Chairman of the IMF Interim Committee. cooperation and food strategies in Africa. Stressing that the problem of debt needed to be dealt with case by case and by individual The emphasis was on development -meas- country, Mr Ruding proposed a plan of ures at nitional level, notably rc help family action to supplement the measures advo- holdings, as a preliminary to cooperation cated by Mr Baker, the United States Sec- at regional level. Suggestions were -made retary of the Treasury.l Mr Ruding's pro- concerning, for example, the role of posai concerned the responsibilities of the regional trade, account being taken of exist- iountries in debt, the industrialized in[ informal trade, the strengthening of countries, the multilateral institutions and re[ional cooperation as regards research the commercial banks in the administration an-d gathering of statistics, and the need of debt. In the ensuing discussion, reference to hilt the proliferation of international was made to the need to examine more organizations in Africa. closely the political aspects of the issue and representative described work out the Community's position in prep- The Commission aration for the Tokyo Western Economic the common agricultural policy as an exam- implementation Summit. ple of the formulation and bf an agricultural policy at regional level; on the basis of the experience gained in Cooperation within this context, a number of recommendations na orga nizations i nternatio I were made regarding the formulation and implementation of agricultural policies in United Nations General Assembly Afiica, at national and regional level. Meeting of the Preparatory Committee

2.2.23. The Preparatory Committee for 1 Bull. EC 12-19E5, point 2.3.35 (foonote); Bull. EC 1- the special session of the United Nations 7986, point 22.28.

Bull. EC 2-1986 n Development

'Silva' conference adapting to the arrangements applicable under the Lom6 Convention, as required by 2.2.25. An International Conference on the Act of Accession. Trees and Forestry ('Silva') was held in Paris The period from 5 to 7 February (+ point 2.1.135). In of validity of the transitional preparation for this .tnfJr.n.., tt.-C"*- measures concerning the OCTs has also been extended. mission presented a memorandum to the Council with a section on the promorion of 2.2.27. The third Lom6 Convenrion, forestry in the developing countries which was signed in December 1984, is ro (+ point 2.1.132). enter into force on the first day of the second month following the date on which the ratification insrruments of all the Mem- ACP-EEC Convention ber States of the Community of Ten and of at least two thirds (i.e.44) of the ACP States have been lodged.2 Transitional measures By 28 February, the ratification instruments 2.2.25. In 28 February the ACP-EEC Com- of 44 ACP States and 7 Member States had mittee of Ambassadors extended, with been deposited. effect from 1 March until 30 June at rhe latest, the_ transitional measurei governing relations Campaign against hunger between rhe ACP Statei and the in the world European Community pending the entry into force of the third Lom6 eonvention. These measures which were inrroduced Food aid in March 1985 - were due to expire on 28 2.2.28., February. l - lUirh the endorsement of rhe Food Aid Committee, the Commission decided On 3 March the Council adopted the corre- on allocations of food aid, to be financed sponding rules of procedure.- from the Community budget (Table 10). The transitional measures will now also , oJ L 51, 1.3.1985; Bull. EC 2-1985, points 2.2.27 and concern Spain and Portugal; these two 2.2.38. countries are, however, only progressively 2 Bull. EC12-1984,pointl.S.l et seq.

Table 10 - Food aid operations

Other products

Burkina-Faso cif Donation of 1 540 000 ECU as a replacement 1985 for 10 000 tonnes of cereals Cape Verde cif 1985 300 100 1986 beans 2 000 Burundi fdl 1985 Guinea cif 1985

78 Bull. EC 2-1986 Development

Milk Other Butteroil Cereals powder products

UNHCR fd sugar 500 1986 65 000 2000 vegetable oil I 000 beans 2 500 fish 556 ICRC fd sugar 800 t986 ,t0 000 1 000 1 500 vegetable oil 500 beans 1 500 Licross fd 1985 500 1986 20 000 500 I 000 sugar 100 beans t 250 !YFP fd 1985 6 400 3 435 t986 130 000 2t 600 4 555 vegetable oil 500 beans 1 500

UNR'UYA fd 1986 rice 7 725 2 500 800 sugar 900 sugar 200 beans 100 fish 600 UNRWA fd 19862 corned beef 800 tomato pur6e 500 crushed wheat (bulgur) 800 NGOs fd 1986 70 000 21 000 1 350 sugar I 000 vegetable oil 500 beans 1700 fish 4N Ethiopia fd 100 000 Mauritania fd 12 000 400 400 Mali fd 15 000

I fd = free at destrnatron. 2 Plus a cash contribution of 4 milhon ECU

2.2.29. On 20 February the Commission Republic of Yemen between government decided to grant emergency food aid in the trobps and rebel forces, resulting in the form of 15 000 tonnes of cereals for refugees death of 10 000 to 12 000 people. in camps in Thailand. The value of the aid, which will be distributed via the UNHCR, Following the appeal launched by the is about 3 million ECU. Government, and at the request of the Belgian section of 'Medecins sans fron- Emergency aid tidres', the Commission decided on emergency aid of 450 000 ECU, as a result of sent 30 Yemen which an aircraft was on January with two teams of doctors and surgeons (12 2.2.30. Since 13 January there have been people) on board, and medical supplies, violent clashes in the People's Democratic medicines, vehicles and tents.

Bull. EC 2-1985 Development

Trade promotion Ocean village', with 5 and 3 ACP States respectively

ACP States Financial and technical cooperation International Tourism Exchange

2.2.31. At the International Tourism ACP States Exchange ('lnternationale Tourismus- B

Table 11

mihon ECU

Sector/country Proiect Grants Loans

Rural production Burkina-Faso Fisheries 2.85 Suriname Livestock production 0.72

Economi c infr a s tru ctur e

Kenya Roads and bridges 0.30 4.20 Solomon Islands Port and urban infrasrructure 7.55 Social deuelopment Benin, Burkina-Faso, Ivory Coast, Improvement of equipment for the centres Mali, Mauritania, Niger, Senegal, of the Organization for Coordination and Togo Cooperation in the Control of Mafor Endemic Diseases 0.50 Rwanda Education and training (awards) 1.00 Zimbabwe Water engineering in rural areas 1.10 3-00 Otber Economic Communiry of West Information and investment promotion African States (Ecowas) campaigns in West Africa (West African Industrial Forum, Dakar) 0.70 All ACP States/OCTs Programme of short fuaher training courses for 1985 0.rm Emergency aid

Uganda Recent events 0.50

15.62 7.20

s Bull. EC 2-1986 Development

Asian and Latin American activities and to the continuation of ongoing developing countries work supported by the Community in other sectors. 2.2.33. On 2l February Parliament endorsed, subject to a number of amend- In his speech at the SADCC, Mr Natali ments, 1 the Commission's proposal con- underlined the importance of this agree- cerning the general guidelines for 7986 ment, and of the contribution already made regarding financial and technical aid for the by the Community. Over the period 1980- non-associated developing countries. 2 85 Community aid to the value of some 1 100 million ECU has been committed to the SADCC countries, of which 443 million Regional cooperation 3 ECU has been provided through indicative programmes, 70 million ECU on a regional 2.2.34. At the end of January and begin- basis and the rest through other channels. ning of February, Mr Natali, Vice-Presidenr Under with special responsibility for cooperation Lom6 lll, to which all the SADCC (including and development, represented the Com- States Angola and Mozambique) are party, mission at a series of meetings in southern the amount available has risen to Africa on the economic and political prob- 776 million ECU in respect of the national indicative programmes and minimum lems of the region. These were the 1985 to a SADCC General Conference with cooperat- of 110 million ECU for the regional programme. This amount 885 ing partners in Harare, Zimbabwe, the of million ECU could be considerably increased the ACP-EEC Joint Assembly in Ezulwini, in Swaziland,4 and the meeting berween the course of Lom6 III through the use of other non-programmable resources as Foreign Ministers of the front-line States such and of the Community in Lusaka, Zambia Stabex, Sysmin, food aid, cofinancing with (+ point 2.4.1). NGOs, and EIB operations. Mr Natali also referred to the region's pol- SADCC General Conference itical problems and to the Communiry's commitment to the elimination of apart- -lr.rJ2.2.35. Prior to the SADCC Conference heid, which represented 'a violation of Ln 3-o ;;d il jrnrrry, , rrr.-"rrnJrni human rights and an affront to human dig- of Understanding was signed on 28 January nity'. In this context, Mr Natali indicated between Mr S. Makoni, Executive Secretary that within its programme of restrictive and of SADCC, and the Commission represen- positive measures, the Community had tative. This is the first occasion on which a committed itself to assisting the victims of regional agreement of this kind has been apartheid in South Africa through pro- established under the ACP-EEC arrange- grammes involving new provisions (for a ments, providing for resource programming total of 10 million ECU) in the 1986 based on an amount of some 110 million budget.5 The Commission also expressed ECU for southern Africa over the next four the wish that in the near future there would to five years. Under this agreement the two be a further signatory to Lom6 from south- focal sectors for regional support from the ern Africa, namely an independent Community will be transport and com- Namibia. munications for up to 40o/o of the indicative allocation, and food security and agriculture, which will absorb up to 30%. Sig- 1 oJ c 68,24.3.1986. nificant regional assistance will also have 2 oJ c 258, 8.11.1985, Bull. EC 10-1985, points 2.3.47 to be provided in the field of manpower and3 2.3.48. development, particularly for supporting For regional cooperation with the Asian developing countries, see point 2.2.19. operations in the two focal sectors. Up to a Bull. EC 1-1986, point2.2.36. 15% of resources will be assigned to priority 5 Bull. EC 9-1985, point 2.5.1. t / Bull. EC 2-1985 lnternational organizations and conferences

Cooperation via non -governmental Community ports of Community fisher- organizations men's tuna catches.

2.2.35. In February the Commission committed 3.3 million ECU for the cofinancing in developing countries of 28 projects pre- I nternational organ izations sented by 25 NGOs. and conferences The Commission also contributed 304 963 ECU for six campaigns to increase Euro- United Nations pean public awareness. UN Conference on the Law of Treaties Visits 2.2.38. On 18 February the Council 2.2.37. Mr Abdou Diouf, President of adopted a Decision concerning supplemen- Senegal, and current President of the Organ- tary directives for negotiations on the draft ization of African Unity, paid an official Articles prepared by the United Nations visit to the Commission on 6 February and International Law Commission on the Law held talks with Mr Delors, with Mr Natali, of Treaties between States and International Organizations or between International the Member of the Commission with special 1 responsibility for cooperation and develop- Organizations, to be submitted as the ment, and with a number of other Members basic proposal for consideration at the of the Commission at a working meeting. United Nations Conference to be held in Matters linked with Africa's economic and Vienna from 18 February to 21 March. political situation formed the main subject of these talks, and in particular the rehabilitation of Africa's agriculture, the debt prob- 2.2.39. The Commilrion root part in the lem and southern Africa. meeting of the Preparatory Committee for the UN General Assembly's Special Session visit followed on immediately from the This on Africa, to be held from 27 to 31 May ministerial meeting (--+ point 2.4.1) Lusaka (-+ point 2.2.231. and at the close a joint communiqu6 was issued. Mr Diouf stressed that a policy of 2.2.40. The Community took part in the general sanctions against South Africa was u7orld Food Council's symposium on essential in order to increase the pressure regional cooperation and food strategies in on the Pretoria Government. Africa, which was held in Dakar, Senegal, 30 1 February point The purpose .of Mr Diouf's visit was also from January to (+ to brief the Community on the matters 2.2.24). which will be discussed at the special session 2.2.41. The Preparatory Committee for of the United Nations General Assembly on the new round of GATT multilateral trade (agriculture, point Africa debt) (+ 2.2.23) negotiations twice February problems met in and on the of replenishing the (--+ point 2.2.L). resources of the major multilateral agencies (UNDP, IDA, IFAD, FAO). As regards bilateral relations between Sene- Diplomatic relations gal and the Community, the main points were the replenishment of Stabex resources 2.2.42. Since Spain and Portugal became and trade. In particular, the discussions members of the European Communities on focused on the Community rules regarding the maximum aflatoxin content of imported groundnut products and the landing in I Bull. EC 10-1985, point 2.3.53. Y 82 Bull. EC 2-1985 \ Financial operations

1 January, their missions to the Communi- the EEC and Head of Mission ro rhe ECSC ties became the Offices of their Permanenr and Euratom; HE Mrs Ekila Liyonda, Rep- Representatives. Accordingly, the number resentative of the Republic of. Zaire ro rhe of diplomatic missions of non-member EEC; HE Mr Robert Joyce, Head of Mis- countries has dropped backto 127. sion of Canada to the European Communi- ties; HE Mr Mohammed Mohsin, Head of The President of the Council and the Presi- Mission of the People's Republic of Bangla- dent of the Commission received the follow- desh to the European Communities; HE Mr ing ambassadors, who presented their let- Abdelmalek Cherkaoui Ghazouani, Rep- ters of credence, to take effect on 3 Febru- resentative of the Kingdom of Morocco io ary: HE Mr Ely Ould Allaf, Representative the EEC and Head of Mission ro rhe ECSC of the Islamic Republic of Miuritania to and Euratom.

3. Financing Community activities

Financia! operations steelworkers and 310 000 ECU for mine- workers.

ECSC Euratom

Loans raised Loans raised 2.3.1. In February the Commission made In February Commission a private placing in marks for the equivalent 2.3.5. the made two private placings of 3.6 million ECU. in Luxembourg francs for the equivalent of 9.29 million ECU. Loans paid out EEC Balance of payments 2.3.2. Acting under Articles 54 and 55 of - the ECSC Treaty, the Commission paid out Loans raised loans in February for a total of 6.61million ECU broken down as follows: 2.3.6. In February the Commission raised its fourth and final loan 1 as part of the first lndustrial loans instalment of the 875 million ECU loan which the Community decided to granr to 2.3.3. Industrial loans (Article 54) total- Greece in November to support irs balance ling 3.50 million ECU were paid out for the of payments.2 This public-iisue of SFR227 rescheduling of various loans in the Federal million has a term of six years and nine Republic of Germany. a months, carries coupon of 47 / ro/o and was issued at par. Subsidized housing

2.3.4. Loans for the building of subsidized I Bull. EC 1-1986, point 2.3.4. housing amounted to 2.7 million ECU for 2 Bull. EC 11-1985, point 1.3.2. I

/ Bull. EC 2-1985 83 European political cooperation

EEC _ NCI interest and reimburse the FHLB in ECU while the FHLB will do the same with the Community dollar issue. This double trans- Loans raised action will allow the Community to receive 2.3.7. In February the Commission made a the ECU and the FHLB to receive dollars 7 par- public issue of USD 100 million at 99 /so/o on more favourable terms for the two | interest operation, ior 10 years carrying a coupon of 9 / ." ties. The main of this so/o however, is the new dimension that it gives This issue is the first of its kind in that to the ECU, further demonstrating the the Commission then agreed to a currency growing importance of the ECU as a finan- exchange arrangement with the Federal cial instrument: for the first time, a US Home Loan Bank, an agency of the US government agency is using the ECU as a Government, which recently launched an borrowing currency in its own domestic ECU loan in the United States. Under this market with great succ'ess with the arrangement, the Community will pay approval- of the US Treasury. -

4. Political and institutional matters

political 4. Regarding South Africa, the Ministers European cooperation deplored the violence and the progressively deteriorating situation inside that country resulting the close their meeting in in the continuing loss of life and destruction of 2.4.1. At of property. They attributed this state of affairs to Lusaka on 3 and 4 February the Foreign the existence and entrenchment of the immoral Ministers of the Member States and of the policy of apartheid and the refusal by the South front-line States issued the following com- African Government to abolish that system to pave muniqu6 on the political situation in south- the way for negotiations with all its citizrns regard- ern Africa: ing the future of that country. 5. The Ministers regarded South Africa's policy '1. The Foreign Ministers of the front-line States of apanheid as a violation of the fundamental and those of the Member States of the European human rights laid down in the United Nations member Com- Community as well as a of the Charter and the Universal Declaration on Human mission European Communities met in of the Rights. In this regard, they reaffirmed their Lusaka, Zambia, on and February 1986 to 3 4 unqualified condemnation of apamheid and called consider the situation in southern Africa. for its total elimination in the intercst of peace and 2. The meeting was held in an atmosphere of stability in southern Africa. cordiality and complete trust and understanding. 6. In order to ameliorate the situarion inside 3. The Ministers examined the general situation South Africa, the Ministers called on the Govern- prevailing in the subregion. In particular, they ment of the Republic of South Africa to declare reviewed recent developments and the current situ- categorically that apanheid will be dismantled ation in South Africa and discussed such issues as completely; to end the state of emergency; and to the policies to be followed uis-d-uis South Africa initiate a dialogue with the genuine representatives aimed at contributing to the abolition of apartheid of those South Africans now excluded from the and thereby facilitating a peaceful solution in present government structure on the future of that South Africa; the relations between the Republic country. As a necessary step, they appealed to the of South Africa and other States in the region; and South African Government to release uncondition- the question of the independence of Namibia. ally all political prisoners and detainees, including f u Bull. EC 2-1986 \ European political cooperation

Nelson Mandela, to facilitate the process of nego- p"nd.nce plan for Namibia. In this connection, tiations. In this regard, they also urged the Govern- they reaffirmed the centrality and relevance of ment of South Africa to lift the ban on the African United Nations Security Council Resolution 435 National Congress of South Africa, Pan Africanist (1978) which to date represents the only valid Congress of Azania and other political parties so basis for a peaceful solution of the quesrion of as to create an atmosphere conducive to the desired the independence of Namibia. They called for the political dialogue. Furthermore, the Ministers wel- implementation of this resolution without funher comed the creation of a Group of Eminent Persons delay. In this connection, the Ministers rejected by the receni summit of the Commonwealth aimed attempts to delay Namibia's independence by link- at promoting a dialogue in South Africa and urged ing it to the withdrawal of Cuban troops from the Government of South Africa to cooperate with Angola. the Group. 12. In this connection, the Ministers considered 7. Concerning the policies to be followed uis-d- as null and void the so-called interim adminis- zis the Republic of South Africa aimed at contribu- tration in Namibia which was set up contrary to ting to the abolition of apartheid, the Ministers Resolution 435, and appealed to all countries to considered a wide range of options. They stressed desist from giving it any form of assistance. the importance of continuing international pressure on the Government of South Africa to bring 13. The Ministers reaffirmed the commitment of about the abolition of apartheid through peaceful their respective countries to work towards the means, in the interest of peace and stability in abolition of apanheid in South Africa and to pro- South Africa itself and in the region. mote efforts aimed at bringing about independence for Namibia. 8. They agreed that the measures against South Africa announced by the Community, the Com- t4. The Ministers expressed their thanks and monwealth, the Nordic countries, the United States appreciation to the Govirnment and the people of of America and other governments and organiz- Zambia for hosting the meeting and for the warm ations are very important. In the event that all hospitality accorded to rhem during their stay in these various measures fail to achieve the desired Lusaka,' results, the Ministers agreed that further measures should be considered. 2.4.2. On 13 February rhe Presidency issued press 9. Regarding relations between the Republic of the following communiqu6 South Africa and other southern African States, concerning the meeting between Mr Van they noted that the dismantling of apartheid would den Broek and Mr Pik Botha, Foreign Min- significantly contribute to the peaceful coexistence ister of the Republic of South Africa. of all the States in the region. The Ministers condemned the military acts of aggression and destabi- 'On Friday 14 February Minister Van den Broek, Iization perpetrated by South Africa against the representing the 12 Member States of the European neighbouring States in the region. In rhis connec- Community, will have a meeting in Geneva with tion they demanded the complete withdrawal of his South African counrerpart. all South African troops from Angola. They deplored the loss of human life and destruction of Minister Van den Broek will communicate to his property reslrlting from these actions on the part South African colleague in the clearest possible of South Africa. They recognized the fact that terms the Twelve's grave concern about develop- these actions cannot bring peace to the region; on ments in South Africa. thc contrary, they endanger the peace and stability of the region. Minister Van den Broek will also draw the attention of the South African Minister ro the con- 10. The Ministers equally condemned South clusions of the consultations with the frontJine Africa's policy of destabilization in all its manifes- States on 3 and 4 February in Lusaka.' tations, including the use of any direct or indirect armed actions in neighbouring States, in particular 2.4.3. On 14 February the Presidency Angola and Mozambique. In this regard they issued the following declaration by the agreed to deny perpetrators of such actions any assistance or support, Twelve on the situation in the Philippines:

11. In relation to Namibia, the Ministers con- 'The 12 Member States of the European Com- demned South Africa's continuing illegal occu- munity are deeply concerned about the develop- pation of that international territory and the stale- ments arising from the presidential elections in the mate in efforts aimed at securing its independence Philippines and in particular about the reports of within the framework of the United Nations inde- fraud and violence.

Bull. EC 2-1985 85 European political cooperation

They stress the great importance they attach to the ing measures which are required to abolish apart- strict respect for legal and constitutional pro- heid in the shonest possible term. Recent events cedures to ensure democratic elections. in Alexandra have once again highlighted the seriousness of the situation. In order to meet the expressed wishes of the Philip- pine people, they urge the Philippine authorities to The Ministers once more stressed the need for a facilitate a full and impanial investigation of these national dialogue with the genuine representatives reports, commanding the full confidence of the of those South Africans excluded frorn the present Philippine people.' government structure. They call upon the South African Government to take the necessary meas- 2.4.4. On 24 February the Presidency ures to promote this dialogue without delay. These issued the following declaration on measures should involve, inter alia, the uncon- relations between Costa Rica and Nica- ditional release of Nelson Mandela and all political prisoners and detainees, the lifting of the ban on ra8ua: the African National Congress and other political parties, the termination of the state of emergency 'The Twelve welcomed the news that Nicaragua as well as the suspension of the process leading to and Costa Rica, in their leners of 13 February the "independence" of Kwandbele. 1985, put an end to their dispute and agreed to pave the way for constructive relations based on The Ministers noted that the measures agreed upon peaceful coexistence and mutual respect. in Luxembourg on 10 September 1985 are now being implemented. They noted that funds have The Twelve fully support this gesture of goodwill, been set aside for proiects in favour of victims of which constitutes a positive contribution to the apartheid. easing of tension in the region and to the Conta- dora peace process.' The Ministers reaffirmed that in the absence of I significant progress in the abolition of apartheid 2.4.5. The Ministers for Foreign Affairs within a reasonable period the attimde of the of the Twelve held a regular political coop- Twelve on South Africa will need to be recon- sidered. eration meeting in The Hague on 25 Febru- ary, during which they discussed East-'West The Ministers condemned all acts of aggression relations and the situation in the Middle and destabilization perpetrated by South Africa East. They also adopted the following dec- against neighbouring States in the region. They larations on southern Africa, the lran-lraq demanded once again the complete withdrawal of all South African troops from Angola. In this conflict and Sri Lanka, as well as a press context they also addressed the concems recently communiqu6 on the Philippines. expressed by the Government of Angola.'

Declaration on southern Africa Declaration on the lran-Iraq conflict

2.4.5. 'The Ministers discussed recent develop- 2.4.7. 'The Twelve are gravely concerned by the ments in southern Africa. They reaffirmed their renewed escalation of the conflict endangering position as set out in the joint communiqu6 with peace and security in the whole region. They call the front-line States, issued in Lusaka on 4 Febru- upon the pefties to the conflict to respect strictly ary 1986, and expressed their grave concern about the sovereignty and territorial integrity of neigh- the progressively deteriorating situation and about bouring States and not to interfere with third the lack of real progress towards the abolition of countries' commercial navigation in international apartheid. These concerns were conveyed in the waters or with civil aviation in the area. most forthright terms to the Minister of Foreign Affairs of the Republic of South Africa by the The Twelve are particularly alarmed by renewed Presidency on behalf of the Twelve in Geneva on violations of humanitarian law and other laws 14 February 1985. of armed conflict, including the use of chemical weapons, and they condemn such violations wher- The Ministers reviewed President Botha's speech ever they occur. of 31 January 1985. They call upon the South African Government, as an earnest of its good The Twelve welcome and fully support the intent, to implement as soon as possible the renewed appeal made by the Secretary-General of reforms announced in that speech. The Ministers the United Nations on 14 February 1985, to the concluded, nevertheless, that the proposed reforms Governments of Iraq and Iran for a cessation of as presented fell short of the urgent and far-reach- hostilities, in order to facilitate efforts to promote

86 Bull. EC 2-1986 European policy

a just and peaceful solution of the conflict. They They welcome the fact that President Marcos has urge both parties to cooperate with these effons decided to step down. They are confident that of the Secretary-General. The Twelve believe that this action will contribute to the restoration of a solution should be based on a thorough examin- democracy in the Philippines and the promotion ation of all aspects of the conflict. On such a basis of national reconciliation. they urge both parties to comply with the terms of Security Council Resolution 582, adopted unan- The EC ambassadors have been requested to bring imously on 24 February 1986 and to cooperate this statement to the attention of Mrs Aquino. with the Security Council in its efforts to help Member States of the Association of South-East achieve a just and honourable peace between Iraq Asian Nations and their dialogue partners will also and lran. be informed.' As before, the Twelve are ready to lend their support to these and other endeavours, which have the obiect of bringing the conflict to a solution in 2.4.10. While anending a Council meeting the shortest possible peace time, thus restoring and on 10 March the Presidenr stated that rhe international security in the area.' ministerial decision on the practical application of certain aspects of Title III of the Declaration on Sri Lanka Single European Act (relaring to European cooperation in the sphere of foreign pol- 2.4.8. 'The Twelve are following developments icy) I was deemed to have been adopted on in Sri Lanka closely and wish ro express rheir 28 February, when the process of signing regret that the intensive efforts to bring about the Act was completed (+ points 1.1.1 and a reconciliation have unfortunately not yet been ' successful. They appeal to all parties concerned to t.1.2).2 continue their dialogue in order to achieve a political solution, in the interest of peace and reconcili- 2.4.11. Parliament adopted a number of ation within the framework of a united Sri Lanka. resolutions on political cooperation and human - rights in February (+ point The Twelve value the fact that, with the agreement 2.4.20).5 of the parties involved, India is supporting the search for a political solurion.'

Press communiqu6 on the Philippines European policy and relations between the institutions 2.4.9. 'The 12 Ministers of Foreign Affairs of the Member States of the European Community discussed the current developments in the Philip- European policy pines to which they have already referred in their Declaration of 14 February 1986. Institutional reform The Twelve commend the adherence of the Philip- pine people to democratic principles. This was evident during the elections and became increas- 2.4.12. At a ceremony in Luxembourg on ingly evident in the views put foward by church 17 February, the Single European Act was leaders, trade unions, commercial and industrial opened for signing by the Member States of circles and by sections of the armed forces. the Community. The Ac was then signed The Twelve warmly commend Mrs Aquino for on behalf of Belgium, the Federal Republic her consistent stand in defence of democratic prin- of Germany, France, Ireland, Luxembourg, ciples and for the important role she is now pliying the Netherlands, Portugal, Spain and the in the Philippines. The Twelve convey their con- United Kingdom (+ point 1.1.1). gratulations to Mrs'Aquino, who as President of the Philippines will have the heavy responsibility Following the favourable outcome of the to fulfill the deepest desires of the Filipino people. consultative referendum concerning the Reaffirming their belief that democratic processes must be respected, the 12 Member States of the I Supplement 2/86 Bull. EC. European Community will continue to support the 2 The text of the decision- is reproduced at point 3.4.1. forces of democracy in the Philippines. , oJ c 68,24.3.1986. v

Bull. EC 2-1986 87 Parliament

Single Act held in Denmark on 27 Februry, on the Drotection of the environment Denmark, Greece and ltaly signed the Act 1+ point).4.19).2 in The Hague on 28 February (+ point 1.1.2). lnstitutions and organs Commission programme for 1986 of the Communities 2.4.13. On 19 February Mr Delors presented to Parliament the Commission's pro- Parliament 3 gramme for 1986. The programme is div- ided into three sections: revitalizing the Community, Community policies and the Strasbourg: 17 to 2l February Community in the world (+ point 7.2.1et seq.). 2.4.16. The agenda of Parliament's Febru- ary part-session was very varied, with debates covering a wide range of the Com- Relations between the institutions munity's internal and external affairs. The highlights of the proceedings were the presentation of the Commission's work pro- Powers conferred on the Commission gramme for L986 (+ point 1.2.1 et seq.) for the implementation and the debates on the farm price proposals of Council acts for 1986/87 (+ point 1.3.1 et seq.) and the ecological dimension of the agricultural 2.4.14. Once the Single European Act had policy. been signed by the last three Member States (+ points 1.1.1 and 7.L.2), Mr Delors This last debate provided a platform for the addressed a letter to the Council on 3 March advocates of a farming system designed to in which he restated the importance which preserve the quality of soils and produce the Commission attached to the Council's and to reduce the use of chemicals in agri- adoption of two decisions which are essen- culture to a minimum. tial to improving the efficiency of the institutions. A greener green Europe The first concerns the Council's decision- 2.4.17. The European Parliament is regu- making procedure: the Council must under- larly the arena where the proponents of the take to amend its rules of procedure so that 'traditional' common agricultural policy, issues can be put to the vote either at the adhering rigidly to its basic principles and initiative of the President or at the request geared mainly to farmers' incomes, do of the majority of its members or of the battle with the supporters of a policy Commission; the second point concerns the designed primarily with market require- rules by which the Council confers imple- ments and budgetary possibilities in mind. menting powers on the Commission; in his The House has now discovered a third letter Mr Delors spelled out the content of option in which the basic criteria for a the proposal for a Regulation which the Commiision had adopted on 29 January. 1 t Bull. EC 1-1986, point 2.4.5. 2 oJ c 68,24.3.1986. 3 The complete texts of the resolutions adoptcd by Parlia- 2.4.15. In February Parliament adopted ment are reproduced in OJ C 68,24.3.19%, and the repon resolutions calling for (i) the immediate res- of the proceedings is contained in OJ Annex 2-335. The political groups and nationalities of members speaking in be toration of its right to consulted on the the debates are shown in brackets after their names; the kcy common fisheries policy and (ii) the intro- to the abbreviations can be found in Bull. EC 7/8-1984, duction of amendments into the EEC Treaty points 1.2.5 and 2.4.8 (footnote 1). t

88 Bull. EC 2-1986 Parliament sound agricultural policy are the quality of anti-productivist farmer. Similarly, Mrs produce and respect for the environment. Simone Martin (Lib/F) believed that so- called biological farming, as advocated in Mr Frangois Roelants du Vivier (Rain- this unbalanced report' would mark a bow/B), rapporteur for the Committee on return to pre-war farming and ration books. the Environment, Public Health and Con- Another speaker to reiect 'the good old sumer Protection, held that the CAP, which davs' was Mrs Marcelle Lentz-Cornette more often than not ignored the ecological (E|'P/L), who recalled poor harvests and dimension, must be based on criteria involv- fields choked with weeds. Mrs Christiane ing the environment, the quality of the soil Scrivener (Lib/F) pointed out that the term and the quality of produce. These must be biological farming was incorrect and misled the underlying criteria for decisions con- consrim.rs, while foisting upon them prod- cerning surpluies and rypes and methods of ucts at sometimes prohibitive prices. Mr production. In short, agriculture must be (LibllRL) was another zdechemicalized'; Thomas Maher dangerous pesticides soeaker to emphasize the economic necess- should be shunned, as should the abuse of ity of using pesticides, observing that while chemical fertilizers and intensive livestock motor carJ iould indeed be made by hand, and crop farming, which caused degener- the cost would be 10 times as high. By ation of breeds, animal ill health and, conse- contrast, Mrs Beate Weber (SoclD) argued quently, increased use of veterinary prod- that the agricultural system was workingin ucts. Taking what he felt to be a construc- the wron[ direction;'it was widening the tive view, the rapporteur advocated gulf betwien the big farmers, who were biological farming where income aids [etting richer, and the small ones, who were would be dependent on farming practices getting poorer. beneficial to the environment and in which contracts on ecological practices would be Farmers must therefore be given the possi- concluded giving entitlement to structural bility of freeing themselves from the factors aid under the EAGGF Guidance Section that were coeicing them into increasingly and with a European label for 'biological' intensive production without guaranteeing products. them an adequate income. Mr Meinolf Mer- tens (EDPID) was less categorical; eschew- As examples of the abuse of intensive pro- ins anv oooosition between traditional and duction methods, Mr Roelants du Vivier biElogicaf production, he argued that far- quoted the case of a Dutch province where mers thould be able to choose their own 'the uooer laver of the soil was saturated production methods. Though agreeing that with ihosphate and a German Land where ihe polluter should pay, Mr Natalino Gatti the cbncehtration of nitrate per litre of (Com/l) believed that the blame must not water exceeded the authorized ceilings. He be laid on the farmers but rather on the also mentioned that the Netherlands held industries upstream. Taking a middle view, the record for abuse of nitrogenous ferti- Mr Alain Bbmbard (SoclF) made the key- lizers (342 kg to the hectare), followed by note of his speech the balance between-pub- Belgium (31.2 kg), Germany 1294 kg) and lic health ind the future of agriculture, Denmark (251 kg). between producers' needs and the necessity of providing wholesome products for the Mr Roelants du Vivier's rePort came under coniumer. On the use of chemicals in agri- sharp fire during the debate, particularly culture he quoted Claude Bernard: 'Every- from Mr Jean-Claude Pasty (EDAIF), who thing is poiion and nothing is poison: it all thought it smacked of 'Rousseauism' with a depends on the dose'. Manichean distinction being made between biological farming and modern agriculture, Taking the floor for the Commission, Mr whicf, was taxed with being too produc- Stanley Clinton Davis, the Member with tivity-conscious; it was the myth of the speciai responsibility for environment pol- nobie savage retold in terms of the noble iiy, said that the dlbate had come at the

Bull. EC 2-1986 Parliament

right time, just as the Commission was pre- jointly.by the Liberals and the EDA Group paring to present proposals on the basis of toned down negative assessments made on its Green Paper on the future of European the use of chemical fertilizers and plant- agriculture,l in which some of the ideas health products, while a second W6ltier- were already close ro the main points of rhe Muntingh amendment called fot the in[ro- Roelants du Vivier report. Ai he saw it, duction of a 'phosphate' standard fixing a what was needed was a change of approach. ceiling for the quantity of phosphate spread It was essential to get away from a prices over a hectare. Finally, an amendment by structure which was wasting nitural Mr Thomas Maher (Lib/lRL) asked for a resources by creating surpluses. He high- study of the direct and indirect costs of lighted the growing publii concern about implementing the proposals in the Roelants the deterioration of the agricultural du Vivier reporr. environment: too much emphasis had been placed on maximizing food production and 2.4.18. Parliament gave opinions on the too little on environmental protection. He following Commission propbsals: was therefore in favour of income support (i) a second arhendment to rhe Directive farmers for whose production meiliods of 22 November 1973 on rhe approximation were consonant with the need to protect-to of the laws of the Member States relating the environment. He also wanted see to detergents (-+ point 2.l.lll; controls set up ro ensure that the 'pollutei pays' principle was applied in agriiulture, (ii) a multiannual research action pro- as in industry, and particularly to intensive gramme on materials (raw materials and production. Like Parliament, he said, the advanced materials) (1986-59) and on a sup- Commission wanted to see a prosperous port policy for research and development in agriculture which was alive to rhe problems the new materials sector (-+ point 2.1.38); the environment of and able to-preserve (iii) three multiannual research and devel- both the rural social fabric and employment opment programmes in the field of the in the countryside. Finally, he meniioned environment (1985-90) on environmental the Commission's plan to promote pro- protection, climatology and major techno- tected zones in all regions io ensure- the logical hazards 1+ point 2.1.39)i; preservation of wild life. (iv) a dfcision inrroducing a Community At the end of the debate Parliament adopted system of information on accidents in which the Roelants du Vivier reporc by 298 vbtes consumer products are involved (+ point to 2 with 13 abstentions, urging that the 2.1.103h CAP take more account of ecological cri- (y) a Regulation fixing compensation teria. Several amendments were passed, for the definitive discontinuation most of which came from the Committee of milk production (+ point 2.7.115); on Agriculture; they did not alter the substance of the report but rather clarified or, (vi) an amendment ro the Regulation of at most, tempered it. They included the 30 June 1981 on the common oiganization joint amendment by Mr Eisso Woltfer and of the markets in the sugar sectoi(-, point Mr Hemmo Muntingh (SoclNL) calling on 2.7.778); the Member States gradually to set alide, (vii) an amendment on the basis of criteria proposed by the ro the first Council Directive of 23 1962 Commission, part of theii aiable land for July on the establishment of common rules for ceftain the creation of nature reserves, forests and types of carriage of goods by road between recreation areas, and the amendment by Mimber States; an amendment to the Council Regu- the European Democrats, which deleted the Iation of 1 December 1983 as regards lhe paragraph calling for a study on the advantages and drawbacks of a generalized levy on nitrogen. Two other amendments tabled 1 Bull. EC7/8-1985, point 1.2.1 et seq. r 90 Bull. EC 2-1985 Parliament

liberalizing of the rate-fixing system for car- trace pedigrees, which could in turn lead to riage to oi from a Community seaport of dishonest ilealings, Parliament called on the goods imported or exported by sea; a Direc- Commission to draft a Directive that would tive on the organization of the markets for allow the renaming of horses and ponies the carriage to or from a Community sea- only in very exceptional cases. or exported by sea port of goods imported American restrictions on Cornrnunity (+ 2.1.149); exports of semi-finished steel products. (viii) an amendment to the Council Direc- Noting with concern the increasingly pro- tive of 17 February t975 on the establish- tectionist behaviour of the United States ment of common rules for certain types towards the Community, Parliament of combined transport of goods between pointed to the blatant contradiction Member States (+ point 2.1.150); between this attitude and President Reagan's repeated declarations on the need (ix) a Decision determining the general to .ihrrr.. the freedom of world trade. The guidelines for 1986 concerning financial and House was glad that its repeated requests iechnical aid to non-associated developing for a resoluie Community attitude to the countries (+ point 2.2.33). US had finally been heard. 2.4.19. Parliament also passed resolutions Technology transfer. Considering that on the following subiects. American-l-egislation on export controls was broader in scope than similar legislation The European Monetary System. Parlia- elsewhere and included provisions on re- ment considered that it was still important exports from other countries_, Parlia-ment to convert the EMS into a definitive system obierved that a growing number of forms with a legal basis, as should have happened of technology were suitable for both civil in Marcf, 1981 after the first stage. With and military applications. that in mind the European Monetary Coop- eration Fund should be expanded and made It was therefore afraid that the European into an autonomous European Monetary Community, if it failed to adopt a concerted Fund in order to improve monetary stability approach, would become increasingly pol- in the Community. Parliament wanted full itiially dependent and vulnerable because recognition of the ECU's status as a cur- of its-techhical dependence' on account of rency and hoped that its use be facilitated the claim to extraierritorial application of in the private sector; it also called for the American legislation. Consequently, Parlia- early establishment of a clearing system cen- ment recommended that the Member States tred on the Bank for International Settle- enact legislation to counteract this practice ments and urged the Commission to pro- and callid on the Commission to make a mote a coordinated action in favour of using proposal for th3 principles governing tech- the ECU for commercial billing and pay- nology transfer to and from Community ments for large-scale supplies of energy firms. resources and iaw materials. \0ith regard Specific rneasures to proffiote employment; to the interna.tional monetary system, Par- a-ction taken on tbe special European plan stressed the importance of the liament etnployment; d European employment recent initial results of action taken to bring for strategy and the European social relationship between the dollar, the yen -area. ,ln the four iesolutions Parliament called on the and the European currencies closer to the Commission to carry out, with the direct reality trading power, all of which could 'theof collaboration of the two sides of industry, give EMS greater stability and a series of coordinated measures designed autonomy. to promote large-scale redistribution of The renaming of borses and ponies. Believ- available work while safeguarding competi- ing that sucf, changes made it very often tiveness, and to make specific proposals on impossible for studbook organizations to the content of the social area, particularly r' Bull. EC 2-1986 9l

I Parliament

in regard to employment, conditions and The genetic diuersity of cultiucted -Com-plants organization of work, hygiene, safety and and trees. Parliament urged the health at work, hours of work, incomes and mission, in the contexr of the reform of the social security. At the same time the Council CAP, to enco-urage genetic engineering in was urged to approve swiftly a series of the sphere of plant species, evaluate-the directives notably those on fixed-duration results achieved 1 by European research contracts of employment and voluntary establishments in Europe, prlmote the con- paft-time work.2 A strengthening of thl servation of local varieties and newly intro- Social Fund was held to be necessary so that duced varieties to the European climate and it could meet the financing requiremenrs of soils and thus reduce dependence in the vocational training. seed-producing sector. The Commission was also asked to formulate proposals Recent leahs of radioactiue material from for the Sellafield nuclear reprocessingplani and indirect economic measures deiigned to false infortnation about these-etnissions. reduce genetic erosion and for direit emergency measures genetic After recalling its resolution of 10 Sep- to safeguard the tember 1985 3 on the 'unusually high inii- diversity of cultivated p-lants. 1he House also recognized dence of cancer' in the vicinity of thi Sella- the importance of this diver- field plant, Parliament, in four resolurions, sity lor the Third World and urged that the insisted that these incidents must nor recur, developing countries be granted-rights over genetic called for an end to discharges of radioac- material originating in their terri- tones. tive waste into the Irish Sea and urged that the safety standards be adhered to bi British Common measures to reduce road acci- Nuclear Fuels under rhe effective control of dents, as part of the Community's pro- the Commission. The British Government grarnme for Road Safety Year,7986. Reitat- was urggd to ensure rhat all necessary steps ing the scale and gravity of the problem (a were taken to provide the fullest possible million accidents resulting in 50 000 deaths information about the extent and causes ayefi in the Communiry) Parliament reiter- of radioactive emissions from all British ated its recommendations a for immediate nuclear power stations. decisions concerning the road network and European Enuironment Year 1987. Parlia- traffic signals, vehicle equipment and pro- ,rl€Dt called on the Council and the Com- tection of road users, and- their training. mission to set up an environment fund The Commission was asked to draw up an (possibly with the EIB) and to support in inventory of successful safety measuris in each month of the year a selected inviron- individual Member Srates. mental project. The Council and Com- The possible reneual of the Mubifibre mission were also urged to draw up and Arrangemen (MFA). While it noted that adopt, by the beginning of. 1987, a p-lan of the Community textile industry had lost action with binding a timetable, an emer- 1 350 000 jobs in 10 years, Parliament con- gency programme for 1987, a fourth action sidered on the other hand that textile prod- programme for 1987-91, with, among its ucts ma4e up the bulk of the expoits priorities, of environmentally acceptable farm- certain developing countries, which ing are fre- and soil conservation and ihe rehabili- quently being encouraged by the industrial- tation of hill and mountain areas in a run- ized countries to boost their exports in down state. order to reduce their debts. Th6 House Unfair terms in contracts. Parliament therefore stressed that the new MFA should stressed the need for more effective protec- include more flexible and liberal provisions tion for consumers against unscrupulous contractors and to redress bv adLouate 1 OJ C 133, 21.5.1984; Bull. EC 4t984, pint 2.1.59. legislation the inequalities caused bv the 2 OJ C 18, 22.1.1983; Bull. EC 12-1982, point 21.56. impact of differential contracual 3 baigain- OJ C %2, 14.10.1985; Bull. EC 9-1985, point 2.5.11. ing strength. 4 OJ C 104, 16.4.1984; Bull. EC 3-7984,pointL4.tZ. I 92 Bull. EC 2-1986 Parliarnent solely for the least-developed countries with The EEC Code of Conduct3 for Com- the lowest average incomes and, at the same munity companies with subsidiaries, bran' time, expressed the hope that the structural ches or reprbsentation in South Africa. Par- Funds, the EIB and the Brite programme liament cilled for stringent monitoring of would help to revitalize the redeployment of application of the Code, with the help of the Community's textile industry. Believing t[6 black South African trade unions. The that the MFA had the overall effect of dis- House was convinced that the Code would turbing natural trade flows, Parliame-nt work more effectively and its monitoring nevertheless welcomed the content of the be improved only if it ceased to be regarded Commission's proposals. 1 as the business of political cooperation and became a Community concern. The Conmissioz's prograrnrne for 1986.|n one resolution Parliament called on the The situation in southern Africa. After call- Commission to examine with it the pro- ins for full imolementation of all the meas- cedures for applying the decisions taken at ,rrEs agreed against South Africa by the 10 the Luxembourg Intergovernmental Con- Foreigi Minis-ters in September,4 and with ference 2 and called on the Council to begin reference to the meeting of the Foreign Min- taking action as if the Single European Act isters of the front-line States and Com- had already been ratified. munity countries in Lusaka in February (+ point 2.4.7), Parliament welcomed the In a second resolution, it approved the gen- agreement to deny any assistance to the eral guidelines proposed by the Commission perpetrators of armed actions in Angola and, in particular, the emphasis laid on the and- Mozambique. It also condemned the social dimension of economic and industrial presence of South Africa in Namibia and policy. ihe'so-called interim administration' established there. Parliament's right to be consuhed on the co?nlnon fisheries policy. Considering its The elections in tbe Philippines. Attaching right to be consulted in this field to be the utmost importance to unfailing respect indefeasible, Parliament urged the Com- for the principles of democracy and to the mission to lay a proposal before the Council need foi traniparency in the electoral pro- specifying the cases in which Parliament cess, Parliameht affirmed its support for had to bgconsulted on the common fisheries all Filipinos who were fighting to establish policy. democracy by peaceful means. Ertbodiment of the principle of enuiron- The Caraballeda message for peace, security tnental protection in the EEC Treaty. Hav- and democracy in Central America. Refer- ing criticized the vagueness and inadequacy ring to the Caiaballeda message adoptedin of the Single Act in defining Community January by the Foreign Ministers of the environmeital policy,2 Parliament de- Contadora Group and the Support Group, manded that the Treaty be amended by Parliament urgedthe Council and the Com- inserting in Article 3, defining the tasks of mission to foige closer links between the the Community, an explicit mention of 'the two continents, mainly through the frame- adoption of a common policy in the sphere work cooperation agreement with Central of environmental protection'. It also pro- America ioncluded ln November 1985,5 posed the addition of Articles 84a to 84e with a view to encouraging efforts towards defining the obiectives, principles, implementing rules and international dimension of Community environment policy. 1 Bull. EC 11-1985, point 2.3.4. 2 Supplement 2/86 Bull. EC; Bull. EC 1-1985' point 1.2.3. - 2.4.20. In the fields of political cooPer- 3 Bull. EC 11-1985, points 2.5.1 and 3.4.1. ation and human rights Parliament passed 4 Bull. EC 9-1985, point 2.5.1. resolutions on the following subiects. 5 Bull. EC 11-1985, pointl.2.l et seq.

Bull. EC 2-1986 Council

integration and establishing an equitable ment was lasting, all the parties concerned cooperation policy. must participate in the negotiations. The situation in Haiti. In one resolution Terrorist attacks. In two resolutions, in Parliament welcomed the downfall of the which it condemned the wave of rerrorisr Duvalier dictatorship. In a second, in which outrages perpetrated in Paris, Madrid, Lis- it expressed the hope that the Haitian bon, Florence and Northern Irelaird, Parlia- peopl-e would give their democracy solid ment reaffirmed the need for closer cooper- foundations, the House called on tha Com- ation between rhe various national authori- mission to release immediately special food ties to combat this scourge and called for a aid for the people of Haiti. European legal area. The governments of the Member States were The also urged to make situation in Uganda. Parliament ex- no concessions whatsoever to terrorist pressed the hope that the recent military blackmail, particularly in the case of the and institutional upheavals would not pre- hostages held in Lebanon. vent the holding of free and pluralistic elections in order to guarantee democr-acy and civil peace in the counrry. Council

Tbe political situation in the Middle East. 2.4.21. The Council held three meetings Convinced that any lasting sertlement must in February. The following table lists tf,e resolve all aspects of the Palestinian prob- number, place and date of each meeting, lem, Parliament also stressed the need-for a the names of the Council President ani return to civil peace in Lebanon, whose Commission representatives and the main territorial integrity and sovereignty musr be items of business. A more detailed accounr respected. The House considered that to of specific items can be found in the sections ensure that any comprehensive peace settle- of the Bulletin referred to in the footnotes.

Table 12 - Council meetings in February Number, place and date of Subject Presrdent Commission Main itcms of businesr meeting

1051st Internal Mr Van Eekelen Lord Cockfield White ,Paper on completing the Brussels market Mr Clinton Davis internal marketr 4 February Luxembourg Convention on the Community Patentl Abolition of certain posqal charges tor customs presentationr Conclusion of International Con- vention on the Harmonized Com- modity- Description and Coding Systemz Limitation of noise emitted by hydraulic and rope-operated excavators and by dozers, loaders and excavator-loadersl t052nd Foreign Mr Van den Broek Mr Andriessen Relations with EFTA countries3 Luxembourg affairs Bolkenstein Mr Mr Cheysson Relations with Egypta 17 and78 Mr De Clercq February Relations with ACP States sugar: preparation of Community- position for special meeting of ACp-ffC Council-of Ministers

94 Bull. EC 2-1986 Commission

Number, place and date of Subiect Presrdent Commissron Marn rtems of business meetlng

EEC-Japan relations3 Textiles renewal of MFA and bilateral agreements5-

1063rd Agriculture Mr Braks Mr Andriessen Fixing of prices for agricultural Brussels Mr Jopling products and certain related meas- 24 and25 ures adjustment of common February organization- of markets5 Starch products sugar used in chemical industry6- Structures6 Definitive discontinuation of milk production5 Community action in forestry secto15 Aid for Italian olive growers6 Imitation products in milk sectof Minimum standards of protection for intensive rearing of calves Application of CAP in Spain and Portuga16

I Internal market. 2 Customs union. I Industrialiredcountries. 4 Other countnes and regions. 5 Renewal of the Multifibre Arrangement. 5 Agriculture.

Commission Decisions, com?nunicdtions and proposals 2.4.23. The Commission adopted and Activities transmitted to the Council its proposals on common agricultural prices and related 2.4.22. On 19 February Mr Delors made measures for L986/87 (+ point 1.3.1 et a statement to Parliament on the Com- seq.). mission's work programme for 1986 A communication on improving the Com- (+ point 1.2.L. et seq.).r munity's competitiveness and industrial structures was transmitted to the Council On 2t February Mr Francesco Cossiga, (+ point 1.4.1 et seq.). lt is designed to President of Italy, and Mr Giulio Andreotti, pinpbint the factors upon which the Com- Foreign Minister, visited the Commission. munity's competitiveness depends and to The cburtesy visit was the first by an Italian find ways of improving it. President. The Commission transmitted to the Council on economic develop- On 26 February Queen Beatrix and Prince a communication Claus of the Netherlands also paid an official visit to the Commission and the I General-Secretariat of the Council. Supplement 1/86 - Bull. EC.

Bull. EC 2-1986 95 Court of Justice

ment, the normal quarterly review for the lowing the conclusions of the European annual economic report. However, sub- Councils held on 29 and 30 March aid Z sequent developments (the drop in the price and 3 December 1985. In the same field, rhe of oil and changes in the dollar exchinge Commission proposed a sysrem of prior rate) have made it necessary for the Com- notification and consent to control exports mission to revise the principal data in irs of dangerous chemicals to non-Community forecasts. countries. The Commission sent to the Council a In the energy secor, the Commission three-year (1987-89) programme on a Youth adopted its second reporr on the lignite and Exchange Scheme for Europe to promote peat lndustnes. and improve the quality of youth eichanges in the Community. Lastly, in response to a request made at the Council meeting on 18 and 19 June 1985, In a communication to the Council, the the Commission sent rhe Council new pro- Commission set out its views on the new posals on future relations between the Cbm- guidelines for an environmental policy fol- munity and Japan. Court of Justice

2.4.24. New cases

ECSC - Steel 32185 Societi Industrie Siderur- Annulment of the Commission Decision of 27 Article 32 ECSC giche Meccaniche e Affini (Sisma) December 1985 fining the applicant for exceed- v Commission ing production quotas for the first quarter of 1984

33/85 Stahlwerke Peine-Salzginer Annulment of Article 5 of Commission Article 33 ECSC v Commission Decision No 3485/85/ECSC on the extension of the system of monitoring production quotas for certain products of underiakings in thi steel industry, in so far as it does noi permit any improvement in the applicant's I:P ratio

44l85 Stahlwerke Peine-Salzgitter Annulment of the individual Commission Article 33 ECSC v Commission Decision of 30 December 1985 in so far as it determines that part of the applicant's quota which may be disposed of within the common market

44/85 and 48185 Cau& and Jolior, Annulment of the individual Commission Article 33 ECSC acting as liquidators of the assets Decision of 13 January t986 in so far as it Article 83 of the of Cockerill-DRC v Commission requires the applicants to transfer the reference Rules of Procedure of production of Cockerill-DRC to Sacilor, and the Coun suspension of the operation of the Decision

Free movement of goods

434/85 AIIen and Hanburys v Must a mandatory licence for a patent permit Article 177 EEC Generics (UK) the importation of goods manufactuied in another Member State (in particular a Member State_ where such goods ire not patentable) on the same condirions as are imposed on domestically produced goods?

96 Bull. EC 2-1985 Court of Justice

Taxation

5/85 Ministre des Finances and Is the Royal Decree of 27 December 1977 com- Article 177 EEC Procureur du Roi v Sikier patible with the Community directives and regulations and the Association Agreement between Turkey and the Community (Act of 15 July 1964) in so far as it requires Turkish nationals to pay VAT on the importation of presents the value of which exceeds BFR 45 000?

Competition 10/86 VAG France v Etablisse- Obligation on a supplier to vary an exclusive Anicle ln EEC ments Magne concession contract concluded for one year, without automatic renewal, concerning the resale of new Volkswagen and Audi vehicles and the resale of spare pafts, so as to align it on Commission Regrrlation No 123185 on the application of Anicle 83(3) of the EEC Treaty

State aids

57 /86 Greece v Commission Annulment of the Commission Decision of 13 Article l73EEC November 1985 declaring incompatible with the common market aid in the form of interest subsidies granted by Greece for the exportation of all goods with the exception of petroleum products

Social security

22186 Rindone v Allgemeine Ons- Interpretation of Regulations No 574172 and Article 177 EEC krankenkasse Bad Urach-Miin- No 1408/71 regarding the conditions under singen which a migrant worker residing in a Member State other than that of the paying institution may claim sickness benefit as a result of inca- pacity to work

Free movement of persons t2/86 Demirel v Stadt Schwibish 1. Do Article 12 of the EEC-Turkey Associ- Article 177 EEC Gmiind ation Agreement and Article 36 of the Additional Protocol thereto, combined with Article 7 of the Association Agreement, contain a prohibition, valid immediately in the Member States and directly applicable in Community law, of the ihtroduction of further restrictions on freedom of movement in the form of a modification of an existing administrative practice applicable to Turkish workers legally resident in a Member State? 2. Is the expression 'freedom of movement' in the Association Agreement to be understood as giving Turkish workers resident in a Mem- ber State the right to bring children under the age of maiority and spouses to live with them?

Bull. EC 2-1986 97 Court of Justice

24/86 Blaizot and Others v Uni- Do the financial conditions governing access Article ln EEC versity of Lidge and Othersl to university courses leading to the award of a preliminary diploma ('candidature') and a doctor's degree ('doctorat') in veterinary medicine fall within the scope of application of the Treaty, within the meaning of Article 7 thereof, as regards both the l98S/85 academic year and the academic years from 1979 to 1985?

Agriculture

?5/86 Deutz und Geldermann, Prohibition on references to the method of Anicle 173 EEC Sektkellerei Breisach/Baden v production known as 'm6thode champenoise' Council in descriptions of a sparkling wine 3l/86Laisa v Council Annulment of Council Regulation No 1785/81 Articles 173 and 215 35/86 CPC Espaffa v Council on the common organization of the markets in EEC the sugar sector, as amended by the Act of Accession of Spain and Portugal, as regards the determination of a production quota for isoglucose for Spain 50/85 Grands Moulins de Paris v Application for an award of damages for the Article 215 EEC Council and Commission damage suffered by the applicant, which was not granted the same benefits for the production of granidon as are available for the products for which it is a substitute

Fisheries

55/86 Asociaci6n Provincial de Annulment of Council Regulation No 3781/85 Article 173 EEC Armadores de Buques de Pesca de laying down the measures to be taken in respect Gran Sol de Ponteverda (Arposol) of operators who do not comply with cenain v Council provisions relating to fishing contained in the Act of Accession of Spain and Portugal

Administrative and institutional questions

51/86 France v European Parlia- Annulment of Parliament's resolution of 24 Article 38 ECSC ment October 1985 on meeting facilities in Brussels2 Anicles 164, 173 and t74EEC Articles 135, 146 and 147 Euratom

Budget

23185 United Kingdom v Euro- Annulment of the deliberations and resolutions Article 38 ECSC pean Parliament of the Assembly of 12 December 1985 on the Article 173 EEC 34185 Council v European Parlia- final adoption of the general budget of the ment4 European Communities for the financial year 1986, and of the declaration that the budget had been finally adopted made by the President of the Assembfy on is Decembei 19853

98 Bull. EC 2-1986 Court of Justice

Commercial policy

45/85 Commission v Council Annulment of Council Regulation No 3599/85 Article 173 EEC applying generalized tariff preferences for 1986 in respect of certain industrial products originating in developing countries and of Council Regulation No 3500/85 applying generalized tariff preferences for 1986 to textile products originating in developing countries

Protection of the environment

L4/86 Criminal proceedings Consistency of the existing system of rules in Article 177 EEC against X (concerning the pol- Italy for the protection of fresh waters from lution of the River Chiese) pollution with Council Directive 78/659/EEC

Infringements

49186 Commission v ltaly Failure to transpose Council Directive 82/76/ Anicle 169 EEC EEC (medical specialists, part-time training)

Disputes between the Community and its staff v Council: 30/86 Vastesaeger v Commission: 25185 Suss 40/86 Kolivas 41l85 Castelli 54/86 Grumbach v Parliament: 52/85 Banner

I oJ c 55, 21.3.1986. i oJ c 343,31.12.1985. r oJ L 358,31.12.1985. 4 oJ c 53, 18.3.1986.

2.4.25. Judgments

Date and case

ECSC - Steel 15. 1. 1985: 37, 7 6, 17 5, 120, l9l, 209 and 210/85 Cocke- Ordered removed from the Court Register (pro- rill-Sambre v Commission duction quotas)

31.7.1986:. 68/84 Cogeme v Commission Ordered removed from the Court Register (fine for exceeding production quotas)

Bull. EC 2-1986 Court of Justice

Date and case

Free movement of goods 5.2.7985:271 to 274/84 and 5 and 7/85 Procureur de la 1. Articles 3(0 and 5 of the FJC Treaty do not R6publique and Directeur D6partemental de la Concur- prohibit national rules providingfor a minimum rence et de la Consommation v 1. Chrion and Others, price to be fixed by the national authorities for 2. Byrotheau and Vincendeaul the retail sale of fuel 2. Article 30 of the EEC Treary prohibits such rules where the minimum price is fixed on the basis, solely, of the ex-refinery prices of the national refineries and where those ex-refinery prices are, in turn, linked to the ceiling price which is calculated on the basis, solely, of the cost prices of national refineries when the Euro- pean fuel rates are more than 89o above or below those prices Customs union 4.2.1986: 65/85 HZA Hamburg-Ericus v Van Houten Article' 3(1) and (3) of Council Regulation No International2 1224/80 on the valuation of goods for customs purposes is to be interpreted ae excluding from the transaction value weighing costs payable by the purchaser at the destination of the goods in the case of what is known as an arrival contract 27.2.1986: 38/85 Bienengriber v HZA Hamburg-Jonas Note 3 to Chapter 97 of rhe CCT is to be interpreted as meaning that a figure should be regarded as a doll within the meaning of subheading y7.02 A of the CCT only if any animal features which it may have are minor and secondary and the figure's general appearance is essen- tially that of a human being 27.2.1986: 57185 Senelco v Oberfinanzdirektion Mtn- Note 2 in conjunction with Note 5 to Section chen XVI of the CCT must be interpreted as meaning that parts or detached pieces of electrical equipment for the emitting of a signal, which are presented independently, fall, pursuant to Note 2(b) thereof, within the same tariff heading as the equipment in question where, by vinue of their function, they are intended exclusively for that equipment Competition

?5.2.1986: 193/83 Windsurfing International v Com- 1. Article I of the Commission Decision of 11 mission July 1983 is declared void in so far as it finds that: (i) the licensing agreement with Shark laid down an obligation on the licensee to exploit the licensed patents only for the manufacture of sailboards which had lUindsurfing Inter- national's prior approval for the boarrds, (ii) the licensing agreements betwcen Vind- surfing International and SAN, Klepper and Marker and the agreement between Ten Cate and Ostermann, before it was taken over by Windsurfing International, laid down an obligation on the licensees to pay royalties on components on the net selling price of a complete sailboard,

100 Bull. EC 2-1986 Court of Justice

Date and casc

(iii) the licensing agreements with Ostermann and Shark laid down an obligation to affix to the boards of their sailboards the notice 'licensed by Hoyle Schweitzer' or'licensed by Windsurfing International', (iv) the licensing agreements with Ostermann and Shark laid down an obligation on the licensees to acknowledge the trade marks of Windsurfing International and Ten Cate as valid trade marks, (v) the obligation on the licensees to pay royalties on the rigs manufactured under the German patent only on the basis of the net selling price of a complete sailboard constituted an infringe- ment of Article 85(1) of the EEC Treaty 2. The amount of the fine imposed on Wind- surfing International is set at 25 fiX) ECU, being DM 55 896.50 3. For the rest, the application is dismissed

15.1.1985: 2ll/85 France v Commission3 Ordered removed from the Court Register (annulment of a corrigendum to Commission Regulation No 2349184 on the grounds that it infringes the procedure rules laid down in Articles 5 and 6 of Regulation No 19I55/EEC)

State aids

6.2.1986 310/85 R: Deufil v Commission3 The application for interim measures is dismissed (application for the suspension of the operation of Commission Decision 85/471/EEC of 10 July 1985 concerning aid granted by the German Government to a manufacturer of polyamide and polypropylene yarn in Bergkamen-Riinthe)

Social policy

?t.2.1986l.151/84 Robens v Tate & Lyle Industries Article 5(1) of Directive 76/207/EEC must be interpreted as meaning that a contractual provision which lays down a single age for the dismissal of men and women under a mass redundancy involving the grant of an early retirement pension, whereas the normal retirement age is different for men and women, does not I constitute discrimination on grounds of sex, contrary to Community law I ?5.2.1986: 15U84 Marshall v Southampton and South- 1. Article 5(1) of Directive 76/207/EEC must West Hampshire Area Health (Teaching) general policy I Authority be interpreted as meaning that a concerning dismissal involving the dismissal of a women solely because she has attained or passed the qualifying age for a State pension, which age is different under national legislation for men and for women, constitutes discrimination on grounds of sex, contrary to that Directive

Bull. EC 2-1986 101 Court of Justice

Datc and casc

2. Anicle 5(1) of Directive 76/207/EEC,which prohibits any discrimination on grounds of sex with regard to working conditions, including the conditions governing dismissal, may be relied upon as against a State authority acting in its capacity as employer, in order to avoid the application of any national provision which does not conform to Article 5(1)

26.2.1986:262/84 Beets-Proper v F. Van Lanschot Ban- Anicle 5(1) of Directive 76/207/EEC must be kiers interpreted as meaning that it does not allow the Member States the freedom to exempt from the application of the principle. of equaliry.of treatment an express or implied condition in a contract of employment concluded on the basis of a collective wage agreement, which condition has the effect of terminating the contract of employment on the ground of the age attained by the employee, where that condition relates to the age, which is different for men and women, at which the employee becomes entitled to a retirement pension

Social security

25.2.1986t 254/84 De Jong v Bestuur van de Sociale Neither Article 51 of the EEC Treaty nor the Verzekeringsbank provisions of Regulation No 1408/71, and in particular subparagraph 2(c) of Part I of Annex VI thereto, require that, when the pension of a married man is determined under the Algemene Ouderdomswet (General Act on Old Age), his wife, who after I January 1957 completed periods in accordancc with subparagraph 2(c), must be granted the advantages provided for by the Netherlands legislation, in particular by the Royal Decree of 20 December 1956, in respect of periods prior to their marriage and prior to 1 January 1957 during which she neither resided in the Netherlands nor pursued an activity as an employed person in that country

25.2.1986: 284/84 Spruyt v Bestuur van de Sociale Ver- Subparagraph 2(al of Part I of Annex VI to zekeringsbank Regulation No 14O8l71 applies to a married women so that, subiect to the provisions of point 2(b), (d) and (f), periods before 1 Jantary t957 during which a married women, not satisfying I the conditions permitting her to have such periods treated as periods of insurance, resided in the territory of the Netherlands after the age of 15 or during which, whilst residing in the territory of another Member State, she pursued an activity as an employed person in the Nether- lands for an employer established in that country, are considered as periods of insurance completed in application of Netherlands legislation for general old-age insurance

to2 Bull. EC 2-1986 Court of Justice

Date and case Held

Free movement of persons

29.1.t986: 297 / 84 Sahinler v Commission l. The action is inadmissible 2. The case is ordered to be removed from the Court Register (application for the annulment of the Commission's lemer of 4 October 1984 and for an order to the Commission to adopt a Direc- tive) Agriculture

26.2.1986: 175/84: Krohn v Commission l. The application is declared to be admissible 2. The Court will proceed to examine and eive ludgment on the substance of the case 27.2.1986: 238/84 Criminal proceedings against R

18.2.1986: 174/84 Bulk Oil (Zug) v Sun Neither the Agreement of 20 May 7T75 between and Sun Oil Tradinga the Community and the State of Israel nor Council Regulation No 2503/59 establishing common rules for exports prohibits a Membei State from imposing new quantitative restrictions or imeasures having equivalent effect on its exports of oil to non-member countries. Anicle 4 of the Council Decision of 9 October 1961, in coniunction with the Council Decision of 15 September 1962 and Article 15 of the Council Decision of 15 September 1969, requires a Member State contemplating a change in the state of liberalization of iis expbrts to non-member countries to give prior nbtice ro the other Member States and the Commission. A Member State which fails to give prior notice, delays in-doing so or does so in an inadequate manner fails to fulfil its obligations undei the Council decisions referred tofthat failure does not, however, create individual rights which national courts must protect. The fact that no Community institution challenges the legality of a policy adopted by a Mem- ber State cannot in itself have any effect on the compatibility with Community law of a policy imposing quantitative restrictions on expolts of oil to non-member countries or, consequently, on the reply to be given ro the questioni raised by the national court

Bull. EC 2-1986 103 Court of Auditors

Datc and case

Infringements

18.2.1986: 35/84 Commission v Italya Application dismissed (systematic checks on the iniportation of curds into Italy Article 30 EEC) -

payment premiums due under 20.2.1986: 309/ 84 Commission v ltalya By delayins the of nrticles +(6) siz) of Council Regulation No 456/80 on the"nd granting of temporary and pe-rma- nent abandonment premiums in respect of certain areas under vines and of premiums for the renunciation of replanting, Italy has failed to fulfil its obligations under that Regulation (tax 15.1.1985: 3/85 Commission v France3 Ordered removed from the Court Regioter on imports of seeds and plants)

15.1.1985: 224/85 Commission v Francd Ordered removed from the Coun Register (incorrect transposal of Council Directive 79/ 831/EEC on dangerous substances) (fail- 15.1.1985: 23t/85 Commission v Francd Ordered removed from the Court Register ure to transpose Commission Directive 8l/99/ EEC and 83i232lEEC on dangerous substances)

19.2.1986: 154185 Commission v France Ordered removed from the Court Register {taxation of motor vehicles with a power raring of more than 15 CV)

t9.2.1986: 4U/ 85 Commission v Belgium Oideied removed from the Coun Register (Council Directive $D/ffi/EEC on mineral waters)

Disputes betwecn the Community and its staff v Commission: 6.2.1986: 173/82, 157/83 and 186/84 Castille Judgment panly for the applicant. For the rest' the applications are dismissed' 1 - 31.1.1985:155/85 Seube - Ordered removed from the Court Register' oJ c 51,5.3.1985. oJ c 45, n.2.19%. oJ c s2,6.3.19t5. oJ c s8, 133.1985.

Court of Auditors October 1987,1 gave the solemn undertaking provided forln the Treaties before the 2.4.26. On 18 February, following the Court of Justice. entrv into force of the Act of Accession of Following these appointments, the Court and Spain and Portugal, Mr Subirats Piffana assigned iesponsibilities to its members as Mr Botelheiro Moreno, the new Spanish follows: and Portuguese members of the Court of Auditors who were appointed bY the I Council on 27 January to serve until 17 Bull. EC 1-1985, point 1.1.2.

2-1986 104 BulL EC Economic and Social Committee

Marcel Mart Secretariat, staffing and Stergios Vallas Staff and operating President administration, external expenditure, including relations (other insti- Publications Office, In- tutions, national audit formation Offices and bodies and public European Schools relations) Carlos Manuel Research, technology, Botelheiro new policies, subsidies Audit group 1 Moreno

Keld Brixtofte Own resources 1: 2.4.27. On 20 February the Court of Audi- Customs duties and agri- tors adopted a special report on contractual cultural receipts schemes to extend the markets in milk and dairy products financed by the co-responsi- Josep Subirats Own resources 2: Pifrana VAT resources, budget bility levy. equilibrium, miscel- laneous revenue Economic and Social Committee Charles J. EAGGF Guarantee Sec- Carey tion 1: Budgetary management 234th plenary sessrbn and control and general matters 2.4.28. The Economic and Social Com- mittee held its 234th plenary session on 26 Michael Guarantee Sec- M. EAGGF and27 February with Mr Gerd Muhr in the Murphy 2: tion chair. Common organization of markets Mr Delors presented the Commission's programme (+ point 1.2.1 et seq.) and ad- Audit group 2 dressed the Committee on Europe's. responsibilities in the face of maior world Paul Gaudy European Social Fund, economic problems. The Committee EAGGF Guidance Sec- adopted opinions on several of the Com- tion (other than regional mission's proposals and an own-initiative measures), fisheries opinion on Road Safety Year. Aldo Angioi European Development Fund Presentation of the Commission's programme by Mr Delors Pierre Lelong Cooperation with developing and non-member 2.4.29. In presenting the Commission's countries programme to the Committee on 27 Febru- Andr6 J. Middel- European Regional De- ary, Mr Delors stressed current world econ- hoek velopment Fund and omic problems and in particular: EAGGF Guidance Sec- (i) the problems raised by the inadequate tion (regional oper- growth in world trade in the face of indebt- ations) edness by Third t[(/orld countries, which calls for action in the areas of ffade, finan- Audit group 3 cing and international monetary relations. The industrialized nations had ensure Marcel Mart General audit matters to that world trade grew at an adequate rate Lothar Haase Borrowing and lending, and had to keep their markets open. There ECSC, general accounts, was also a need for a structure and sources accounting principles of finance which would allow Third World

Bull. EC 2-1985 Economic and Social Committee countries to make the necessary adjustments opinion delivered in 79842 it had asked for in politically acceptable conditions. Private a programme to be instituted without delay. finincing would have to continue playing a In another opinion it had recommended very important role, but it was also necess- regular technical inspections of passenger ary to find a better balance between such cars. J financing and public aid; The Committee expressed the firm hope (ii) the unstable exchange rates between that European Road Safety Year would see the maior currencies. Mr Delors welcomed the start of a serious attempt to tackle these the decision of the 'Group of Five' to aban- problems by implementing effective regu- don the laissez-faire attitude they had held . Iations. Harmonizing safety rules in the dif- up to now, but he stressed that interventions ferent countries of the Community and any o[ this type could not solve the problem other Community action which would help alone. It was essential for the industrialized to cut down road accidents would enhance nations to cooperate to a greater degree and the image of European integration. coordinate their economic policies more closely. Mr Delors added that, should the dollar continue to fall, it was likely that Import and export declarations serious problems of the type experienced in 1978 would recur and that instability in the 2.4.31. The Committee unanimously dollar-ECU and yen-ECU exchange rates approved a proposal for a Council Regu- would have unfortunate consequences for lation amending the existing Regulation Europe; introducing Community import and export declaration forms. a The Committee (iii) the fall in the price of oil. According thought that the Commission should have to Mr Delors this offered some opportuni- powers to avoid discrepancies between the ties, but there was a risk that the industrial- codes for intra-Community trade and the ized nations would adopt a short-sighted codes for trade with non-member countries attitude, confining themselves to reaping and to permit, where necessary, further short-term dividends on an 'every man for alignments on intra-Community trade. himself' basis, and then regretting in a year or two that they had not seized the opportunity of coordinating a response between Action against cancer consuming and producing countries. The Community had to adopt a common pos- 2.4.32. With 53 votes in favour and 14 ition in this field and take appropriate steps abstentions, the Committee adopted an in the international arena to tackle the new opinion on the proposal for a Council resol- phase of the debt problem. ution on a programme of action of the European Communities on cancer preven- welcomed the conclusions the European Road Safety Year tion.S It of European Councils of Milan (June 1985) 2.4.30. The Committee unanimously and Luxembourg (December 1985).6 It adopted an own-initiative opinion on Euro- nevertheless had a number of comments to pean Road Safety Year,l in which it wel- make. comed the choice of 7986 for this campaign.

It recalled that the figures for road safety 1 oJ c 341, 21.12.1984; Bull. EC 12-198.4, point 2.1.201; remained alarming (52 000 people killed Bull. EC 11-1985, point 2.1.168. 2 oJ c 2M,6.8.1984. and more than 1.6 million people injured in 3 1984 in the 12 countries of the Community). oJ c Ls,2B.t.t9Bs. 4 OJ C 348,31,.12.1985; Bull. EC 12-1985,point2.7.44. had On several occasions the Committee 5 oJ c 336,31.12.1985; Bull. EC 11-1985, poirn 2.1.85. stressed the need for concerted action at 5 Bull.6-1985, point 7.2.1 et seq.; Bull. EC 12-1985, point European level for road safety and in an l.l.l et seq.

1(r Bull. EC 2-1986 Economic and Social Committee

The proposal on cancer prevention should ations for regional development and sug- be incorporated into a wider programme to gested that a study be made of their econ- combat cancer, whose main approaches and omlc lmpact. principal stages w€re ser out in the Com- mission communication'Action against Multiannuaf research programmes cancer' 13 December proof 1985.1 This on the environment gramme had to define a clear campiign against cancer focusing on three areas: early 2.4.34. The Committee unanimously detection and diagnosis, treatments and adopted an opinion approving the proposal chemical trials, and research. The Commit- for multiannual research and development tee believes that it is absolutely vital to programmes in the field of the environmenr define an overall strategy and coherent (1985-90).3 It insisted that the budgetary action plan if cancer is to be combated allocation of 105 million ECU propoied by effectively. It wants the ad boc commirtee the Commission be maintained. Indeed, it set up to comprise not only scientists and felt that research needed to be stepped up cancer specialists but also representatives of if Furope was to sustain a level comparable the two sides of industry, because some with that of other developed counriies. As cancers are occupational in origin. for the content of the programme, the Com- The Committee also feels that arrempts mittee thought that research into earrh- should be made to plan and coordinite quakes should be added to the other three cancer research at Community level and areas covered (protection of the environ- feels that it is vital to inform the public ment, climatology, major technological about cancer correctly. hazards).

Tenth Commission Report on the ERDF Consumer education IU[ith 2.4.33. The Committee adopted by a large 2.4.35. one abstenrion, the Commit- majority an opinion on the Commission's tee adopted an opinion on the draft Council tenth annual report on the European resolution concerning consumer education Regional Development Fund (1984).2 In the in primary and secondary schools.4 Committee's view, ERDF interventions Since a Community policy to safeguard con- have not been effective enough or well sumers had existed for more than 10 years, enough coordinated with the other struc- the Committee had expected a proposal for tural Funds and financial instruments. It a directive on consumer education rather listed the reasons why regional disparities than a proposal for a resolution, but it had been exacerbated and acknowledged nevertheless approved the Commission's that the low level of appropriations granted draft, which laid down the broad lines on to the ERDF had meanr thar, while which this education should be based. It resources had been transferred to backward emphasized that education of this kind ful- regions, they had not made a substantial filled a vital socio-economic function and contribution to development there. that it contributed ro rhe smooth operation The Committee accordingly proposed that of the market and to its development, in the sense that specific measures as regards both financing it helped to improve the standard products and administrative procedures should be of and services. The Committee felt that the programme adopted. It confirmed that small businesses Community should were making a significant contribution to be given appropriate financial resources. iob creation. As for the overall approach to the new Community policy, regional the I Committee said that it was satisfied with Bull. EC 12-1985, point 2.1.41. 2 Bull. EC 10-1985, point 2.1.81. the new ERDF Regulation. It also supported 3 OJ C 301, 25.11.1985; Bull. EC 7/8-1985, point 2.1.230. the direct promotion of integrated oper- 4 OJ C 238, 19.9.1985; Bull. EC 7/8-1985, point 2.1.133.

Bull. EC 2-1986 to7 Economic and Social Committee

The Committee hoped that the Commission implementation of the provisions of the would expand the obiectives of educating 1982 Directive I within the time periods laid young consumers since not only the 'tran- down in all the Member States. from school to working life' but also sition Although the problems of maior hazards transition to adult life was involved. It the connected wittr the transpoft of dangerous thought that teachers should be given spe- substances did not fall within the Directive, cial training as to the methods and content the Committee stressed the need for Com- of such courses. munity provisions in this field. Finally, the Committee thought that it was desirable for Maior-accident hazards the Member States and the Community to of certain industrial activities envisage ioint action within internationd organizations such as the UN so that risks 2.4.i6. The Committee also adopted (with of the type covered by the Directive could 80 votes for,12 against and 14 abstentions) not be 'expofted' and to ensure that tech- an opinion on the proposal for a Council nology transfers were made under good Direitive to amend the Directive of 24 June safety conditions. 19821 concerning major-accident hazards z of certain industrial activities. The Com- Facilitation of physical inspection mission's main objective is to define more and administrative formalities accurately the substances or groups of sub- in respect of the carriage of goods stances involved and their limit values. The between Member States Committee endorsed the Commission's proposal and reaffirmed the importance it 2.4.37. The Committee adopted unani- iscribed to the adoption and effective appli- mously an opinion on the proposal for a cation of measures aimed at preventing Council Directive amending the Directive major accidents in a number of industrial of 1 December 1983 on the facilitation of activities and at limiting their consequences physical inspection and administrative for- for workers, the general public and the malities in respect of the carriage of goods environment. In this respect, the Committee between Member States. a referred to the comments made in its opin- welcomed measures ion of 26 March 19803 on the proposed The Committee the proposed Commission, which Directive concerning maior-accident haz- by the particular in the con- ards in certain industrial activities. The assumed importance Committee regretted that the working text of efforts made to promote a transport policy; in addition, they would help to com- methods used by the Commission had not plete the internal market. The fact that the provided sufficient information on the Commission's proposals included facilitat- reasoning and criteria which had motivated ing inspections and formalities concerning it in its decision to change some of the goods transported by air was also regarded thresholds laid down in the annexes to the positively, particularly as far as the operat- 1982 Directive 1 for either the Economic and Social Committee or the Advisory ing hours of inspection services in airports Nevertheless, the Committee on Safety, Hygiene and Health were concerned. Commit- Protection at rU7ork. The Committee hoped tee noted that the measures on air transport that the Com- that both the firms concerned and the rel- were not sufficient. It thought evant authorities would make efforts to mission should put forward as quickly as possible proposals keep the public better informed of the haz- new which would take ards connected with certain types of account of the speed of air transport. It also product. I rec- OJ L 230, 5.8.1982; Bull. EC 6-1982,point 2.1.92. In addition, the Committee strongly 2 OJ C 305, 26.1.1.1985; Bull. EC 10-1985, point 2.1.88. ommended that particular attention should OJ C 182, 21.7.198O; Bull. EC 3-1980, point 2.3.44. be paid to the effective and complete 4 OJ C237,19.9.1985; Bull. EC 7/8-1985, point 2.1.192.

108 Bull. EC 2-1985 European Investment Bank felt it necessary to improve infrastructures, for improvements to water supplies in customs formalities and customs clearance regions facing economic difficulty. Simi- procedures in Community airports. The laily, a loan of UKL 10 million to the York- iame applied to rail transport, particularly shire rU0ater Authority will go towards the transport of goods by rail when border water treatment plants, the sewage infra- crossings were involved. structure and sewage treatment works. To give effect to the measures proposed UKL 5 million granted to the Felixstowe regarding transport links with non-Com- Dock and Railway Company, a subsidiary munity countries, the Committee con- of European Ferries Group, will be used sidered that negotiations should be started to expand container terminal facilities and with such countries, particularly with those constiuct a new berth in the port of over whose territory goods pass in intra- Felixstowe to cope with increasing con- Community transit (i.e. Austria, Switzer- tainer traffic and large, new-generation con- land and Yugoslavia). Steps should be taken tainer vessels. Felixstowe is the largest con- to abolish road tolls and heavy goods tainer port in the United Kingdom and an vehicles fees, since such procedures compli- importint link in the country's trade with cate customs clearance at borders. the rest of the Community. UKL 8.5 million was lent to Merseyside Counry Council for road improvement European lnvestment Bank schemes aimed at reducing traffic conges- tion and for a new terminal building and A Operations in January and February associated facilities at Liverpool Airport. loan of UKL 5 million to Lothian Regional 2.4.38. Loans totalling 151.1 million Council is for the construction of a 4.7'km ECU 1 were announced by the European section of the Edinburgh by-pass, together Investment Bank in January and February with ancillary roads, interchanges and other for investments within the Community, structures. This will remove a bottleneck including 774.9 million in the United on a maior regional route. UKL2.75 million Kingdom, 29 million in Denmark, 4.2 was lent to Cornwall County Council for million in Ireland and 3 million in France. upgrading roads and constructing by-passes Outside the Community the Bank lent 50 to improve communications and the flow million ECU in Egypt and Israel under the of goods vehicles and heavy summer tourist Financial ProtocoiC between the Com- traffic. The funds are for 15 road schemes, munity and these two Mediterranean including an access road to Mabe and new countries. by-passes for Sticker and Carnon.

Denmarh Community 2.4.40. DKR 232 million was lent in Den- United Kingdom mark for energy and infrastructure investments in Jutland and Bornholm: 2.4.39. UKL 71.3 million was lent in the United Kingdom for port and road improve- DKR 200 million to Naturgas Syd I/S, a ments, water supply, pollution control, and partnership of 50 municipalities in thecoun- electricity production. lies of Vefle, Ribe and Ssnderiylland, will assist construction of a regional trans- A loan of UKL 29 million to the South of Scotland Electricity Board will assist further I construction of the Torness power station' The conversion rates at 31 December used by the EIB in statistics for the first quafter were I ECU = BFR 44.65, the total planned net output of which is to DKR 7.%, DM 2.28, DR 131.2, ESC 1,10.74, FF 6.70, be 1298 MrUf. UKL 10 million lent to the HFL 2.q6, IRL 0.71, LFR 44.65, LIT 1 490, PTA 136.52, North-West Water Authority will be used UKL 0.52, USD 0.89.

Bull. EC 2-1986 European lnvestment Bank

mission system and local distribution grids Communaut6 Urbaine de Lyon (Courly), for natural gas as part of the scheme to which represents the 55 communes of the reduce the country's dependence on metropolitan area. The loan will go towards imported oil by developing narural gas construction of the A45 motorway, which resources off the coast of Jutland. will provide Lyon with a by-pass to rhe easr and will link the A5 Paris-Dijon mororway DKR 32 million granted ro rhe district of with the A42 to Geneva, the A43 to rhe Hasle on the island of Bornholm go will Alps, and the A7 ro southern France. The towards harbour extensions improve to project will also improve communications handling of the increasing traffic oF both with numerous regions receiving regional fishing and pleasure craft and towards the aid, in particular the Auvergne. fhe loan is construction of a district heating system for the Rillieux-Neyron section, the nofth- using renewable energy resources. ern link in the planned by-pass. Ireland Outside the Community 2.4.41. In lreland a global loan (credit line) of IRL 3 million to the Industrial 2.4.43. In Egypt the Bank lent 30 million Credit Corporation will help finance small ECU for extension of the Shubrah El and medium-sized industriil and rourism Kheima station to meet rising demand for ventures throughout the country. The funds electricity. be onlent will in amounrs ranging from In Israel the Bank granted a global loan of IRL 15 000 150 to IRL 000 to contribute 20 million ECU to rhe Industrial Develop- to the financing of projects undertaken by ment Bank of Israel (IDBI) for small and small firms. medium-sized industrial ventures. The loan exhausts the total of 40 million ECU avail- France able under the second EEC-Isracl Financial Protocol and follows a global loan of 20 2.4.42. In France FF 20 million granred ro million ECU advanced by the Bank to IDBI the Caisse d'aide i l'6quipement des collecti- last year and two global loans of 15 million vit6s locales (CAECL) was onlent to rhe ECU each under the first Financial Protocol.

110 Bull. EC 2-1986 WART TF{KEffi DOCUMENTATION 1. ECU

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

28 Fcbruary 1985r Conuersion rates into national currencies for the ECU used in connection uith Belgian franc and the common agricuhural policy Luxembourg franc (convertible) 44.1404

Belgian franc and February 1985 Luxembourg franc (financial) 44.40/97

German mark 2.15525 National currmcy Dutch guilder 2.43501

Pound sterling 0.661243 Belgian franc and Danish krone 7.96509 Luxembourg franc 4.4118

French franc 6.62991 Danish krone 8.41499 Italian lira 1 467.70 German mark 2.3y792r Irish pound 0.713229 2A1M72 2.385163 Greek drachma 134.005

Spanish peseta 136.093 Greek drachma 77.247y 1023453 Portuguese escudo 142.694

United States dollar 0.9707M French franc 7.0m8, 6.492114 Swiss franc 1.81861 7.tlsgcd Swedish krona 6.95170 Irish pound 0.72s59d. Norwegian krone 6.79736 0.7501103 Canadian dollar 1.38325 Italian lira 1341.0d Austrian schilling 15.1430 1482.0d Finnish mark 4.92099 Dutch guilder 2.70178r Japanese yen L74.824 2.716202 2.687493 Australian dollar 1.38572 New Zealand dollar 1.84545 Pound sterling 0.518655

1 oJ 47, 1.3.1985 c I For cereals and durum whcat- 2 For mrlk and mrlk products. NB. Explanatory notes on the ECU and'green'rates can be 4' For other products. found in Bull. EC 7/8-1982, points 3.1.1 to 3.1.3, and Bull. For seeds. 5 For milk and milk prcducts, pigmeat, wrne, and drcpmeat and EC 10-1984, point 3.1.1. EOatmet,

tt2 Bull. EC 2-1986 2. Additional references in the Officia! Journal

3.2.1. This section lists the titles o[ legal instru- Bull. EC 12-1985 ments and notices of Community institutions or organs which have appeared in the Official Journal sinie the last Bulletin was published but relating to items appearing in earlier issues of the Bulletin; Point 2.1.2 the referencis weri not available when the Bulletin went to Press. Council Decision of 20 December 1985 adopting annual report on the economic situation in The number of the Bulletin and the point to which the laying down economic policy this additional information refers is followed by the Community and guidelines for 1986 the title shown on the cover of the Official Journal, the number of the issue and the date of publication. ol L 377,31.12.1985

Bull. EC 7/8-l9fl5 Point 2.1.97

Point 2.1.230 Commission Decision of 19 December 1985 on applications for assistance from the_ Egropean concerning exceptional financial Proposal Council Decision adopting three Communities for a field, submirted muLiannual research and development support for Greece in the social Pro- (1985) grammes in the field of the environment (1986 by Greece io 1990) (environmental protection, climatology, ol L 379,31.12.1985 major technological hazards) oJ c 301, 25.11.1985 Point 2.5.20

11-1985 Bull. EC Opinion of the Court of Auditors of the European Communities on the proposal for a Council Regu- lation (EEC) amending Regulation (EEC) No 2581l Point 1.3.3 74 on Community financing of expenditure incurred in respect of the supply of agricultural Commission Decision of 22 November 1985 auth- products as food aid orizing Greece to take certain safeguard measures under Arricle 108 (3) of the EEC Treaty oJ c 357, 31.12.1985 oJ L 373,31.12.1985

Points 2.5.23 to 2.5.29 Points 2.5.20 to 2.5.33 the Economic and Social Opinions adopted by the Economic and Social Opinions adopted by 17 and 18 Comminee during its session on 27 and 28 Commirtee during its session on November December oJ c 344, 31.12.1985 oJ c 354, 31.12.1985

Bull. EC 2-1986 tt3 3. lnfringement procedures

Initiation of proceedings Agriculturc for failure to implement directives Failure to inform the Commission of national measures to give effect to the Council Directive 3.3.1. In February the Commission sent letters of of 30 1982 concerning certain products formal notice for failure to incorporate directives June used in animal nutrition 5 (Belgium, Netlierlands). into national law (the Commission not having been informed of national implementing measuies) in Failure to inform the Commission the following three cases: of national measures to give effect to the Council Directive of 18 April 1983 on the fixing of guidelines for the assessment of certain producti used in animal nutrition 7 (Netherlands). Internal market and industrial affairs Obstacle to impons of sheepmeat and goatmeat Commission Directive of 18 Februarv 1985 1 from Hungary (Greece). adapting to technical progress the Council Direc- tive of 1 March l97l on the approximation of the laws of the Member States relaiing to the rear-view Personnel and administration mirrors of motor vehicles 2 (Belgiim, Netherlands, Luxembourg). Abolition reductions properry of the in - tax for Community officials (Belgium).

Obstacle to the transfer to rhe Communities Environment, consumer protection of the actuarial equivalent or surrender value pension and nuclear safety of - rights acquired at national level (France).

Council Directive of 25 September 1983 on limit values and quality objectives for cadmium dis- Financial institutions and taxation charges 3 (Belgium, France, Greece). Failure to apply correctly the sixth Commission Directive of 25 April 79844 adapting Council Direc- tive of 17 May 1977 on the harmonization to technical progress for the of the siith time the Councii Iaws of the Member Directive of 27 t967 on the approximation States relating to turnover June taxes Common system of value-added of- laws, regulations and administrative provisions tax: uniform basis- of assessment, t as regards relatin-g.to the classification, packaging the options and label- specified in Annex (Belgium, ling of dangerous substances5 (Francej. G Luxembourg).

oJ L 90, 29.3.1985. ol L 68, ?2.3.1971. Reasoned opinions ol L 291, 21.tO.1983. oJ L 251, 19.9.1984. oI 196, 16.8.190. 3.3.2. The Commission delivered reasoned oJ L 213, 21.7.1982. opin- ol L 125, 13.5.1983. ions in the following cases: oJ L 145, 13.6.Dn.

tt4 Bull. EC 2-1985 4. European political cooperation

Decision adopted by the In order to prepare these colloquies, the Political Foreign Ministers on the occasion of the Committee shall draw the Ministers' attention to the positions adopted by the European Parliament Single European Act I signing of the on foreign policy matters. In order to make these discussions more fruitful, 3.4.1. The Foreign Ministers, meeting in the the Presidency and the Political Affairs Committee framework of European political cooperation, of the European Parliament shall communicate to hereby decide, on the occasion of the signing of each other in advance the main possible topics for the Single European Act, to adopt the provisions discussion. set out in the body of this text concerning the practical application of certain aspects of Title III 5. By joint agreement, special information ses- of this Act. These provisions may be reviewed in sions at ministerial level on specific European pol- accordance with the procedures in force within itical cooperation topics may be organized as European political cooperation. required. The Ministers confirm that the customary pro- 6, The Presidency shall reply to parliamentary cedures which have been set up to ensure the questions on European political cooperation activi- practical working of European political cooper- ties and take part in European Parliament question ation, in particular in the Luxembourg (1970), time according to the approved customary pro- Copenhagen (1973) andlondon (1981) reports and cedures. the Solemn Declaration on European Union (1983), 7, The Presidency shall ensure that the views and which are summarized in the 'Coutumier', of the European Parliament, as expressed in its remain in force, the following provisions being resolutions, shall be duly taken into consideration supplementary to them. in European political cooperation work. It shall reply to resolutions on matters of maior importanci and general concern on which the I Relations between European European Parliament requests its comments. political- cooperation and the shall transmit to the European European Parliament 8. The Presidency Parliament as soon as possible declarations adopted within the framework of European politi- With a view to ensuring the close association of cal cooperation. the European Parliament with European political cooperation contects with the European Parlia- ment shall take place as follows. II Cooperation of Member States' missions- and Commission delegations Presidency shall regularly inform the 1. The in third countries .European Parliament of foreign policy topics discussed in the context of European political cooper- and international organizations ation. 1. Member States'missions and Commission del- 2. The Presidency shall address the European egations shall intensify their cooperation in third Parliament at the start of its period in office and countries and international organizations in the present its programme. At the end of this period, following areas: it shall present a report to the European Parliament (a) exchange political and economic infor- on progress made. of mation; 3. Once a year, the Presidency shall send a writ- (b) pooling of information on administrative and ten communication to the European Parliament on practical problems; progress in the field of European political,cooper- in the material and practi- ition and take part at ministerial level in the (c) mutual assistance general European Parliament debate on foreign cal sphere; policy. (d) communications; (e) exchange of information and drawing up of 4, The Presidency-in-Office of European political cooperation and the members of the Political loint plans in case of local crises; Affiirs Committee of the European Parliament (0 security measures; shall hold an informal colloquy four times a year to discuss the most important recent developments I in European political cooperation. Supplcment 2/86 - Bull. EC.

Bull. EC 2-1985 l1s European political cooperation

(g) consular matters; and resolutions as defined in item 7, pangraph2of. 1 between political (h) Health, particularly in the field of health and Chapter on relations Europcan medical facilities; cooperation and the European Parlianrent; political (i) educationalmamers(schooling); (e) maintain the European cooperation archives and assist the Presidency in preparing 0) information; the six-monthly compilation of European political (k) cultural affairs; cooPeration texts; (l) development aid. The relevant Council pro- (0 keep up to date the body of European political visions should be noted here. cooperation working practices; (g) assist the Presidency, where appropriate, in The Member States' Heads of Mission and 2. contacs with third countries. the Commission's Representative in third countries shall meet regularly in order to coordinate their 2. The Secretariat shall make the necessary views and piepare joint reports, either at the arrangements to provide interpretation into all the request of the Politica[Commiaee or on their own official languages of the Community at meetings initiative when the situation requires. of Heads of State or Government as wcll as ministerial meetings. It shall ensure that all European With a view to strengthening the cooperation 3. political cooperation texts submitted to or adopted of missions in third countries, this topic shall be at these meetings are immediately translated into examined periodically by the Political Comminee all the official Community languages. on the basis of reports drawn up for this purpose by the missions. 3. The Secretariat shall be composed of five officials. Following on from the support team The Member States shall examine the possi- 4. arrangement, the Presidency-in-Office of European bility of providing help and assistance in third political cooperation together with the two preced- countries to nationals of Member States which ing and the two following Presidencies shall each have no representation there, second an official for a period covering five presidencies. The status of the officials of the Foreigrr Ministries on temporary secondment to the Sec- III European political - retariat shall be identical to that of members of cooPeration secretariat: the diplomatic missions in Brusseh, to which they responsibilities and organization shall be administratively anached. The Head of the Secretariat shall be appointed by The Secretariat of European political cooperation the Foreign Ministers under arrangements to be shall act under the authority of the Presidency. It agreed berween them. shall assist the Presidency in preparing and implementing European political cooperation activities 4. Matters concerning administrative rtaff, infra- and in administrative matters. structure, equipment and operatirry expenses will be the subiect of a further decision- It shall assist the Presidency in ensuring the continuity of European political cooperation and its consistency with Community positions. IV - Venues for European political The Secretariat shall: cooPeration meetings assist Presidency (a) the in the organization of European political cooperation mectings shall nor- European political cooperation meetings, includ- mally be held at the seat of the Secretariat. Mini- ing preparation documents the and circulation of sterial-level and Political Committee m€etings may and the drawing up minutes; of take place in the capital city of the Presidency. (b) work with the European Correspondents Group in the preparation of conclusions and guidelines and in carrying out any other task entrusted V Use of languages in European to the Group by the Political Committee; political- cooperation (c) assist the chairmen of working groups as regards procedures and precedents and the drafting Use of languages shall be in accondane with the of oral reports and studies; rules of the European Communities. (d) assist the Presidency in the preparation of For meetings of officials and Coreu communi- texts to be published on behalf of the Member cations, the current practice of European political States, including replies to parliamentary questions cooperation will serve as a guide for the time being.

tt6 Bull. EC 2-1985