Bulletin of the EUROPEAN COMMUNITIES

lssN 0378.3693

Bulletin OF THE EUROPEAN COMMUNITIES

uommlsston4..

No 10 1986 \ Volume 19 The Bulletin of the European Communities reports on the activities of the Commission and the other Community institutions. lt is edited by the Secretariat-General of the Commission (rue de la Loi 200, B-1049 Brus- sels) and published eleven times a yeil (one is#e covers July and August) in the official Cgmmunity languages.

t ,'c. Reproduction is authoriz-eb provided ihe source is acknowledged. ' I itil .' ' Ll) * -.i .. ll.*t' The following reference syiie.nr is usedithe first digit indicates the part number, the second digit the chapter number and the subsequent digit or digits the point number. Citations should therefore read as follows: Bull. EC 1 -1986, point 1 .1.3 or 2.2.36.

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

Printed in Belgium Bulletin OF THE EUROPEAN COMMUNITIES

ECSC_EEC-EAEC Commission of the European Communities Secretariat-General Brussels

No 10 1986 Sent to press in February 1987 Volume 19 co nte nts

PART ONE PETfIi"',, 1. Reduction of unemployment in a more dynamic European Community - Annual economic report 1986-87 7 2. New policy on aid to shipbuilding 9 3. Action programme for small and medium-sized enterprises 12

|-"8.J+EEE*,,,U lr PART TWO I 1. Building the Community 14 - Economic and monetary policy 14 - lnternal market and industrial affairs 15 - Steel 17 Research and technology, industrial innovation and the - information market 21 Customs union 27 Competition 29 Financial institutions and taxation 32 Employment, education and social policy 33 Culture 36 Regional policy 37 Coordination of structural instruments 40 Environment and consumers 41 Agriculture 44 Fisheries 53 Transport 56 Energy 56 Nuclear safety 57 2. External relations 58 - New round of multilateral trade negotiations 58 - Renewal of Multifibre Arrangement 58 - Commercial policy 58 - Relations with industrialized countries 60 - Relations with other countries and regions 62 e Mediterraneancountries 62 o Asia 63 o Latin America 64 o State-tradingcountries 65 - Development 65 - lnternational organizations and conferences 72 3. Financing Community activities 73 - Budgets 73 - Financial operations 73 4. Political and institutional matters 74 - European political cooperation 74 - Other intergovernmental cooperation 75 - European policy and relations between the institutions 78 - lnstitutions and organs of the Communities 79 e Parliament 79 o Council 90 o Commission 92 o Court of Justice 94 o Court of Auditors 104 o Economic and Social Committee 104 o ECSC Consultative Committee 105 t: o European lnvestment Bank 106 t' ti PART THREE DOCUM ENTATION ti 1. ECU 110 2. Additional references in the Official Journal 111 3. lnfringement procedures 112 Grants for research into European integration, 1987-88 114 Supplements 1 986

1/86 Programme 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

5/86 The Community's broadcasting policy Proposal for a Council Directive concerning broadcasting- activities

6/86 A new impetus for consumer protection policy

7 /86 Voting rights in local elections for Community nationals \

PART O[\IE SPECIAL FEATURES

\ Bulletin information service

(date Readers can obtain information on developments since this issue went to press of opinions.given by Parliament or the Economic ;i.p,i".;f initrrrn.nrc by the -Council,.of Committil, o( publication in the Officiat Journal, etc.) by telephoning the ao.urn."t"nd'So.i"l services of the Infbrmation Offices at the following numbers: London 2728122 Belfast 240708 Cardiff 371631 Edinburgh 225 2058 Dublin 712244

Mme Teirlinck M. Clairet

References in text and footnotes

References ro other parts of the same issue of the Bulletin are given in parentheses in text, thus (-+ 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 drfferent languages of the community: ECU = European cunency unit BFR = Belgische frank / 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 . Reduction of unemployment in a more dynamic European economy

Annual economic report 1g8O-87 required if the major problems facing the world economy are ro be solved. The risks on the international 1.1.1. front are seen to be the ln 7987 economic growth in the Com- following: munity will continue for the sixth year running, a remarkable achievemenr, but unemploymEnr, (i) a further significant fall in the dollar while down a little, will still be hieh. Tfie doliciei or uncontrolled exchange-rate movements; implemented since the second oil s[ock havi made an effective contribution towards restoring the (ii) an insufficient or inappropriate adjust- foundations for sounder growth but their eTfects ment process in Japan and the United States; on.the level-of unemployment are working through (iii) a further large shift in oil prices; only very slowly. The turrent level of u"nemploy- ment cannor be tolerated and, far from beinelnes- (iv) a worsening of the situation in the capable, can be reduced through balanced iction developing countries. bgaring simultaneously on sufply and demand. The easing of inflationary pieisures and the Within the Community, the following improvement in payments balances produced by developments are forecast: falling_energy _p-riiei wil I provide the' Community in 1987 and 1988 with a unique opportunity that (i) a slight acceleration in real GDp needs to be seized. growth (to an expe*ed 2.8"/o in 1987) that will not, however, be on the scale that it This is the message contained in the annual could and should be in order to bring about economic reporr 1986-87, which the Com- an appreciable and sustained fall in unem- mission sent ro the Council on 21 October ployment; and to Parliament and the Economic and Social Committee.l In the report, the Com- (ii) an incrase of some 0.8% a year in mission reviews economic developments employment that will produce a deiline in and prospects and updates the economic the unemploymenr rate, from l7o/o in 1986 policy guidelines mafped out in the pre- to 10.87o in 7987, a performance which is vious report, entitled Cooperative growth regarded as thoroughly unsatisfacory; strategy for more employment'z and (iii) a similarly unsatisfacrory pattern of endorsed by the Couniil in December growth between regions and Member 1985. r It comes to the conclusion that the States, with no tangible convergence in real economic policy recommendations set out per capita GDP, which is ah essenrial in last_year's report have certainly not been element in reinforcing economic and social overtaken by events and must be cohesion; implemented with vigour determi- and (iv) dynamic real demand in the Com- nation. To that end, accordance in with munity in response to the substantial Article 3 of the 1974 Council Directive on improvement in the terms of trade; stability, growth and full employment,4 the Commission calls on Mtmber Srares' (u) sustained growth in investment such governments and on the two sides of indus- as to, increase productive capacity but leav- try to initiate ar narional level the social ing the overall level of investmenl four per- dialogue necessary for the implementation centage points of GDP below whar it was of the economic policy proposed. before the first oil shock; (vi)- a further fall in inflation rares together with some oprimism that this greateistab- lnitial situation and prospects I 1.1.2. The report notes rhe positive devel- 2 coM(86) 530 final. opments at international level points Bull. EC 10-1985, point 1.3.1 et se4. but j OJ I- 3V,31.12.1985l' Bull. EC 12-1985, point 2.1.2. out that considerable efforts will be . oJ L 63, s.3.1974.

Bull. EC 10-1985 Annual economic report 1986-87 ility and price convergence will be maintai- and as quickly as possible in order to ned and consolidated. improve the conditions governing supply and demand through the lowering of taxes and social security contributions and by margin Community economic PolicY stepping up public investment.-This for 1987 and beyond comts from extra receipts and lower expen- ditures resulting from more vigorous 1.1.3. The improvement in supply-side qrowth and the increase in employment. conditions and the positive effects of the Flo*.uer, the room for maneouvre avail- differs fall in oil prices are not sufficient to Put the able to the various Member States Communily spontaneously back on to a very considerably and only ,a gpal-l group srowth path that would allow unemploy- of Member States will probably be in a irent to-be reduced to the desired extent. position to take action in this field in 1987 The oresent medium-term outlook indicates ind 1988. It is important that other that, on unchanged policies and behaviour, countries should join the grouP as the econ- the growth in real GDP is likely to remain omic recovery progresses. This beneficial below 3% and that the unemployment rate chain reactioir will need to be reinforced in the Community would therefore still be through concerted action. above 10% in 1990. Hence the need for the view that the basic deliberate and determined application of The report also takes policy in the Community the cooperative growth for more employ- thrust of monetary that the aim must ment, together with the mutually reinforc- need not be altered and of the ing effecis of progress under other Com- continue to be appropriate financing munity policiei (i.e. internal market, tech- scope for real growth while consolidating perform- nologicil advance, monetary cooPeration and-, where necissary, improving Closer and the EMS). ances in reducing inflation rates. convergence coupled with the gradual liberalization of capital movements is further Obiectives accentuating the need for greater economic policy coordination both domestically-as 1.1.4. For 7987, special emphasis is placed t.t*le., monetary policy, fiscal policy and on the need for further improvement in income trends-and at Community level notably through. a supply-side conditions, between Member States. The Progresss -oieiat. increase in real wages below the made in establishing a zone of monetary rate of productivity growth and through stability is reducing dependence on external the greater market adaptability. However, European economies. report also underscores the need for a further boost to internal demand through Lastly, priority must be given to measures renewed expansion in business investment for impioving'market adiptability and the as efforts aie continued to improve profita- busineis environment; this includes foster- bilitv. reduce interest rates in a sound man- ing the establishment of small and medium- n.r,'j.o*ote the use of risk capital, induce siied businesses, promoting vocational a chinge in attitudes and encourage greater training and encouraging the development entrepi.neurial readiness to take risks. and application of new technologies. Com- The report further stresses the important pletion-of the internal market is an essential part that public finance policy has to play element in reinforcing competition and in implementing the Community strategy. improving markets. Labour-market policy The goal of me-dium-term consolidation of is especially important for the achievement publii finances must be further pursued. At of employment-creating growth. There is a ihe same time, it is important that all the particular need here for dialogue between existing and the futurc room for manceuvre ihe two sides of industry on the social reper- shouldle exploited in a determined fashion cussions of the improvements made.

8 Bull. EC 10-1986 New shipbuilding aid policy

Employers and unions should continue to that the social dialogue should now be settle for moderate real wage increases con- initiated at national level and calls on Mem- ducive to job creation until such time as ber States' governments and on the two employment-creating investment becomes sides of industry to work towards that end. sufficiently profitable and unemployment The Commission also plans to make an shows a continuing marked decline from interim assessment of how the strategy is year one to the next. being implemented in the communication it is to send to the Council in July 1987. As a Methods help in the performance of this task, the Commission has asked each of the Member 1.1.5. The social dialogue with and States' governments to submit by the begin- between the two sides of industry at Com- ning of May 7987 a concise report setting munity level and especially at national level out the initiatives and economic policy is crucial in achieving the objectives of the measures they have taken to implement the cooperative strategy. strategy. These reports-supplemented, where appriopriate, by reports from the two In drawing up its annual economic report, sides of industry

2. New policy on aid to shipbuilding

1.2.1. On 2 October the Commission sent The lack of recovery and the bleak outlook the Council a proposal for a sixth Directive on the market as far as new orders are on aid to shipbuilding,2 which translates concerned have led the Commission to into operational measures the broad prin- remodel its strategy. The new proposal is ciple.s set out in the communication con- being introduced against a background of cerning a new strategyr in this regard that it an alarming shortage of work and of poten- presented in August. It is intended that tial orders for the world and Community this new instrument should follow on from shipyards and, within the Community, a the fifth Directive, which lapses on 31 sharp decline in employment in the indus- December. The fifth Directive, adopted in s try. The Commission therefore sent the 79814 and twice extended, established a Council, with the proposal, a communi- set of rules for State aid that were designed cation setting out its analysis of the indus- to help restore the competitiveness this of trial, regional and social aspects of the crisis-stricken industry. In order to secure authorization by the Commission, aid had to be justified by restructuring measures progressively, OJ C 281,7.11.1986; COIU(86) 531 tinal. and to diminish the aim being Bull. EC 7i8-1986, point 2.1.82. to discontinue aid entirely upon expiry of oJ L 137, L1.s.1981. the Directive. OJ L 371, 30 12.1982; OJ L 2, 4.1.1985.

Bull. EC 10-1985 New shipbuilding aid policy industry as a basis for its consultations with together with production aid, expressed as the authorities in Member States, together a percentage of annual turnover, does not with unions and trade associations. I Aris- exceed the common ceiling. these consultations, the Com- ing out of (iv) Restructuring aid aid to defray the produce a comprehensive commission will normal costs incurred in- the partial or total munication. closure of shipbuilding or ship repair yards may be considered compatible with the -orderly functioning of the common market Proposed sixth Directive provided that the resulting capacity reduction is genuine and irreversible. It will 1.2.2. The new Commission proposal be subject to strict monitoring by the Com- advocates a more rigorous and more restric- mission. Aid for closures may cover the tive aid policy; it is centred on the idea following costs: payments to workers made of concentrating assistance on specialized redundant or retired before the statutory production areas and on the Community's retirement age; payments to workers for most efficient yards. Its main features are vocational retraining; expenditure incurred described below. for the redevelopment of yards for indus- (i) The industrial policy obiective is to trial use other than shipbuilding and ship make restructuring more specific, in other repair. The amount and intensity of aid words to adapt shipbuilding resources to must be justified by the extent of the restruc- the market so as to establish a Community turing effort involved. Account will, how- core centred on the most efficient yards. ever, be taken of the structural problems of the regions concerned and, in the case of (ii) Production aid is to be geared towards conversion to other industrial activities, of supporting specialized yards capable of the Community legislation and codes appli- eventually facing up to international compe- cable to those activities. tition, while at the same time avoiding dis- tortion of competition within the Com- (v) Aid for research and development may munity. To this end, it is proposed that a be granted. reduced level of production aid be authorized which must not exceed a stated ceiling; The new Directive will operate for five years all forms of direct and indirect production and should contain transitional provisions aid will be taken into account in calculating for Spain and Portugal to take account of this ceiling. It will be set by the Commission the fact that restructuring is less advanced on the basis of the difference between the in these new Member States, in which the cost structures of the Community's most Directive will apply only after 31 December competitive yards and the prices charged by 1989. Until then, aid for shipbuilding will theii main Far East competitors in those be considered compatible with the common parts of the market in which Community market provided that it is progressively yards remain the most competitive in rela- reduced and is geared towards supporting a tive terms. The Commission will consult systematic restructuring programme which the Member States before setting or revising can be considered capable of making yards the ceiling operations to be carried out competitive - from 1990 onwards - under at intervals -not exceeding 12 months. the conditions for implementing the Direc- tive. (iii) Operating aid will include aid to facilitate the continued operation of ship- All Member States' aid plans are to be noti- building and ship conversion businesses, fied to the Commission, which will system- including loss compensation, rescue aid and atically monitor restructuring progress. all other types of operating aid not directly supporting particular restructuring measures. This may be deemed compatible with the common market provided that the aid, t COM(86) 553 final.

10 Bull. EC 10-1986 New shipbuilding aid policy

Communication on the industrial, grammes or national programmes of Com- social and regiona! aspects munity interest in areas that are in a difficult of the industry socio-economic situation on account of the crisis in the shipbuilding industry. One Industrial aspects thing that needs to be done is to put the Spanish and Portuguese shipbuilding areas 1.2.3. In its communication, the Com- concerned on an equal footing with the mission emphasizes that in view of the corresponding areas of the Community of structural shrinkage of the world shipbuild- Ten that are already covered by specific ing market, which itself results from a struc- ERDF measures.l These measures aie also tural decline in shipping requirements, and to be extended to areas of the Community having regard to the competition, notably which have not, in the past, been eligible. from Far Eastern countries (Japan and South Korea), it will not be possible to maintain the Community's shipbuilding 1.2.6. The Minis*^ a, Industry, at a industry at its present level. The reduction Council meeting on 20 October, held an in capacity already under way could amount initial discussion on the Commission pro- to one third of production capacity and posal for a sixth Directive on aid to ship- more as far as jobs are concerned. Optimum- building. They also heard a presentation by effects from restructuring be will achieved a Commission representative on the indus- if work is concentrated on yards which have trial, regional and social aspects of the pol- real chance a of competing on the world icy contemplated in this new proposal. market. There was broad agreement on the need to replace the Directive, Social aspects fifth on its expiry at the end of 1986, with an instrument that 1.2.4. On the basis of foreseeable levels of would, on the one hand, take account of activity and the restructuring that is still the problems posed by competition from necessary, it is probable that 25 000 to the Far East and, on the other, encourage 30 000 jobs will be lost by the end of 1987 further restructuring in the Community, especially less and 40 000 to 45 000 by the end of 1989. of the efficient yards, and open the. industry intra-Community The Commission therefore believes that a up to substantial development of existing funds, competrtlon. particularly the Social Fund, will be To this end, there was broad agreement required and that a number of specific with the principle of setting a common aid employment measures could be contem- ceiling to be fixed with reference to rhe plated such as a Community redundancy difference between the cost structures of the payment, a conversion payment and a most competitive Community yards and the mobility premium. The budgetary cost of prices charged by their main international these measures is estimated at 5.5 million .competitors, though some Member States ECU for 1987 (85 million ECU for 1987-89). believed that there should be more than one ceiling for different types of ship. Regional aspects Most Member States agreed that there should be separate provision for aids for 1.2.5. The Commission considers that as restructuring purposes, outside the ceiling, f.ar as intervention by the European as long as they are tightly controlled. RegionalDevelopment Fund (ERDF) is concerned, an increase in appropriations of some 70 million ECU for 1987-89 is required ' oJ L 27,31.1.1984; Bull. EC t-1984, point 2.1.5a; OJ L in order to help finance Community pro- 350,27.12.1985i Bull. EC 12-1985, point 2.1.128.

Bull. EC 10-1986 11 3. Action programme for small and medium-sized enterprises

1.3.1. At a meeting of Industry Ministers Noting that the development of SMEs is an essen- on 20 October the Council warmly wel- tial part of a number of Community policies and initiitives under examination by the Council, for action programme for small and comed the example in the framework of employment-creating medium-sized enterprises presented by the measures, Commission on 8 August.l The Council policy unanimously approved a resolution agree- Approves in principle the main lines of the followed and the strategy in the action programme, the ing to the main lines of policy and subject to approval of individual proposals and rt.""t.gy in the programme.2 It ,lto issued their financial implications, and invites the Com- a statement on reducing the administrative mission to report periodically on the realization of burden on business, in which the Com- the objectives.' mission was invited to make the necessary procedural arrangements for an exchange Council statement on reducing bf information on action to improve the the administrative burden on business business environment. 'The Council... The fact that the Council approved the resolution and the statement 'demonstrates (i) noted with satisfaction that the assessment among govern- procedure introduced by the Commission, under that there is a consensus which all new proposals are accompanied by a note ments to support the policy which the Com- containing realistic estimates of costs on business, mission has entrusted to me' stated became operative on 1 June 1985. The Council Mr Matutes, the Commission Member with invited the Commission to report on the initial special responsibility for small business pol- operation of the system; icy 'at a time when the Commission is (ii) noted the Commission's intentions concern- embarking- on a number of measures which ing plans to reduce the burdens on business, par- constitute the first steps towards a genuine ticularly those resulting from existing Community as in the communication, European Community business policy'. instruments mentioned The Council invited the Commission to report on the results of the outside consultants' study, with appropriate recommendations for action; Council resolution (iii) agreed to a regular exchange of information on action undertaken by Member States and the 'The Council ... Commission to improve the business environment, Whereas all enterprises benefit from the action and invited the Commission to make the necessary programme for SMEs; procedural arrangements; (iv) welcomed the Commission's intention to Considering the objectives of integration, com- report on the links the SME Task Force had estab- pledon of the internal market and the implemen- lished with business organizations and the role and tation of the Community's policy on economic effectiveness of their contribution to its work on convergence and of the cooperative growth and reducing administrative burdens; employment strategy; (v) expressed its intention of reviewing the pos- Considering that the important role which the ition, in the light of these reports, in the first half creation and development of SMEs can play in the of 1987; creation of employment and the specific problems they face in the various Member States call for a Community strategy covering SMEs which will I Bull. Ec7/8-1986, point 1.3.1 et seq. complement national action in this area; 2 oJ c 287,14.11.1e86.

12 Bull. EC 10-1986

Building the Community

Economic and monetary policy view to the strengthening of economic and social cohesion in the Community envisaged by the Single European Act,5 Parliament Council feels that the process must be accompanied by measures to direct capital flows towards its economic and financial affairs 2.1.1. At sectors which need investment. The desir- meeting 13 October the Council had a on ability of avoiding safeguard clauses and o[ discussion of the proposal for a thorough encouraging instead Community measures Decision concerning NCI IV.1 It con- is also stressed. sidered whether the operations proposed for assisting small businesses should be car- Lastly, Parliament calls upon the Com- ried out by renewing the NCI mechanism mission to draw up a report every year or whether they should be entrusted to the on the progress being made towards the European Investment Bank. The Council liberalization of capital and its effects on asked the Permanent Representatives Com- other common policies. mittee to continue work on the subiect so as to enable the Council to take a decision at its next meeting. Monetary Committee Following discussion on CAP expenditure, the President drew a number of conclusions concerning the worrying budgetary situ- 2.1.4. The Monetary Committee held its ation arising from accumulating surpluses 327th meeting on 30 October, with Mr Tiet- oI agricultural produce and stocks (--+ point meyer in the chair. The main items on the 2.1.1,32). agenda were an examination of the economic and monetary situation in Spain and discussion of the Community's financial Economic situation relations with Japan.5

Annual economic report 7986-87 2.1.2. On 27 October the Commission 2.1.5. On 27 October the Representatives transmitted to the Council, Parliament and of the Governments of the Member States, the Economic and Social Committee the meeting within the Council, adopted a Deci- annualeconomic report t986-87 2 ('-+ point sion-on a proposal from the Commis- 1.1,.1 et seq.). sionT-providing flor Member States to take the necessary measures to ensure the suspension o[ new direct investments in' Capital movements South Africa by natural or legal persons resident in the Community and laying down Liberalization programme the details of that suspension.8

2.1.3. On22 October Parliament delivered an opinion 3 on the proposal for a Directive to extend the Member States' current obli- I oJ c 163,3.7.1985; Bull. EC 5-1985, poinr 2.1.3. gations to liberalize capital movements.4 2 coM(85) 530 final. r oJ c 297,24.t1.1996. The opinion states that the liberalization 4 OJ C 229, 10.9.1986; Bull. EC 5-1986, points 1.3.1 to of capital movements has to be a gradual 1.3.4. 5 Supplcmcnt 2/85 Bull. EC. process which makes due allowance for the 5 Bull. EC 4-1985, point- 2.2.13. different social and economic conditions 7 Bull. EC9-986, point 2.1.5. prevailing in the Member States. With a 8 oJ L 305,31.10.1985. l4 Bull. EC 10-1985 lnternal market and industrial affairs

lnternal market 1,987 on changes in healthcare and the rrain- and industrial affairs ing of nurses in the 21st century. The Com- mittee also finalized its future work programme, which will focus on the inadequate Completing the internal market correspondence it believes to exist in the \ Member States between theoretical and practical training in nursing and possible Council ways of remedying it. It will also piepare a contribution on training in nursing for the 2.1.6. At an internal market meeting on 7 Commission's 'Europe against cancer' pro- October the Council reached broad igree- gramme. r Finally, the committee hiard ment on the proposal for a Directive on statements on the monitoring and assess- the noise emitted by domestic appliances ment of the training of nurses in Luxem- (-+ point 2.1.121). Progress was also made bourg and the United Kingdom. with five major proposals concerning pharmaceutical products. I The Council discussed the status of the Presidency's rolling Free movement of goods programme for the period 1 July 1985 ro i July 1,987. safeguard measures 4

2.1.10. On 15 October the Commission 2.1.7. On 24O.roO.. the Commission authorized Portugal to Iimit, up to 31 sent to the Council a proposal for a Regu- December 1987, imports of refrigerators lation on the abolition of exit formalitieiat and freezers originating or in free circu- internal Community frontiers (introduction lation in other Member States.5 of common border posts), as envisaged in the White Paper on completing the internal market (+ point 2.t.56). Removal of technical and administrative bariers to trade 2.1.8. On 23 October Parliament passed two resolutions on the internal market Industrial products (--+ point 2.4.2q.2 2.1.11. On 1 October the Commission published in the Official Journal of the Free movement of persons European Communities a notice 5 concern- and freedom to provide ing the non-respect of certain provisions o[ servtces the Council Directive of 28 March 1983 laying down a procedure for the provision of information in the field of technical stan- Mutual recognition of diplomas dards and regulations. T A major feature of and access to occupations the Community's policy for completing the internal market is prevention of new Nurses national barriers to intra-Community trade.

2.1.9. At its meeting on 2l and22 October oJ c 29j,5.11.198\ Bull. 10-1984, point the Advisory Comminee on Training in ' EC 2.1.16; OJ C 122,22.5.1986; Bull. EC 3-1986, poin; 2.1.18. Nursing, whose members for a new three- 2 OJ C 297,24.11.1986; Bull. EC 6-1986, point 1.3.1 er year term (12 May 1985 to 11 May 1989) seq- 3 had recently been appointed by the Council, a Bull. EC 5-1985, point 2.1.56. proceeded to elet its Chairman. then For steel producrs, sce points 2.1.26 and 2.1.27. It 5 oJ C 260, 17.10.1986. continued its work in preparation for the 6 oJ c 24s,1.10.1986. symposium to be held on 20 and 21 October , oJ L 109,26.4.1983; Bull. EC 3-1983, poinr 2.1.8.

Bull. EC 10-1986 15 lnternal market and industrial affairs

The Commission wishes to draw the atten- the Member States relating to infant formu- interested lae and follow-up milks.5 This is in tion of Member States and other 6 Darties to the fact that national technical response to Parliament's request that the Itandards and regulations adopted in Commission should go even further in breach of the Directive of 28 March 1983 incorporating the principles and aims of the are unenforceable against third parties and International Code of Marketing of Breast- the Commission would expect national Milk Substitutes into the Directive. courts to refuse to enforce them. To prevent the erection of new barriers the Directive now requires all Member States to send the Small business - Commiision all their draft technical regu- Business cooperation lations for industrial products (with the Distributive trades - exception of food products for human consumption, pharmiceutical and cosmetic Small business products) so that the Commission can ixamine them prior to their adoption in 2.1.14. At an industrial affairs meeting on national law. 20 October the Council approved a resolution on an action programme for small and From 1 October Member States will be medium-sized enterprises, together with a (urgent required, other than in special cases statement on reducing the administrative public reasons relating to the protection of burden on business (--+ point 1.3.1). health or safety), to suspend adoption of technical regulations: 2.1.15. On 16 and 77 October the Com- (i) automatically for a period of three mission and the Milan Chamber of Com- months; merce jointly held a European conference on craft industries and small businesses the (ii) for a period of six months when the theme of which was 'The business environ- Commission or another Member State ment and the new technologies'. raises a serious obiection; The Commission was represented by Mr 12 months dating from the initial (iii) for Matutes, the Member with special responsi- Commission communication, when the bility for small business policy. The main Community legislation decides to initiate items discussed were the internal market, draft national in the field covered by the the financing of innovation and the pro- legislation. motion of craft industries. A resolution was the end of the conference. 2.1.12. On 7 October the Commission adopted at adapted to technical progress I for the second time 2 the Council Directive of 7 lndustry r November 1977 on the approximation of the laws, regulations and administrative provisions of the Member States relating to Council classification, packaging and labelling ihe Council of paints, varnishes, printing inks, adhesives 2.1.16. On 20 October the out an action and similar produCts. s It reduces from approved a resolution setting medium-sized 0.5% to 0.25% the lowest lead content for piogramme for small and together with a statement on which a special warning Iabel is required. enterprises,

Foodstuffs I oJ L 295,18.10.1986. 7 oJ L 147,6.6.1983. 3 oJ L 303,28.1r.19n. 2.1.13. On 27 October the Commission 4 OJ C 285, 12.11.1986; COM(85) 564 final. amended 4 its proposal for a Council Direc- 5 OJ C 28, 30.1.1985; Bull. EC 2-1984, poinr 2.1.17. tive on the approximation of the laws of 6 OJ C 120, 20.5.1986; Bull. EC 4-1985, point 2.1.13.

l6 Bull. EC 10-1986 Steel reducing the administrative burden on busi- national industrial programme of Com- ness (+ point 1.3.1). The Council discussed munity interest. in detail the Commission proposals for a further liberalization of the steel quota arrangements (--+ point 2.1.19) and took Shipbuilding note of an oral report by Mr Peter Suther- 2.1.18. On 15 October the Commission land on the application of the code on aid transmitted the Council communi- to the steel industry (--, point 2.1.28). It to a cation on the industrial, social and regional also held a first discussion on the proposal aspects of its new policy on aid to the Com- for a sixth Directive on aid to shipbuilding munity's shipbuilding industry (-+ point (-+ point 1.2.2). Finally, noted a stare- it 1.2.3 et seq.). ment by Mr Karl-Heinz Narjes on the Com- mission's intentions concerning the specific programme for the development of Portu- guese industry and a statement by the Portu- Steel guese delegation (+ point2.1.17). The Community steel industry Specific programme for the development of Portuguese industry (Pedip) Market management 2.1.17. On 17 October the Commission sent the Council a communication contain- Crisis measures ing the results of its examination of the specific programme for the development of Portuguese industry submitted by the Portu- Organization of the steel market guese Government in February under Proto- in 1,987 col 21 to the Act of Accession and the 2.1.19. On 20 October the Council dis- declaration in which the Community under- cussed in detailthe Commission's proposals took to provide assistance for the adap- for further liberalization of the steel quota tation and modernization Portugal's of arrangements established under Article 58 economy. of the ECSC Treaty for wire rod, merchant At the Council meeting on 5 June the Portu- bars, galvanized sheet and primary products guese delegation had asked the Commission used in its manufacture, and small sec- I what stage had been reached in the examin- tions. ation the programme, and the Com- of There was general agreement on the need mission undertook to report at the to continue the process of liberalization in Council's industrial meeting. next affairs the light market conditions and other position of The Commission's is as follows: factors. (i) it formally acknowledges the reasons and need for a specific effort to assist the The Council noted that the necessary majority existed development of Portuguese industry, an in favour of liberalization objective already specified in the Act of of galvanized sheet and the repeal of Article Accession; 15 (b) of the Decision of 31 January 1984, by which the Member States are authorized (ii) it makes provision for the use of all to lodge complaints with the Commission the Community instruments, giving prefer- when deliveries vary from traditional trade ence to integrated projects; flows.2 The Commission made a formal (iii) it suggests to the Portuguese authorities that they structure the measures envisaged under the specific programme so that I Bull. EC 9-1985, point 1.2.1 et seq. they can be coordinated on the basis of a 2 oJ L 29,1.2.19a4.

Bull. EC 10-1986 t7 Steel statement for entry in the Council minutes 1985. In the medium term the International to the effect that it will continue its surveil- Iron and Steel Institute (llSI) predicts a con- lance of deliveries. tinuing decline in consumption in industrialized countries 312 million tonnes in The Council agreed to continue the dis- 1990, 308 million- in 1995 while the cussion of all the points in the Commission demand from developing countries- will giving assent, proposal with a view to its if increase regularly by 3o/o a year, to reach November. posiible, at its meeting on 18 137 million tonnes in 1995. The Commission undertook to present at the next Council meeting of Industry Minis- Capacities ters in November a first analysis of Euro- fer's recent initiative and its implications 2.1.24. The IISI expects a capacity for the future of the quota arrangements. reduction of 100 million tonnes in the west- The Council also took of a report given ern industrialized countries, to be offset in orally by Mr Peter Sutherland on the appli- part by a 24 million tonne increase in devel- cation of the steel aids code (--+ point oping countries. 2.1.28). General objectives for steel 2.1.20. The ECSC Consultative Commit- in 1990 tee adopted a resolution on 17 October calling for the quota system to be continued 2.1.25. On 7 October the Commission for as long as restructuring has not been sent the Council a report on the implemen- completed (+ point 2.4.45). tation of the general-objectives for steel in 1990,2 which forms part of the periodic 2.1.21. On 23 October Parliament passed examination of the economic situation in a resolution on the worsening of the situ- the steel industry, as promised when it pre- ation in the iron and steel industry and sented the 1990 general objectives in July the Commission's proposed liberalization 1985.3 The changes in the macroeconomic measures for the steel sector (-r point context and the situation in the steel indus- 2.4.2q.1 try since then have prompted the Com- mission to check the validity of the assump- Market situation tions used in the initial document. The change in the macroeconomic situation Production has been fairly spectacular: the drop in oil prices, the depreciation of the dollar, bring- 2.1.22. The production of crude steel in irg down the cost of imported raw the Community totalled 1,0 897 million materials, and the lowering of interest rates, tonnes in September, a drop of 5.2oh com- mean that the economic prospects for the pared with September 1985 for all the 12 Community are considerably better. How- present Member States and 4o/o for the 10 ever, this development does not appear for Member States in 1985. the time being to have changed the basic outlook [or the steel market, especially as Consumption the drop in the value of the dollar has stiffened world competition and made both 2.1.23. Estimates of crude steel consump- our exports less profitable and our markets lWestern tion in the industrialized countries, more attractive to producers from many at only 315 million tonnes indicate a further non-Community countries. fall of 2o/o in 7987 compared with 1985 and 5% compared with 1985. The biggest drop the will be in the United States, while oJ c297,24.11.1986. demand from developing countries will be COM(86) 515 final. 107 million tonnes as against 104 million in OJ C 239, 2O.9.1985 ; Bull. EC 7 / 8-1985, point 2.1.27.

18 Bull. EC l0-1986 Steel

The steel industry has therefore nor ben- that ought to be long enough deliveries efited from these first signs of a macro- to Spain of wire rod and galvanized- sheet economic recovery; it is almost as if the from the other Member States. These opposite were true. A relatively favourable restricted quantities may not be less than period for production in 1984 and 1985 as 9 000 and 1 500 tonnes respectively. well as the first few months of 1986 have been followed by a period of caution and Protectiue measures for Portugal hesitation. Speculators anticipating a down- 2.1.27. On 15 October the Commission turn are, at this moment, even having a decided to grant up to rhe end of the year negative effect on overall internal demand, the protective measures requested by Portu- which is, however, still with the forecasts - gal on the basis of Article 379 of. the Act 83 to 89 million tonnes of finished products. of Accession in respect, in particular, of On the supply side, there is still a strucrural imports of concrete reinforcing bars includ- imbalance in relation to effective demand, ing plain bars, wire rod and small sections and, in view of the restructuring already originating in Spain.3 The measures are undertaken, it might be necessary to intro- retroactive to 1 October, the tonnages laid duce changes in the configuration of the down covering the last three monrha of the industry going well beyond the envisaged year. capacity reduction. On the other hand, tak- The limits on these imports areZ 300 ronnes ing steel production as a whole, it may be for reinforcing concrete bars including plain possible to make further productivity gains bars, L 350 tonnes for wire rod and 286 upstream and downstream of the hot-roll- tonnes for small sections. ing stage (where most of the restructuring effort has been concentrated so far). Competition It is against this background thar, between 2.1.28. The Council took note of a reporr now and 1988, the steel industry has to presented orally by Mr Perer Sutherlind, equip itself to compete in a market which, the Member of the Commission with special by then, should be totally open to compe- responsibility for competition, on the appli- tition. The industry must therefore use rhe cation of the steel aids code. Recalling- its intervening period to complete its restruc- unanimous approval on 29 October 1985 of turing efforts. The steel industry cannor a strict new code of rules on State aid to' continue to operate in the regulated climate the steel industry for the period 1985-88,4 ir which has so far partially protected it from welcomed the Commission's determination normal economic conditions, because to do to ensure that Article 4(c) of the ECSC so would be to risk ossification of irs struc- Treaty and the new code continue to be tures and a tendency not to adapt to new rigorously applied. market conditions. Trade with non-member countries Accession-related measures lmports Protectiue measures for Spain External aspects of the crisis measures 2.1.26. On I October the Commission adopted an extension 1 of the protective Stocktaking and prospects measures granted in March 1985 on the 2.1.29. On 29 October the Commission basis of Article 379 of the Act of Accession adopted for transmission to the Council to curb exports to Spain from the other Member States of hot-rolled _sheet, heavy t plate and cold-rolled sheet.2 The new oJ L 305,31.r0.1985. 2 OJ L 80, 5.3.1986; Bull. EC 3-1986, point 2.1.25. Commission Decision authorizes Spain to 3 oJ c 260, 17.10.1986. restrict up to 31 December 7986- a period 4 Bull. EC 10-1985, poinr 1.2.3.

Bull. EC 10-1986 79 Steel a communication on the stocktaking and munity market. It suggests that arrange- prospects of the external commercial policy ments not be renewed with countries where bf the Community in the steel sector. I exports to the Community have dropped appreciably. Finally, the fate of the arrange- By comparison with 1977,the year in which ment with South Africa will depend on the the present commercial policy measures economic measures the Community applies were- introduced,2 the steel sector, despite in respect of that country. the marked recovery in the Community, remains fragile. The situation has also (iv) The Commission also recommends a deteriorated on a world scale as a result of more open policy towards developing the development of surplus capacity and countries, whose economic and financial restrictive iommercial measures adopted by situations as well as their attitude regarding numerous countries. imports from the Community must be taken into account. In the circumstances, while faithfully upholding the pr.incip.le that trade in steel Product coverage must be gradually reduced must remain as free from restrictions and in the arrangements, but in view of the trend distortions as possible, the Commission of imports in 1985 the Commission will feels that the Community should, during not be proposing any further change in the a transitional period, retain the principal coverage for 7987. Lastly, the final elimin- contractual and autonomous commercial ation of anti-dumping or countervailing policy measures. duties will mean that the exchanges of letters regarding the suspension of duties and 2,1 .30. As regards contractual measures, product subcategories for the country con- the Commission considers that the system cerned will not be renewed. of arrangements with steel countries should be reviewed in the light of the outcome of 2.1 .31 . \With regard to autonomous meas- the new GATT round 3 and the opening of ures, in the next few years it will be necess- the American market: ary to take account of the political commitments resulting from the declaration made the case of EFTA countries, which 3 (i) In at the GATT meeting in Punta del Este in 1985 supplied 44% of total steel imports and gradually introduce some flexibility prefer to into the Community, unless some into the remaining unilateral quantitative the Com- keep. the existing arrangements, restrictions. The system of basic prices suggests simple exchanges of let- mission should be updated. ters, which have the advantage of being more effective in solving the problems aris- The Commission will examine the ways in ing in trade in steel products. which the Community's existing rules on (ii) In the case of the eastern bloc anti-dumping and countervailing duties countries, which supply more steel to the based on the GATT codes can be put into Community than they buy from it, the action more effectively and more rapidly. Commission does not propose any change Finally, the Commission proposes a Com- in the structure of arrangements concluded munity-level investigation of whether the with them, but considers that the number public financing or support of surplus of subquantities mentioned in these capacities might not be better controlled arrangements should be reduced and that by some kind of initiative involving export the quantities should be adjusted in Iine credits, in conjunction with the OECD Steel with real market trends. Committee. (iii) For the other countries, the Com- mission proposes that arrangements be a coun- negotiated only where non-member I coM(85) 585. try is unable to prevent its producers caus- 7 Elcventh General Report, point 748 et seq. ing distortions of competition on the Com- 3 Bull. EC 9-1986, point 1.4.1. et seq.

20 Bull. EC 10-1986 Research and technology, industrial innovation and the information market

Autonomous measures resources to be allocated to direct-, indirect- and concerted-action projects, the defi- 2.1.32. As Yugoslavia far exceeded the nition of selection criteria, relationship to ceiling laid down for its exports of ferro- other Community policies, the role of small silicon, the full duties of 6.2o/o were reintro- businesses and the adjustment of financial I duced up to the end of the year. contributions and repayable advances. The Council also began discussion of the financial allocation for the future frame- Research and technology, work programme and its specific pro- industrial innovation grammes. and the information market Following that discussion, the Council instructed its subsidiary bodies to continue their work on all the problems involved in CommunityR&Dpolicy close cooperation with the Commission and with the Crest Committee in the case of certain aspects in preparation for the Framework programme Council meeting on 9 December.

Council Stimu lation of European scientific 2.1.33. At its Research Ministers meeting a nd tec h n ica I coo perati o n in Luxembourg on 21 October the Council and interchange examined in detail a number of fundamen- 2.1.34. meeting Brussels on 7 tal questions concerning new frame- At a in -the October the Committee for the European work programme 1987-9lz on which it was Development of Science and Technology necessary to obtain guidelines in order to (Codest) examined the Commission pro- stimulate technical dis- and direct the posal framework programme of cussions which would enable the substan- for a research and technological development tive decision to be taken. (1987-91),2 noting with satisfaction ihat it The deliberations confirmed the desire of indicated an increase in Community all the Member States to reach a decision resources allocated to research. by the end of the year. The Committee also discussed the results The discussion on scientific and technical of the recent successful Codest conference priorities revealed that a certain consensus in Groningen on metastable materials and already existed with regard to the possible decided that the next conference would be inclusion of a number of projects in the new devoted to biocommunication. framework programme (although differ- Lastly, the Committee examined 136 ences emerged concerning the degree of pri- research proposals submitted under the ority to be accorded to other activities). stimulatioh plan (1985-88).3 Because of the After an exchange of views, the Council limited resources available, it was able to asked its committees to carry out a more recommend only 25 of these, relating to detailed examination of the structure of the widely differing topics (e.g. motor control Commission document and the description and locomotive coordination in crus- of activities it contains. The Council also considered the treatment points: the I oJ L 295, 18.10.1986. of the following evaluation in 2 context Community relationship Bull. EC 3-1986, point 1.1.1. et se4.; Bull. EC7/8-1986, of R&D, point 1.2,1 et seq. with other international R6aD activities, 3 OJ L 83,25.3.1985; Bull. EC 12-1984, points 1.7.1 and particularly COST and Eureka, the share of 1.7.2.

Bull. EC 10-1986 Research and technology, industrial innovation and the information market taceans, rupture behaviour of certain The application to COST and Eureka pro- materials and components, microstructural jects of such criteria as the origin of pro- development and mechanical behaviour of posals, admission and participation certain types of clay), for selection by the arrangements, project size, financing and, Commission. in particular, the objectives of the research in question would demonstrate that as a rule, especially when they fall within the I ntern ati o na I coo p eratio n same research sector, these projects are dis- tinctly complementary. EFTA countries 2.1.37. Memoranda of Understanding in 2.1.35. On 20 october the Commission respect of the following COST projects presented a proposall for a Council were signed in October: 305 (data system Decision concerning the final conclusion, for the study of demand for interregional on behalf of the Community, of the Frame- passenger transport)-by Spain on 9 work Agreements for scientific and techni- October; 215 (High-bit-rate optical fibre cal cooperation between the Communities systems)-by Austria on 7 October and the and Sweden, Switzerland, Finland, Norway Netherlands on 15 October; 73 (\fleather and Austria, which were signed earlier in radar networks)-by Belgium and Switzer- the year.2 land on 15 October; 305 (Automatic transmission of transport data)-by the Federal Republic of Germany, Finland, Spain and COST cooperation France on 22 October; 308 (Ship maintenance management)-by Denmark, Spain on 2 and 2.1.35. At a meeting in Istanbul and France on 22 October. 3 October the COST Committee of Senior Officials examined the relationship between 2.1 .38. An international conference on COST activities and Community research high-temperature alloys for gas turbines and in the context of the Committee's 'con- other applications was held in Lidge under clusions' relation to the future role oI the auspices of COST from 5 to 9 October. 3 COST and the proposal for a Community The aim of this conference, the third in a framework programme (1987-91) of series organized every four years in Lidge research and tEchnological development. 4 and attended by more than 250 scientists, results during After outlining the proposed framework was to review the obtained the past four years under COST Projects 50 programme, the Commission representative on high-temperature materials. informed the Committee of the Com- and 501 mission's view of COST in relation to that programme and to bilateral cooperation Sectoral R&D activities and Eureka. The Committee expressed its regret at the removal of COST from the Energy framework programme proposal and called for its reinsertion when the programme was Nuclear fission energy adopted by the Council. The question of COST-Eureka relations 2.1.39. In the context of the third shared- was mainly discussed during the examin- cost research and development programme ation of COST activities in the transport sector. The general line to emerge was that I COM(86) 554 final. this relationship should be based on a prior 2 Bull. EC 1-1986, point 2.1.25; Bull. EC 4-1986, point and regular exchange of information which 2.2.18; Bull. EC 5-1986, point 2.1.52; Bull. EC 7/8-1986, would overlap and point 2.1.37. eliminate any risk of 3 OJ C247,3.10.1985; Bull. EC 718-1986, point 2.1.39. that the Commission should be given a role 4 Bull. EC 3-1986, point 7.1.1. et seq.; Bull. EC7/8-1986, with real substance in this connection. point 1.2.1 et seq.

22 Bull. EC 10-1985 Research and technology, industrial innovation and the information market on the management and storage of radioac- mization of hydrocarbon production and tive waste (1985-89),1 a meeting was held use, energy systems analysis and modelling. in Brussels on 9 and 10 October with a view to the conclusion of an agreement in this field between the Commission and the Can- lndustry adian company AECL. Information was exchanged on various topics, including New technologies determination of the safety of high-activity waste repositories in geological formations I nf o r m at i o n t e c b n o I o gy and the study of radionuclide migration in the geosphere on the basis of an examination of similar natural phenomena. Esprit programme 2.1.43. The requirements for the success- 2.1.40. On 15 October, in collaboration ful completion of the Esprit programme,2 with the OECD's Nuclear Energy Agency are as follows: the continuation and consoli- (NEA), the Commission organized a sym- dation of cooperation at the precompetitive posium at the Ispra Establishment at JRC stage; resolute action for the development which it presented the results of the projects of standards; creation of communications the inspection steel components in on of networks geared to the needs of computer- nuclear reactors (PISC II). This project, con- ized information; and, more generally, the ducted under the auspices the NEA, of completion of the internal market. These involves the participation of several labora- were the main lines of the discussions at the tories, including the which has a cen- JRC, third Esprit Technical Week.3 tral role. During the Information Technology Forum 2.1.41. From22 to 24 October the Com- on 1 October, nearly 1 000 participants and mission organized a meeting in Brussels to 85 journalists were given2l impressive dem- mark the official launching of the European onstrations of Esprit projects and heard Safety and Reliability Association (ESRA). speakers such as Mr Geoffrey Pattie, UK Specialists from industry and the academic Minister of State for Industry and Infor- world in several Member States were pre- mation Technology and current President sent. ESRA is an informal association which of the Council, express their conviction of acts as a 'communications network' the need for continuing efforts at Com- between national and international groups, munity level. research centres, institutes, universities and industrial companies concerned with safety Telecommunications and reliability problems. RACE programme Non-nuclear energy 2.1.44. On 29 October the Commission 2.1.42. On 30 September an information sent the Council a proposal for a Regulation meeting, intended primarily for journalists on a Community action in the field of tele- and members of the European Parliament, communications technologies (RACE). was organized in Brussels in connection This action is the follow-up to the 18-month with the third programme of research in the definition phase of the programme, a which field of non-nuclear energy. 1 Those present at this event heard an account of the most recent developments in the research sectors I OJ L 83, 25.3.1985; Bull. EC 3-1985, point 2.1.141. 7 covered by the programme, namely solar, Ol L 67, 9.3.1984; Bull. EC 2-1984, point 1.3.1 et seq.l Bull. EC 5-1985, point 2.1.39. wind, geothermal and biomass energy, 3 First Technical Week: Bull. EC 9-1984, point 2.1.21; energy saving, the use of solid fuels, pro- Second Technical Week: Bull. EC 9-1985, point 2.1.137. duction and use of new energy vectors, opti- 4 COM(86) 547 final.

Bull. EC 10-1985 Research and technology, industrial innovation and the information market was approved by the Council in July 1985 less-favoured Community regions (+ point and is due to expire at the end of the year. 1 2.1.107). The main purpose of the definition phase was the execution of the tasks necessary in Direct TV broadcasting by satellite order to improve the definition of funda- 2.1.46. On 22 October Parliament deli- mental requirements- in the field of inte- 2 grated broadband coinmunications (lBC). vered its opinion on the proposal for a [n the light of develophents in recent Council Directive on the adoption of com- months and of the experience and pro- mon technical specifications of the MAC/ visional results acquired during the defini- packet family of standards for direct satel- tive phase, the objective of RACE as a Com- lite television broadcasting.3 Parliament munity action has been reviewed. Covering adopted a resolution on this subject in the years from 1987 to L991, it now com- M^y.a prises the following three aspects: In the opinion Parliament repeats its request (i) development of the necessary techno- for information on the problem of the inter- logical base for IBC; compatibility of different MAC systems and on the cost of achieving such compatibility. precompetitive (ii) execution of the devel- It regrets that the Council has already taken opment work required for the supply of a decision in principle in favour of the MAC experimental equipment and services for family of standards 5 before receiving satis- IBC demonstrations: this work covers such factory answers to the questions put to the IBC basic and support technologies as spec- Commission. ific integrated circuits and broadband switching techniques; Parliament nevertheless supports the proposals, seeing it as the most realistic (iii) functional integration prior to stan- approach under present circumstances, dardization: this aspect concerns cooper- although it does not regard the Com- ation with a view to the creation of an 'open mission's choice of the MAC family as the verification environment' for the assessment best solution from the technical or commer- functions, operational concepts and of cial standpoint. experimental equipment. Lastly, it stresses that the Community must For each year of the programme, the Com- devise a European strategy for high-defi- mission will draw up a work plan defining nition television and its associated techno- detailed objectives and the types of project logical developments. The European indus- and action to be undertaken. Projects will try must exploit to the full the two-year generally be executed under shared-cost breathing space provided by the meeting of contracts providing for a maximum Com- the International Radio Consultative Com- munity contribution of 50% of total costs. mittee in Dubrovnik in May. These contracts, which will be awarded on the basis of public calls for proposals, will involve the participation of at least two Agricu lture a nd fisheries industrial partners who are totally uncon- nected and are not established in the same 2.1.47. As a measure to promote the dis- Member State. semination of information and research results, a symposium on increasing the use of cereals in livestock feeding was held in STAR programme t 2.1.45. On 27 October the Council OJ L 210,7.8.1985; Bull. EC 7/8-1985, point 2.1.225. 2 oJ c 297,24.11.1986. adopted the STAR programme, which is r OJ C 59,14.3.1986; Bull. EC 1-1986, point 2.1.37. designed to provide greater access to 1 OJ C 148,16.6.1986; Bull. EC 5-1986, point 2.1.40. advanced telecommunications services for 5 BuU. EC 6-1986, point 2.1.50.

24 Bull. EC 10-1986 Research and technology, industrial innovation and the information market

Brussels on 15 and 15 October. It made a Health and safety comprehensive review of research already conducted in the spheres of crop pro- 2.1.49. On 29 October the Commission ductivity and stock breeding. sent the Council and Parliament a proposal for a new multiannual research and development coordination programme Environment in the field of medical and health research (1,987- The Commission proposing a 2.1.48. A symposium on the scientific 9\.2 is budget of 37 million ECU this pro- basis for soil protection in the European fbr gramme with a view ro enabling Community took place in Berlin from 5 to the Com- munity to expand the coordination 8 October. It was jointly organized by the activities which has been Commission and the Berlin Senate under it conductins in the European the third research programme field of medical researlh sinc. in the field 7978 of environmental protection. I and to extend them to other areas. Among the most important of these are The soil may be regarded as a largely non- research into cancer and AIDS, which have renewable natural resource; damaged or so far been the subject of only limited Com- impoverished as a result of the destructive- munity action. Like its three predecessors, ness of agricultural or industrial activities, the last of which will be completed ar the it recovers to only a limited extent and over end of this year,3 the new med-ical research an extremely long period. More particu- programme is to be implemented in rhe larly, it acts, like the ocean, as a finaI reposi- form of concerted-action projects. tory for numerous forms of waste, i.e. everything which directly or indirectly, acci- The choice of cancer as one of the priority dentally or continuously, is deposited on research topics of the iew programme can the soil, penetrates it rapidly, sometimes be seen as a follow-up to the conclusions of remains there for very long periods and the Milan European Council4 and provides accumulates. concrete evidence of the desire for joint European action in the fight against cancer The soil deterioration observable in Europe expressed on that occasion. The action on in recent years has made soil conservation cancer included in the new Community pro- and protection a subject of growing concern gramme is based on the conclusions of a in the Member States. The many aspects of report entitled 'Europe against cancer', this problem include: the effects of intensive which was recently drawn up by a group of agriculture, large scale stock-farming or leading cancer specialists convened by-the single-species forestry; the consequences of Commission, J and on thc action pro- the use of pesticides and fertilizers, Iand gramme on cancer adopted on 7 July by consolidation, the disappearance of barriers the Council and the Representatives of the and the development of certain rourist and Governments of the Member States meeting leisure activities; and pollution due to within the Council.6 Among the areas atmospheric acid deposition ('acid rain'), covered are clinical and epidemiological heavy metals and all types of industrial research (occupational cancer, cancer and waste. diet, etc.) and research on early detection and diagnosis. Any action in this field, be it in the form of legislation or the development of new agricultural or industrial processes, must be based on sound scientifii knowledge. The t OJ L 159, 14.6.1986; Bull.6-1985, poim2.t.67. Berlin symposium 2 coM(85) 549 final. was intended to provide 3 an opportunity for as complete as possible 4 oJ L 248,24.8.1982. a review of the knowledge on all tht topics Bull. EC 6-1985, point 1.2.3. s Bull. EC 1-1985, point 2.1.78; Bull. EC 2-1986, point in question currently available within the 2.1.91; Bull. EC 3-1986, point 2.1.92. Community. 6 oJ c 184,23.7.1986l' Bull. EC 7/8-1986, point 2.1.112.

Bull. EC 10-1986 25 Research and technology, industrial innovation and the information market

The action on AIDS research represents the programme should make it possible to step extension and systematic coordination of up the research conducted in coniunction Community efforts in this field, which last with South American and Asian countries year was the subject of a number of initiat- or research of a highly interdisciplinary ives under the current programme. nature (in the fields of public health, nutrition, integrated rural development, In addition to these sectors, the Com- etc.). The programme is also intended to proposal mission's new programme covers deal more effectively with certain areas certain topics in several maior areas of which have been insufficiently studied to already been medical research which have date (tropical sylviculture, fishing, etc.) and, programmes or studied under preceding in particular, to increase opportunities for include age- which are entirely new; these South/South cooperation (between Third (research on catar- related health problems Vorld countries). acts and brain ageing, epidemiology and the prevention of dementia, etc.); research on Among the numerous topics covered by the (evaluation pro- health services of screening research will be the improvement of tropical grammes and Community care systems, food species, integrated pest-control tech- (nuclear etc.); medical technology magnetic niques, new fishing techniques, the manage- resonance (NMR) imaging techniques or ment of tropical forest ecosystems, the positron emission tomography, EEG com- evaluation and use of water resources, puter programmes, medical applications of measures to control parasitic (malaria, lasers, etc.). sleeping sickness, schistosomiasis, etc.), bacterial (leprosy, tuberculosis, etc.) or viral Development aid (haemorrhagic fever, viral hepatitis, AIDS, etc.) diseases and environmental hygiene. 2.1.50. On 29 October the Commission sent the Council and Parliament a proposal 2.1.51. An important discovery in the field for a new multiannual research and devel- of research on trypanosomiasis (so-called opment programme in the field of science sleeping sickness) which was made under and technology for development (1987- the preceding programme (1982-86) has iust 90).r been announced. This discovery strongly suggests the existence of a phase of sexual of 80 million ECU With a budget allocation reproduction in the life-cycle of the try- new programme should make it poss- this ponosome which is the protozoan parasite ible to strengthen the scientific cooperation the disease. The discovery World countries which the responsible for with Third could prove Community has been endeavouring to constitutes an advance that important in the fight against this illness. implement since 1982. Because of their vital importance to those countries, this cooperation centres otr, agriculture, nutrition, medicine and health. passed The new programme follows on from the 2.1.52. On 10 October Parliament on the establishment of a Com- first Community programme on science and a resolution technology for development (1983-85),2 munity marine research institute (--+ point which is due to be completed at the end of 2.4.1$.3 this year. Notwithstanding the encouraging results obtained under this programme, the Com- cooper- mission considers that its scientific t coM(86) 550. ation with Third World countries can and 2 oJ L 3s2, 14.72.1982. must be improved. For example, the new r oJ c 283, 10.1r.1985.

26 Bull. EC 10-1986 Customs union

!ndustrial innovation order to promote European cohesion, com- and the information market bat regional disparities-and ensure full participation by peripheral regions; Transnational measures (iv) integration of the new Member States to promote innovation into current projects by means of measures designed specifically for this purpose. Strategic programtne for innouation and technology transfer (Sprint) Development of a European information market 2.1.53. On 15 October the Commission 2.1.54. The third meeting of the 'legal sent the Council a communication on the obser,vatory', which took- place on -14 extension and revision of the plan for the October, was devoted to a distussion of the transnational development of ihe support- -tech- findings and recommendations of a Com- ing infrastructure for innovation and- mission study on access to public-sector nology transfer (Sprint programme) I informa-tion, inconsistencies in legal rights accompanied by a proposal for Council i and obligations in new media ind leeal Decision z amending the Decision 25 of issues.relating to telebanking and teleshdp- November 79$.3 ping.4 This programme will cover rhe two years Intensive work is continuing on on-line 1987-88 with a budget of 11 million ECU information services and the ireation of a and will provide for the continuation and legal framework for electronic information intensification of action under the plan for servlces. the transnational development of ihe supporting infrastructure for innovation and Multilingual proiects technology rransfer (1983-85).3 It is essen- tially- a transition programme designed to 2.1.55. On 2l October the Council enable the Commission, in collaboration approved the extension to Spain and Portu- with economic operators in the Member gal of the Community research and develop- States, to table proposals for a more consist- ment programme foi a machine translation ent rnnovatlon promotion programme in system of advanced design (Eurotra).5 The Europe from 1989. budget has been increaied to 4.5 million ECU and the programme extended until The main lines of acrion for this transitional November 1989. phase are as follows: (i) development of transnational cooperation between narional or regional adviiory Customs union services for innova;ing firms, especially in the small or medium-iized category, in- the Community, in order ro oprimize the devel- Simplification of customs opment of such firms and create an inno- formalities vation process on the scale of the common market; Introduction of common border posts (ii) improvement of the general inno- 2.1.55. On 24 October the Commission vation environment in the Community and sent the Council a proposal for a Regulation acceleration of producrion and dissemi- nation of new products, processes and services ' CoM(85) 483 frnal. by strengthening or supplementing , oJ c 278,4.11.1986. existing structures and instruments; I O.l I 353, 15.12.1983; Bull. EC t0-1983, poinr 2.1.32. a Second meeting: Bull. EC (iii) encouragemenr of concerted 5-1986, point i.1.45. action by 5 OJ L 317, t3.tl.t9g2; Bull. tt-1982, point 2.1.25; Bull. the Community and the Member States in EC 4-1983, point 2.t.29.

Bull. EC 10-1986 Customs union on the abolition of exit formalities at inter- ing for the administration of Community quotas for: nal Community frontiers - introduction of common boider posts.l This proposal, (i) cod, fresh or chilled, falling within sub- tUtlhite provided for in the Paper on complet- heading 03.01 B I h) 1 (5 0O0.tonnes allo- ine the internal market,2 is designed to stop cated among a number of Member States); 8 checks on both sides of the du-olication of blocks through greater cooperation (ii) deep-frozen fillets and minced frontier pollack (Theragra chalcograma) between Member States. It will limit of Alaska ex 03.01 B II b) administrative formalities required for falling within subheadings ex 03.01 B I n) (4 000 tonnes allo- crossing internal frontiers within the Com- t7 aid of Member States);8 munity-to a single operation at the office cated among a number of entiy, checks on leaving a country being (iii) deep-frozen'(Merluccius fillets and minced blocks abolished. of hake spp. except for the species Merluccius merluccius, Merluc.cius Merluccius capensis) falling General legislation bilinearis and within subheadings ex 03.01 B II b) 9 and 03.01 B t) OOO tonnes allocated Repayment or remission of duties ex I I $ among a number of Member States); E 2.L.57. On 7 October, following a pro- ' (iv) fresh or chilled tomatoes falling the Council posal from the Commission,3 within subheading ex 07.01 M I originating amendeda its Regulation of 2 July 1'979.s in the African, Caribbean and Pacific States to The main aim of the amendment was or the overseas countries and territories allow the Member States to decide on appli- (1986-87);e cations for repayment or remission of duties subheading in cases wheie there has been a failure to (r) strawberries falling within comply with the procedural requirements ex 08.08 A II originating in the African, the overseas set out in rhe 1979 Regulation. Caribbean and Pacific States or countries and territories (1985-87). a Common Customs Tariff 2.1.61. On 7 October the Council also amended a its Regulation of 30 June open- Nomenclature ing, allocating and providing for-the admin- quota for 2.1.58. For the purpose of ensuring uni- ist-ration of i Community tariff CCT sub- form application of the CCT nomenclature cod, wet, salted, falling,within the Commission adopted a Regulation on heading ex 03.02 A I b1.to 29 October concerning the classification of cut and expanded tobacco in subheading Community surveillance of imports 24.02E.6 2.1.62. On 8 October the Commission 2.1..59. With the same purpose in view adopted a Regulation establishing ceilings the Committee on Common Customs Tariff and- Community surveillance for imports Nomenclature adopted a number of tariff of carrots and onions falling within CCT measures, either as explanatory notes or in the form of agreements on the classification of goods, concerning subheadings 50.05 A / t OJ C 282, 8.11.1985; COM(86) 524 final. II b) 4 bb) and 50.04 B IV b) 2 cc). 2 Bull. EC 6-1985, poinr 1.3.1 et seq. r oJ c 22,24.1.1985; Bull. EC 12-1984, point 2.1.42. 4 oJ L 286,9.10.1.986. Economic tariff matters 5 oJ L 175,12.7.1979. 6 oJ L 305,31.10.1986. Tariff quotas 7 oJ c 250,7.10.1986. E oJ t- 304,30.10.1986. 2.1.50. In October the Council adopted e oJ L 285,8.10.1986. Regulations opening, allocating and provid- t0 0J L 176, 1.7.1986; Bull. EC 6-1986,point2.1.76.

28 Bull. EC l0-1986 Competition

su-bheading ex 07.01 originating in the existed between them. This followed a African, Caribbean and Pacific Staies or the Community-wide investigation of such overseas countries and territories (1987).1 agreements in the banking secror carried out by the Commission. As a resulr, conditions for greater competition were Competition restored in banking in lreland. This decision serves to clarify the Com- mission's present Fifteenth Report policy towards certain specific agreements on Competition Policy operated by banks within the Community, while reiffirming olce again general 2.1.63. On 23 October the Economic and the applicability of the EEC competition Social Committee delivered its opinion on rules to banking. the Commission's Fifteenth on Riport 2.1.65. On 3 September the Commission Competition Policy (--+ point 2.4.42). adopted a decision under Article 85(3) of the EEC Treaty exempring the 'Exhibition Restrictive practices, rules', 'Disciplinary and appeal rules' and mergers and pos:tions: the standard form agreem-ent with non- dominant members governing specific cases participation in the 'Efficiencybeurs', held every other year in Amsterdam by the Vereniging van impor- Prohibited horizontal agreements teurs en Fabrikanten van Kanioormachines (Association of Office Equipment Importers 2.1.54. On 30 September the Commission and Manufacurers Vift;).3 Vifka is the decided that certain agreements entered into most important association- in'the Nether- by the four 'Associated Banks' operatins in lands in this field. The Efficiencybeurs is a Ireland do not appreciably restrict.om-p.- trade exhibition where the fuli range of tition in the common market and therefore office automation producs on the Dutch adopted a negative clearance decision stat- market is presented. ing that they are nor contrary to the Com- munity's competition rules.2 The main provision in the rules is that exhibitors at the Efficiencybeurs may not The Associated Banks - Allied Irish Banks participate in any other office equipment plc, Bank of lreland, Northern Bank Ltd fair or exhibition nor organized or approved- and Ulster Bank Ltd are the main clearing by Vifka in the same calendar year. and retail banks in- Ireland. The arrangements which form the subject-matter of this Under the previous rules notified ro rhe decision are as follows: common bank Commission, Vifka members, whether they opening hours, clearing rules (i.e. rules exhibited at the Efficiencybeurs or nor, were according to which debits and credits drawn strictly forbidden to parricipate in other on and for the credit of the banks are settled office equipment fairs. Non-members wish- as between one another) and rules relating ing to exhibit at rhe Efficiencybeurs had ro to a- direct debiting scheme operared by the undertake not to participate in any other banks. The Commission deiided foi the office equipmenr f;ir in ihe two years fol- present, lowing signature of the agreement. In prac- however, to reserve its -interestposition regarding the arrangements for tice these resrricrions formed an absblute rates now operating in Ireland. bar on participarion by all members and non-members who wished to do so; they The Commission was able to adopt a favourable decision in this case becausl the Associated Banks had already voluntarily I oJ L 286, 9.10.1986. abandoned agreements on commissions for 2 oJ L 295, 18.10.1986. services to customers which previously 3 oJ L 291, 15.10.1986.

Bull. EC I0-1985 29 Competition were therefore unacceptable to the Com- tries, will strengthen the rules on State aids, mission. The exemption can have effect help to prevent the creation of artificial onlv from the date on which these restric- barriers inside the common market, and tions were removed (8 January 1986). thereby ensure that State-aid policy contrib- utes towards improving the long-term com- Obligations are attached to the decision petitiveness of European industry and secur- enabling the Commission to ensure that the ing viable jobs in healthy industries. requirements of Article 85(3) continue to be satisfied during the period of exemption. Article 93(3) of the EEC Treaty requires Member States to notify all State aids to the This decision again confirms the Com- Commission in draft form and not to put mission's basic approval of measures to them into effect until the Commission has and exhi- improve the organiiation of fairs given a final decision. Advance notification on bitions, provided excessive restrictions of aid plans is the only way of ensuring that freedom to exhibit are not involved. no aid is granted which might adversely affect the common market and damage the legitimate interests of competitors. State aids The Commission's decision applies to aids parts of the economy manufactur- Recovery of unlawful aids in all ing industry, transport, energy,- agriculture 2.1.66. On 8 October the Commission, and fisheries. memoranda from acting on the basis of two The Commission has taken internal admin- State aids the President, confirmed that istrative action to speed up the handling of granted violation of which have been in cases so that firms and governments are rePaid bY the Community law must be informed more rapidly of the final assess- the Member recipient to the exchequer of ment of any given scheme. State granting the aid. The principle of recoueiy of illegal aid flows from the Treaty rules on State aids. It was confirmed by the General aids Court of Justice as early as 1973, and -in recent yeirs Parliament has repeatedly urged the Commission to require the repay- Germany ment of unlawfully granted aid. 2.1.67. On 22 October the Commission The provisions of the EEC Treaty which decided to raise no obiections to the sea provide for prior Commission appraisal and research and technology programme noti- ipproval of all State aids are designed to fied by the German Government. The pro- piotect the interests of competing com- sramme aims to Dromote basic research into oanies and to allow the Commission to iollution of the iea, food resources and the luthorize only those aids which make a physical and technical difficulties inherent genuine and effective contribution to the in undersea mineral prospecting. Economic development of the Community. In recent years the Commission has become Greece increasingly concerned at the failure to notify ceitain types of aid or the granting 2.1.68. On 29 October the Commission of subsidies in violation of Commission decided to initiate the Article 93(2) pro- respect of an aid scheme aimed at decisions. Repayment has been required -in cedure in a number of cases in the past, and the nursing firmi in difficulty back to financial decision to seek systematic recovery for sub- health. The aid is awarded either by the stantive infringements as well as progressive public sector or by the financial institutions application of recovery for procedural under its control. The Commission felt that infringements, especially in sensitive indus- the Greek Government had failed to fulfil

30 Bull. EC 10-1986 Competition

its obligations by omitting to notify the Germany scheme or furnish the information requested. 2.1.72. On 29 October the Commission approved the award of a capital grant cover- Italy ing part of the cost of extensions at a Bremen car plant. This grant, under the 2.1.59. On October special Bremen scheme of the joint Federal 8 the Commission Government/Liinder decided to raise no objections to a three- programme for improving regional year scheme introduced by the Italian economic structures, will he.lp create jobs Government for the purpose of developing in this area of high unemployment. the distribution nerwork in Sicily. The'aidl totalling_LIT 205 115 million, is ro go ro At the same time, the Commission initiated local authorities, businesses and coofierat- the Article 93(2) procedure in respect of a ives and will help create jobs primarily for scheme _planned b_y Baden-Wtiritemberg young people. and the Rastatt local authorities to the same car manufacturer plant The Commission took the view that the for a new to be located in Rastatt. scheme qualified for exemption under The local^ authorities propose to sell a site Article 92(3) (c) of the EEC Treaty. which has been cleared and prepared for building work at a price which appears to be subsidized. Netherlands

2.1.70. On 22 October the Commission Industry aids decided to raise no objections to an aid scheme notified by the Netherlands Govern- ment aimed at promoting research into Brewery plant wind power and enabling the production and installation of new iypes of turbine. Belgium The scheme covers the period 7986-90 and its budget is estimated aiHfL 105.5 million. 2.1.73. On 22 Ocober the Commission The Commission felt that attainment of the decided that a scheme to subsidize the Co-mmunity's energy policy objectives was manufacture of brewery plant by setting sufficient reason to exempt the scheme up the finance corporation Technibra SA under Article 92(3) (b) or (c). introduced by the Belgian Government in November 1984 without first notifying the Commission was incompatible with- the Regional aids common market within the meanins of Article 92 and should therefore be a"ban- Portugal doned. The Commission also decided thar the one award made so far under the scheme 2.1.71. On 8 October the Commission in the form of an injection of new capital decided to raise no objections to implemen- rnto an lnsolvent I ournal company must tation of Portugal's current State aids be repaid out of the company's-remaining scheme until 31 December 1985. assets. The scheme provides for grants for indus- The Commission had initiared the Article trial investmenr and R&D prolecrs ar a 93(2) procedure in respecr of the scheme maximum uniform rate of 33% ner and the first award mlde under it on 29 1 throughout the country. Grants are made January. according to three criteria: job creation, industrial modernization and reduction of regional disparities. I Bull. EC t-198d, point 2.1.53.

Bull. EC 10-1986 31 Financial institutions and taxation

In reaching its final decision, the Com- Shipbuitding took the view that the situation in mission transmitted to the brewery plant industry, especially the 2.1.76. The Commission a proposal for a surplus capacity in the Community' was the Council on 2 October the artificial maintenance of sixth Directive on aid to shipbuilding r,r.h that industrial, capacity by means of aid was contrary to together with a Paper on'the of its new policy thi common interest, and that the charter soiial and regional aspects (--+ point 1.2.1 et seq.). incorporating Technibra contained nothing for shipbuilding to indicate that its financing operations would not affect trade to an extent contrary to the common interest. Financial institutions and taxation Synthetic fibres Financial institutions United Kingdom 2.1.74. On 22 October the Commission Banks pro- decided to initiate the Article 93(2) 2.1.77. On 27 October the Council cedure in respect of a plan notified by the on proposal from the Com- to grant aid adopted, a United Kingd-om Goveinment misiion,3 a Directive amending the Direc- a syntheiic yarn texturizing firm located to tive of 12 December 1977 4 in respect of the in rWales. at Abargoed list of permanent exclusions of certain credit The Commission considered that the grant instituiions. The amendments take account of UKL 500 000 in aid under Section 7 of of certain changes that have been made the Industrial Development Act to pay off to national legislation on the supervisory oart of the firm's debts was inconsistent arrangements For the institutions concerned '*ith ,h. guidelines concerning aids to the and oT the accession of Greece, Spain and synthetic yarn and fibres industry, which Portugal. They will take effect as soon as includes texturizing. 1 It took the view that the governments concerned have taken the the aid would not facilitate any restructur- necessary measures, which they are required ing or conversion and would lead to no to do by 31 December 1'986 at the latest. reduction in capacity. A number of conditions attaching to rescue aids were not met either. Taxation At a time when intra-Community trade in texturized yarn was substantial and compe- lndirect taxes tition keen, the planned aid was likely to affect trade and distort or threaten to distort Standstill on VAT competition and was not deemed to satisfy and excise duties the requirements of Article 92(3). 2.1.78. On 9 October Parliament delivered an opinion 5 on the Commission's pro- Steel posal to the Council for a Directive 2.1.75. On 20 October the Council took note of an oral report by Mr Peter Suther- I point 2.1.35. Member of the Commission with spe- OJ C 171, 10.7.1985; Bull. EC 5-1985' land, 2 Brrll. EC 10-1985, point 1.2.1 et seq. cial responsibility for competition,,on the J Bull. EC 6-1986, point 2.1.100. applicaiion of the code on aid to the steel 4 OJ L 322, 17.12.1977; Bull. EC 1l-1977, point 2.1.49. industry z ('--+ point 2.1.28). 5 oJ c 283, l0.t 1.1986.

32 Bull. EC l0-1985 Employment, education and social policy

imposing a standstill on VAT and excise Employment, duties. I education and social policy With a view ro the achievement of the obiective of a single market through the establish- Employment ment of an area without iniernal frontiers, Parliament calls on the Commission give to Employment and the labour market priority to rhe formulation and implerien- tation of measures for harmonizing VAT 2.1.80. The second phase of the SedocT and excise duty rates. It points out that instructor training scheme for the establish- harmonization will have to take place in ment of a network of employment services accordance with an ordered programme of to extend the Sedoc system to Greece 8 took successive stages that takes into account the place in October. financial, economic and social conse- 2.1.81. On 13 October the working party quences for each Member State. The Com- "service mission is requested to provide information on- exchanges of employment officials on the consequences of the different adopted the new-general guidelines ways on exchanges. of calculating VAT rates. In future, two common themes will be selected as the subiect of six--week study visits made by at least one official from each Member State taking part Tax allowances i,n tl.re exch.ange programme. The tfi'ehes tor the comlng year are: recent experiments aimed Duty-free admission of at improving the operation of the fuel common market; and youth unemployment-the rransirion fiom training io 2.1.79. On 10 October Parliament deliv- working life. ered an opinion 2 on two proposals for Directives,3 one amending thi Directive of Sectoral aspects 2.8 March 19-83 (83/181/EEC)4 determining of employment policy the scope of Article 14(1)(d) of the sixtf, 5 2.1.82. The VAT Directive as regards exemption-of from Commission communication VAT on the final importation cerrain on the consequences of restructuring in the Blods, and the other amending the Directive shipbuilding industry also covers thE social of 19 July 1958 on the standardization of a_spects, including probable job losses over provisiols regarding the duty-free admis- the next three years and the measures sion of fuel contained in the fuel tanks of needed to alleviate this problem (--+ point commercial motor vehicles. 5 1,.2.3 et seq.).

Parliament emphasizes that it is essential Relations with the two sides for all the fuel contained in the normal fuel of industry tanks of commercial vehicles to be allowed 2.1.83. The Vorking Party on New Tech- in duty-free if checks and formalities at nologies and the Soiial Dialogue, ser up intra-Community frontiers are to be dispen- sed with and progress made towards^ the elimination of those frontiers and the unhin- OJ C 313, 4.12.1985; Bull. EC 11-1985, poinr 2.1.65. oJ c 283, 10.11.1985. dered flow of transfrontier goods transport. OJ C 183, 22.7.1986; Bull. EC 7/8-1986, point 2.1.91. For this to be achieved, urgent action is oJ L 105, 2j.4.1e83. required on harmonizing the VAT and oJ L 145, 13.6.19n. excise duties charged on fuels without dis- oJ L 175, 23.7.1968. torting comperition Europcan system for the international clearing of vacan- or altering trade pat- cies and applications for cmployment. terns. Bull. EC 2-1986, point 2.1.,70.

Bull. EC 70-1986 33 Employment, education and social policy following the Val Duchesse meeting on 12 Higher education Novembir 1985 between the Commission 2.1.87. The second six-monthly meeting2 and representatives of the - European workers' confederations, of the network of national academic recog- employers' and 3 in third meeting on 7 October nition information centres was held heli its 28 October. (+ point 2.4.29). Brussels on27 and

Teacher mobility Education and vocational training 2.1.88. On 24 October Parliament passed a resolution on encouraging teacher Cooperation in education mobilitv in the European Community by the recognition of tehching qualifications 2.1.84. The programme of study visits for and the introduction of a Community status the education specialists provided for in for teachers (+ point 2.4.24).4 action p.ogtr*-. in the field of education 1^hai been given fresh impetus. The DurDose of the visits is to increase know- Vocational training iedee about educational developments in \Work on the comparability of enable those with 2.1.89. the-Community and to training qualifications within the in education to vocational oositions of responsibilitv Community started with the first meeting 'stand from their everyday work and back Brussels on 7 October of the officials the light of experience in reconsider it in from the national coordination bodies' This Some 520 experts will acquired elsewhere. was followed by a meeting in Berlin o-n 23 Member State for one week. The visit a and 24 October of national experts from be examined in the following subjects will the hotel and catering sector to study the -progiamme of study visits: edu- 1986/87 iob description on which mutual agreement systems, certiflication and assess- cation could be ieached at Community level. ment, measures to combat illiteracy, new information technology and education systems, equal opportunities and the inte- Living and working conditions gration 6f handicapped children into ordi- and socia! protection nary schools. 2.1.85. From 13 to 16 October a sym- Equal opportunities posium organized iointly by the French for men and women Ministrv of Education and the Commission heid in Pont-i-Mousson (France) to 2.1.90. An international seminar organ- *as Confederation of discuss the results of a pilot scheme carried ized by the International Trade out in France from 1982 to 1985 on in- Free Trade Unions and the European was held in Brussels service training for French and foreign Union Confederation examine the situ- teachers, with iview to developing intercul- from 5 to 8 October to labour market and tural education methods. ation of women on the define the positive action that should be 2.1.85. From 2 to 5 October a symposium taken. ConClusions were presented on posi- was held in Nuoro a4d Alghero (Sardinia) tive measures required within trade unions on the utilization in radio and television and on the generil policy to be followed. broadcasting of lesser-used languages and the role of the media in maintaining and t oJ c 38, 19.9.1976. promoting these languages. The symposium 2 The previous meeting was held in London on 13 and was organized by the Region of Sardinia 14 March. with financial assistance from the Com- r Bull. EC 9-1985, point 2.1.55. mission. 4 oJ c 297,24.11.1986.

34 Bull. EC l0-1985 Employment, education and social policy

2.1.91. On 14 October the Commission internal market by 1992. Orher points it President, Mr Jacques Delors, addressed a stresses are the need to clarify the concept meeting of Parliament's Committee on of 'essential safety requiremenrs', the li;k Women's. Rights. He began by relocating between these requirements and the draw- the problems encountere-d in equal treat- ing-up of technical specifications in the ment for women in the more geneial context form of standards and ihe role the Commit- of the difficulties ar presenr confronting the tee should play in the process of preparing Community, ^safety in particular the implemen--and directives involving health and tation of the Single European Act 1 the asPects. reform of the structural Funds (especially the Social Fund). He stressed the nied for 2.1.96. In October meerings were held by further acrion at both legislative and practi- several ad hoc working groups of the Advis- cal level, and also underiook to improve the ory Committee on Safetv, Hyeiene and position of women in the Commisiion. Health Protection at Vork: (i) on 8 and 9 October rhe ad hoc group Freedom of movement on occuparional health services exariined', for migrant workers with a view ro adaptation, the text of recommendation 771of the International Lab- 2.1.92. On 9 October Parliament passed our- Organization concerning occupational three resolutions on poficv Community on health se-rvices and, more pirticulirly, the migration point ' (+ 2.4.19).2 aspects'functions','organiiation' andtcon- ditions of operation'; - (ii) on 23 October the ad hoc group on 2.1.93. On 9 OctoL carcinogenic agenrs adopted 1 draf-t opinion resot urion i nviti n g ;:';;**t:,:'r'tr::1 .i on carcinogenic agents which will be sub- negotiarions ar the earliest opportunity on mitted for adoption at rhe next plenary the establishment of a common European' meeting of the Advisory Committeei policy on refugees (-r poinr 2.4.t11.2 (ii! on 22 October the ad hoc grotp on safety (technical aspects) examlned^ the Health and Commission document on mechanical safety engineering.

Public health 2.1.97. From 29 to 31 October the Com- mission, in cooperation with the University 2.1.94. On 9 October Parliament passed a of Amsterdam, held an international work- resolution on the drug problem by which it shop on the health surveillance of individual submitted a draft resolution ro rhe Council workers exposed to chemical agents. on concerted action to tackle the problem (+ point 2.4.7il.2 Health and safety (Euratom) Health and safety at work 2.1.98. On22 October, pursuanr to Article 37 of the Eurarom 2.1.95. The 10th annual reporr,3 (cover- Treaty, the Commission delivered an opinion Catrenom ing- 1985) of the Advisory Commitree on on the power station in France (--+ point 2.7.194). Safety, Hygiene and Heaith Prorecrion ar \ffork was adopted by the Commission on 31 October. a The report points up the I Committee's desire to woik within the , Supplement 2/86 - Bull. EC. framework of the new approach to techni- 3 oJ c 283, 10.il.1985. cal harmonization 5 Nrnth report: Bull. EC 9-1985, point 2.1.53. and siindards in con- 1 coM(85) i86. nection with the completion of the large , OJ C 136,4.6.1985; Bull. EC 5-1985, poinr 1.3.1.

Bull. EC 10-1986 35 Culture

2.1.99. The Commission approached the to pick up broadcasts using their own dish Member States with a view to ensuring full aerials. Under an agreement between the application of the Directive of 3 September European Space Agency (ESA) and the EBU, D:g+ $+tqe5lEuratom) I concerning radi- use of the Olympus satellite will be free of ation protection of persons undergoing charge. medical examination or treatment. Europa-TV is the first large-scale .experi- in European multinational and multi- 2.1.100. On 28 and 29 October the Com- menf testing out combi- convened meeting of heads of lingual broad-casting, .a mission a most prote.ction services in nuclear nation of new features: selection of the radiation multilingual broad- power stations in order to exchange infor- suitable methods for the use of computer-operated multi- mation and experience on the subject. On casts, and computer tech- the same occision, the draft statistical national newsrooms nology, and new production methods; and, report on the evolution of collective doses receiving iide, a multinational and asiociated with professional activity in on t[; multilingual viewing public. Eurooean Dower stations from 1981 to 1984 *r. o..r.nted. The document is scheduled The Commission will be given regular pro- to be published before the end of 1D8e . gress reports and keep a close eye on devel- 6prn.nti. It will be able to use the findings for other projects under its other broadcast- policy programmes. Culture ing European Cinema Europa-TV and Television Year (1988) 14 October, in line with its 2.1.101. On 2.1.102. On 9 October, following on from a proposal communication incorporating its communication of 3 the Com- concerning broadcasting June,3 for a Directive mission sent the Council a draft resolution to the Council on 19 activities, transmitted on European Cinema and Television Year signed an agree- March,2 the Commission (1988).4 ment in Brussels with the European television company EuroPa-TV. The operation, which will be carried out close collaboration with the Council of been transmitting in Europa-TV, which has was first mooted in the final report Hilversum Europe, multilingual broadcasts from bv tlre ad hoc Committee on a People's 1985 on the Dutch channel since Oitober endorsed by t-he Milan European consortium Europe5 of the ECS-1 satellite, is a in 1985.6 Its links with the (Germany), NOS (Nether- Council June formed by ARD action progiamme for the European audio- (ltaly), RTE (lreland) and RTP lands), RAI visual media products industry (the Media (Portugal) operating under the aegis of the programme)7 are especially important. European Broadcasting Union (EBU). as set out in the communi- cover news, entertain- The aims, June The programmes cation,3 are primarily to promote aware- ment, sport, culture and education and are broadcist in Dutch, English and Portu- guese. Other.languages, bringing.the total up to a maxlmum oT eight, will be added OJ L 265,5.10.1985; Bull. EC 9-1984' point 2.1.55. point ai the number of broadcasts increases. Pro- Supplcmcnt 5/86 - Bull. EC; Bull. EC 3-1986' about 1.6 1.2.1 et seq. grammes are currently received by Bull. EC 6-1986, point 2.1.729. mi[ion homes throughout the Community. COM(86) 533 final. Supplement 7185 Bull. EC; Bull. EC 6-1985' poinr From 1988 Europa-TV will use the Euro- 1.4.3. - pean direct broadcasting satellite Olympus Bull. EC 6-1985, point 1.2.3. ind viewers throughout Europe will be able Bull. EC 4-1986, poinr 2.1.79.

10-1986 36 Bull. EC Regional policy ness of the economic and social significance on the activities of the European Regional of the audiovisual industry for the future of Development Fund (ERDF), covering the Community, to project the European 1985. / identity through the audiovisual medii, to improve cooperation at European level in The report describes in derail operations respect of the financing, production and carried out in 1985 and takes stolk of the distribution of films and television pro- first 11 years of ERDF acrivity. grammes and, lastly, to foster closer links With the new ERDF Regulation 3 in force between the cinema and television. since January,1985 was a key year for Com- Details of the projects will be finalized by munity regional policy. The main improve- a management committee; the chairman ments introduced by the new Regulation will be a leading figure appointed by the began to be put into'effect: nationalquoras Commission, and members will include rep- were replaced by a more flexible system of resentatives of the main European film ranges, programme financing was intro- associations, the governments oflhe Mem- duced and the rates of Community funding ber States, the European Parliament, the were increased (in general to 50 % of Economic and Social Committee, the national public expenditure). Council of Europe, the Council for Cultural So as to allow Spain and Portugal to receive Cooperation and the chairmen the of Fund assistance as soon as they joined national committees. The committee will the Community in 1985, the Council adopted a give its opinion on the action to be taken Regulation in December 1985 establishing at Community level and coordinate the the share-out of Fund resources campaign as a whole. among the Twelve. a The adjustment did not altei the The European dimension ratios between the ranges of the Ten. In with regard to books the same month, the Council adopted a Regulation on the establishment of speciflic 2.1.103. The Advisory Committee on Community regional development measures Books provided for in the Commission com- in 1985 (non-quota measures).4 munication to the Council of 27 November 19851 held its first meeting in Brussels with In 1985 the Commission committed 2 457 the Commission representitive in the chair. million ECU, equivalent to 99.3o/o of the The Committee was asked for its opinion appropriations available for ERDF oper- on a multiannual plan for the translafion of ations, to which must be added 38 million literary works, both classical and contem- ECU for the specific Community measures porary, in the Community languages and shown in Table 1. More than four fifths of on the public Iending right ariangements the grants (82%) were concentrared on rhe applicable in some Member Srares, *hereby four Member States where the regions with authors are remunerated on the basis of the the most serious problems are situated: number of their books lent out by public 34.9o/o went to kaly,24.4o/o ro the United libraries. Kingdom, 1,6.40/0 to Greece and 6.3o/o to Ireland. During the year the Commission approved 3 265 of the 7 249 proiects submit- Regional policy ted, granting a total of 2 321 million ECU. The infrastructure projects receiving assist- Financial instruments ance related mainly to roads, water distribution and telephone and relex nerworks. Grants for industrial investment projects European Regional Development Fund

Eleventh annual report I Bull. EC 11-1985, point 2.1.93. 2 COM(86) 545 final. 2.1.104. J On 27 October the Commission OJ L 169, 28.6.1984; Bull. EC 6-1984, point 1.3.1 et seq. sent to the Council the 1lth annual report 4 OJ L 350, 27.12.1985; Bull. EC 12-1985, poinr 2.1.128.

Bull. EC 10-1985 Regional policy went mainly to electrical and electronic year. It also approved certain parts of engineering and to the rubber and plastics French programmes, granting Fund assist- sector, i.e. to industries with future poten- ance of 29 million ECU. Apart from this, the tial. In 1985 17o/o of ERDF resources went Commission has sent the Council proposals to investment projects in industry, craft for the introduction of the first Community industry and seivices, compared with 14% programmes (STAR and Valoren).2 projects in 1984 and 11% in 1983. These Actual ERDF payments in 1985 amounted expected to result directly in the creation are 1 591 million ECU, bringing the total jobs, which to or maintenance of 57 000 to amount of payments made since 1975 to equivalent number of should be added an 7 950 million ECU, equivalent to 56.9o/o of jobs generated jobs indirectly and tlre commitments during the period. The ERDF created by infrastruc- directly and indirectly can now make advance payments, and use ture projects. was made of this possibility for the first A total of 2 million ECU was devoted to 37 time in 1985. All ln all, although much studies, notably studies in preparation for progress remains to be made, the measures ERDF operations. iakin in 1985 demonstrated that the prin- pro- The part-financing of programmes, pro- ciples contained in the new Regulation developing and vided-for in the new Regulation, is intended vide a solid basis for the effectiveness and Com- to help improve the impact of ERDF assist- strengthening nature of regional policy. ance. Despite start-up difficulties, the Com- munity mission was able to take grant decisions on three national programmes of Community I I Bull. EC 12-1985, point 2.1.130. interest in the United Kingdom, contribu- 2 OJ C 356, 31.12.1985; Bull. EC 1-1986, point 2.1.81; ting a total of 260 million ECU, of which Oj C 358, 31.12.1985; Butt. EC 1-1986, poinr 2.1.82; OJ 105 million ECU was committed during the C 147,14.6.1986; Bull. EC 5-1986, point 2.1.102.

Table '1. Amounts committed by the ERDF in 1985 and from 1975 to 1985 - illton F.CU

1985 1975-85

Specrfrc Specrfic, I otal Operationsl measurcs I oial Opcrationsl mcasures' ( r98 1.85)2

Belgium 24.41 24.41 135.57 0.98 136.65 Denmark 13.20 13.20 145.94 145.94 Germany (FR) 73.s5 roos 83.54 617.27 11.00 628.27 Greece 409.46 409.46 1495.79 5.73 I 502.52 France 309.88 309.88 1969.11 38.38 2 007.49 Ireland 153.1 I *, 156.47 866.70 15.08 881.78 Italy 871.M 871.04 5 193.58 38.85 5 232.53 Luxembourg 11.63 11.63 Netherlands 17.08 ,ro 18.88 172.78 2.02 174.80 United Kingdom 585.34 22.62 607.96 3 398.35 6498 3 463.33 Commission3 0.04 0.04 0.04 0.04

Total 2 457.11 37.87 2 494.98 14 006.91 178.02 14 184.93

Ncw ERDF Rcgulation. Old ERDF Rcgulation. Study inrtrated by thc Commission concernrnB several Member States.

38 Bull. EC 10-1986 Regional policy

ERDF grants on 1 January 1985. a Covering a five-year period, they concern the Community's Project financing least-favoured regions, i.e. those in Greice and Portugal, Ireland, the United Kingdom 2.1.105. On 2 October, following the (Northern lreland), the MezzogiornofCor- earthquake which struck the rown ofkala- sica and the French overseas departments mata in Greece, the Commission approved and a number of Spanish regions. an emergency granr of 5.15 million ECU from the European Regional Development Fund (seventh- 1985 allocation) to help On the basis of the two Regulations the finance six infrastructure projects in th'e Member States concerned now have six region of Messinia. months in which to draw up assisrance programmes to be approved by the Cbm- This grant i! in addition to the emergency mission. These programmes will indicate in aid of 1 million ECU granted by the eom- detail the measures to receive finance from mission in September.l the Regional Fund. 2.1.105. On 14 October the Commission The Community contribution may reach also approved an ERDF grant of 22.54 the highest rate provided for in the Regional million ECU (eighth 1985 allocation) for Fund Regulation, namely 55% of the total seven infrastructure projects for the town public expenditure (70oh in the case of Por- of Pozzuoli in Campinia, Italy. The seven tugal). projects, each costing more than 5 million ECU, were endorsed ar the Fund Commit- tee's meeting on 10 July. 2.1.108. On 15 O.,or.. the Commission These two allocations bring the total num- sent the Council a communication on the ber of projects financed by the ERDF since indu-strial, social and regional aspects of 1975 to 31 439 and the roral assisrance shipbuilding. As far as regional policy is granted to 15 812.35 million ECU. concerned, the Commission's apploach is to secure ERDF funding for programmes in Programme financing areas not yet eligible for such assistance (+ point 1.2.3 et seq.). 2.1.107. On 27 October the Council adopted, by a qualified majority, the Regu- Financing of studies lations instituting the first two Communlty programmes to be parr-financed by the 2.1.109. Acting under Article 24 of the ERDF.2 Proposed by the Commission on ERDF Regulation, the Commission decided 20 January, these programmes (STAR and on 7 October to granr 355 000 ECU to Valoren)r seek: finance a study concerning improvements (i) to improve the access of the Com- to the seaside resort area of Cagliari in munity's least-favoured regions to advanced Sardinia, Italy. telecommunications services (STAR pro- 2.1.110. 23 gramme), with the ERDF contributinf an On October the Commission estimated 780 million ECU; decided to help finance a study of the development potential in the municipality of (ii) to exploit the indigenous energy potential of those regions (Valoren programme), with the ERDF contributing an I estimated 400 million ECU. Bull. EC 9-1986, point 2.1.84. oJ L 305, 31.10.1986. These are the first two Community pro- 3 OJ C 356, 31.12.1985; Bull. EC 1-1986, point 2.1.81; grammes OJ C 358, 31.12.1985; Bull. EC 1-1986, point 2.1.82; OJ within the meaning of the new C 147,14.6.1986; Bull. EC 5-1985, point 2.1.102. ERDF Regulation, which came inro force OJ L 169, 28.6.1984; OJ L 350, 27.12.1985.

Bull. EC 10-1986 39 Coordination of structural instruments

Ribe, Denmark, involving a cost of give the stricken areas under ordinary meas- DKR 175 000. ures involving Community instruments- including sorie 5 million'ECU from the Regional Fund (--+ point 2.1.105)-the Business and lnnovation Centres Commission decided, given the nature and seriousness of the damage caused, to grant October the Commission 2.1.111. On 23 special additional aid. This special aid will a financial contribution of decided to make be of three kinds: 000 ECU under kem773l of the 1985 110 to contrib- budget to a proiect for redeveloping areas (i) a special measure designed affeited by industrial decline. The proiect ute to iestoring the conditions prevailing- basis of concerns the setting up of a Business and prior to the eirthquake, on the drawn up Innovation Centre designed to provide a which the Greek authorities had full range of support services for small and the integrated Mediterranean Programme the Com- medium-sized firms and to promote new for the Plloponnese, submitted to drawn innovative activities in the Cardiff area of mission on 23 July; proiects will be special measure the United Kingdom. up for the purposes of this bv the natibnai, regional and local authori- tils in Greece in ilose collaboration with Aid for disaster victims the Commission and will be submitted to the Commission; Parliament passed 2.1.112. On 9 October (ii) additional loans from the EIB's own on the damage caused by five resolutions and/or from NCI resources; these certain regions of Spain, on the resources drought in would carry interest subsidies finan- whirlwind which struck the Bitburg/Priim loans ced from the Community budget; area of the Federal Republic of Germany, on the earthquakes in the region of Kalamata, (iii) risk capital provided under existing Greece, oh the storms in Crete and on the rules or under 'financial engineering' pto- floods in the area of Bordeaux, France cedures. (+ point 2.4.1\.r These last two possibilities are currently being examined by the Commission in con- 2.1.113. On 23 October Parliament passed junciion with the EIB and the Greek autho- resolutions on the violent storms and floods rities. which hit the south of France, the regions of Valencia and Murcia and south-east Spain (+ point 2.4.24|l.2 Other integrated operations

Shipbuilding Coordination of structural 2.1.115. On 15 October the Commission instruments sent the Council a communication concerning the industrial, social and regional Special assistance aspects of the new aid policy it proposes to for disaster areas in Greece pursue to help the shipbuilding industry. 2.1.114. On 9 October the Commission Transmission of this document rePresents a sent the Council and Parliament a com- new policy initiative; if it is approved, the munication on special Community assist- Council, in keeping with the provisions of ance for disaster ireas in Greece following the Kalamata earthquake. 3 I oJ c 283, 10.11.1986. In addition to the emergency aid of 1 million 2 oJ c 297,24.11.1986. ECU which it granted immediately after the 3 coM(85) 551 final. earthquake4 ind the priority which it will 4 Bull. EC 9-1986, point 2.1.84.

40 Bull. EC 10-1985 Environment and consumers the Single European Act concerning econ- that the Community is determined to estab- omic and social cohesion,l will have to lish a common biotechnology market gover- take steps to endow the Community with ned by clear and appropriate rules and regu- the means (especially financial means) it lations.5 The communication also reminds must have if it is to carry out its tasks the Member States that the Commission (+ point 7.2.3 et seq.). wishes to be kept informed of their actions and intentions in this area. Specific programme for the deuelopment of Portuguese industry (Pedip) Preventi o n a n d red u cti o n of pollution and nuisances 2.1.115. On 77 October the Commission sent the Council a communication concerning a specific programme for the deve-lop- Protection of the aquatic environment ment of Portuguese industry (Pedip),2 in which it notes that most of the measures Limit ualues and quality objectiues envisaged in the Pedip programme would for discbarges of 'drins' be eligible for support from the existing structural Funds. 2.1.118. On 20 October the Commission amended6 its proposal for a DirectiveT tffith a view to contributing in a meaningful concerning limit values for discharges of and effective way to the attainment of the aldrin, dieldrin and endrin into the aquatic objectives of the Pedip, the Commission environment and the quality objectives for intends, without prejudice to the rules the aquatic environment into which these governing the structural Funds, to make three substances are discharged. appropriate use of the integrated approach procedures as set out in its information The purpose of the new proposal, which note of 31 July 1985 to the Council and lays down implementing rules for the Direc- Parliament (--+ point 2.7.17).3 tive of 4 May 1976,E is to make the previous proposal on these three particularly harmful pesticides compatible with the system estab- Iished under the Directive of 12 June.e It Environment and consumers also aims to eliminate or reduce the pollution caused by the industries manufacturing the abovementioned substances and by Environment those manufacturing carpets and rugs.

London Conuention Environment and biotechnology 2.1.119. To give substance to the plans Biotechnology area where 2.1.117. is an announced in Februarylo and repeated in developments are rapid and more and more the Commission proposed to the applications are being found in various June,l1 industries and services. The Commission therefore feels that Community rules should I be laid down for this field in order to protect 2 Supplcment 2/85 - Bull. EC. public health and the environment, prevent coM(86) 552 final. : Bull. EC7/8-1986, point 2.1.132. fragmentation of the internal market and a Bull. EC 4-1986, point 2.1.91. promote international harmonization.4 5 573 6 coM(85) final. The aspects on which Community legis- 7 coM(86) 534 final. lation is to be prepared as a matter of pri- oJ c 746, 12.6.1979; oJ c 341, 31.12.1980. 8 oJ L 129,18.s.1976. ority in 7986-87 are set out in a communi- e OJ L 181,4.7.1986; Bull. EC 6-1986, point 2.1.147. cation to the Council approved by the Com- ro BuU. EC2-1986, point 2.1.94. mission on 28 October which makes clear It Bull. EC 6-1986, point 2.1.241 et seq.

Bull. EC 10-1986 4t Environment and consumers

Council on 20 October that the Community I nternati o na I cooperatio n as such should become a party to the 1972 London Convention on the Prevention of 2.1.123. Under the arrangements for coop- Marine Pollution by Dumping of \Wastes eration on the environment between the and Other Matter.l Commission and Austria established by the exchange of letters on 28 April 1978,8 a Combating air pollution further meeting was held in Vienna on 14 October. A number of topics of mutual interest were discussed, including the prob- Sulphur content of gas oil lems encountered in the wake of the Cher- nobyl accident, air pollution, waste man- 2.1.120. On 10 October Parliament agement, dangerous chemicals and finan- 2 proposal adopted a-n opinion on the for a cing plans for international action. Directive J concerning the revision of the limit values for the sulphur content of gas The possibilities for Austria to cooperate in oils laid down in the Council Directive of the European Year of the Environment were 24 November 1975.4 discussed.

Parliament recommends that from 1 July 2.1.L24. Under the arrangements for coop- 1987 only gas oils with a sulphur content eration on the environment between the not exceeding 0.15% should be allowed in Commission and Switzerland established b particularly polluted precisely and defined the exchange of letters in Decembe r 1975,{ areas, with a possible time limit on this the Commission held a meeting with the restriction. It also welcomes the fact that Swiss Authoritieslo in Berne on 21 October the Commission has become a contracting to discuss various problems, particularly air party to the 1979 Geneva Convention on s pollution, discharges of dangerous sub- Long-range Transboundary Air Pollution. stances, the protection of nature and of flora and fauna and on the implementation Combating noise pollution of the international conventions to which the Community is a contracting party (par- Household appliances ticularly Citesll).

2.1.121. On 7 October the Council reached broad agreement on the Directive Consumers concerning the provision of information to the consumer on the noise emitted by house- Council hold appliances, the proposal for which the Commission presented in t982.6 2.1.125. On 29 October the Council held a further meeting on consumer issues in Chemicals

Mai o r- ac c ide nt h azard s I SEC(85) 1535 final. 2 oJ c 283, 10.11.1985. 2.1.122. At its meeting in Brussels on 16 J OJ C 205, 14.8.1985; Bull. EC 7/8-1985, point 2.1.119. 4 and 17 October the Committee responsible oJ L 307, 27.11.1975. 5 oJ L l7r, 27.6.1981. for implementing the Directive of 24 June 6 OJ C 181, 19.7.1982; Bull. EC 1-1982, point 2.1.39; OJ t982 on the major-accident hazards of cer- C 334, 10.12.1983; Bull. EC 11-1983, point 2.1.106. tain industrial activities 7 held a detailed 7 OJ L 230, 5.8.1982; Bull. EC 6-1982, point 2.1.92. t exchange of information on the dangerous Bull. EC 4-1978, point 2.1.57. 9 industrial activities named in Article 5 of Bull. EC 12-197 5, point 2237. IO Fcdcral Office for the Protection of the Environmenr. the Directive as well as on accidents thar ll Convention on Intcrnational Trade in Endangercd Spe- have occurred recently in the Community. cics of Wrld Fauna and Flora.

42 Bull. EC 10-1986 Environment and consumers

Luxembourg. 1 Ministers approved a resol- considers that the representation of consumer ution providing for the integration of con- interests should be taken into account when decid- sumer policy into other common policies ing the composition of the Economic and Social Committee, and that there should be appropriate (+ point 2.1.126). They made good pro- participation of bodies representative of consumers gress in examining the proposed Directive in the work of national and international standards on consumer credit (--+ point 2.1.129) and organizations when standards relating to consumer took note of the new Commission proposal products are discussed; point 2.1.128). also on toy safety (+ They recalls to the Commission the need to ensure that welcomed the improvement of the system appropriate conditions exist for the effective and for the rapid exchange of information on duly representative consultation of consumers on the quality of goods and services and rec- matters affecting their interests, so that consumers' ommended that full use be made of it priorities are adequately reflected in the work of (--+ point 2.1.1,27). Ministers noted that the the Community, and notes that the Commission will keep these matters under review; Commission would present its report before the end of the year on the proposal regard- endorses the proposal of the Commission to sub- ing price indication for products sold loose mit periodically a report to the Council on the or prepackaged 1-' point 2.1.130). progress that has been made towards better integration of consumer policy into other Community policies, including all the matters covered in this Integration of consumer polic resolution, and requests that the first report should into other common policies be completed ar the end of t98l; resolves to continue discussion with the Com- 2.1.126. On the basis of the Commission mission on the matters covered by this resolution communication of 24 October,2 which sets and by the Council resolution o[ 23 June 1985 in out measures to be implemented to facilitate the appropriate Council b

Bull. EC 10-1986 43 Agriculture

ing the full functioning of the common mar- points require further clarification at techni- ket. This system constitutes a first step for cal level. However, the question of the efficient crisis management at Community extent to which the creditor could be held level in the area of dangerous consumer liable for default of the supplier of goods products. The Council endorsed the efforts or services supplied under credit agreements made by the Commission for the operation was referred by the Council to its competent and improvement of the system and rec- bodies for further examination. ommended that the Member States make full use of this valuable network at all levels. Consumer information, ed ucatio n a nd representation Safety and toys Price indication 2.1.128. On 22 October the Commission 2.1.130. Bearing in mind the interrelation- sent the Council a new proposal for a Direc- ship between unit pricing and standard tive on toy safety. I The proposal is the ranges, and in the light of its resolution first example of the application to consumer of 19 June 7979,s the Council invited the products of the new approach to technical Commission to report to it as soon as poss- harmonization and standards advocated by ible before the end of 7986 on existing Com- the Council in its resolution of 7 May munity ranges for foodstuffs and non-food 1985.2 products, the possible revision of these ranges, and the establishment of new safety and It covers every aspect of toy ranges. The Commission was also invited provides for essential safety requirements to to report on the possible establishment of a be laid down by law, although the standards specific list of foodstuffs prepackaged in voluntary. for technical specifications are It pre-established quantities, which will either to manage these empowers the Commission be subject to unit-pricing or be exempted de- standards and establishes sufficiently on the grounds of their inclusion in specific procedures ensure the tailed certification to ranges. Once the reports have been received the high level o[ safety required in view of and studied by the appropriate bodies, the particular vulnerability of toy-users, i.e. Council will reconsider the nature of Com- children. munity action in the area of standard ranges This proposal replaces those the Com- and the two Commission proposals regarding price indication.6 missio-n presented to the Council in July 1983. r Agriculture 7 Protection of economic and legal interests Council 2.1.131. At its meeting on 13 and 14 Consumer credit October the Council again extended until

2.1.129. The Council resumed its examin- I OJ C 282,8.11.1986; COM(86) 541 final. ation of certain priority provisions in the OJ C 136, 4.6.1985; Bull. EC 5-1985, point 1.3.1. 3 proposal for a Directive relating to the OJ C 228, 8.9.1980; Bull. EC 4-1980, point 2.1.53; OJ C2O3,29.7.1983; Bull. EC 6-1983, point 2.1.134. approximation of the laws of the Member 4 OJ C 80, 27.3.1979; Bull. EC 2-1979, poinr 2.1.51; 4 OJ States concerning consumer credit. Signifi- C 183, 10.7.1984; Bull. EC 6-1984, point 2.1.86. cant progress was made, including an agree- 5 OJ C 163, 30.6.1979; Bull. EC 6-1979,point2.1.59. ment on the rules relating to disclosure of 6 Oj C 8, 13.1.1984; Bull. EC 12-1983, point 2.1.13; OJ information about the cost credit. C 53, 25.2.1984; Bull. EC 1-1984, point 2.1.65; OJ C total of 205, 14.8.1985; Bull. EC 7/8-1985, point 2.1.134; OJ C Progress was also made on the question of 103, 30.4.1986; Bull. EC 3-1985, point 2.1.1 14. the scope of the Directive, although certain For agricultural rcscarch, see point 2.1.47.

44 Bull. EC 10-1986 Agriculture

31 March 1987 the suspension of certain (i) Community support prices should more MCAs for eggs and poultrymeat (+ point closely reflect supply, demand and market con- especially sectors where there is surplus 2.1,.133). ditions, in production; The Council also agreed, by a qualified (ii) the intervention system should operate majority, on the Commission proposal to according to its intended role, as a safety net to particular pressure alter the levies and sluicegate prices for eggs support the market at times of and not as a standard alternative marketing outlet; and poultrymeat (--+ point 2.1.153). (iii) price support policies should, wherever poss- The Council adopted I the Commission ible, be flexibly operated so that commercial risks proposal fixing for the 1986/87 marketing are not borne in their entirety through public finance,' year the representative market price, and consequently the amount of consumption aid, for olive oil and the threshold price.2 Economic aspects of the common No agreement, however, was reached on agricultural policy the Commission proposals for emergency action the sector (--+ point 2.1.134). in milk Agri-monetary measures As at the two previous meetings,3 the decision on the sale of butter at reduced 2.1.133. On 21 October the Council for- prices to persons receiving social assistance a mally adopted, by a qgalified majority, a was once again deferred. These items will Commission proposal / f.or further pro- appear on the agenda for the next Council longing,s until 31 March 1987, the partial meeting. The question of adjustments to the suspension of the MCAs for France and the common organization of the market in beef United Kingdom in the eggs and poultry- and veal will also be discussed at that meat sector.9 However, should this-suspen- meeting.5 sion result in abnormal patterns of trade in the products in question, the Commission 2.1.L32. Following discussions on agricul- is authorized to take appropriate measures turalexpenditure at the Council meeting on to deal with the problem. economic and financial affairs, it was noted that there was general concern over the increasing burden placed on the Com- Market organizations munity budget by the accumulation of surpluses of agricultural produce and stocks. Agricultural market support expenditure Milk and milk products threatens to exceed the 7987 draft budget figure unless further decisions on the oper- 2.1.134. At its meeting on 13 and 74 ation of the market regimes are taken in the October the Council discussed in detail the near future. The Commission has, more- Commission's proposals for emergency over, put forward proposals for such changes in some of the sectors which are in structural surplus.6 I 2 oJ L z9q,2z.to.t9g6. The Council President drew the following CoM(86) 5J8 final. 3 Bull. EC7/8-1986, point 2.1.138; Bull. EC 9-1986, point conclusion: 2.1.100. 4 Bull. EC 5-1986, point2.l.l27. 'With a view to bringing expenditure under better 5 Bull. EC 12-1985, point2.l.l54 et seq. control and to avoid the production of surpluses 6 Bull. EC 12-1985, poinr 2.1.154 et seq.; Ol C L54, for which markets cannot be found and to opening 11.10.1985; Bull. EC 9-1985, point 2.1.103 et seq. the way for a more structured approach to disposal 7 oJ c 159,26.6.1986; Bull. EC 5-1986, point 2.1.171. of existing stocks, forthcoming policy decisions 8 oJ L '.176,1.7.1986l' Bull. EC 6-1985, poinr 2.1.171; Bull. should, while respecting the principles set out in EC 7/8-1986, point 2.1.138; OJ L 272,24.9.1986; Bull. Article 39 of the Treaty, have regard to the follow- EC 9-1985, point 2.1.100. ing principles: e oJ L 300,24.10.1986.

Bull. EC 10-1985 45 Agriculture action in the milk sector. t While recogniz- and adjusted at the beginning of each milk ing the need to reach conclusions swiftly, year in direct relation to the costs for stor- the Council does not appear ready to take age and marketing arising from the overpro- action along the lines proposed by the Com- duction of milk. mission, in particular as regards removing the possibility of interregional offsetting of It calls for commensurate compensation to milk quotas and giving the Commission the be paid in cases where suspension or power to suspend intervention for butter reduction of quotas proves necessary, such and skimmed-milk powder. compensation being graduated according to the volume of production. 2.1.135. On 23 October Parliament deli- Parliament 2 opposes the Commission's pro- vered its opinion on the Commission proposal for temporarily or totally suspending posals for revising the permanent inter- intervention bying-in of butter and skimm- vention arrangements for butter and ed-milk powder, since such a move could skimmed-milk powder3 and for tightening have a detrimental effect on prices and up control of milk production.4 severely affect farmers' incomes. It adds that the suspension buying-in skimmed- Parliament, like the Commission, is entirely of for milk powder combined with an increase in convinced that special measures are refunds feed have a urgently needed in the milk sector in view for animal would only of the terrifyingly high level of stocks and limited financial impact and would not be present problems. the constant overproduction of milk which a real solution to the proposes, is further increasing stocks. It is therefore It therefore as the most suitable measure the sector aware that measures will unfortunately be transitional until milk inevitable during the current milk year. is properly restructured, that maximum intervention quantities be set for butter and Since the Commissions's proposals have skimmed-milk powder. It suggests that a met with criticism from both governments system be devised for a differentiated levy and parliaments in the Member States and on excess butter and skimmed-milk powder the adjustment provisions have de facto sold by dairies into intervention. This become part of the quota system, Parlia- would prompt the dairies to vary pro- ment suggests that Merhber States be duction and improve quality in order to offered the choice between two possibilities: find more market outlets for their products. (i) a continuation of the existing adjust- Parliament endorses the Commission's pro- ment provisions, with the existing superlevy posed arrangements concerning the fat con- for the A system being increased to equal tent of milk delivered into intervention, pro- that applying to the B system, and the quota vided that the Commission makes no pro- available for the country being reduced by posals for amending the price ratio of milk at least lo/o; or fats and proteins for the forthcoming milk (ii) the abolition of the adjustment pro- year. visions, as proposed by the Commission. Finally, Parliament strongly urges the Com- The Member States would have to inform mission not only to take measures to limit the Commission before 1 January 1987 milk production but also to find more effec- which of the alternatives they prefer. tive measures for reducing stocks and, where stocks are very old, to halt their Parliament further notes that, contrary to costly storage. the original objective, the revenue from the superlevy is no longer sufficient to cover the costs resulting from overproduction. It I OJ C X4, 11.10.1985; Bull. EC 9-1986, point 2.1.10j et proposes, seq. therefore in view of the inad- 2 oJ c297,24.11.1986. equate deterrent effect of the existing super- J OJ C X4, 11.10.1986; Bull. EC 9-1986, point 2.1.108. levy, that this levy be increased appreciably 4 OJ C 254, 11.10.1986; Bull. EC 9-1986, point 2.1.109.

# Bull. EC 10-1985 Agriculture

2.1.135. \7hen the additional agreements ies arising in the implementation of the were concluded between the Community scheme and likely to jeopardize the distil- and the EFTA countries following the Iation programme, the Commission may accession of Spain and Portugal, I the Com- adopt the necessary measures to ensure its munity agreed that, since Switzerland effective execution without, however, call- would extend to the Community of Twelve ing into question the essential elements of certain agricultural concessions which had the scheme. hitherto been granted only to the rwo new Member States,2 vacherin mont d'or cheese The Commission also proposes to state would be added to the list of Swiss cheeses more clearly that the price paid for wine qualifying for a reduced import levy. On 13 delivered for 'support' distillation is to be October the Council accordingly adopted fixed on the basis of the same percenrage the necessary amendments to the legislation of the guide price as that used for determin- in question. J ing the guaranteed minimum price for table wine. This shall give greater emphasis to 2.1.137. The scheme for selling inrer- the essential function of the 'support' distil- vention butter taken into storage before 1 lation scheme, which is to ensure the pay- July 1983 for incorporation in compound ment to producers who deliver wine from feedingstuffs a did not meet with rhe success their own output of the guaranteed mini- which had been hoped for and the Com- mum price for table wine. mission therefore made extensive changes in the arrangements, providing for a greater 2.1.140. On 27 October the Commission variety of ways in which the butter may be opened the first invitation to tender for the used, in order to meet the requirements sale of alcohol obtained from compulsory of the various feedingstuffs manufacturing distillation operarions.l0 The invirarion processes.5 relates to some 200 000 hl of alcohol obtained from the compulsory distillation of 2.1.138. In order to ensure the disposal of table wines held by the French intervenrion a greater quantity of butter, on 16 October agency. The alcohol put up for sale must the Commission adopted a Regulation be used in the Community, in either the fuel further reducing the price of intervention or the thermal power station sector. The butter intended for direct consumption in minimum selling price was fixed at 15 ECU the form of concentrated butter6 and per hectolitre of alcohol at 100% vol. amending the Regulation of 11 November 1985,/ which introduced arrangemenrs for 2.1.141. On 1 and 21 October the Com- sales at reduced prices, so as to make it mission laid down detailed implementing easier to apply. rules for the preventive distillation operation for table winell which it opened on 13 October.12 The maximum quantities of Wine I 2.1.139. On 30 October the Commission Bull. EC2-1986, point 2.2.10; Bull. EC 7/8-1986,point 8 2.2.14. sent the Council a proposal for an amend- 2 oJ L s6, 1.3.1986. ment to the basic Regulation on wine.9 In r oJ L 292, 16.10.1986. view of the difficulties encountered when 4 oJ L 208,31.7.1986; Bull. EC 7/8-1986, poinr 2.1.142; the new compulsory distillation arrange- Bull. EC 6-1986, point 2.1.1V. 5 oJ L 285,8.r0.1986. ments for table wines were first applied, the 6 oJ L 294, t7.to.t9g6. purpose of the proposed amendment is to 7 t oJ L 298,12.11.1985; Bull. EC l1-1985, point 2.1.137. reintroduce, for the 1986/87 to 1989/90 wine e oJ c 297,14.11.1986; coM(85) 5v final. years inclusive, the transitional arrange- oJ L 54,5.3.1929; oJ L 88, 28.3.1985; Bull. EC 2-1985, ments initially planned for the first year of point 1.1.2. ro oJ L 302,28.10.1985. application of the scheme. These arrange- rr oJ L 281,2.10.1986; oJ L 302, 28.10.1986. ments provide that, in the event of difficult- 12 oJ L z9o, 14.10.1986.

Bull. EC 10-1986 47 Agriculture wine which each producer may have distil- the producer in advance or the whole of led under the scheme were fixed at: the minimum purchase price. The period (i) 13 hl/ha for wine-growing zones CI, originally set proved inadequate and was thus altered without weakening the guaran- CII and CIII (with a ceiling of 260/o of. production in Spain) and for the French tees for the intervention agency. It now runs the application part of zone B; from the date on which for aid is submitted and not, as previously, (ii) 6 hl/ha for wine-growing zone A and from the date on which the wine enters the the German part of zone B; distillery. (iii) a certain percentage of their output 2.1.145. On 21 and 27 October the Com- for certain cooperatives, producer groups s and grape buyers. mission amended the procedure for sub- mitting evidence providing access to Com- 4 2.1.142. On 13 October the Commission munity distillation measures in order to also introduced the additional measures take better account of circumstances. applicable to holders of long-term s_torage contracts for certain table wines. 1 The 2.1.145. On27 October it also amended6 measures relate to a special price support the way in which the higher alcohol content guarantee for the distillation of a given of alcohol other than neutral spirits is quantity of table wine produced by the expressed in-the descriptive sheet for alco- ihterested party and to the possibility of hols put up for sale.7 concluding one or more storage contracts part-session in for a period of four months for a part or 2.1.147. At its first Parliament approved the pro- all of the quantity which exceeds the stated October,8 posal Regulation consolidate the percentage. for a to lxisting legislation on wine. e 2.1.143. Also on 13 October the Com- mission adopted provisions relating to the Sugar reduction in the purchase price for wine covered by certain distillation schemes. 1 2.1.148. On 3 October the Commission Account must be taken, where appropriate, adopted a Regulationl0 implementing of the commercial benefits accruing from Article 32a of the basic Regulation on sugar the enrichment of wine by the addition of of 30 June 1981,11 introducing an elimin- sucrose or grape must in respect of which ation levy to be paid by producers in respect Community aid has been received. To facili- of their production from the 7986187 mar- tate management of this scheme, a flat- keting year onwards. Given the principle rate system is to be applied for fixing the of self-financing in the sugar sector, the purchase price for enriched wine on the purpose of this levy is to eliminate the Com- basis of a maximum alcoholic strength munity's 400 million ECU deficit recorded which reflects the average natural alcoholic following application of the quota arrange- strength recorded for each wine-growing ments in the period 1981/82 to 1985/85. zone. The alcoholic strengths adopted are the same as those used for the previous wine year. I oJ L z9o, 14.10.1986. 2 oJ L z97,zl.to.t98,6. 3 oJ L 244,29.9.1986. 2.1.144. On 20 October the Commission 4 oJ L 246, j0.8.1986. amended 2 the detailed rules for the distil- s oJ L 298,22.10.1986; oJ L 302,28.r0.r98d. 3 6 lation of the by-products of winemaking 7 oJ L 302, 28.10.1986. and for the distillation of wine produced 8 oJ L 1,55,21.6.1986; Bull. 6-1986, point 2.1.183. grapes a oJ c 283, 10.11.1986. from having a dual classification e Bull. EC7/8-1986, point 2.1.149. so as to alter the period within which the ro oJ L 28J,4.10.1986. distiller must furnish proof that he has paid rr oJ L 177,1.7.1981l' Bull. EC,5-1981, point 2.1.88.

48 Bull. EC 10-1985 Agriculture

To achieve this, the Regulation provides for undertakings given during the accession the collection of the elimination levy in two negotiations. To meet the estimated instalments by 15 December each year. The requirements of these refineries for 1986/ first instalment is calculated by multiplying 87, the Commission has already decided to the sum of the A and B quotas foi eact authorize Portugalto import 159 000 ronnes undertaking by 80% of the amount stipu- from non-Community countries at a lated in Article 32a. However, a buffei is reduced levy and to grant certain aids for provided so that all the undertakings in any 85 000 tonnes of raw sugar originating in one region do not pay more than 80% of the French overseas departments so as to the final A and B production recorded for equalize price conditions with raw preferen- that region for the 1984/85 marketing year. tial sugar and to enable the French overseas The balance of the levy must be paid before departments' sugar to be refined in Portu- 15 December of the following year on the gal. Since the estimates show that an basis of the final A and B production for additional 40 000 tonnes of raw sugar will the undertaking in question adjusted, as be required in 1,985/87 and that the quantit- necessary, with reference to the regional A ies available in the Community make it and B production for 1,984/85. possible to supply up to 40 000 tonnes of raw beet sugar, a Commission Regulation 2.1.149. By a Regulation dated 2l I of 22 October provides that the same aids October the Commission acted on the should be granted for these quantiries as for undertaking it had given at the Council the sugar from the French overseas depart- meeting on 24 and 25 March to provide ments in order, once again, to equalize price compensation for refiners of preferential conditions with preferential sugar. 4 sugar and sugar from the French overseas departments in the evenr of the ACP countries accepting the Community's offer Beef /veal to increase the guaranteed prices by 0.15% with effect from 1 April 1985, as had been 2.1.151. On 14 October the Commission decided by the Council in the case of the reduced the export refunds on chilled beef inte,rvention price f^or raw sugar produced and veal by 9oh in response to current con- in the Community. z Negotiations with the ditions on the world market.5 ACP countries were concluded on this basis and the guaranteed prices for 1985/85 were finally adopted during the week from 15 to Sheepmeat 19 September. The system of compensation provides that the monetary compensatory 2.1.152. On 15 October the Commission amount of I April will be applicable to decided, in view of the serious difficulties preferential sugar imported during the per- on the market in France, to grant private iod 1 April to 20 April. Since this will effec- storage aid in France for all sheepmeat tively increase the MCAs to be paid to products.5 Contracts may be coniluded refiners, equivalent compensation has been between 15 October and 14 November 1986 provided for the refining of sugar from the for a maximum quantity of 4 000 tonnes. French overseas departments, during the The amount of the aid, fixed at a flar rare period 1 April to 30 June 1985, so as to in advance, depends on the storage period, create similar price conditions for both which may be from two to five months. types of sugar, pursuant to Article 5 of the Regulation of 15 July 1986.3 I 2 oJ L 299,zz.'t0.1986. Accession-related measures oJ L 88, 3.4.1986; Bull. EC 3-1986, point 2.1.115. 3 oJ L 194, 17.2.1986. 4 oJ L 299,23.10.1986. 2.1.150. Supplies for Portuguese refineries 5 oJ L 291, rs.to.t986. must be ensured in accordance with the 5 oJ L 292, 16.10.'t986.

Bull. EC l0-1986 49 Agriculture

Eggs and poultrymeat Fresh fruit and vegetables

21 October the Council for- 2.1.153. On 4 mally adopted, by a qualified maiority, Market situation Commission proposals I for two Regu- lations altering the values used for calculat- 2.1.157. The Council decided to maintain ing the levies and sluicegate prices for eggs basic prices for 1985/87 at the previous an-d poultrymeat.2 These amendments, year's levels, except in the case of cauli- which take into account recent changes in flowers and aubergines, for which the price technical performance and overhead costs was increased by 1%. However, since the in poultryTarming, willapply from 1 Febru- Council lowered the ratio between the buy- ary tltl so as not to disturb trade at the ing-in price and the basic price for a number end of the year. of products, average withdrawal prices are down by 7.5o/o for tomatoes and peaches, 2.1.154. The Council also further 4o/o for apricots and 2.5o/" for lemons, man- extended, until 31 March'L987,the suspen- darins and sweet oranges in comparison sion of certain MCAs for poultrymeat and with 1985/85. eggs (-r point 2.1.133). There has been no change in the withdrawal prices for pears, table grapes and apples. In Processed fruit and vegetables ihe case of cauliflowers and aubergines, the prices are lo/o higher.

3 Market situation 2.1.158. The Council also set the following marketing premiums in order to facili- 2.1.155. Aid levels for 1985/87 for the tate marketing within the Community: Community of Nine and Greece are mostly between 5% and 25% lower than for 1985/ (i) 15.38 ECU/100 kg net for oranges of 86. the Moro, Tarocco, Ovale Calabrese, Bella- donna, Navel and Valencia late varieties; The only exceptions are aid for tomato of concentrates, cherries, pears and pineapple (ii) 1,3.20 ECU/100 kg net for oranges in syrup, where increases range from 1.9% the Sanguinello variety; (cherries) and 22.4oh (pineapple). (iii) 8.59 ECU/100 kg net for oranges of the Sanguigno and Biondo comune var- The chief cause of the increase in aid for ieties; pears and pineapple in syrup was the c-hange in the market situation for these products. (iv) 12.95 ECIJ/100 kg net for mandarins; net for lemons. 2.1.155. The minimum prices payable to (v) 1.97 ECU/100 kg producers for pineapples, cherries, figs and dried grapes have been maintained at last 2.1.159. The 1985/87 levels of processing provided in_ the Regu- year's levels: the Council raised the guaran- aid for oranges, for for tee threshold for currants from 55 000 to lation of 18 December 1969,5 and provided in the Regulation of 70 000 tonnes and this has not been lemons, for are as follows: exceeded. Minimum prices for other proces- 17 May 1977,6 sed products eligible for processing aid are down by between 3% (prunes) and 10% (peaches). 2' COM(83) 586 frnal. The system of aid and the minimum price oJ L 301, r.r0.1986. r Cf. Bull. EC 7/8-1985, poinr2.l.156 et seq. were applied in Spain and Portugal for the 4 Cf. Bull. EC 3-1986, point 2.1.124 et seq. first time in 1986/87, according to the cri- s oJ I- 324,27.12.1969. teria laid down in the Act of Accession. 6 oJ L tu,19.5.1977.

50 Bull. EC 10-1986 Agriculture

Table 2 - Aid for processing oranges ECU/100 hg net

Mrnimum prrces Financial compensation Varieties Other Spain Portugal Spain Portugal Other Member States Member Statcs

Oranges of the Biondo comune varlety: Class I ) Class II I 9.7i 6.98 11.32 4.92 2.17 6.51 Class III I Oranges of Class III or mixed class:

Moro and Tarocco 15.07 10.81 17:53 10.26 5.00 12.72 Sanguinello 13.99 10.04 16.28 9. l8 5.23 11.47 Sanguigno 1 1.83 8.50 13.78 7.02 3.59 8.97

Table 3 - Aid for processing lemons ECUtlaO kg net

Othe r Spain Portugal Member Statcs

Minimum prices 11.21 11.76 20.03

Financial compensation 2.86 3.41 1 1.58

Beginning with the current marketing year, 2.1.151. The 1986/87 producer prices re- Spain and Portugal will now receive both corded up to the end of September on rhe of the abovementioned types of aid (conven- various representative Community markets tional transition arrangements). In the case are higher than those recorded during the of Spain, the aid is limited during the first same period of the previous marketing year four marketing years to specific (uantities in the case of tomatoes, auberginesr- apri- stipulated in the Act of Accession. cots, peaches, pears and table grapes. The prices recorded dessert 2.1.160. The latest available estimares for for apples at rhe start of the marketing year production in 7986 show divergent trends in ceitain Mem- ber States, in particular the Netherlands, for different products. In the case of rom- were relatively atoes, for instance, a fall in production of low. For this reason, and faced with forecasts rising production, about 10% in the Community of Ten and of the Commission has authorized preventive of 5o/" in the Community of Twelve is fore- withdrawals of apples. Apple prices cast by comparison with the previous mar- are currently low in Germany. Finilly, should keting year. In the case of- peaches and it be noted that producer prices pears, production levels should be similar are fairly low for lemons in Italy and cauliflowers to those for 1985. The trend for apricots for in France especially. is downwards. For nectarines, the upward trend appears to have continued in- 1985. 2.1.162. Reference prices were increased Production of apples appears to be up by by 3% at the most for the 7986/87 market- about 10% on 1985 figures but has- not ing year, except in the case of lemons and reached 1984's record levels. clementines. As regards citrus fruit, prices

Bull. EC 10-1986 51 Agriculture for oranges and mandarins remained ident- 2.1.166. The Commission also adopted, ical with those for the previous marketing on 29 October,5 three Directives amending year, but the reference prices for lemons the Annexes to the Council Directive of 21 ind clementines were raised by 7o/o and December t976.4 These amendments con- 5% respectively, taking into account the cern: degressive timetable established [or the (i) two harmful organisms, Anarsia linea- marketing premium. tella and Laspeyresia molesta, which have than was Pursuant to the 1979 Act of Accession, the been shown to present lower risks Community fixed the 1986/87 Community initially thought; protection will now be plants other than offer prices for peaches and tomatoes orig- restricted to certain fruit inating in Greece. This procedure operates fruit, and only for certain Member States plants at during the seven-year transitional period [or where significant production of place; these two products. risk takes (ii) measures to extend the protection of As regards the application of these reference Community woodlands against the intro- charges pricei in 1986/81, countervailing duction or spread of certain harmful organ- more frequently than in have been used isms; 1,985/86 for products imported from non- Community countries. This is true of all (iii) the application of existing national products covered by the system of reference plant health prohibitions to imports o[ cer- pnces. tain products originating in non-Com- munity countries; this measure, valid only for a limited period expiring on 31 Tobacco December 1989, should enable the plant health risks to be assessed at Community 2.1.163. The Commission has awarded level. contracts I for 2 969 1.85 of the 5 385 740 kg of raw tobacco from the 1984 harvest 2.1.167. On 10 October Parliament passed held by the Italian intervention agency and a resolution ori sylvatic rabies (---+ point offered for sale by tender in August. z 2.4.t9).6

2.1.164. The Commission also issued Competition notices of invitation to tender for the sale of 2795123 kg of raw tobacco from the 2.1.168. Under the terms of Articles 92 1984 harvest held by the Italian intervention to 94 of the EEC Treaty, the Commission agency'r and 5 886 452 kg of tobacco from decided not to oppose the introduction of the 1984 harvest held by the Greek inter- the following proposed schemes which had vention agency.3 been duly notified.

Legislation Germany

Rhineland-Palatinate Plant health legislation Promotion of marketing programm 2.1.165. On 20 October the Commission consisting of market research, marketing adopted a Directive establishing Com- munity tolerances for certain harmful I C 251, 8.10.1985; OJ C 54, 11.10.1986. organisms listed in the Council Directive of 2 OJ 21 December t976 on protective measures oJ c 195,5.8.1986; oJ c 209,20.8.1986. r oJ c 2dr, 18.10.1985. against the introduction into the Member n oJ L 25,31.r.Dn. States of organisms harmful to plants or 5 oJ L 323, r8.11.1986. plant products. a 6 oJ c 283, lo.1 1.1985.

52 Bull. EC 10-1986 Fisheries strategy development and product develop- and long-term loans contracted in connec- ment subject to regional or qualifying tion with exports to non-Community conditions.- countries).

2.1.170. The Commission decided to ter- France minate the Article 93(2) procedure in respect Seven draft decrees concerning the readjust- of an Italian regional aid scheme (Calabria) ment of interest rates for subsidized loans for the refinancing for 1985 of Regional Act to farmers, in particular for the purchase of No 21 of 2 June 1980 on measures to assist land and the sharing of agricultural equip- agriculture (Section 3),1 in view of the ment in cooperatives. amendments to this Section introduced by Regional Act No 20 of 8 May t986. Measures to assist farmers suffering from the exceptional drought which has affected certain departments in the south of France. Forestry This is emergency aid granted temporarily and exceptionally to support the farmers 2.1.171. On 23 October Parliament passed concerned. a resolution on Communitv action in the forestry sector (--+ point Z.+.2+).2 Financing of the guarantee fund for agricultural disasters (FF 400 million). Tax concessions consisting in the deduction European Agricultural Guidance of 50% of VAT on domestic fuel oil used and Guarantee Fund by farmers (making VAT on such fuel oil 100% deductible). EAGGF Guarantee Section

Italy 2.1.172. On 23 October Parliament passed a resolution on the management of agricul- Measures contained in Act No 887 of 22 tural stocks under the EAGGF Guarantee December 1984 laying down provisions for Section's common organization of markets the composition of the annual State budget (+ point 2.4.24).2 (insurance and exchange guarantee, creation of marketing centres outside Italy, implementation of market penetration pro- Fisheries grammes and participation in trade fairs and exhibitions). Resources United Kingdom lnternal aspects Measures to improve the marketing conditions cereals (Home-grown Cereals for Community measures Authority). TACs and quotas 2.1.169. The Commission decided to initiate the Article 93(2) procedure in 2.1.173. On 21 October the Council, act- respect of the provisions of Italian Act No ing on a proposal from the Commission,3 887 of 22 December 7984 concerning the composition of the annual and multiannual State budget (Finance Act for 1985) which t extends the agri-foodstuffs the Bull. EC7/8-1985, point 2.1.161; Bull. EC 2-1986, point to sector 2.1.126. provisions of Acts Nos 255152 and 227/72 2 oJ c 297,24.11.1986. (reduced-rate discounting of medium-term 3 coM(86) 542 final.

Bull. EC 10-1986 Fisheries amended for the fifth time 1 its Regulation lmplementation of Community rules 20 December 1985 fixing, for certain of 2.1.177. The Commission took note of the fish stocks and groups of fish stocks, total following national measures: allowable catches for 1986 and certain conditions under which they may be fished.2 (i) on 16 October, the three draft Irish The amendment increases the TAC for the Orders implementing the provisions of the Clyde herring stock (\West of Scotland). Council Rigulation of 19 December 198411 until the end of 1985, those of the Council Regulation of 29 l98}tz and those of Technical measures June the Commission Regulations of 22 Sep- 2.1.174. On 7 October the Council for- tember 1983,13 5 December 198414 and 23 mally adopted a Regulation 3 replacing July 1984;1s Regulation (EEC) No 171183 of 25 January (ii) on 17 October a United Kingdom 1983 laying down certain technical meas- Order (1986) implementing in United ures for the conservation of fishery Kingdom waters certain provisions of the resources.4 Agreement had been reached Regulations of 20 December 1985 on fishing on its content at the Council meeting in by non-Community (Faeroese, Norwegian September.5 and Swedish) vessels;16 (iii) on 20 October a United Kingdom Prohibition tneasures Order made under Article 10(2) of the Regu- lation of 29 l982,tz prohibiting United In response to information from June 2.1.175. Kingdom vessels from fishing for saithe the national authorities that certain quotas 1985 in certain specified areas. were exhausted the Commission prohibited: froiT July (i) Dutch vessels from fishing for mackerel in ICES divisions IIa (EC zone), IIIa and External aspects IIIb, c and d (EC zone), and in ICES subarea IV, on 14 October;5 Bilateral relations vessels from fishing for (ii) all Community Sao Tomeand Principe salmon in the Swedish waters of ICES division IIId, on 14 October;6 2.1.178. On 22 October the Commission (iii) United Kingdom and French vessels sent the Council a proposal for a Decision from fishing for blue ling and for ling in on the conclusion of an agreement in the Faeroese waters, on 15 October / and 1 November 8 respectively; (iv) Belgian vessels from fishing for sole oJ L 300,24.10.1986. 2' Bull. EC plaice in ICES oJ I- 361, 31.12.1985; oJ L 353, 31.12.1985; in ICES division VIIa and for 17, 23.1.1986; OJ L 176, e 12-1985, point 2.1.182; Ol L divisions VIIa, f and g, on 29 October. 1.7.7986; Bull. EC 6-1985, poinr 2.1.213; OJ L 206' 30.7.7986; Bull. EC 7/8-1986' point 2.1.194. r oJ I- 288, 11.10.1985. National measures 4 5 oJ L 24,27.1.1983. 6 Bull. EC 9-1986, poinr 2.1.130. Protection of local stocks 7 oJ L 290, 14.10.1986. 8 oJ L 291, 15.10.1986. 13 October the Commission, oJ L 3od, 1.11.1986. 2.1.175. On e oJ L 303,29.10.1986. acting under Article 19 of Regulation (EEC) ro oJ L 24,27.1.198i. No 121283,10 approved a fisheries bill of rr oJ L l, 1.1.1985; Bull. EC 12-1984, point 2.1.173. 12 point Land Hamburg and the relevant draft rr 0J L 220,297.1982; Bull. EC 6-1982, 2.1.128. implementing regulations, the provisions of oJ L 276, 10.10.1983. f4 OJ L 318,7.12.1984; Bull. EC 12'1984,point2.1.177- Sea which apply in part to the North coastal It oJ L 194,24.7.1984; Bull. EC 7/8-1984, point 2.1.148. waters fllling under the jurisdiction of rt OJ L 351, 31.12.1985; Bull. EC 12-1985, points 2'1.192 Hamburg. ro 2.1.194.

54 Bull. EC 10-1986 Fisheries

form of an exchange of letters extending for Guinea-Bissau on fishing off the coast of two months from 31 August 1985 the period Guinea-Bissau.12 of validity of the Protocol to the Agreement between the Community and the Govern- Seychelles ment of Sao Tome and Principe on fishing off Sao Tome and Principe. 2.1.182. The Fisheries Agreement between the Community and Seychelles13 being due The agreement had been initialled on 22 to expire on 11 January 7987, the first round August.l of negotiations on a new agreement was held on 9 and 10 October in Brussels and Guinea the second round is planned for December in Victoria. 2.1.179. On 7 October the Commission sent the Council proposals for a Regu- Mozambique lation z and a Decision J on the conclusion of: 2.1.183. The Fisheries Agreement between Spain and Mozambique being due to expire (i) an agreement amending the Agreement on 31 December 1986, the first round of between the Community and the Govern- negotiations on an agreement between the ment of Guinea on fishing off the coast of Community and Mozambique was held in Guinea,4 and Maputo from 13 to 15 October. These nego- (ii) an agreement in the form of an tiations take account of the growing interest exchange of letters on provisional appli- of Community fishermen in the Indian cation of the amended Agreement. Ocean. The amending agreement and the agreement on provisional application had been Morocco initialled at Conakry on 12 July.5 2.1.184. Discussions between the Moroc- can authorities and a Commission del- Equatorial Guinea egation were held in Rabat from 20 to 23 October with a view to the preparation of 2.1.180. On 7 October the Commission a fisheries agreement between .the Com- sent the prooosal Council a for a Resu- munity and Morocco.l4 The actual nego- lation 6 and a Decision / on the conclusi"on tiations are expected to begin in the near of: future. (i) an agreement amending the Agreemenr between the Community and the Govern- Multilateral relations ment of Equatorial Guinea on fishing off the coast of Equatorial Guinea, s and 2.1.185. The annual trilateral consul- tations15 with Norway and Sweden on fish- (ii) an agreement in the form of an exchange of letters on the provisional application of the amended Agreement. 1 Bull. EC7/8-'1986, point 2.1.191. 2 oJ c 294,20.'t't.1986; coM(85) 539 frnal. Both the amending agreement and the 3 CoM(85) 539 final. agreement on provisional had 4 OJ L 1,11,27.4.198j' Bull. EC 3-1983, point 2.1.1J3. application 5 been initialled on 25 June. e Bull. EC7/8-1986, point 2.1.189. 6 oJ c 268,24.10.1986; coM(86) 543 final. 7 cottt(ae) 543 final. Guinea-Bissau 8 oJ I- 188, 16.7.1984; Bull. EC 6-1984, point 2.1.120. e Bull. EC 6-1986, point 2.1.212. 2.1.181. In October Parliament aD- to oJ c 283, 10.11.198d. rr OJ C 197,6.8.1986; Bull.7/8-1985, point 2.1.188. provedlo a proposal for a Regulationll 6n 12 the conclusion of an agreement amending OJ L 84, 30.3.1983; Bull. EC 3-1983, point 2.1.132. 13 oJ L 149,8.6.1985; Bull. EC 6-t986,point2,t.l44. for the second time the Agreement between 14 Bull. EC7/8-1986, point 2.1.192. the Community and the Government of rJ Previous consultations: Bull. EC 10-1985, point2.l.l22.

Bull. EC 10-1986 55 Energy ing rights and conditions in the Skagerrak lnland transport and the Kattegat, in this case for 1987, were initiated in Oslo on27 and 28 October. Road transport 2.1.186. The Commission took part in the 18th session of the FAO General Fisheries Technical aspects held in Council for the Mediterranean, 2.1.190. The Economic and Social Com- and the Monaco from 5 to 10 October, in mittee adopted an opinion on 23 October meeting the Inter- seventh statutory of concerning' the proposal a to amend the the Exploration of the national Council for Council Directive on the approximation of Sea, held in Copenhagen from 8 to 17 laws relating to roadworthiness tests for October. motor vehicles and their trailers (--+ point 2.4.43). Markets and structures lnternational cooperation Structures 2.1.191. On 10 October Parliament adopted a resolution on the Community's 2.1.187. On 29 October the Commission relations with certain non-member approved I the guidance programme for countries in the transport sector (--+ point aquaculture submitted by Spain for 7986 2.4.1\.s under Council Regulation (EEC) No 2908/ 83 of 4 October 1983 on a common measure for restructuring, modernizing and developing the fishing industry and for developing Energy aquaculture. z Specific problems

Transport Solid fuels 2.1.192. On 29 October the Commission decided, 6 under its Decision of 25 February lnf rastructure 1976,7 to approve aid from the United Kingdom to the coalmining industry during 2.1.188. The Transport Infrastructure t985/86. Committee met on 14 October and examined the projects which the Commission felt Nuclear energy it could finance from the budget appropriations for 1985. 2.1.193. The Commission took part in the The Committee also considered certain 30th regular session of the IAEA General Member States' transport infrastructure Conference, which took place in Vienna point plans and programmes. The Commission from 29 September to 3 October (+ 2.t.t9s). consulted the Member States on the project for a fixed link across the Channel.

2.1.189. On24 October Parliament passed I oJ L 313, 8.11.1985. 2 a resolution on the necessity for an ad hoc 3 oJ L 290,22.10.1983. Regulation that would enable the 1985 4 oJ c 297,24.11.1996. infrastructure oJ c 133,31.5.1985; Bull. EC 4-1985, point 2.1.151. budget appropriations for 5 oJ c 283, 10.11.1985. projects- to be committed (--+ point 6 oJ L 312,7.11.1986. 2.4.24).r 7 oJ L G3, 1t.i.1976.

56 Bull. EC 10-1986 Nuclear safety

Nuclear safety the..entry of that plant inro operation is suttrcrent. Radiation protection The general data on the disposal of radioactive waste from the Cattenom plant were Disposal of radioactiue waste received by the Commission oi Zg April. An opinion had therefore to be given by 29 2.1.194. On 22 October the Commission October. The Article 31 group of experts adopted a formal opinion under Article 37 met twice to prepare and finalize its report of the Euratom Treaty on the Cattenom for the Commission. nuclear power station. This was addressed to the French Government, the German and International cooperation I uxembourg Governments also being notified as the countries directly concerned. 2.1.195. The Commission took part in the 30th regular session of the International The points main in this opinion are as fol- Atomic Energy Agency's General Confer- lows: ence, which was held in Vienna from 29 (i) According ro the plans submitted to September to 3 October and was atrended the Commission by the French authorities, by delegates from nearly all of the 113 IAEA the disposal of radioactive waste from the Member States. The Commission represen- Cattenom power station is not under nor- tative, Mr C.J. Audland, who has been mal operation liable to result in significant appointed special adviser ro the Com- radiation contamination of the witer, soil mission on international energy and nuclear and air space of any Member State. questions, made a statement on the sa[e- (ii) In the event of a loss of primary cool- guarding of nuclear materials in which he referred to the increasingly extensive and to be the most serious that could occur close collaboration between the Com- within the plant radioactive exposure munity and IAEA on nuclear safeguards. would remain below- the Euratorn dose He also paid tribute ro the international limits for members of the public. ser-vice of the highest order rendered by the safeguards inspectors of the Commission (iii) The possibility cannot be excluded, and of IAEA. however, of an accident requiring counter- measures by the authorities in neighbouring 2.1.196. On 9 October Parliamenr Member States. France has established adopted a resolution calling for a European agreements with Luxembourg and Germany conference on safety and the coordinition for the exchange of relevant information in of the peaceful uses of nuclear energy to be the event of such an accident. arranged at an early date (---r point (iv) The Commission has recommended 2.4.19).1 that the French authoriries should make every effort to arrive at an agreement with neighbouring Member States under which 2.1.197. On 23 l.rob., Parliament they would be linked to the automatic alarm adopted two resolutions on the sinking of systems in Cattenom and would be pro- the Soviet nuclear submarine off the coast vided automatically and permanently with of the USA and the risk of radioactive con- monitoring data. tamination of the oceans (--+ point 2.4.2q.2 (v) The Commission will examine the question whether the minimum six-month delay between receipt of the basic data on I oJ C 283, 10.il.1986. nuclear discharges from a nuclear plant and , oJ c 297,24.11,.1996.

Bull. EC 10-1986 57 2. External relations

New round of multilateral Commercial policya trade negotiations lmptementing the common commercial policy Organization of proceedings C o mmercia I pol i cy i nstru me nts

2.2.1. The Trade Negotiations Commit- Easing of restrictive measures tee, which will be responsible for overseeing all the Uruguay Round negotiations, held its first -..Iirg in Geneva on 27 October. 1 2.2.3. Under the Council Regulation of 14 Its discussioni were limited to general November 1983,s the Commission decided organizational questions (e.9. appointment to open quotas for the following: chairmen, surveillance, standstill and of- unwrought aluminium;6 rollback procedures and agenda matters). Italy - Poland: The Committee will be chaired bY Mr Italy Soviet Union: unwrought alu- Foreign Enrique Iglesias, the Uruguayan minium,- not alloyed, waste;6 Miniiter, when it meets at ministerial level, and bv the Director-General of GATT, Mr Italy Czechoslovakia: vehicles for the Arthur Dunkel, at official level. transport- of persons, parts and accessories therebf; synihetic organic dyestuffs; N- Goods cyclohexylbenzothiazole-2-sulphenamide; The Group on Negotiations on / (GNG) and the Group on Negotiations on polyvinyl chloride; Services (GNS) also held their first meetings polypropylene;8 on 27 October. Informal consultations will Italy - Bulgaria: continue, in particular to establish the struc- Italy Soviet Union: trinitrotoluene;8 ture of the n-gotiations (specific negotiating - groups to be set up) and designate the Italy Czechoslovakia: synthetic rubber Ipprbpriate mechaniim for surveillance of latex; -pre-vulcanized synthetic rubber latex-; commltments with regard to measures to synthelic rubber; factiie derived from oils. 8 counter protectionism (standstill and rollback). The GNG is chaired by Mr Dunkel and the GNS by the Colombian ambassa- Trade protection dor, Mr Jaramillo. 2.2.4. The trade protection measures taken in October are shown in Table 4.

Renewal of Multifibre Arrangement I Bull. EC 9-1986, poinr 1.4.1 et seq. 2 293, 19.11.1986' coM(85) 575 final. 3 oJ c a Bull. Ec7/8-1986, point 2.2.1. 2.2.2. On 21 October the Commission For iron and steel products, see points 2.1.29 ro 2.1.32. 5 oJ I- 346,8.12.1983. a 2 sent the Council a proposal for Decision 6 oJ c r1, 8.10.1986. concerning the conclusion of the Protocol 7 oJ c 251, 18.10.1986. renewing the MFA. r 8 oJ c 274,30.10.1986.

58 Bull. EC 10-1986 Commercial policy

Table 4 - Trade protection Tneasures

Commission

Anti-dumping proceedings Anti-dumping proceedings Repeal of the Regulation accepting the Prouisional anti-dumping duty on imports of: undertakings given respectively by Standardized multiphase electric motors having an output of exporters in Bulgaria, Czechoslovakia, more than 0.75 kW but not more than 75 kV/ originating in German Democratic Republic, the Bulgaria, Czechoslovakia, the German Democraric Republic, Poland or Romania in connection with Hungary, Poland, Romania or the USSR the anti-dumping procedure concerning imports of standardized multiphase elec- oJ L 280, 1.10.1985 tric motors having an output of more (initiation of proceeding: OJ C 305,26.12.1985) than 0.75 kW but no more than 75 kW Notice of initiation of an anti-durrrping proceeding concerning originating in these countries imports of: oJ L 280, 1.10.1985 Urea originating in Czechoslovakia, the German Democratic (acceptance of undertakings: OJ L 220, Republic, Kuwait, Libya, Saudi Arabia, the USSR, Trinidad 29.7.19821 and Tobago or Yugoslavia oJ c 254, 11.10.1985 Acceptance of undertahings giuen in connection with the proceeding, and termination of tbe inuestigation, regarding imports of: Silicon carbide originating in the People's Republic of China, Norway, Poland, Czechoslovakia, the USSR or Yugoslavia oJ L 287, 10.10.1985 (initiation of proceeding: OJ C 202,1.8.1984) Termination of anti-dumping proceeding concerning imports of: Portland cement into the former Community of Ten from Spain oJ L282,3.10.1986 (initiation of proceeding: OJ C 84,2.4.1985) Expiry of anti-dumping measures concerning imports of: Mechanical alarm clocks originating in the German Demo- cratic Republic Phenol originating in the United Srates of America oJ c 255, 21.10.1986.

2.2.5. On 15 October the Commission laid ties and specify the Commission's internal down guidelines 1 regarding the application procedure. of Article 16 of the Council Regulation of 23 July 1984 on the reimbursement of anti- 2.2.6. On 6 October Parliament adopted dumping duties. 2 The purpose of the guide- a resolution on anti-dumping and anti-sub- lines, which apply mutatis mutandis to sidy measures and assoc-iated foreign trade Article 16 of the Commission Decision of issues (--+ point 2.4.19).r 27 JuJy 1984 on protection against dumped or subsidized imports from countries nor t oJ c 256,22.10.7986. members of the European Coal and Steel 2 oJ L 2ot,3o.z.t9g4. Comgrunity,2 is to inform interested par- 3 oJ c 283, 10.11.198d.

Bull. EC 10-1986 59 Relations with industrialized countries

Import and export arrangements The agreement contains the following provisions, which incorporate a number of sig- 2.2.7. On 27 October the Council nificant trade liberalization measures: adopted,l on a proposal from the Com- (i) official recognition by the United States misiion,2 a Regulation suspending imports of the Community's current and renewed of gold coins from South Africa. agreements with the Mediterranean countries (+ point 2.2.78): the United States 2.2.8. Parliament adopted a resolution on authorities have agreed not to challenge (--+ counter-trade on 20 October point them as inconsistent with Article XXIV of 2.4.24).3 the GATT; (ii) elimination by the United States of the Export credits increase in duty imposed on pasta from the Community rince i November 1985,7 and 2.2.9. On 13 October the Council elimination by the Community of the extended until 15 April 1987 the validity of increase in duty on lemons and walnuts its Decision of 4 April 1.978 on the appli- from the United States applied since 4 cation of certain guidelines in the field of November 1985: these measures took effect officially supported export credits. a The on both sides on 21 August; new Decision also provides for the incor- (iii) reciprocal concessions by the Com- poration into Community law of the con- munity and the United States concerning solidated text of the OECD Arrangement sweet oranges, minneolas, lemons, grape- on export credits, including both the totality fruit, almonds, groundnuts and orange juice of the amendments agreed by the parties from the United States and imports of since the entry into force of the Arrange- anchovies, cheeses, satsuma oranges, olives, ment of 4 April 7978s and the texts of the capers, cider, paprika and olive oil from the sector undeistandings (export credits for Community: these concessions are to be ships, nuclear power plants and civil air- bound by both sides in GATT; craft). (iv) agreement by the United States and the Community to continue efforts to find a solution to the dispute over pasta refunds.

Relations with industrialized Dispute ouer the effects countries of enlargement 2.2.11. The Council heard a report from United States the Commission on the state of negotiations with the United States under Article Dispute ouer citrus fruit and pasta XXIV(5) of the GATT following the accession ofspain and Portugal.8 It expres- 2.2.10. On 27 October the Council sed its full support for the way the Com- approved the ad referendum agreement on mission was conducting the negotiations. It citius fruit and pasta reached with the United States in August.0 This put an end I has long cast a shadow oJ L 305,31.10.1986. to a conflict that z Bull. EC9-1986, point 2.2.5. over Community/United States relations. 3 oJ c 292,24.11.1986. Following the Council's decision, detailed a Bull. EC 9-1986, point 2.2.7. 5 implementing measures will now be 6 Bull. EC 4-1978, point 2.2.45. adopted by both parties. The Commission Bull. EC7/8-1986, point 2.2.7. 7 Bull. EC 10-1985, point 2.3.11. will monitor the agreement and, where 8 The Council approved a provisional solution to this necessary, act to safeguard the interests of dispute, valid untrl 31 December 1986, in July: see Bull. Community producers and exporters. EC 7 / 8-1986, point 2.2.8.

60 Bull. EC 10-1986 Relations with industrialized countries reiterated its firm commitment to reach a move with the greatest possible speed to negotiated solution with the United Stares remove these provisional dutiCs and by the end of the year and agreed to rerurn strongly endorsed the action already taken to this matter at its November meeting. by the Community.

US-Japan agreeffient on semiconductors Japan 2.2.14. On 21 2.2.12. October the Commission The Community made a formal sent to the authorities a memor- request the United Japanese to States and Japanese andum reviewing the progress made in Governments consultations under for opening the marker as regards Article Japanese XXII(I) of the GATT. It is particu- standards and certificarion procedures. It larly concerned about the effects the that asked the GovernmCnt to speed up bilateral agreement between United Japanese the implementation of the action programme in States and semiconductors -moie Japan on will this area and carry out a radical have on its imports and exports.l This review of standards and certification pro- agreement contains clauses concerning cedures for certain products. access to the Japanese semiconductors market and control measures covering the mar- At its 27 October meeting the Council kets of other countries. focused its attention on the -problem of the discrimination affecting of The Community imports has also asked the United alcoholic beverages into Japan.3 It States and Japanese governments for con- approved the Commission's iniention of sultations under Article 15 of the GATT immediately initiating proceedings under anti-dumping code since it believes that the Article XXIII(2) of the GATT with a view US-Japan semiconductors agreemenr is to securing rapid removal of discriminatory incompatible with some provisions of the barriers to imports, using the most code. expeditious procedures available. It It is expected that these consultations will requested the Commission ro make pro- be held in November. posals for further action if no satisfactory response was forthcoming from the Government within Canada Japanese 30 days of the GATT Council's decision confiiming 2.2.13. At the Council's foreign affairs discrimination. meeting on 27 October Mr Villy De Clercq, It also asked the Commission ro exercise Member of the Commission with special particular vigilance with regard ro the con- responsibility for external relations and ditions under which Japanese products were trade policy, expressed the Commission's exported to the Community ind, if necess- concern at the growing number of trade ary, to take appropriate measures consistent disputes between the Community and Can- with the Community's international com- ada, particularly Canada's recent impo- mltments. sition of provisional countervailing duiies on the Community's pasta exports.2 The Council noted the Commission's intention of examining what additional measures The Council noted with regret the number might be taken to achieve the Community's of disputes with Canada and urged the Commission to make every effort to settle the points under dispute through bilateral I Bull. EC 7/8-1986, point 2.2.10. contacts or, where appropriate, in GATT. 2 In July the Canadian authorities also decided to apply a The Council deplored the imposition of definitive countervailing duty on beef and veal imported from the Community: see Bull. EC 7/8-1986, point uniustified coutervailing duties on pasta. It 2.2.11. called on the Canadian Government to Bull. EC 9-1986, point 2.2.14.

Bull. EC 10-1986 6t Relations with other countries and regions objectives and setting up moves to open up Throughout his stay, Mr Delors explained Com- the Japanese market in other sectors. the iniernal developments in the munity and emphasized the qualitative in I importance of European integration European Free Trade Association relition to the more restricted possibilities of cooperation. 2.2.15. In his capacity as Chairman of the EFTA Council foi the'second half of 1986, the Norwegian Minister for Trade and Sweden Shipping, Mr Kurt Mosbakk, met Mr Villy 2.2.17. The Swedish Minister of Industry, De Cler-q on 24 October to discuss the state Mr Thage Peterson, visited the Commission of Community-EFTA cooperation. on 13 October. He had talks with Mr Mr De Clercq and Mr Mosbakk found that Narjes, Commission Vice-President with considerable progress was being made in special responsibility for industrial affairs, many areas specified in the Luxembourg on present and future cooperation on Declaration oi April 19842 and confirmed research and development. by the Council on 15 September.3 They discussed pragmatic ways in which EFTA could take parallel action as the Relations with other countries Community compleied its internal market and regions between now and-1992. EFTA is determined to cooperate as much as possible to prevent a widening of the gap between the Com- Mediterranean countries 4 munity and its European neighbours. The talks ended with a review of world Mediterranean policy economic problems. of the enlarged Community

Mr Mosbakk also met Mr Clinton Davis, Additional directiues on trade aspects Member of the Commission with special discuss responsibility for transport, to _ 2.2.18. At a meeting of Research Ministers furiher cooperation on shipping policy. on 21 October the Council approved the additions covering trade aspects to directives- which it gave the Commission- Norway the on 25 November 1985 for the negotiations account the Community's 2.2.L5. During an official visit to Oslo by to take of enlargement.5 As result of difficulties the President of the Commission from 17 to a encountered with the Mediterranean non- October, representatives of government 19 Commission had and parliament and of industry and the member countries, the asked in March for changes in these direc- trade unions expressed their resolve to step up cooperation with the Community. Nor- tives. way's economy is closely linked to that of At a foreign affairs meeting on 27 October the Community, and it cannot afford to the Council stressed the political import- ignore the Community's fresh moves to ance it attached to the agreement reached bling about greater integration by 1992.

The Norwegian authorities were concerned I For financial and technical cooperation with the EFTA that these moves could further widen the countries, see point 2.1.35. gap between the Community and its Euro- 2. Bull. EC 4-1984, point 1.2.1 et seq. J Bull. EC 9-1986, poinr 2.2.17. pean neighbours and expressed determi- 4 For financial and technical cooperation with the Medi- nation to cooperate more closely to prevent tcrranean countrics, see point 2.2.49. this happening. 5 Bull. EC 11-1985, point 2.3.16.

62 Bull. EC 10-1985 Relations with other countries and regions on 21 October and expressed its confidence quences of enlargement 2 and also the tran- that these additional directives would sition to the second stage of the Association enable the Commission to bring the nego- Agreement.3 tiations with the Mediterranean partner These directives form part the package countries to a speedy conclusion. of - of additional directives adopted by the These negotiations on adjustments to the Council for negotiations with the Mediter- trade arrangements are to be followed by ranean non-member countries (+ point negotiations on cooperation and the 2.2.18). renewal of the financial protocols, the Com- mission having sent the Council a communi- Yugoslavia cation on 3 June setting out its policy on financial and technical cooperation with the 2.2.21. On 2l October the Council southern and eastern Mediterranean adopted supplementary directives I for the countries. negotiation of an additional protocol to the EEC-Yugoslavia Cooperation Agreementa 2.2.19. symposium A on industrial and that would establish new trade arrange- technological cooperation under the Com- ments, the financial and commercial pro- munity's Mediterranean policy took place visions of the Agreement having expired on in Marseilles from 29 to 3l October. 30 June 1985. The symposium formed part of the Com- These directives too form part of the set of munity's new approach to cooperation with additional directives adopted by the Mediterranean countries and was aimed at Council for negotiations with Mediter- promoting thinking on both sides regarding ranean non-member countries (--+ point the industrial cooperation envisaged by the 2.2.18). Community and its Mediterranean parr- ners. 2.2.22. The working group on EEC- It was organized by the Yugoslavia cooperation held its second Marseilles Chamber s of Commerce and Industry and the Com- meeting in Belgrade on 22 October. mission, with the collaboration of the cham- In line with the mandate received from the bers of commerce and industry of Barce- Cooperation Council on 22 July,6 the lona, Genoa and Piraeus. More than two working group agreed on a programme and hundred people took part, including rep- timetable of activities for 1986-87. The pro- resentatives from Algeria, Cyprus, Egypt, gramme is set out in an attached memor- Jordan, Lebanon, Malta, Morocco, Tuniiia andum. and Turkey. At the end of the symposium Mr Cheysson, Asia Member of the Commission with special responsibility for Mediterranean policy, Iooked ahead to increasingly harmonious Association of South-East Asian Nations development of the region and the priorities which should guide future indusirial and 2.2.23. The sixth meeting of Community technological and Asean Foreign Ministers took place in cooperation in the Mediter- T ranean. Jakarta on 20 and 21 October. The Com-

Cyprus I Bull. EC 6-1986, poinr 2.2.23, 2 r Bull. EC 7/8-1985, point 2.3.23. 2.2.20. On 2l October the Council 1 Bull. EC 12-1985, point 2.3.24. adopted additional directives for the nego- oJ L 41, 14.2.1983. 5 First meeting: Bull. EC 10-1985, point 2.3.18. tiation of a protocol covering trade arrange- 6 Bull. EC7/8-1986, point 2.2.20. ments aimed at attenuating the conse- 7 Fifth meering: Bull. EC 11-1984, pint2.2.28.

Bull. EC 10-1986 63 Relations with other countries and regions munity delegation was led by Sir Geoffrey tive protection of intellectual property Howe, President of the Council, while the rights in Thailand. Commission was represented by the Mem- special responsibility for North- ber with ^Claude Laos South relatiorrs, Mr Cheysson. The meeting was chaired by the Foreign Minis- 2.2.25. Mr Cheysson became the first ter of Singapore, Mr S. Dhanabalan, in his Member of the Commission to pay an capacity as President of the Asean Standing official visit to Laos, from 23 to 25 October. Committee, and by the Indonesian Foreign His talks with the Minister of Foreign Minister, Mr Mochtar Kusumaatmadja, in Affairs and the Chairman of the State Plan- his capacity as representative of the Asean ning Committee centred on the future direc- count;y in' charge of the coordination of tion of the development aid programme for relations with the Community. Laos. It was agreed that in order to help Laos with its exports to the Community, On the international economic issues dis- the country's authorities would be supplied cussed, it emerged that the two sides held with fuller details of the Community's GSP broadly similar views. Emphasis was placed and Stabex procedures. on the importance of getting the Uruguay Round I under way, and the parties agreed to continue cooperating closely for the dur- South Korea ation of the negotiations. 2.2.26. The first Korean trade and invest- On the bilateral front, Ministers gave a ment mission to the Community got under favourable reception to the report of the wav in Brussels on 15 October with a 'Com- EEC-Asean High-level Working Party on -uhity Day'opened by Mr Willy De Clercq Investment 2 and broadly supported the rec- and the head of the Korean delegation, Mr ommendations designed to boost European Hong Sung Jua, the Deputy Trade and investment in the Asean region. More Industry Minister. Some 40 senior represen- specifically, Ministers decided to set up tatives from Korea's leading firms and small loint inveitment committees in each of the businesses in the mechanical engineering, Asean capitals, while the Community Min- electrical, electronics and steel industries isters for their part undertook to encourage met representatives of the main European representatives of European financial insti- trade aisociations concerned. tutions, including the European Investment Bank, to step up their cooperation in an Mr De Clercq took this opportunity of effort to promota a more sustained flow of handing Mr Hong Sung Jua a 'memor- European investment. andum' listing the Community's main requests on issues of bilateral interest. Thailand Latin America 3 2.2.24. Mr Cheysson paid an official visit to Thailand from 15 to 18 October. He had talks with the Prime Minister, General Prem Guatemala Tinsulanonda, and the Ministers of Foreign The President of Guatemala, Mr Affairs, Finance and Agriculture. Both sides 2.2.27. Cerezo Ar6valo, visited the Com- welcomed the expansion of their bilateral Vinicio mission on October. Mr Cerezo was trade and were agreed that for the future a 9 accompanied by his Minister of Foreign strengthening and diversification of economic- and industrial cooperation between European and Thai firms ought to provide I Bull. EC 9-1985, point 1,4.1 et seq. a stimulus for sustained growth in trade in 2 Bull. EC 3-1986, point 2.2.21. goods and services. In this connection Mr J For financial and technical cooperation with Latin eheysson stressed the importance of effec- America, see point 2.2.50.

@ Bull. EC 10-1986 Development

Affairs, Mr Quifr6nez, the Secretary of State (iii) differentiation: each country to be for Planning, Mr Marroquin, the President treated in accordance with its own situation of the Bank of Guatemala, Mr Linares, and and individual characteristics. a number of other officials. The Council confirmed its support for these President Cerezo had talks with Mr Cheys- principles and the importance it attached to son, Mr De Clercq and Mr Marin, in the progress in the development of trade and course of which he explained his main economic links between the Community objectives on the domestic front (search for and the countries concerned. national consensus taking in the army and the private sector, and economic stabiliza- Hungary tion to be followed by expansion) and his regional and international policy aims 2.2.29. On 29 October the Commission (observance of the principle of active neu- approved a recommendation ro the Council trality based on democratic pluralism, stab- concerning negotiating directives for an ility throughout the whole of Central Amer- agreement between the Community and ica, establishemnt of a Central American Hungary. parliament and cooperation with Europe as an important adjunct to intra-American cooperation). 2.2.30. On 6 Octob Mr and Marin Mr Cheysson fully endorsed a resorution on the,.**r*r*=t3*Ji:l these political objectives, emphasizing the Foundation for East Euiopean Studies connection between stability in individual (-+ point 2.4.1il.r countries and in the region as a whole. A working session at technical level with Mr Marroquin and his officials provided an Development opportunity to take stock of cooperarion activities and look ahead at prospects for their intensification. Priority was given in North-South relations these discussions to financial and technical assistance, food aid, trade promotion and cooperation with NGOs. C ooperati o n i n i nternati o na I for ums

United Nations Industrial Development State-trad i ng cou ntries Organization

Council for Mutual Economic Assistance 2.2.31. The second meeting2 of the Indus- trial Development Board, the governing 2.2.28. On 27 October Mr De Clercq body of Unido, was held in Vienna from 13 reported to the Council on the state of to 23 October and was chaired by HE Mr the Community's relations with each of the Mokhtar Zannad, the Tunisian Eastern bloc countries and with the CMEA. Ambassador. He drew attention to the three guiding principles of Community policy: The meeting was dominated by Unido's financial crisis. The Executive Director pre- (i) normalization: establishment the of sented a plan for cuts in expenditure on contacts and ties with these countries simi- both administration and technical assist- lar to those the Community maintains with ance, and this was accepted by the Board. countries elsewhere; (ii) parallelism: parallel development of relations with individual CMEA members t oJ c 283, 10.11.1986. and the CMEA itself; 2 Bull. EC 11-1985, point 2.3.48.

Bull. EC 10-1985 65 Development

Other decisions taken included one on the a greater and more stable flow of private study of new concepts and approaches for capital to the ACP countries. Unido's future activities. The second conference for the pledging of Lom6III programming voluntary contributions to Unido's Indus- trial Development Fund was held at the 2.2.34. The Community aid programming same time. Contributions so far for 7987 exercise, through which the Community total USD 12.7 million. commits itself to provide specified amounts of financial assistance for specific sectors in 2.2.32. The Community participated in each of the ACP States, has almost been the Third Unido Consultation of the Agri- completed.3 Machinery Industry, which took cultural By the end of October 52 programming place in Belgrade from 29 September to 3 -October. missions to establish the indicative pro- Thi meeting, which was attended gramme of Community aid by agreement by representatives from 50 countries, noted with each ACP State had taken place. the ierious crisis affecting the industry worldwide: on the one hand there was productive overcapacity in developed countries, while on the other the lack of Commodities and world financial resources in developing countries agreements inhibited expansion in demand. A number of recommendations to alleviate the prob- Rubber lems were drawn up. 2.2.35. From 5 to 18 October in Geneva the Community and its Member States took ACP-EEC Convention part in the third session of the United Nations conference 4 convened to renego- tiate the 7979lnternational Natural Rubber Implementation of Lom6 III Agreement, s which expires on 22 October 2.2.33. One of the most innovatory next year. 1 aspects of the third Lom6 Convention con- The Community and its Member States ceins the provisions on investment, which reiterated their desire to see an economically are to be found in Part Three, Title IV, and financially effective and viable agree- Chapter 1 of the Convention. These pro- ment concluded. visions recognize the importance of private investment for the development of the ACP Considerable progress was made in the countries and stress the need to take steps negotiations on the administrative and to promote and protect such investment. financial provisions, in particular concerning the volume and transfer of stocks, limi- At the meeting of the ACP-EEC Committee tation of the Council's powers and of mem- of Ambassadors on 7 June 1985 it had been bers' financial responsibility and day-to-day decided to set up a joint working party to management procedures for the Organiza- implement and monitor these proviiions.2 tion and the Agreement. The working party held its first meeting in Brussels on 17 September. It adopted its rules of procedure and examined the terms t Bull. EC 11-1984, point 1.1.2 of reference for two studies to be under- 2 Bull. EC 6-1985, point 2.3.57. taken on investment, one on the scope of 3 Bull. EC 3-1985, point 2.2.31; Bull. EC 4-198o, point 2.2.32. and procedures for a ioint ACP-EEC invest- 4 Bull. EC 5-1985, point 2.2.44; Bull. EC 5-1986, point meni insurance and guarantee system and 2.2.43. the other on measures designed to facilitate 5 Thirteenth General Report, point 513.

6 Bull. EC 10-1985 Development

However, the conference was unable to nar- proposal for a Council Regulation on food row the gap sufficiently between the pos- aid policy and food aid management.3 Ir itions of two crucial elements of the Agree- pointed out that food aid is of two basic ment, namely the currency to. be used for types: emergency aid and long-term aid. It pricing purposes and essential improve- believed that the starting point of Com- ments in the price adjustment procedures. munity policy should be the development of The president consequently proposed that local and regional solutions to food supply the conference be adjourned. The resolution problems in developing countries and pio- to that effect adopted in plenary session posed, therefore, that its ultimate objeCtive gave no indication of when talks might should be a progressive reduction in food resume. aid to a position where its use is limited to meeting emergency needs and providing Tin nutritional support to target groups, including children and the poorest sections of 2.2.36. On 6 October the Commission the population in food deficit counrries. It asked Governments Member the of the stressed the need for the foodstuffs made States for a mandate to represent the Com- available to the developing counrries to munity at an Unctad preparatory meeting match the dietary needs and habits of the which is to be held setring with a view to recipients. It stressed once again the need up an international study group on tin. to introduce a range of procedures and The study group would serve as a forum mechanisms which will enable the Com- where producers and consumers could munity to react swiftly and efficiently to exchange information and views on market emergencies, and called in particular for the trends and would operate like the existing Community to help with the serring-up of study groups on lead, zinc, rubber and cot- effective nutritional and crop survey early ton and the one about to be set up for warning systems and food reserves to deal nickel. with food crises in 'ar-risk' developing countries. It Following the failure of the International considered that NGOs can play a very useful part in implementing emer- Tin Agreement, which came into force on gency operations, stressed that the transport 1 July 1982,1 the Community does nor fav- of food aid is a key element in the Cbm- our an extension or renegotiation of the munity's policy, and rook the view that the existing Agreement when it expires on 30 present procedure is inadequate. 1987, nor an extension or renego- It called June on the Commission to set up tiation of th.e Agreement shorn of its econ- a food aid omlc provlslons. administration unit with sole responsibility for all Community food aid operitions and However, the Community is prepared to coordination with the Member States. consider a framework for cooperation pro- Lastly, it believed that the implementation vided that it excludes markef intervention of the new Regulation would allow the and that the main producer and consumer Community, by setting up alternative oper- countries are prepared to participate. ations in place of food aid, triangular operations and multiannual programmes Iinked Campaign against hunger to development policies, to play an effective in the world part in making structural improvements in the food situation in rhi developing countries. Food aid

Reform of food aid policy and management I OJ L 342, 3.12.1982; Sixteenth General Report, poinr 745. 2.2.37. On 24 October Parliament z 2 ol c2e7,24.11.1986. adopted an opinion on the Commission's J OJ C 265, 21.7O.1986; Bull. EC 7/8-1986, point 2.2.34.

Bull. EC 10-1986 Development

2.2.38. On 27 October, with the endorse- mission decided on the following food aid ment of the Food Aid Committee, the Com- operations:

Table 5 - Food aid operations tonnes

Mrlk Mrlk powder powdcr Vcgctablc Ce rcals Butterorl Sugar Other without added with addcd orl vitamins vitamins

Guinea-Bissau 5 000 300 100 Honduras 500 300 Lesotho 9 000 Kenya 11 000 Sudan 20 000 500 2N 500

Sao Tome and Principe r250 100 NGOs 20 000 4 000 1M21 Licross 370 40 Mozambique 40 000 1 000 2000 (beans)

Total t07 250 I 400 4 570 340 1 500

I Tonnes cercal equivalent.

2.2.39. The Commission decided to grant Emergency aid the following emergency food aid: 2768 tonnes of cereals 137 tonnes of vegetable oil for Sahraoui^nd refugees in Algeria; El Salvador 647 tonnes of vegetable oil for Afghan refugees in Pakistan, through the WFP/IEFR; 2.2.41. Following the earthquake which 1 370 tonnes of cereals for Palestinian refu- devastated the city of San Salvador on 10 gees in Lebanon, through UNRWA; 1 500 October leaving 260 dead, 140 missing, ionnes of cereals for victims of Typhon 1 300 inlured and several thousand home- Wayne in Viet Nam, to be distributed by less, the Commission decided on 12 October an NGO. to grant 250 000 ECU in emergency aid to the victims. This money was used to finance with the United Kingdom 2.2.40. On 23 October Parliament a ioint operation Government to charter a Boeing 707, which adopted a resolution on the need for a world London on 13 October with a cargo of food conference and three on the granting left of emergency food aid to Mozambique and the famine in that country (+ point 2.4.24).1 t oJ c 297,24.11.1986.

68 Bull. EC 10-1986 Development tents and medicines. A British Red Cross million ECU to the Solomon Islands in team flew with the supplies to supervise respect of copra and palm products and 2 their distribution. million ECU to Western Samoa in respect of copra oil. 2.2.42. On 20 October the Commission decided to grant a further 500 000 ECU in emergency aid to the victims of the initial earthquake and of subsequent tremors. This Mining cooperation aid will be distributed by humanitarian organizations (M6decins du Monde, League of Red Cross Societies, Trocaire) and will ACP States provide temporary shelters, basic essentials and food supplies and also a water supply to the working-class districts. Sysmin

2.2.43. October Parliament On 23 2.2.47. After endorsement the EDF adopted three resolutions on the granting by Committee, on 3 October the Commission of aid to the victims of the El Salvador declared admissible the Liberian application earthquake (-+ point 2.4.24).r for Sysmin aid following disturbances in the iron ore (pellets) sector, which accounts for Viet Nam some 15% of the country's exports. 2.2.44. In the wake of the terrible conse- In 1985 Liberia was the Community's quences of Typhoon !flayne, which devas- fourth-largest supplier of iron ore, supply- tated Viet Nam in September leaving 400 ing70.2o/o of the Community's imports, and dead, 2 500 inlured, 34 missing, half a the Community was the main market for million homes destroyed or damaged and Liberia iron ore, taking 76% of exports. tens of thousands of hectares of rice fields ruined, the Commission decided on 24 The Sysmin aid, which will shortly be deter- October to grant 435 000 ECU in emergency mined by the Commission in accordance aid to the victims. with Article 54 of the second Lom6 Conven- tion, should help to set up a rehabilitation The aid will be used to fund a programme programme to save what is an important to supply clothing, material for making sector of the Liberian economy. clothes, mosquito nets, blankets, etc. to be implemented by a number of NGOs (Tro- caire, Oxfam Belgium, Secours Populaire Frangais and Caritas Germanica) in close Financia! and technical coordination with the Commission. cooperation

2.2.45. On 9 October Parliament adopted a resolution on the consequences of ACP States Typhoon Wayne, calling on the Com- mission to grant emergency aid (--+ point 2.4.79).2 2.2.48. In October the Commission allocated fifth and sixth EDF resources totalling 30 550 000 ECU to finance projects, pro- Stabex grammes and emergency aid which it administers (see Table 5). Advances

2.2.46. On 20 October the Commission t oJ c 297,24.11.1986. decided to make advance payments of 8 2 oJ c 283, 10.11.1986.

Bull. EC 10-1986 69 Development

Table 6 - Financing of fifth and sixth EDF operations mlhon ECU

Proicct G rants Loans

Economic infrastructure Northern corridor States (Rwanda and Uganda) Road improvements 21.35 3.5

Trade promotion Zimbabwe Export development programme 4.40

Emergency aid Niger Action against the plague of locusts 0.15 African ACP States Locust control 0.55 Ethiopia For drought victims 0.50

Total 27.05 3.5

Southirn and eastern Mediterranean the operation of local Palestinian insti- countries tutions.

2.2.49. On 7 October the Commission As regards trade, the Community is to products these decided to finance proiects as follows with extend to from territories funds provided under the Cooperation preferential arrangements similar to those granted products from certain Mediter- Agreements with Egypt and Syria: for ranean non-member countries, i.e. duty-free (i) Egypt: 1970 000 ECU grant to a train- access to the Community market for indus- ing institute for Egyptian labour representa- trial products and preferential treatment for tives ('Workers' University'); certain agricultural products. (ii) Syria: 3 800 000 ECU (1 800 000 ECU grant and 2 000 000 ECU special loan) for a water supply proiect in the Deir ez Zor Latin American and Asian reglon. developing countries

Financing decisions Measures to help the Palestinian population 2.2.50. With the endorsement of the Com- in the occupied territories mittee on Aid to Non-associated Develop- ing Countries, October the Com- 2.2.49a. Council on 7 On 27 October the mission decided to finance the following adopted,l on a proposal from the Com- from the appropriation under Article 930 measures to help the Palestinians mission,2 of the Community budget: Haiti: interim living on the West Bank of the and Jordan emergency programme covering urban sani- involve in the Gaza Strip. These measures tation, agricultural development, rural financial assistance and trade arrangements. engineering and education (autonomous The financial assistance, which totals some 3 million ECU, is intended primarily for small lob-creating projects, training and I oJ L 306, 1.11.1986. further training projects and for improving 2 Bull. EC 9-1986, point 2.2.38.

70 Bull. EC 10-1986 Development project-total cost 4.1 million ECU, Com- Cooperation via munity contribution 4.1 million ECU). non-governmental organizations

2.2.53. Between 1 January and 31 October Aid guidelines for 1987 the Commission committed a total of 34.1 million ECU for the cofinancing in develop- 2.2.5L. On 31 October the Commission ing countries of 244 projects presented by sent the Council a proposal for a Decision 110 NGOs. determining the general guidelines for 7987 The Commission also contributed a total concerning financial and technical aid to of 3 693 310 ECU to 58 public awareness Latin American and Asian developing campaigns in Europe. countries (non-associated developing countries). I

Visits Regional cooperation 2 2.2.54. The President of the People's Republic of Benin, Mr Mathieu Kerekou, International assistance visited the Commission on 6 October. He for the development had talks with Mr Delors and with Mr of the Beira Corridor Natali, Commission Vice-President with special responsibility for cooperation and 2.2.52. An international donors' confer- development. The two sides agreed on the ence, hosted by the Commission and organ- aim of committing 55 million ECU, or 80% ized by the Mozambique Beira Corridor of the funds reserved for Benin under its Authority, was held in Brussels on 23 and Lom6 III indicative programme and man- 24 October. aged by the Commission, by July 1987. This would represent a substantial improvement The Beira Corridor is the route through over the previous commitment rate. central Mozambique linking Zimbabwe, Malawi, Zambia and other landlocked During the talks a financing agreement for countries with the Indian Ocean without six million ECU was signed for the con- passing through South Africa. struction of bridges on the Parkou-Djoug- ou-Porga section of the north-south road The purpose of the conference was to serving the north of Benin, strengthening review the programme's financing situation. the link with Burkina Faso. About 90o/o of the almost USD 200 million package has now been secured. The Commission expressed its readiness to take part in a meeting of aid donors with The conference was opened by Mr Dieter a view to agreeing its contribution to the Frisch, Director-General for Development rehabilitation of Benin's road network. at the Commission, and addressed by Mr Herbert Ushewokun ze, Zimbabwe's Minis- 2.2.55. Mr Natali paid an official visit to ter of Transport. It was attended by del- the People's Republic of the Congo from 21. egations from 8 member countries of the to 25 October. Southern Africa Development Coordi- He had talks with President Denis Sassou- nation Conference, 18 cooperating Ngusso and with other members of the countries and 5 intergovernmental organiz- Government. They discussed bilateral coop- ations and financing institutions.

the conference a was paid During tribute to t COM(86) 568 final. Samora Mois6s Machel, the late President 2 For cooperation with the Asean countries, scc point of the People's Republic of Mozambique. 2.2.23.

Bull. EC 10-1986 7l lnternational organizations and conferences eration and African problems in general, 2.2.13). The Committee set up a panel to Mr Sassou-Ngussi being President of the examine the Community's complaint con- Organization of African Unity. cerning the countervailing duties imposed by Canada on imports of Community 2.2.56. Mr Natali paid an official visit to meat.3 It also continued its examination Burkina Faso from 17 to 2l October. He of the signatories' national laws and their had talks with President Thomas Sankara consistency with the provisions of the Code. and co-chaired an interdepartmental meeting on the implementation of Lom6 III. Group on Quantitative Restrictions and Other Non-tariff Measures

2.2.59. The Vorking Group on Quanti- I nternational organizations tative Restrictions and Other Non-tariff and conferences Measures met on 24 October in order to adopt its report to be submitted to the Con- tracting Parties in November. The con- Genera! Agreement clusions of the Group were that the best on Tariffs and Trade prospects for achieving progress in the reduction or elimination of quantitative Committee on Government Procurement restrictions and other non-tariff measures lie in the implementation of the Ministeriala 2.2.57. The Committee on Government Declaration on the Uruguay Round. It Procurement met on 15 and 16 October to recommended that the analysis established continue its discussion of improvements to be used as an input for the forthcoming be made to the Code. I At the current stage negotiations. of examination, no decisions have yet been taken. Conference on Security and Cooperation in Europe Committee on Subsidies and Countervailing Duties 2.2.60. On 9 October Parliament adopted a resolution on the forthcoming meeting of 2.2.58. At its regular meeting on 27 and the CSCE (--+ point 2.4.1\.s 28 October the Committee on Subsidies and Countervailing Duties continued its discussion of the reports by the panels which had examined the disputes between the 2.2.61. The second *..r,n* of the Indus- United States and the Community concern- trial Development Board, Unido's principal ing wheat flour, pasta products 2'and wine. organ, was held in Vienna from 13 to 23 On account of the divergent views reflected, October (---+ point 2.2.31). the Committee was not able to adopt the reports. I The Community initiated a conciliation Bull. EC 6-1985, point 2.2.58. 2 Bull. EC7t8-t986,point 2.2.7. procedure by in respect of the imposition 3 Bull. EC7/8-1986, point 2.2.11. Canada of countervailing duties on imports a Bull. EC 9-1986, point 1.4.1 et seq. of pasta products from Italy (--+ point 5 oJ c 283, 10.11.1985.

72 Bull. EC l0-1985 3. Financing Community activities

Budgets (iii) a number of private placings in ECU, US dollars, sterling and French francs for the equivalent of 74.18 million ECU. General budget Loans paid out The Community's budget 2.3.5. Acting under Articles 54 and 56 of and financial situation the ECSC Treaty, the Commission paid out October total 136.61, 2.3.1. On 13 October the Council dis- loans in for a of million ECU, broken down as follows: cussed the state of Community spending on agriculture and ways of bringing this expenditure under stricter control, notably lndustrial loans by preventing production surpluses and 2.3.5. Industrial loans (Article 54) total- stocks from accumulating. ling 130.72 million ECU were made to: The conclusions concerning the line to be (i) Italy for the steel sector and the use of taken to tighten up the control of agricul- Community steel; tural expenditure (-r point 2.1.132) were the Federal Republic of Germany for published under the responsibility of the (ii) collieries. Presidency, certain Member States having entered reservations. Conuersion loans 2.3.2. On 23 October Parliament passed a A conversion loan (Article 55) total- resolution on the future financing of the 2.3.7. 1.39 was paid out to Bar- Community (+ point 2.4.24\.r ling million ECU clays Bank Ltd as a supraregional loan for small and medium-sized firms in the United 1986 budget Kingdom.

P reliminary draft amending Workers' bousing budget No 1/L986 2.3.8. Loans totalling 4.50 million ECU 2.3.3. On 24 October Parliament passed a were made in the Federal Republic of Ger- resolution on prel_iminary draft amending many, Ireland and Italy to build housing budget No 1/19852 (-+ point 2.4.24). for coal and steel workers.

Euratom Financial operations 2.3.9. The Commission made a private placing in US dollars for the equivalent of ECSC 78.34 million ECU.

Loans raised EEC

2.3.4. In October the Commission made: 2.3.10. The Commission made: (i) a USD 75 million three-year public (i) a USD 100 million five-year public issue issue at 7oh with an issue price of l0l%; atTo/o with an issue price of 100%o/.; (ii) a USD 108 million ten-year public issue at 8t/4% with an issue price of I oJ c 297,24.11.1986. tlt%o/o; 2 Bull. EC 9-1985, point 2.3.2.

Bull. EC l0-1986 73 European political cooperation

(ii) a 50 million ECU five-year public issue - agreement in respect of the services and on the Luxembourg market at 73hoh with infrastructures required for the smooth an issue price of 100%%. operation of market organizations in agriculture and fisheries, the improvement of production structures, the provision of the necessary means to develop research and Completion of pre-accession aid the improvement of production in the food to Portugal sector. 2.3.11. On 2 October the Commission and Of the 50 million ECU provided for in the the Portuguese Government signed 18 finan- agreement 38 million ECU has now been cing agreements for a total of. 14.9 million granted. ECU under the agreement of 7 November t984r on specific pre-accession financial aid for improving agricultural and fisheries structuresln Portugal. 2 I oJ L 333,2t.12.1994. 2 Bull. EC 12-1985, poinr 2.2.3; Bull. EC 1-1985, point The various projects and programmes 2.3.5; Bull. EC 6-1986, point 2.3.3; Bull. EC 9-1986, financed meet the objectives of the 1984 point 2.3.15.

4. Political and institutional matters

European political cooperation 2.4.2. On 17 October the Presidency issued the following statement on South Africa: 2.4.1. On 4 October the Presidency issued the following statement on Libyan Arab 'The Twelve express their serious concern at rhe Airlines: South African Government's announcement of its intention deliberately to stop the employment of Mozambican workers in South Africa and at 'The Twelve have noted with serious concern the reports that South Africa might be contemplating clear evidence of involvement in terrorist activity military action against Mozambique. The Twelve by Libyan Arab Airlines which was revealed in the strongly urge the South African Government to trial and conviction in the UK on 25 September of show full respect for the sovereignty, independence Mr Rasmi Awad on charges of conspiracy to cause and territorial integrity of their neighbours and to an explosion. do nothing to worsen relations with those neighbours or add to suffering in southern Africa. They The 21 Twelve recall their decisions of April on the draw attention to the existence of machinery for problem of and Libyan State-supported-terrorism, consultations between South Africa and Mozam- particular. r the involvement in The decision of bique under the Nkomati Accord, which provides UK authorities suspend flights London by to to a means for resolving differences between them. Libyan Arab Airlines is fully consistent with those decisions. The Twelve deplore the decision of the South African Government to declare the UDF an Affec- The Twelve are in close touch on the security ted Organization. This retrograde step against a implications of this case. They support the initiat- leading non-violent group is contrary to the goal ives which have been taken to enhance security at airports and will be examining what further action may be necessary in accordance with international law.' r Bull. EC 4-1986, point 2.4.4.

74 Bull. EC 10-1986 Other i ntergovernmental cooperation of genuine national dialogue for which the Twelve in time for a meeting of the Political Com- have consistently called. The Twelve reiterate that mittee on 6 November in preparation for it is essential that freely chosen representatives of further discussion at ministerial level on 10 the black population should be in a position to take part in peaceful political activity if a negotiated November; solution is to be achieved in South Africa. The (v) points for further consideration then: Twelve urge the South African Government to arms sales, high-level visits, activities of withdraw without delay their decision to declare the UDF an Affected Organization.' embassies, security arrangements affecting SAA operations; 2.4.3. On 22 October the Presidency, on (ui) affirmation of importance attached by behalf of the Twelve, issued the following all Member States to maintenance of a con- statement on the PLO attack on the Wailing structive dialogue with the Arab world.' \Wall in Jerusalem: 2.4.5. Following the conclusions adopted by the Foreign Ministers meeting within the 'The Twelve deplore the grenade attack in Jerusa- lem which took place on 15 October and rhe framework of political cooperation on 15 renewed air strikes by Israeli forces against targets and 76 Seotember I and the Commission in Lebanon. They reiterate their view that attacks proposal:2' of this kind only place additional obstacles in the way of progress towards peace. They call on all (i) the Council adopted a Regulation sus- concerned to exercise restraint and work for the pending imports into the Community of peaceful negotiation of a just, lasting and compre- gold coins originating in South Africa and hensive.settlement of their differences.' laying down detailed rules for suspension (+ point 2.2.7); 2.4.4. On the periphery of the Council's Representatives the Govern- foreign affairs meeting in Luxembourg on (ii) the of ments of the Member States meeting within 27 October Ministers also discussed the providing Twelve's attitude towards the Hindawi trial the Council adopted a Decision States measures in the United Kingdom. for Member to take the necessary to guarantee suspension of new At the end of the meeting Sir Geoffrey Howe direct investment in South Africa by persons told the press that the Twelve had reaffir- or firms based in the Community and laying med their previous statements on inter- down detailed rules for suspension national terrorism. (--+ point 2.1.5). All the Member States bar one also ex- 2.4.5. At its two part-sessions in October pressed their readiness to subscribe to the Parliament adopted several resolutions on following guidelines: political cooperation and the protection of 3 human righti ( -- point 2.4.20 ind 2.4.25). '(i) share sense of outrage that the agencies of a State involved in such an appalling incident; full briefing given by UK; Other i ntergovernmental (ii) understanding and support for UK cooperation action taken and support for Community solidarity in such circumstances; lnformal meeting of (iii) agreement that those expelled from lnterior Ministers the UK in connection with Hindawi case will not be accepted as diplomats by any 2.4.7. Community Ministers responsible other partner; for immigration, counter-terrorism and Ambassadors (iv) agreement to instruct to I Bull. EC 9-1986, point 2.4.2. present to the Syrian Government the evi- 2 Bull. EC 9-1985, points 2.2.5 and 2.1.6. dence of what had taken place and to report 3 oJ c 283, 10.11.1986; oJ c 297,24.r1.1986.

Bull. EC 10-1986 75 Other intergovernmental cooperation drugs met informally in London on 20 and a Vice-President of the Commission October. The meeting was chaired by Mr meeting in London on 20 October agreed Douglas Hurd, the UK Home Secretary. that: Lord Cockfield, Vice-President of the Com- objective to proviCe for the 1. It rcnrains an agreed mission with special responsibility for free movement in the Community within the terms internal market, attended. of the Single European Act.2 On immigration Ministers reiterated their 2. Problems over terrorism, drug trafficking, commitment to the objective of abolishing other crime and illegal immigration must not be checks at internal frontiers but agreed that allowed to deflect the Community from this oblec- as a result there would have to be strict tive. external fron- controls at the Community's 3. At the same time, as the European Council tiers, a sharing of information between the meeting in Brussels in March 1985 recognized, the national government departments respon- goal of abolishing frontier formalities must remain sible for these controls and consideration compatible with the need to combat terrorism and given to the coordination of visa policies drug trafficking. r and the right of asylum. Ministers decided 4. It is therefore essential to work towards a to set up an ad hoc working group, serviced system of easing and ultimately abolising frontier by the Council's General Secretariat, to formalities for Community citizens that is not open examine these issues urgently. to abuse; this points to: Ministers also took note of the progress (a) strict controls at the Community's external made in implementing the decisions taken frontiers; 1 by the Trevi Group on 25 September to (b) coordination of visa policies; strengthen liaison between police forces and experts in counter-terrorism. (c) improved exchange of information between immigration services of Member States; Finally, they agreed to step up cooperation, in liaison with the Pompidou group, on the (d) sharing information on the steps already prevention of drug abuse, the rehabilitation taken by Member States to prevent passports being issued false pretences their abuse if stolen producer countries under or of drug addicts, aid to and improved cooperation in future; to combat the cultivation of toxic products, the strengthening of controls at external (e) consideration of the problems which arise frontiers and liaison between the depart- from those seeking asylum. ments responsible for controlling drug 5. The above considerations have implications traffic. for frontier controls operated on the basis of spot checks; there is scope for keeping under close 2.4.8. The Commission welcomed the review the operation of such systems in the lighr clear link made by Ministers between con- of the criteria laid down by heads of government. cern about public order and the Single Euro- 2 5. To set up a high-level ad hoc working group pean Act and achievement of the area of Member States composed of the closest advisers without frontiers by 1992. of Ministers in the field of immigration policy and, in so far as there is Community competence, It agreed that the abolition of internal fron- representatives of the Commission; the Council tiers must go hand in hand with stricter controls at external frontiers and that the working group's remit should be coordinated with the measures needed to achieve The Trevi Group was set up in response to the proposal adopted the Rome European Council in November the area without frontiers. at 1975 that Ministers of the Interior or Justice (dependrng on each Member Srate's constitutional arrangcments) Conclusions on immigration should meet 'to discuss mattcrs coming within their compctence, in parricular with regard to law and order': Bull. EC 11-1975, point 1104 (Other business). 2.4.9. Ministers with responsibilities for Supplcment 2/86 - Bull. EC. immigration, counter-terrorism and drugs Bull. EC 3-1985, point 1.2.7.

76 Bull. EC l0-1985 Other intergovernmental cooperation

Secretariat will assure the secretariat of the group; commended both the work done in the Pompidou the group was charged to consider urgently: Group by Council of Europe Member States in the areas of supply and demand for drugs, and the (a) improved checks at external Community high degree of cooperation in the law' enforcement frontiers; field. They asked Member States and the Com- mission to examine whether the Community and (b) the contribution which internal checks can its Member States could assist the work of the make; Pompidou Group in the following areas, whilst (c) the role of coordination and possible harmon- seeking ro avoid the duplication of work being ization of visa policies of Member States in improv- done in other forums: ing controls; (a) measures to reduce demand for drugs especially among young people; (d) the role and effectiveness of frontier controls at internal frontiers in the fight against terrorism, (b) measures to improve the treatment and drugs, crime and illegal immigration; rehabilitation services for addicts.

(e) exchange of information about the operation 4. They asked the Community and its Member of spot check systems; States to consider action to ensure that bilateral and Community aid supports, as appropriate, a (0 close cooperation ro avoid the abuse of pass- recipient country's efforts to combat drug abuse. ports; 5. They also asked the Membcr States, with the (g) measures to achieve a common policy to elim- Community where appropriate, to consider action inate thc abuse of the right of asylum in consul- in the following areas: tation with both the Council of Europe and the UN High Commission for Refugees; (a) ensuring that legislation takes account of the need to maintain effectivc control over illicit drug (h) examination of ways in which the con- trafficking, particularly at the Community's exter- venience of Community travellers can be improved nal frontiers; without adding to the terrorist threat or the risks (b) nrutual cnforcement of confiscation orders immigration, drug trafficking and other :l*f..r", relating to drug traffickers' nssets; (c) building on thc good coopcration which al- 7. The working group should produce urgently ready exists between law enforcement agencies, by a programme of work with dates for completion. posring drugs liaison officers (DLOs) within the I\{ember States, by lr{ember States posting DLOs 8. The work of the group should be coordinated to other countrics, and by supporting a u'orld-wide with the work necessary to realization of the inter- directory of contacts for drugs-related messages; to nal market. this end Ministers asked Trevi working group III to examirte thc scope for building on existing arrangements to create a coordinated network of Conclusions on drugs drug liaison officers to monitor dcvelopments in producer countries. 2.4.10. Concerning drugs the following 5. Ministers noted that cooperation on drugs was agreed: control had become an increasingly significant 1. Ministers recalled the grave concern expressed element on the international political agenda and by the European Council in The Hague about the welcomed the programme of work which had been serious problem of drug misuse. I initiated by the Member States of the Community meetinB in political cooperation. 2. Recognizing the importance of international cooperation in combating the drugs problem, they 7. Recognizing the significant contribution made commended the efforts of those countries which by individual Member States to existing UN activi- have shown determination to stamp out pro- ties and international cooperation on drugs, Minis- ducrion of, trafficking in and demand for drugs ters considered that enhanced activity would help and welcomed the forthcoming International Con- to develop a common approach by the Member ference on Drug Abuse and Illicit Trafficking. Stares to dnrgs-related assistance and activities in certain drug producing and transit countries. 3. They agreed that thc Member States, in con- juncrion with the Community, had an important role to play in the international effort to combat drug production, trafficking and misuse. They I Bull. EC 5-1986, point Ll.l6

Bull. EC l0-1986 77 European policy and relations between the institutions

8. Ministers urged that Ambassadors of the examination of petitions submitted to Par- Twelve accredited to the major drug producing liament. countries be asked to prepare joint assessments of the situation in those countries and recommendations for further action by the Twelve.' 2.4.15. - During its second October part- session J Parliament, on the basis of the Hinsch report, gave its opinion on the proposal for a Council Regulation laying down 2.4.11. On 9 October Parliament adopted the procedures for the exercise of imple- a resolution in which it welcomed the fact menting powers conferred on the Com- that the Interior Ministers had resolved to mission.4 step up the fight against terrorism by taking joint action (+ point 2.4.19). I Parliament welcomed the Commission's willingness to inform and consult it more fully on draft implementing measures which it was planning to present to committees and hoped to see a binding agreement European policy and relations between Parliament and the Commission between the institutions on this issue in the near future. Parliament also welcomed the fact that the Commission was prepared to support its European policy position, urging the Council to give pre- cedence to the 'advisory committee' procedure, especially for implementing powers Ratification of the Single European Act pursuant to the new Article 100A of the EEC Treaty (Article 18 of the Single Euro- 2.4.12. The Luxembourg Parliament rati- pean Act), and advocating that where Par- iied the Single EuropJan Act on 22 liament z did not have more extensive rights October. on the basis of the legislative procedure for cooperation laid down by Article 149 2.4.13. On 23 October Parliament (Article 7 of the Single Act), it should be able adopted a resolution urging swift ratifi- to demand the opening of the conciliation cation of the Single European Act by all the procedure with the Council if the Council Member States by 31 December 1985 and wished to provide for a committee pro- stressing the need for European Union cedure in a legal act. (-r point 2.4.2q.3 Finally, in view of the institutional significance of the proposal and its bearing on Relations between the institutions Parliament's budgetary powers, in line with the earlier procedures for adoption and 2.4.14. During its first October part-ses- amendment of the Financial Regulation Par- liament called for the opening of the concili- sion I Parliament adopted four resolutions on relations between the institutions ation procedure with the Council should its (+ point 2.4.19) one on relations between the Council intend to depart from amendments. Parliament and the Council, the second on relations between Parliament and the Com- mission, the third on the position of Parlia- I ment in the context of actions for annul- 2 oJ c 283, 10.11.1986. ment brought before the Court of Justice 3 Supplement 2/86 - Bull. EC under Article 173 of the EEC Treaty, and oJ c 297,24.11.'t996. a Bull. EC 1-1985, point2.4.6. Parliamcnt'sdebatc, includ- the fourth on initiatives to strengthen coop- ing extracts trom Mr Dclors's speech, is reported at eration between the institutions in the point 2.4.22.

78 Bull. EC 10-1986 Parliament

lnstitutions and organs October the Community Ministers of the Interior would take decisions on the extra- of the Communities dition of drug traffickers (+ point 2.4.10). Sir Jack then spoke of the crucial importance of prevention, education and rehabili- 1 Parliament tation, with a final recommendation that a Community research centre be set up which could 'learn from the best practice of other Strasbourg:6 to 10 October countries in the Community and so benefit one and all'. 2.4.16. Parliament's first October part- session did little in the way of legislative The President of the Council, Mr Mellor, work. The main debates were on the report stressed that concerted international action by the Committee of Inquiry into the drugs was needed to deal with the problem and he problem (+ point 2.4.17), on the South assured the House that the Council would Africa issue following the vote by the US consider carefully any proposals from the Ccngress to overrule the President's veto, Commission. on terrorism and on institutional affairs. He also told the House that the Council was considering the recommendation for a The Community and the drug problem decision submitted by the Commission in August on Community participation in the 2.4.17. Over the next few years the num- preparations for the International Confer- ber of drug addicts in the Community could ence on Drug Abuse and lllicit Traf- r well rise to 10 million; yet drugs were a ficking. scourge that had still not been tackled by coordinated action. This view was expre- Mr Manuel Marin, Vice-President of the ssed by Mrs Giannakou (EPPIGR), who Commission with special responsibility for chaired the Committee of Inquiry on drugs, social affairs, emphasized the seriousness of as she told the House that the problem must the drug problem and argued that while be attacked on a number of fronts: on the steps must be taken to throttle supply, production front, where all the efforts action must also be taken on the demand employed had failed to stop supply increas- side by means of effective preventive meas- ing, on the trafficking front and on the ures. It was on the health and education consumption front, where demand was con- aspects that the Community could best act. stantly rising. Mr Marin told the House that the Com- mission had set up a group of experts to The rapporteur, Sir Jack Stewart-Clark study the various problems involved in the (EDIUK), believed that there was room for consumption of cocaine. He complained Community-wide action and he took heart that the budget allocation of 406 000 ECU from the fact that the Hague European for health activities was woefully inad- Council had recognized the need for it. 2 equate if the Commission was to act effec- Emphasizing that the Community must tively in combating drugs. attack the root of the problem, namely production, Sir Jack reminded the House that nearly all the cocaine on the market was Thc complctc tcxts of thc rcsolutions adoptcd by Parlia- being produced by three developing mcnt are reproduced in OJ C 283, 10.11.1986, and the countries Peru, Bolivia and Colombia report of thc proceedings is contained in OJ Anncx 2- and that all- the heroin was coming from six- 343. The polrtical groups and nationalities of mcmbers or seven developing countries. he proposed speaking in the debates arc shown in brackets after their European be set to namcsl thc kcy to thc abbreviations can be found in that a task force up Bull. F-C 718-1984, points t.2.5 and 2.4.8 (footnote 1). 'mastermind a central drugs policy' and 2 Bull. EC 5-1986, point 1.1.15. hoped that at their informal meeting on 20 3 Bull. EC 7/8-1986, point 2.1.113.

Bull. EC 10-1985 Parliament

The ensuing debate revealed a division drug traffickers, terrorists, gangsters and between members that tended to reflect the crooks. She appealed for a ruthless cam- different approaches to the problem that paign against drugs! had emerged between the majority and minority views in the Committee of Inquiry. Mr Gijs de Vries (LrrlNL) set great store Seven members, belonging to the EPP, ED, on the conclusion of an international agree- Liberal, EDA and ER Groups, declared they ment on confiscating drug traffickers' were opposed to the legalization of any assets. Mrs Hedy d'Ancona (SoclNL) was drugs, believing that to legalize them was one of a number of members who regretted tantamount to liberalizing the use of drugs, that Parliament was divided on so serious and that to legalize soft drugs would simply an issue and sought to distinguish between make it easier to switch to hard ones and Iegalization, which they rejected, and nor- thus create more and more addicts. malization, which they advocated. She would have nothing to do with all the talk A number of members thus contended that of offenders and punishment coming from substitution crops should be financed in the Right. the producer countriesl Mr Pearce (EDIUK) attacked the Netherlands for legalizing cer- Mr Vincenzeo Mattina (Socll) made an tain drugs, while Mrs Lehideux (ER/F) cal- eloquent appeal for the establishment of a led for the death penalty for traffickers and European legal area and scouted the idea deportation for foreigners traffickers and of crop-conversion in drug-producing consumers alike. - countries as Utopian. The other end of the political spectrum, The House was nevertheless of one mind reflecting the minority view in the Commit- in demanding forceful preventive measures tee, voiced different feelings and rec- and insisting that dissuasion should start in ommended a more liberal approach con- school. cerned with rehabilitation. Pointing out that A compromise motion secured 251 votes, the minority had never called for the legali- with 3 against and 5 abstentions. The resol- zation of drugs, but for a study and ution passed by Parliament was appraisal of their effects, Mrs Squarcialupi accompanied by a draft for a Council resol- (Com/l) regretted that the Commiftee's ution and took account of certain sugges- report had underestimated the role played tions already made, some by the majority in the producer countries by criminal organ- and others by the minority. izations not only in drug trafficking but also in the arms traffic and terrorism. In this resolution Parliament urged the Council to: take any steps required to halt Mrs Brigitte Heinrich (Rainbow/D) the spread of drug abuse; study the effects observed that Europe was declaring war on on health and social life; convert crops; drugs but was incapable of helping people impose strict controls on Community whose lives had been ruined by drugs, and exports and imports of chemicals with she regretted that nothing was being done known similar effects; establish practical about alcohol and mind-altering drugs, guidelines for the sentencing of drug traf- both of which were no less dangerous. fickers and the confiscation of their assets; Mr Marco Pannella (NA/l) claimed that the combat criminal organizations; introduce Right, in wanting to ban drugs, was serving effective measures for dealing with money- the interests of the Mafia; it was prohibition laundering by drug traffickers; facilitate the that had enabled Al Capone to become an seizure of drugs at frontiers and tighten international power in crime. customs cooperation to that end; establish a central drugs intelligence agency; provide Mrs Marcelle Lentz-Cornette (EPP/L) preventive education at all levels of society believed that there was indeed a Europe and ensure the rehabilitation and treatment without frontiers but it was a Europe of of addicts; participate fully in and contrib-

80 Bull. EC 10-1985 Parliament ute to the activities of international organiz- exercise of the right to vote in local elections ations engaged in the fight against drug for these workers and to guarantee Com- trafficking and drug addiction. munity citizens access to employment in the public administration of other Member 2.4.18. Parliament gave opinions on the States where they were residing. In a second following Commission proposals: resolution Parliament asked the Com- mission to draw up a report on more effec- (i) a Directive imposing a standstill on tive action against the resurgence of racism VAT and excise duties (-r point 2.1.78); and xenophobia, the exercise of civil and political rights, especially the right to vote (ii) a Directive amending the Directive of in local elections for migrant workers, and 28 March 1983 determining the scope of social security and social welfare. Article 14(1) (d) of the sixth VAT Directive as regards exemption from VAT on the final Establishment of an EEC marine research importation o[ certain goods, and another institute. Aware of the importance of pro- amending the Directive of 19 July 1958 on tecting and exploiting the oceans, which the standardization of provisions regarding meant having a better understanding of the duty-free admission of fuel contained in them, Parliament recommended that the the fuel tanks of commercial motor vehicles Commission take a series of specific meas- (-r point 2.1..79); ures under the second framework pro- (iii) a Directive on the sulphur content of gramme for research and development. certain liquid fuels (-- point 2.1.120); Border controls to combat terrorism. Parlia- (iv) a Regulation on the common organ- ment recommended that the Ministers of ization of the market in wine (--+ point Justice be included in the ioint action 2.1.147\; deployed by the Ministers of the Interior (+ point 2.4.7 et seq.) in order to step up (v) a Regulation on the conclusion of the the fight against this scourge. The House Agreement between the European Econ- pointed out that controls at intra-Com- omic Community and the Republic of Gui- munity borders were not the appropriate nea-Bissau on fishing off the coast of Gui- means and called instead for closer cooper- nea-Bissau (--+ point 2.1.181). ation between the authorities concerned, better arrangements for administrative and 2.4.19. Resolutions were passed on the judicial assistance and simpler rules for'hot following subjects. pursuit' across internal borders. Parliament urged the governments of the Member Community policy on migration. In its Stites to work gradually over the next four first resolution Parliament stressed the need years towards the harmonization o[ their to establish fully the right to freedom of iaws on asylum, firearms and external fron- movement for Community citizens and con- tier controls. sidered that recognition of the right to vote in local elections for Community citizens The disastrous whirlwind in the Bitburg/ residing in another Member State was an Priim region of Germany. Parliament called essential factor in the creation of a people's for emergency aid of 500 000 ECU. Europe. The House therefore called upon the Commission to apply and publicize The earthquake in the Kalamata region of more widely the current regulations on Greece. Parliament called for emergency aid migration, to promote the integration of and other forms of financial assistance for Community workers into the country where Greece. they have come to work and to adapt the Community rules on social security. The Recent deuastation caused by storms and Commission should make proposals on the floods in Crete. Parliament urged the Com-

Bull. EC 10-1985 81 Parliament mission to assist in compensating producers could determine more clearly and step up in the devastated areas and called for finan- its role in the world context., cial support to carry out land improvement, drainage and anti-flood projects. Anti-dumping and anti-subsidy measures and associated foreign trade issues. In its Tbe serious losses sustained by cattle breed- determination to eliminate material injury ers and farmers as a result of the drought caused to Community producers by certain in certain regions of Spain. The House foreign exporters pricing their products on called for a new reduced-price cereal quota European markets at levels below the costs to be set and for emergency financial aid to of production, Parliament called for anti- supplement national measures. dumping proceedings to be speeded up and, if need be, anti-dumping duties imposed on component parts of finished products disastrous Bordeaux The floods in the turned out by assembly facilities within the region. Parliament called for urgent finan- Community. The procedure for filing com- cial aid for the immediate relief of the 15 000 plaints must be simplified. The House sug- victims and also for repairs to the damaged gested various solutions for improving the road links. situation, one of which was to increase the staff and resources of the Commission's Community relations taith certain non- anti-dumping department. member (transit) countries (Sutitzerland, Austria and Yugoslauia) in the transport Establishment of a European Foundation sector. In view of the large volume of for East European Studies. Believing that Community traffic that passes through increased knowledge and better mutual those countreis, Parliament believed that understanding of history, economics and the Community should accept a share of other aspects of life would open the way responsibility for the maintenance of road for diplomatic dialogue and also have a and rail networks. For the carriage of goods positive effect on relations between people, the House felt that priority must be given to Parliament proposed that the Member rail and to encouraging alternative solutions States' governments set up a working party such as combined transport systems (roll- with the task of drawing up a charter for on/roll-off) and containers. The railway the foundation and that in its early stages networks of Germany, Italy and Greece at least the foundation- be subsidized should therefore be adapted in line with the -from the Community budget. plans of the three non-member countries concerned. A joint system of user charges The effect of Typhoon'Wayne. Parliament would have to be developed so as to remove called on the Commission to make available tax barriers and other distortions of compe- to the Vietnamese authorities emergency tition. Agreements on rail charges should help in the form of food aid and medical be negotiated, and in the negotiations with supplies for the five ravaged coastal prov- Yugoslavia it would be to the Community's lnces. advantage to grant interest-rate subsidies planned for the EIB loans for transit route Tbe next CSCE meeting. Parliament called development including sections still on the governments of the Community missing from the- transit motorway route countries to demand specific measures from and double-tracking - for and electrification the governments of Central and Eastern of railways. Europe (including the USSR) with regard to respect for human rights, the right of European conference on nuclear safety.Par- peoples to self-determination, freedom of liament stressed the urgent need for a con- religion, together with political, economic ference to be organized on the peaceful use and cultural guarantees. The House con- of nuclear energy so that the Community sidered that unification of the continent

82 Bull. EC 10-1986 Parliament with respect for individual freedoms, politi- lnitiatiues to strengthen cooperation cal plurilism, trade union rights and the between the institutions in tbe examination freedom of economic initiative was the com- of petitions submitted to Parliament. Aware mon aspiration of all the peoples of Europe. of the prime importance attached by the institutions to the protection of fundamental rights and recalling the approval given Parliament the Relations betueen and by the Milan European Council in the fact that the Single June Council. Regretting 1985 to the conclusion of an interinsti- Act I did not really constitute a European tutional agreement to strengthen the citi- to what was needed to ensure valid response zen's righi petition,2 Parliament affir- operation of of the democratic and efficient med its determination to strengthen this Communities, Parliament the European right and instructed its Committee on the make every use of its powers decided to Rules of Procedure and Petitions to submit the very under the Treaties to exploit to appropriate proposals. It also called on the limit the possibilities offered by the Single Commission to draw up by 1 June 1987 a Act in order to exert some influence in proposal for effective and binding Com- a limited number of areas of Community munity legislation to implement the legislation. The House called upon the decisions of the Milan European Council. Council to improve its internal working The Council was urged to guarantee coop- methods so as to ensure a greater degree of eration from the Member States' authori- continuity and consistency between success- ties. ive presidencies. Parliament also made a proposals Council number of other to the The position of Parliament in the context that would extend its own powers and of actions for annulment brought before the pointed out that recent iudgments by the Court of under Article 173. Parlia- under- Justice Court of Justice had only served to ment welcomed the Court's statement that line the need for improved cooperation the Community is a Community governed between Council and Parliament to ensure by the rule of law, so that neither its Mem- political objectives that the Community's ber States nor its institutions can avoid a could be attained. The House further noted review of whether or not their acts are that Article 30 of the Single Act contained in conformity with its basic constitutional provisions concerning the close relations document, the Treaty. It noted that the between European political cooperation Court had declared admissible an action for and the Community institutions. Parliament annulment brought against acts of Parlia- therefore called on the presidency of politi- ment intended to have legal force with cal cooperation and of the European regard to third parties. It observed that the Council to report in writing after each Court's findings implied that Parliament official meeting on the way in which Parlia- also had the right to bring such action and ment's views had been considered in the so created the necessary balance in relations deliberations. between the institutions.

Relations between Parliament and the Com- 2.4.20. In the fields of political cooper- mission in the institutional context of the ation and human rights, Parliament passed Treaties. Convinced that close cooperation the following resolutions. between itself and the Commission constituted the foundation for the Community's The Reykjauik Summif. Parliament wel- revival, the prerequisite for European comed the forthcoming meeting that might Union, Parliament stressed the need to represent an important turning point in resume negotiations with the Commission for the adoption of a loint declaration. It presented a text to serve as the basis for I Supplemenr 2/86 Bull. EC. this. 2 Bull. EC 6-1985, point- 1.2.3.,

Bull. EC 10-1986 83 Parliament

international relations. It hoped to see a proved to be involved in the preparation real political will to work towards ditente, and perpetration of these acts of terrorism, dialogue and peaceful negotiations so as to and called for the early ratification, by those solve the problems and crises confronting Member States which had not yet done so, the international community. of the Council of Europe Convention on the Suppression of Terrorism. The closing document of the Stockholm Conference on Confidence-building Meas- Hostages in Lebanon Deeply distressed by ures and Disarmament in Europe, the forth- the plight of the 13 Community citizens coming summit meeting in Reykjauik and detained as hostages in Lebanon, Parlia- the CSCE follow-up conference in Vienna. ment urged the Twelve to work together Parliament called on the Foreign Ministers within the Trevi Group, I and elsewhere for meeting in political cooperation to use the a solution of the problem of hostages and to climate that had been created to reach sig- approach the governments of Libya, Syria, nificant, binding and verifiable agreements Iran and Lebanon to remind them of their in other forums where matters relating to responsibilities in the protection of innocent security in Europe were discussed; to exam- life. ine the proceedings of the forthcoming summit to see to what extent European views The situation in Cbile. Parliament con- on the political and economic aspects of demned yet again Pinochet's fascist regime security, as expressed in the European Sin- that for 13 years had subjected the people gle Act, were taken into account by the of Chile to cruel repression. It criticized the superpowers; to resolutely develop Euro- recent introduction of martial law and the pean consultation mechanisms on the politi- suppression of freedom and declared its cal and economic aspects of European solidarity with the people of Chile, demand- security. ing the immediate restoration of democracy and calling on the 12 Member States to Tbe absence of Europe from summit meet- adopt effective measures for the political, izgs. Parliament regretted the fact that the diplomatic, economic and military isolation European Community was not in a position of the Chilean dictatorship. to take part in an international conference which would give priority to discussing Tbe execution of political prisoners in matters relating to its own security. It called lndonesia after 20 years' imprisonment.Par- on the Foreign Ministers meeting in political liament condemned this manner of proceed- cooperation to convene an emergency meeting, which constituted a flagrant breach of ing to adopt a common position on the human rights, and appealed again ro the subjects that would be on the agenda of the Indonesian authorities henceforth to proposed summit to follow Reykjavik. observe the fundamental principles of humanity. Introduction of a visa requirement in France. Parliament considered that this Human rights in certain countries in Central measure affecting all citizens (except the and South America. Parliament called on Swiss) not belonging to the Community the Foreign Ministers meeting in political constituted a discrimination and called on cooperation to ask the governments of the French Government to abolish it.

Tbe waue of terrorist attacks in Paris. Par- The Trevi Group was set up in response to thc proposal liament expressed its sympathy with famil- adopted at the Rome European Council in November ies of the victims, reiterated the need not 1975 that Ministers of thc Interior or Justice (dcpcnding to give in to blackmail, believed that the on cach Member Statc's constitutional arrangcments) should meet 'to discuss mattcrs coming within their Member States must draw the appropriate competence, in particular with regard to law and order': conclusions if non-member countries were Bull. EC 11-1975, point 11O4 (Other business).

84 Bull. EC 10-1986 Parliament

Chile, Colombia, Guatemala, El Salvador for the Political Affairs Committee, on the and Peru to investigate and clear up the role of the various types of committee in 15 cases referred to and to take whatever the Community, which had been referred further steps might be necessary. back to the committee at the July part- session. The increase in human rights uiolations in Guatemala.ln view of the large number of This matter is of crucial importance for political murders and kidnappings per- institutional balance. On 29 January the petrated by the army, the security forces Commission put to the Council a Regu- and the death squads, as well as the death lation laying down procedures for the exer- threats to the President and members of the cise of implementing powers conferred on Grupo de Apoyo Mutuo, the only human the Commission.2 The Commission pro- rights organization operating in the coun- posed three types of committee: advisory, try, and with President Vinicio Cerezo due management and regulatory. The gist of the to visit Brussels on 10 October to negotiate amendments proposed in the report was to with the Commission (+ point 2.2.27),Par- drop the 'regulatory committee' formula, liament urged the Commission to promise whereby the Commission will adopt its support only if it had no bearing on rhe planned measures only if they are in accord- anti-insurgency programme and was aimed ance with the committee's opinion. In con- at real improvement in the living conditions trast, it was accepted that the Commission of the people, and to speak out against could apply the advisory and management any compulsory repatriation of Guatemalan committee procedures, with a preference for refugees. advisory committees, since they left intact the full implementing powers to which the Commission was entitled under the Treat- Strasbourg: 20 to 24 Octoberl ies. The Political Affairs Committee welcomed the Commission's intention of infor- 2.4.21 Parliament's part-session . second ming and consulting Parliament more fully this month was devoted to a great many concerning draft implementing measures it important subjects, some which were of was planning to present to committees. added during the week in response to requests from the Council and the Com- Mr Hinsch, however, did not concur with mission for treatment under the urgent pro- the Political Affairs Committee. He himself cedure. This was the case with the HInsch accepted the regulatory committees, his report on committee procedures (+ point own feeling shared with a majority of the 2.4.22), the Campinos report on food aid Socialist Group- being that the absence management, and the Woltjer report on the of regulatory committees- would not really common organization of the milk market. strengthen the Commission's position. He The Chouraqui report on Community fam- was sure that the national administrations ily policy was held over for a later part- would long have to go on executing and session, in view of the number of amend- applying Community law, for while the ments tabled. Finally, the House failed to Commission adopted regulations, it had reach conclusions on two entirely different neither the staff nor the structures to deter- subjects, but both of undoubted political mine how they should be applied on the significance: arms control and the harmon- spot. Mr Hdnsch conceded that the Federal ization of national provisions concerning Republic was perhaps not a good example; speed limits for private cars. but in Germany administrative powers lay with the Liinder. He went on to stress the Parliament opposed to importance of the Commission proposal, regulatory committees

2.4.22. Parliament returned to the report t OJ C 297,24.11.1986; OJ Annex 2-3,t4. by Mr Klaus Hinsch (SoclD), rapporteur 2 Bull. EC 1-1986, point 2.4.6.

Bull. EC 10-1986 85 Parliament which was the first material transposition were dissatisfied. The Commission, on the of the Single European Act, 1 and he argued other hand, was not elected by the people that those members wishing to do away and the democratic process was diluted with regulatory committees were being whenever more power was given to the idealistic. Commission. The House was therefore divided on how Mr Herman (EPPIB), speaking on behalf best to exert pressure on the Council. of the Committee on Institutional Affairs, exclaimed: 'Must we accept the type of com- The opinions by Mr Josep Verde i Aldea mittee represented by the regulatory com- (SoclE) for the Committee on Legal Affairs mittee? No, a thousand times no!' Mr Her- and Civil Rights and Mr Christopher Jack- man attacked the wrong extrapolations son (EDIUK) for the Committee on Insti- from national systems made by certain tutional Affairs both came out against regu- members. Turning to Mr Hinsch, he latory committees. declared: 'l could, at a pinch, go along with you, we were the Bundestag and we had Mr Lambert Croux (EPPIB), Mr Derek Prag if its powers. Delors was Federal Chan- (EDIUK) and Mr Hans Nord (LiblNL) suc- If Mr cellor, Commission were real cessively supported the call to do away with if the a government, go the regulatoiy committees. The regulatory then I would along with you'. committees, the management committees and the advisory committees, said Mr Mr Delors declared that the underlying Croux, already went far enough, and if issue at this debate was whether the 12 things went any further, implementing pow- Governments that had signed the Single Act ers would no longer be exercised by the really meant to put it into effect. Commission but would remain in the hands of the Council. To which Mr Prag, on '... You may think this strange, since you feel the minimum. \Well, European Democrats, added: Single Act is a barely acceptable behalf of the let me tell you, in the months ahead the Twelve 'it involves both effectiveness and democ- will try not to carty it out. We have already had racy in the way the Community is run'. As an example, at the disappointing Council meeting Mr Prag saw it the regulatory committees of Research Ministers two days ago, when the entailed 'a clear transfer of executive power Commission was treated as if it were haggling over from the Commission to the Council', a carpet at the Istanbul bazaar, asking a hundred which meant also a loss of Parliament's francs in the hope of getting fifty. What do they think we are? In the 22 months we have been there super- Treaty-based right of democratic we have shown a pragmatism and realism some of vision (for though it had rights of control you consider pusillanimous, but for all that the over the Commission, it had none over the States are coolly calling the Single Act in question! Council). ... The Commission's thinking was that we should try to show the Council of Ministers that we are Mr Nord said that if he were the Com- reasonable people, that we are not, repeat not, mission, he too would probably take the asking a hundred in the hope of getting fifty, and view that regulatory committees should be that when we propose three committees, including retained, because in any case the Council the regulatory committee, we are trying to allow for and show understanding of the misgivings of and would not agree to their disappearance some countries, because the present proposal was better than the existing state of affairs. But then Over against that is Parliament's thinking, which he added that Parliament was not the Com- is, with some reason, mistrustful. I am sadly afraid that it is going to be proved right, and that, unhap- mission and it had to uphold its principles. pily, your mistrust was to some extent iustified... An altogether different view came from Mr I may well withdraw the proposal if confidence Bonde (Rainbow/DK), who said he would is not reposed in the realism, pragmatism and rather see legislative power remain in the hands of the national parliaments where I majorities could change when the electors Supplement 2/86 - Bull. EC.

85 Bull. EC 10-1986 Parliament professionalism of the Commission. If we are Mr Dankert's five amendments. I see no reason pressed too far, there will be no proposal on the why I should not drafr a new proposal based on iable any more. And then it will be seen that if those amendments! If the Council doesn't want Europe is making no headway it is the fault of the something simple, then it will have to reckon with Council, and indeed of Coreper. That is something Parliament every time before it takes decisions, as that has got to be seen, and seen clearly,.. with the budget debate.

The Single Act in irs institutional dimension sets If people like us working away quietly and out to enable Europe to take decisions better and without fuss cannot- gain a hearing, then we faster and implement them morc efficiently and to shall have to -turn up the volume, and when that bring Parliament more fully into the legislative happens I hope you will be altogether on the r .l r process. For that, three conditions have to be fulfil- LOmmlsslon s stoe, led. The first is that the Council should amend its rules of procedure, and that if Parliament is set After this very committed speech by the deadlines the Council should also set itself dead- President of the Commission, who lines for putting matters to the vote... reminded the governments of the Member Condition two, the application of the cooperation States of their responsibility for faithfully procedure. I hear on all hands that the cooperation applying the European Single Act, his state- procedure is too red-tape-ridden and too long- ment that he might well withdraw the pro- drawn-out and as a result will perish of its own posal if the Council could not give the Com- accord. Some members indeed do not believe in it mission its confidence did much to relieve at all, because it does not give Parliament enough the strained atmosphere in the House. powers, Do, I implore you, through Mr Prout's report, pay careful attention to the cooperation House adopted the report by 235 votes procedure it is a big opportunity for Parliament The io contribute- to the work of legislation. It needs to 36. This vote was very much in keeping simplicity and skill, though. I shall hope to be with the stance it had taken in July, with able to discuss it with you some other time. And the addition of an amendment calling for condition three, indissociable from the other two, Parliament to be kept regularly informed is the committee procedure. I will tell you briefly on further developments. what this is about.

What have we got now? We have at least 300 2.4.23. Parliament gave opinions on the committees, with national civil servants who do following Commission proposals: no! even execute their Ministers' decisions, and prevent them from being implemented. So, for a (i) a Directive on enlarging the Com- itart, there should be not 300 committees but three. munity obligations of liberalizing capital movements (+ point 2.1.3); Next, we have to combine efficiency and simplicity. And lastly, we have to have separation of (ii) two Regulations for better control of functions. The Commission's function is to pro- milk production (--+ point 2.1.135); pose and execute; Parliament, as co-legislator, cannot have a part in execution. This is the reason (iii) a Directive on the adoption of com- for my stance up to now on your suggestion of mon technical specifications of the MAC/ procedure. bringing Parliament into the committee direct satel- These three preconditions for the implementation packet family of standards for of the Single Act are interlinked. I would like you lite television broadcasting (--+ point to bear them all three in mind. What is done in 2.r.46); the weeks ahead on the subiect of committees, the Council rules of procedure and the cooperation (iv) a Regulation on food aid policy and procedure will determine the prospecrs, institu- food aid management (+ point 2.2.37); tionally, for the Single Act. Everything else is a matter of goals... (v) a Regulation laying down the procedures for the exercise of implementing To sum up my reaction to Mr Hinsch's report, powers conferred on the Commission now before you, the Commission will fight to (-+ point 2.4.15). the bitter end for its proposal, a realistic one in particular in that it accepts the regulatory commit- iee. If the proposal is not passed by the Council, I 2.4.24. Resolutions were passed on the see no reason why, for instance, I should oppose following subjects.

Bull. EC l0-1986 87 Parliament

Internal market.ln two resolutions Parlia- of Valencia and Murcia in south-east Spain. ment estimated the cost of 'non-Europe' In three resolutions Parliament called for and expressed its concern that the internal emergency aid to supplement national aid. market programme had fallen behind sched- ule. The House believed it was essential for The sinking of the Souiet submarine off the the establishment of the internal market coast of North America and the risk of that the Single European Act should come radioactiue contamination of the ocean.ln into force beforehand. It asked that full two resolutions Parliament urged the Com- account be taken of the impact on the mission to press for the establishment of a smaller economies within the Community comprehensive monitoring system to meas- of the proposals contained in the Com- ure radioactivity in seawater. mission's White Paper. Parliament stressed 'World the close interdependence between the cre- The need for a Food Conference. ation of the internal market, the increased Parliament called for concerted inter- use of the ECU for public and private transnational action to bring about the coordi- actions (because of its non-inflationary nated liberalization of domestic agricultural nature) and the gradual liberalization of and trade policies throughout the world; it capital movements. The House considered instructed the Commission to help convene that national public contracts should be a World Food Conference during1987. opened up to small and medium-sized firms, which were often very competitive and were Community action the sector. jobs. in forestry always a source of Finally, it believed Parliament considered that before seeking that completion of the internal market must to increase woodland area by reafforest- make full allowance for the special situation ation of land at present used for agriculture, of the less-favoured regions. special aids should be introduced to increase Worsening of the situation in the European improve and the productivity of areas treeless covered iron and steel industry and the liberalization existing of or thinly woodland. The House criticized the measures which thi Commission intends Com- proposals 1 grounds to introduce in the steel sector. Parliament mission's on the that they made no reference the exploitation maintained that the Community steel indus- to of areas, such try was and must continue to be a modern existing woodland whereas if and profitable sector and it therefore exploitation were beter organized, they strongly opposed the plans to liberalize new would make an important contribution to steel products. It urged the Council and the reducing the Community's dependence on Commission to extend the present Com- imports of timber. The House strongly con- munity system to combat the steel crisis demned the Council, which refused to approve proposal regulation beyond 31 December 1986, to check by all the for a on protecting the means at their disposal the steep rise in forests from fires and acid rain.2 proposal steel imports from non-member countries The had been under discussion for and to strengthen anti-dumping procedures three consecutive years, while the destruc- designed to stop low-priced steel imports. tion of Community forests by fires and acid rain had been mounting. Parliament there- Encouraging teacher mobility. Parliament fore asked the Commission to consider the regarded the ban on discrimination as a possibility of setting up a multiannual Com- fundamental principle of the Treaty of munity Forestry Fund with a view to finan- Rome which guaranteed for all Community cing essential works to renew and expand citizens and types of profession identical woodland assets; the House also called for conditions for preparing for and acceding to a profession. I Bull. EC 12-1985, points 2.1.171 and 2.1.172; Bull. EC The uiolent storms and floods in the south 2-1986, point 2.1.128 et seq. , of France and in the autonomous regions OJ L 187, 13.7.1983; OJ C 208,8.8.1984.

88 Bull. EC l0-1986 Parliament

the introduction of an ad hoc budget chap- of special multiannual programmes, with ter to finance research in this field. due regard for the principle that such assistance be additional ro national contributions The necessity of an ad hoc regulation in the and that its Community nature be gradually transport infrastructure field. Parliament strengthened. The Commission was also urged the Commission to present without asked to consider increasing the Com- delay a proposal for an ad hoc Council munity's own resources by transferring cer- regulation to enable the Commission to tain national excise duties to the Com- commit the appropriation entered in the munity. Finally, the House considered that 1985 budget for the financing of infrastruc- the Treaties must be revised in order to ture proiects. increase Parliament's fiscal powers and to consolidate financial autonomy. Counter-trade. Parliament asked the Com- mission urgently to investigate the nature The ratification procedures for the Single and extent of intra-Community counter- European Act in national Parliaments and trade and to ascertain whether this trade the attainment of European Union. Parlia- had resulted in breaches of the Trearies, ment repeated its call for the national because of the possible lack of rransparency governments, by having the Single Act rati- in pricing and possible breaches of Com- fied by 31 December 1986, ro ac on rhe munity rules on comperition and State aids. undertakings to which they themselves subscribed, particularly as regards the amend- The famine in Mozambique.ln three resol- ment of the Council's Rules of Procedure, utions Parliament urged the Commission to the Commission's executive powers and the grant emergency food aid to Mozambique adoption of the measures required for the as a follow-up to the food aid first supplied completion of the internal market. in April. I 2.4.25. In the fields of political cooperation and human rights, passed The granting of aid to the uictims of the Parliament the following resolutions. earthquake in El Saluador. ln four resolutions Parliament called on rhe Commission The situation in South Africa and southern to increase by 1 million ECU the 250 000 Africa.ln four resolutions Parliament, con- ECU of emergency relief aid already granted. demning South Africa's military aggression against neighbouring States, reaffirmed its belief that equitable and lasting solutions The of the European fitture financing Cofl- could only be achieved by peaceful munity. Parliament urged means the Council to and dialogue and urged the governmenrs begin new financial negotiations as soon as of the Twelve to reconsider their position possible. It deplored the present unbalanced forthwith by adding further meaiures ro structure of expenditure on the agricultural those adopted on 15 September againsr guarantee policy and advocated reform a South Africa by the Foreign Ministers of the policy, meet- in order to introduce direct ing in political cooperation.2 support for small farmers' incomes while safeguarding competition. The House The East-'West Summit in Reykjauik and strongly criticized the Council for not hav- the need for a genuine European security ing the courage to take the appropriate policy.ln four resolutions Parliament urged decisions to bring markets in surflus back the United States and the Sovier Union to into balance and condemned both the Com- continue their negotiations with a view to mission and the Council for nor having an agreement on arms control and disarma- introduced a proper policy of stock depreciation. Reducing the present imbalance demanded a substantial increase in I Bull. EC4-'1986,poinr2.2.36. the structural Funds and also the adoption z Bull. EC 9-1985, poinr 2.4.1.

Bull. EC 10-1985 89 Council ment and called on the Foreign Ministers the Aquino Government to do its utmost to meeting in political cooperation to define a promote the development of democracy in genuine European disarmament policy so ihe Philippines, Parliament called for the ihat Europe's interests could be taken into release of Rodolfo Salas. account during forthcoming negotiations. The recent spate of political arrests in The appeal for the establishment of democ- Uganda. Parliament called earnestly on the racy in Eastern Europe. Parliament called Ugandan Government to safeguard human on the Commission, the Council and, in rights and fundamental freedoms and asked particular, the governments of the Member the Commission to provide the relevant States to demonstrate their support for the . committees of Parliament with information principles enshrined in the declaration by on the implementation of the third Lom6 citizens of certain East European countries Convention in Uganda. the establishment of a free calling for The disturbing state of health of a number demoiracy within their countries and the of imprisoned opposition leaders in Zaire. peaceful reunification of Europe. Parliament called on the Zairean Govern- Tbe forthcoming conference fo,r peace in ment to release the leaders of the UDPS, a Sri Lanka. Parliament urged the Foreign peaceful and democratic opposition party in Ministers meeting in political cooperation Zaire,from internal exile and imprisonment to express their iupport for a negotiated without delay. settlement to the present situation in Sri called Lanka. The situation in Chile. Parliament on the Council and the Foreign Ministers The forced labour of Estonians at Cherno- meeting in political cooperation to take all byl. Seriously perturbed by information possible steps to bring about the lifting of fliom a number of different sources, Parlia- the state ol siege, respect for fundamental ment requested the Commission to question freedoms and restoration of democracy as the Soviet Government on its use of a press- soon as possible. ganged workforce to decontaminate the Cherriobyl power station. Council The arbitrary detention of ltalian workers in Libya. Parliament demanded that the 2.4.25. The Council held seven meetings Libyan Government immediately authorize in October. The following table lists the Italian workers to leave the country ahd number, place and date of each meeting, urged the Commission to take all possible the namel of the Council President and measures forthwith to help the workers Commission representatives and the main detained in Libya and their families. items of business. A more detailed account Tbe arrest of the Communist leader, of specific items can be found in the sections Rodolfo S.alas, in the Pbilippines. Urging of the Bulletin referred to in the footnotes.

Table 7 - Council meetings in October Number, placc and datc of Sublect Prcsident Cominission Main items of business mceting

I 106th Internal Mr Clark Lord Cockfield Rolling action programme for Luxembourg market achievement of internal market:

7 October progress report , Airborne noise emitted by household appliancesl Pharmaceutical products Narrow-track tractors

I 90 I srtt. rc fi-1986

I Council

Number, place and date of Sublect Presidcnt Commission Main items of business mccting

I 107th Economic Mr Lawson Mr Delors Budgetary -situation: agriculrural Luxembourg and Mr Christo- expenditurez 13 October financial phersen NCI IV: financing of investmenrs of affairs Mr Matutes small business

I 108th Agriculture Mr Jopling Mr Andriessen Monetary compensatory amounts Luxembourg for eggs and poultryz 13 and 14 Levy and sluice-gate price for eggs October and poultrymeatz Olive oi12 Emergency action in milk sector2 Cut-price butter for those on social asslstance4 Adiustments to common organization of market in beef and veal

I 109th Industry Mr Shaw Mr Naries Action programme for small and Luxembourg Mr Sutherland medium-sized enterprises3 20 October Mr Matutes Application of code on aid to steel industrya Organization of steel marker in 19874 Aid strategy for shipbuilding after 19865 Specific programme for development of Portuguese industry5

I I 1Oth Research Mr Pattie Mr Narjes Framework programme of Com- Luxembourg munity activities in rhe field of 21 October research and technological develop- menr (1987-91)/ Machine translation systemT l111th Foreign Sir Geoffrey Howe Mr Delors Relations with Japans Luxembourg affairs Mr Cheysson Relations with United States:8 27 October Mr De Clercq (i) Agreement on Mediterranean preferences, citrus fruit and pasta (ii) Negotiations under GATT Article XXIV(5) Relations between Community and CMEA and its individual member countries9 Canada: countervailing duties on Community pasta expoitsS Measures to assist Palestinian population of \')flest Bank and Gaza Striplo Mediterranean policy of enlarged Communitye

Bull. EC 10-1986 9t Commission

Number, placc and datc of Subjcct Prcsident Commission Marn rtems of busincss mecting

Financing of Community-increase in own resources Community's generalized preferences scheme for 1987 South Africall Commodities policy GATT: Uruguay Round-draft Council statement on rollback and standstillt2 Transport infrastructure Community regional developm_ent programmes (Star and Valoren)rr

1 I 12th Consumer Mr Howard Mr Varfis Consumer creditl Luxembourg Protection Integration of consumer policy in 29 October and other common policiesl information Indication of prices for foodstuffs and non-food productsl System for rapid exchange of information on dangers arising from use of consumer productsl

I Environment and consumer protectron. 2 Agriculture. r Point 1.3.1 e, seq. { Srrel. 5 Poinr 1.2.1 r, rrq. 6 Coordrnation of'structural instruments. Relartons with industriahzed countrics. 7 Rcsearch and technology, industrial innovation and the information market. t Relations with industrialrzcd counrnes. 9 Relations wrth othcr countries and rcgions, lo Development. ll Europcan polrticalcooperation. l2 Ncw round of multrlateral trade negotiations, ll Rcgional pohcy.

Commission A proposal for a sixth Directive tightening up the rules on aid to shipbuilding in an attempt to bring about a fundamental struc- Activities tural Change in the shipyards, was sent to the Council, together with a communication on Decisions, communications and proposals the industrial, regional and social aspects of the proposed measures (+l point 1.2.7 et

2.4.27. The Commission sent the Council seq). i its annual economic report 1,986-87 The Commission approved action to codify (+ point 7.1,.1et seq).The report confirms the rules it intends to apply for the recovery the importance in the present climate of the of State aids granted illegally with a view effective implementation of the cooperative to making the procedure stricter and more growth strategy for more employment, systematic. At the same time it adopted which was proposed by the Commission in internal arrangements to speed up the pro- October 1985 and has already been cessing of aid cases in the stages prior to its endorsed, in principle, by the Governments final positive or negative decision (--+ point of the Member States. 2.1.66).

92 I Bull. EC 10-1985 Commission

In the field of the approximarion of legis- of various Greek organizations Iation the Commission adopted a proposal such as EEEE (Hellenic Society for a Directive concerning the safety of toys for Operations-(Hellenic Researchi, (+ point 2.1.128). Elkepa Cenrre for Productivity), (Technical Three technological research and develop- TEE Chamber of Greece) ment programmes were presented to the Council: telecommunications technologies 1970-82: General Secretary and (from (RACE), medical and health research, ind 1975) Member of Management development (--+ points 2.'!..44,2.1.49 and Commitee, TEE (Technical 2.1.s0). Chamber of Greece) 7978-82: Secrerary, Greek Committee The Commission decided to limit deliveries of the World Energy Conference to Spain of two steel products (wire rod and galvanized sheets) fr-om the other Member 1982-84: Chairman, OSK (Organization States until the end of the year (--+ point for School Buildings) 2.1.25). Relations with workers' and Finally, a communicarion on special Com- employer's organizations munity assistance for Greek disaster areas following the Kalamara earrhquake was 2.4.29. The third meeting of the working sent to the budgetary authority (--+ point party on new technologies 2.1,.tt4). and social dialogue, set up following tle meeting between the Commission and iepresentatives of the Appointment of a Director-General European workers' and employers' organizations at Val Duchesse in November llBS,2 2.4.28. The Commission appointed Mr was held on 7 October with Mr Manuel Constantinos S. Maniatopoulos Director- Marin, Vice-President of the Commission General for Energy ro replace Mr Chri- with special-affairr responsibility for employment, stopher Audland. I social and .du.riion, in ihe'chair. Aflter a brief discussion, rhe working party reached broad agreement on the paper on Constantinos S. Maniatopoulos the training and motivation of wbrliers in the new technologies already discussed Born at Patras in 1,941.. Married, one child. at its second meeting.3 Two other topics were 1.965: Production engineer (mechan- discussed: information and coniulration, ical and electrical engineering), and the new technologies and their impact Technical University of Athens on the organization of work and the adapta- L967: Business administration studies, bility of the labour marker. Substantial progress Graduate School of Economics was made on the issue of information and Business Sciences and consultation and it was decided that draft- joint conclusions should be prepared 1970: Operations research and stat- for the next meeting. In view of-the fact istics, CIRO, Institur de Stati- that the situation in the individual Member stique de I'Universit6 de Paris States as regards the adaptability (rsuP) of the labour market and the organization of work 7971-78: Lecturer, Technical University following the introduction of the new tech- of Athens (lndustrial Organiza- nologies was found to be very different, tion Section) the working party decided to'draw up a 1973-78: Professor, Postgraduate Centre for Operations Research, Tech- I nical Bull. EC 4-1981, point 2.3.31. University of Athens 2 Bull. EC 11-1985, poinr 2.5.15. Professor of scientific seminars 3 Bull. EC 5-1986, point2.4.14.

Bull. EC 10-1985 93 Court of Justice

particularly comDarative table indicating the laws and assistance in a reasonable time, each of the Mem- where there is excess production capacity conventions applicable'possible in ber States, if broken down by in the industry in the CommunitY. industrv. to enable a number of guidelines The Court amplified its existing case law as a to be diawn up for the CommunitY on ouestions of procedure' 3 The statement whole. of riasons for a iecision adversely affecting an undertaking must be such as to allow the Court to review its legality and to pro- Court of Justice vide the undertaking concerned with the information necessary to enable it to ascer- well Analysis of delivered tain whether or noi the decision is iudgments could not in its between 1 Juli and 30 September 1986 founded. The Commission decision rely on documents which could not be disclosed because of the obligation to (State aids) Competition respect business secrets which was imposed of. the TreatY. 2.4.30. In two delivered on the by Article 214 1 iudgments same day the-Court clarifie4 the appli- To enable the Commission to act, Member cation of Article 92 of the EEC Treaty to the States had to cooperate actively at the scru- acquisition of public holdings as a rescue tiny stase of the Article 93(2) procedure' If m.rrut., and develoPed its case law on thev failed in that dutv the Commission the procedure for negative decisions under .ould th.n adopt a decision on the basis of Article 93(2). the information available to it at the time: part Member States the food industry equip- neelisence on the of the The firms assisted, prevent the Com- Meura and the ceramic rhSuid not be allowed to ment manufacturer discharginf its institutional sanitary ware and crockery manufacturer mission from Boch, had both been making con-tinuous responsibilities. Iossei and could not have obtained the sums they needed to survive on the private capital Free movement of workers .rik.tt; neither could they achieve viability They were its in Lawrie-Blum u within any reasonable time. 2.4.31. By iudgment a ooeratihg on markets suffering from over- Land Badin-Wilriemberg, replying to a capacityiwhere there was substantial trade number of questions Put by the German between Member States. Federal Administrative-Court, the Court of Jriti.. confirmed its previous findings 5 The Court confirmed a previous finding2 loncerning Article 48(4), which exempts that an iniection of capital into when it held oosts in thi public service from the principle an undertaking, even a public undertaking, morement for workers. The meaning of Lf freedom bf constituted ,id within the Court held that the exception did not cover Article 92 if a private shareholder' -acting post trainee secondary school teacher possibilities the of on the basis of ihe foreseeable (Studienreferendar) in Germany,- such a trai- profit and leaving aside all of makins a neeship being a necessary preliminary to consideraiions of a social nature, of regional oolicv or of policv in regard to that econ- Lmic'sector, would not hive subscribed the 1 and Case 40/85 capital in question. Case ?34/84 Belgium u Commission Belgium u Commission. It is clear from these iudgments that rescue 2 Caie 3L3lS2Intermills u Commission [1984] ECR 3809' J ECR 3809; not qualify for one of the dfro- Case 32i/82 tntermills u Commission [19841 aid will 296 and 318/82 Netherlands and Leeu- in Article 92 where it does not help Joined Case sations urarder P ap ierw arenfa bri ek u Commi ss i on. io restore the firm to health, that is to say 4 Case 56185. where the firm cannot be expected to the 5 Casc 749/79 Commissron u Belgium [1980] ECR 3881 operating on a viable basis without further and [1982] ECR 1845.

I Bull. EC 10-1986 94 I

I I Court of Justice

appointment as a teacher in the State Clarifying the scope of this principle, the schools. Court said that it followed from thi Direc- tive that: A trainee receives payment from the regional authorities and performs duties 'The criteria governing pay rate classification must Iaid down by law; rejecting the view of the ensure thar the same work, viewed obiectively, regional authorities, the Court held that the attracts the same rate of pay-whether it is perfor- post did satisfy the tests of an employmenr med by a man or woman; relationship caught by Article 48 of the the use of values reflecring the average capacity of Treaty and did not qualify for the exemp- workers of one sex as a basis of deierminine-the tion for posts in the public service. extent to which work makes demands or req-uires effort or whether it is heavy consrirures a foim of A British candidate possessing rhe necessary discrimination on grounds of sex, contrary to rhe German qualifications could nor be refused directive; a traineeship on the sole ground that she in order for a system of lob classification nor ro was not a German national. be discriminatory as a whole, ir musr, in so far as the nature of judgmenr the tasks carried out in the undertak- Although the was expressly con- ing permits, take into account criteria for which cerned only with the posr of trainee reacher, workers of each sex may show particular aptitude.' it would appear to be relevant ro rhe appointment qualified of fully teachers in Common agricultural policy State schools too. 2.4.33. Case 115182 Commission u Ger- Equal treatment of men and women many concerned the question whether the Member States had the power to authorize 2.4.32. ln Rummler u Dato-Druckr the the making of 'quality wines produced in Court had before it a number of questions specified regions' (quality wines p.s.r.) in concerning the interpretation of Council whatever area outside the regions con- Directive 75/L17/EEC on the approxi- cerned. mation of the laws of the Membei Statet relating to the application of the principle The Community rules (formerly Council of equal pay for men and women.2 The Regulation No 8t7/70,3 and currenrly Council 4 national court sought to ascertain in essence Regulation No 338/79 ) determine whether it followed from the Directive that that quality wines p.s.r. musr be prepared job classification systems could not draw within the specified region from gripei har- distinctions on the basis of: vested within that region. Theie ire two exceptions, one for wines 'produced accord- (i) the criteria of muscle demand or mus- ing to traditional practices', and the other cular effort, and allowing the Member States to make rules providing otherwise, provided lii) whether the employment involved production heavy physical work. is supervised. The question On the question of principle raised here, the first at issue was the nature Court concluded that the Directive did not of these exceprions, in particular whether the Commission implementing prohibit the use, in a lob classification sys- in the tem for the purpose of determining rates-of Council Regulation was entitled to restrict the pay, of the criterion of muscle demand or Member States' power to allow exceptions proximitv muscular effort or that of the heaviness of outside the immediate bf the specified region, the work if, in view of the narure of the as it had purport.d to tasks involved, the work to be performed did require a cerrain level of phyiical exer- tion, so long as the system as a whole, by Case 237/85. taking oJ L 45, 19.2.1975. into account other criteria, precluded oJ L 99, 5.5.1970. any discrimination on grounds of-sex. oJ L 54, 5.3.1979.

Bull. EC 10-1986 95 Court of Justice do in Commission Regulation No 1598/ Faure by Mr Wybot, former'director of the 70.1 The Court found first of all that the French counter-espionage department, -the reference to 'traditional practices' in the DST, concerning cErtain passages in the first second subparagraph of Article 5.(1)(a) of volume of Mr Faure's memoirs, published Resulation-No StTrO related only to the bv Librairie PIon in November 1'982. Mr var-ieties to be used, and not to the region Faure oblected that the action was inadmis- in which the grapes were to be harvested. sible because he was a member of the Euro- Considering ihe second exception, the pean Parliament. The question of Com- Court refeired to the stated purpose of munitv law which arose was whether or Regulation No 817170: 'whereas the devel- not Article 10 of the Protocol protected opil.nt of a policy of encouraging quality members of Parliament against legal pro- pioduction ... in winegrowing is bound to ceedings throughout the entire annual ses- iontribute to the improvement of con- sion, r-gardless of whether Parliament was ditions on the market ...', and held that the actually sitting. As the annual sessions in power to make implementing rules which Dractice follow one another without inter- *rr conferred orr the Commission bY iuption, a broad interpretation of the word Article 5(3) of the same Regulation was- a 'sessions' in Article 10 would in reality mean broad one. In making detailed rules the that immunity would extend to the whole Commission was entitled to delimit the duration of the member's term of office. in which areas outside the specified regions The Court confirmed the broad position it their discretion Member States could at had taken in a previous iudgment,3 after quality wines authorize the preparation of finding that ther-e was nothing in the legis- p.s.r. lation or in parliamentary practice to justify On a claim that fundamental rights were a different-interpretation. Mr Faure had member- being violated the iudgment was extremely thus been right in-claiming that his brief. Without distinguishing between shio of the European Parliament was a bar authorizations granted before and after the to th. legal proceedings against him. The Community rules came into force, the Court Court pointed out that immunity inter- found that the rules did not threaten the preted in this way did not prevent legal existence of firms preparing quality wines proceedings from being brought, provided p.s.r. outside the immediatt proximity of ihat Parliament was asked to waive the ihe specified regions. Commission Regu- member's immunity. lation No 1598/70 did not encroach on the substance of the free choice of an occu- General Dation. It did restrict the operations of cer- iain firms, but the restrictions formed part 2.4.35. Case 235184 Commission u ltaly of a policy in regard to the quality of wine concerned the full transposition into Italian and were iustifie-d by an objeCtive of general law of Council Directive 77/187/EEC on interest pursued by the Community. the safeguarding of employees' rights in the event o-f transfers of undertakings, busi- parts businesses. a Italy had Institutional questions nesses or of not adopted specific rules implementing the 2.4.34. ln 'Wybot u Faure and Otbersz directivi, and the arguments put by the the Court delivered a preliminary ruling Darties-and the Court's, own findings concerning the immunity of members of the --were confined to the question whether European"Parliament under Article 10 of the existing Italian law was in fact interpreted Protocol on the Privileges and Immunities of the European Communities. I oJ L 190,26.8.1970. The Paris Court of Appeal, which referred 2 Casc 149185. the question, had before it an action for 3 Casc 10l/63 Wagner u Fohrmann irro+1 rcn trs defamation brought against Mr Edgar 4 oJ L 61,5.3.1977.

10-1986 96 Bull. EC Court of Justice broadly so as to satisfy the obligations aris- Judge C.N. Kakouris as President of the ing from the Directive. Sixth Chamber.

The Court said that the mere fact that a The composition of the Chambers was precise and detailed provision in a directive determined as follows: differed from a very vague and general provision of national law was not sufficient to First Chamber show that the directive had been transposed incorrectly. Where the Member State claim- F.A. Schockweiler, President ed, as Italy had done in this case, that the G. Bosco and R. Joliet, Judges. national legislation could be interpreted in a way that conformed the directive, the to Second Chamber Commission had to cite 'case-law to support its views' or, in regard to the particular T.F. O'Higgins, President Community provision at issue, refer a to O. Due and K. Bahlmann, Judges. 'specific instance in which employees' rights have not been fully safeguarded to the extent prescribed by the directive' (grounds Third Charnber 14 and 15). Y. Galmot, President Recalling its judgment in Case 143/83 Com- U. Everling and J.C. Moitinho de Almeida, tnission u Denmark, the Court confirmed Judges. that 'Member States may leave the implementation of the social policy objec- Fourth Chamber tives pursued by a directive in this area in the first instance to management and lab- C.N. Kakouris, President our' (ground 20). Thus a Member State T. Koopmans and G.C. Rodriguez Iglesias, could transpose a directive by means of Judges. collective agreements, on condition that'the State guarantee'covered all cases where the Fifth Chamber protection required by the directive was not provided by collective agreements. Y. Galmot, President F.A. Schockweiler, G. Bosco, U. Everling, R. and Moitinho de Almeida, Composition of the Chambers and appoint- Joliet J.C. ment of Presidents of the Chambers I Judges.

2.4.36. On 3 October the Court made the Sixtb Chamber following appointments for a period of one year from 7 October 1986:2 C.N. Kakouris, President T.F. O'Higgins, T. Koopmans, O. Due, Judge F.A. Schockweiler as President of the K. Bahlmann and G.C. Rodriguez Iglesias, First Chamber, Judges. Judge T.F. O'Higgins as President of the Second Chamber, Appointment of First Advocate-General

Judge Y. Galmot as President of the Third 2.4.37. On 3 October the Court appointed Chamber, Mr C.O. Lenz First Advocate-General for one year f.rom 7 Octobe r. 2 Judge C.N. Kakouris as President of the Fourth Chamber, I For thc clcction of the Prcsidcnt of thc Court, sec OJ C Judge Y. Galmot as President of the Fifth 2n,29.10.1985, and Bull. EC 10-1985, point 2.5.45. Chamber, 2 oJ c 286, 13.11.1985.

Bull. EC 10-1985 Court of iustice

2.4.38. New cases

Taxation

2SZl85 Bergandi v Directeur Is the central government tax on automatic Article 177 EEC G6n6ral des Imp6ts (Direction des amusement machines incompatible with the Services Fiscaux de La Manche)l sixth VAT Directive, once the operation of automatic amusement machines is subiect to VAT, or with Article 95 or 30 EEC?

Competition

247/86 Alsatel v Novasam Interpretation of Article 86 EEC with regard to Article 177 EEC clauses of a contract for the rental of telephone installations. The duration of the contract, an exclusive supply clause and a price indexation clause are considered by the applicant to represent abuses

Free movement of workers

256/86 Frascogna v Caisse des Does the special old-age allowance come Article 177 EEC D6p6rs et Consignations within the substantive and personal scope of Council Regulation No 1512158?

Agriculture

250/86 RAR Refinarias de Annulment of Article 3 of Council Regulation Article 173 EEC Agricar Reunidas- v Council2 No2225/86laying down measures for the marketing of sugar produced in the French overseas departments and for the equalization of the price conditions with preferential raw sugar 253/86 Sociedade Agro-Pecuiria Annulment of Council Regulation No 2239185 Articles 173 and 215 Vicente Nobre v Council on a specific common measure to improve vine- EEC growing structures in Portugal, in so far as it is contrary to Community law; in the alternative, an order to the Community to make good the damage suffered by the applicant as a result of the non-application to it of Council Regu- lation No 777/85

Fisheries

264/86 France v Commission Annulment of Commission Regulation No Article 173 EEC 2469/86 laying down detailed rules for the granting of compensation to producers of tuna for the canning industry, and of Commission Regulation No 2470/86 determining the maximum amount of the compensation for tuna supplied to the canning industry for the period 1 January to 31 March 1985

I 98 ,Bull. EC 10-1985 I I j

l Court of Justice

Casc Basis

Transport

241/86 Openbaar Ministerie v Is a maximgm height of four merres imposed Article 177 EEC Bodin and Minguet & Thomas on all vehicles and trailers in the territory of a Member State contrary ro the rules regarding the free movement of goods and the freedom to provide services and the provisions relating to transport laid down in the EEC Treaty where such a maximum height does not exist in other Member States?

Infringements

255/86 Commission v Belgium2 Belgian rules on the marketing of fruit and Article 159 EEC vegetables contrary ro rhe rules concerning rhe common organization of rhe market in that sector

N7/85 Commission v ltaly3 Article 95 EEC and sixth VAT Directive Article 159 EEC discriminatory taxation on free samples of low- value

250/86 Commission v Belgiuma Failure to fulfil obligations under the second Article 159 EEC paragraph of Article 13 and Article 14 of the Protocol on the Privileges and Immunities of the European Communities and Article 7 of the EEC Treaty, by abolishing the benefit of a reduction in the tax on income from immov- able assets on a dwelling occupied by a tenant or leaseholder exempt from the tax on natural persons by virtue of international conventions, and by failing to take measures to allow the reimbursement of the reductions not granred in previous years

261/86 Commission v Germanys Failure by the Federal Republic of Germany to Article 159 EEC fulfil its obligations under Articles 15 and 19 of the Protocol on the Privileges and Immunit- ies of the European Communities and Arricle 72 of the Staff Regulations, by requiring persons in receipt of Community pensions ro Con- tribute to German sickness funds withour giv- in€ such persons the possibility of opting out OI \rerman SICKneSS lnSUrance

Disputes between the Community and its staff v Commission Z5l/86 Van der Srijll N8/86 Van der Stijla

N9/86 Cullingtona - 252/85 Van der Stijlr 266/86 Van der Stijl

oJ c 274,30.10.1986. oJ c 280,6.11.1986. oJ c 285, l2.l 1.1986. oJ c 288, l5.t 1.1985. oJ c 300,25.u.1e86.

Bull. EC 10-1986 99 Court of Justice

2.4.39. Judgments

Datc and casc

Free movement of goods

?3.10.1986: 355/85 Driancourt v Cognet Neither Article 7 of the EEC Treaty nor any other provision or principle laid down in that Treaty applies to a difference of treatment oPer- ated under a law which provides that the retail selling price of books is to be fixed by the pub- lisher or the importer of a book and is binding on all retailers where, as a result of that difference of treatment, there is no restriction on the Price of books oublished and printed in the Member State concerired where the'books are reimported after having first been exported to another Member State, whereas the price is fixed by the publishers where the books have not crossed a border within the Community in the course of the marketing process.

Customs union

8.10.1985: 385/85 S.R. Industries v Administration des Consideration of the question referred to the Douanesl Court has disclosed no factor of such a kind as to affect the validity of Commission Regulation No 3749183 in regard to sails imported from Hong Kong coming under CCT heading No 62.M. Competition

22.10.1985: 75/84 Metro SB-Grossmirkte v Com- Application dismissed I mission (annulment of Commission Decision 83/672/ EEC relating to a proceeding under Article 85 EEC Caie lY/29.598 SABA's EEC distribution- system). - 3.10.1986: 115/85 Northern Ireland Coal Importers' Ordered removed from the Court Register (appli- Association v Commission2 cation seeking annulment of Commission Decision No 85/152IECSC of 2l March 1985 authorizing agreements in relation ro the activities of the Nicia) Social security ,

I 23.10.1986: 300/84 Van Roosmalen v Bestuur van de 1. The expression 'self-emploled person' within Bedrijfsvereniging voor de Gezondheid, Geesteliike en the meaning of Article 1(a) (iv) of Regulation No Maatschappelilke Belangen3 7408/71, as amended by Regulation No 1390/81, applies to persons who are pursuing or havc puisued, other than under a contract of employment, in the exercise of an independent profession or by the independent operation of an undertaking, a professional or trade activity in respect of which they have received income per- miiting them to meet all or some of their needs, even if that income is supplied by third parties having the benefit of the services of a missionary priest i

100 Bull. EC 10-1985 Court of Justice

Datc and casc

2. National social securiry rules which apply to persons pursuing, or who have pursued, activities either wholly or parrly ourside the Community must be regarded as 'legislarion' within thl meaning of Article 2 of Regulation No 1408/71 3. Article 2(41 of Regulation No 1390/81 applies to a refusal by a social security institutibn ro award an invalidity benefit on rhe ground rhat the claimant has nor previously resid"ed continuously in the Member State concerned for a specified period. However, the claimanr may havi the benefit of that provision only with effect from 1 July 1982.

Agriculture

8.10.1985: 9/85 Nordbutter v Germanyl 1. The expression 'maximum number of calves less than four monrhs old which will be kept on the farm during the quarter in question', contained in Article a(l) (c) of Commission Regulation No 2793/77 refers to the highest number of calves kept on the farm concerne-d on any given day in that quarrer 2. The loss of the full amounr of rhe special aid where the declarations made concerning the number of calves kept on a mixed farm are incorrect or where thc period laid down in Article 4 of Regulation No 2793/77 is exceeded by more than 10 days is nor contrary to the principle of proportionality 3. The partial repayment of the special aid referred to in Article 5(3) (b) of Regulation No 2793/77 concerns cases where the application for aid submitted by the dairy covers-undertakings entered into by several farmers, of whom on-[y some have abided by their undertakings 8.10.1985: 143/85 Nicolas Corman et Fils v Office Belge The third indent of Article 5(1) of Commission de I'Economie et de I'Agriculture (OBEA)l Regulation No 649/78 must be interpreted as meaning that the presenrarion of contentrated butter in plastic packs of 2509 with a transparenr plastic lid through the upper surface of which it is possible to see rhe statements required by rhe i regulation printed on a sheer of paper piaccd inside the pack on the butter itself is lawfil 8.10.1985: 2j4/85 Sraarsanwalr Freiburg v Kellcrl Consideration of the question raised has disclosed no facrors of such a kind as to affecr the validity either of Article 2(2) (h) of Council Regulation No 355/79 or of Article l3(5) of Commission Regulation No 997181 8.10.1986: 320/85 Minisrdre Public v Maniglier2 The purchase of fruit by a rrader direct from producers and the transportarion of such fruit to the rrader's premises located outside the area of production but within the same Member Stare constitute acts of delivery or marketing requiring compliance with rhe obligarion to observe thE

Bull. EC 10-1986 101 Court of Justice

Datc and case

common quality standards referred to in Article 3(1)of Regulation No 1035/72, unless thoseoper- ations fallwithin any of the situations provided for in paragraphs 2 and 3 of that Article

Budget I

16.10.1986: 221/86 Ra Group of the European Right 1. The application is dismissed (suspension of and National Front Party v Parliament the decisibh of the enlarged Bureau of the Euro- pean Parliamenr dated 10 July 1985 on the allo- iation of the appropriations entered under Irem 3708 of the general budget of the Communities) 2. The ordir annuls and replaces that of 18 September 1986

Environment

3.10.1986: 78/79 BTP Tioxide v Commission2 Ordered removed from the Court Register (application seeking annulment of rhe Commission Decision of 19 February 1979 concerning BTP's Grimsby works)

Infringements

15.10.1986: 158/85 Commission v Italys 1. By maintaining in force provisions which (i) make reciprocity a condition for the treat- menr of foreign nationals in the same manner as Italian nationals in regard to certain occupations in the field of tourism, (ii) make Italian nationality a condition for registration as a trainee journalist or as a regular contributor to publications and make reciprocity a condition for the inclusion of professional journalists who are nationals of other Member States on the special register of foreign iournal- ists, and (iii) permit only Italian nationals to take part in competitions for the award of licences to operate pharmacies, Italy hal failed to fulfil its obligations under Articles 48, 52 and 59 of the EEC Treaty 3.10.1986: 291/83 Commission v France2 Ordered removed from the Court Register (Articles 5 and 30 EEC export price guarantees) -

3.10.1986: 388/85 Commission v Belgiumz Ordered removed from the Court Register (Council Directives 80/154/EEC and 80/155/EEC on midwives)

3.10.1985: 400/85 Commission v FranceZ Ordered removed from the Court Register (Article 30 EEC Administrative decisions suspending and subsequently- withdrawing approval of the welded wire mesh imported by ILRO)

3.10.1985: 423/85 Commission v Italy2 Ordered removed from the Courr Register (Council Directive 8l/1057/EEC on acquired I rights - freedom of establishment)

102 Bull. EC 10-1986 Court of Justice

Date and case

3. 10.1985: 75185 Commission v Belgium2 Ordered removed from the Courr Regisrer (Anicle 48 EEC and Regulation No 1512158 eligibility for employment with the Caisse- G6n6rale d'Epargne et de Retraite)

3.10.1985: 83/85 Commission v Francez Ordered removed from the Courr Register (Council Regulation No 1035/72 and eom- mis.sion Regulation No 1641/71 marketing and slzlng of pears) -

155/85 Commission v Belgium3 Ordered removed from the Court Register (Com- mission Directive 8L/916/EEC and Council Directive 83 /265 lEEC painrs, varnishes, printing inks, adhesives and- similar products)

3.10.1985: 138/85 Commission v Greece Ordered removed from rhe Court Reeistcr (levv- ing of a charge for checking rhe" pricis of imported products originating- in and coming from other Member States of the Community) -

Disputes between the Community and its staff

v Commission

2.10.1986: 75185 Raganelli:5 The applicarion is dismissed

8.10.1985: 169/83 and 135/84 Leussinck and Others:l The Commission is ordered ro pay Mr Leussinck the sum of BFR 2 million, together.with inrerest at 8o/o per annum from Z:'Mav- ti3+. the applications presented by Mrs Lzussinck n6e Brummelhuis and'her children ,.. aii*isJ 8.10.1985: 91185 Chrisr_(n6e Clemen) and Others,2 The.salar-y statements of the applicants Olga Prip.lata-Schneider and Elizabeth McDonnell for the monrhs of M.y to December ri'S'4 of tf,i applicant Anne-Marie Christ-Clemen for the months July ro December 1984 are annulled tothe"rj exrenr to which the salarypaid.ro_the said applicants was ldwer than thar piid ro;.*b;;;fih. r.1npor"ry .staff in Categories C and D in the same position 21.10.1986: 269/84 Fabbro:a the application is dismissed as inadmissible 21.10.1986 292/84 Scharf:a The Commission's Decisions of 30 November 1984 appointing Mr Teerlink, llgiq:ltil_the language Service, to the Category A posr declared ur.rnt by Vacan"cy Notice No COM/1207/84 and reiecting the appplicant's candiditure-for thar post ar. "nnuil.d 23.10.1985: 25185 Vaysse:7 The applicarion is dismissed 23.10.1986: 132/86 Papetti: Ordered removed from rhe Court Register

ol c 274,30.10.1986. oJ c 280, 5.11.1985. oJ c 288, 15.11.1986. oJ c 293, 19.1r.1985. oJ c 285, l3.t 1.1986. ol c 272,28.10.1985. oJ c 294,20.11.te86.

Bull. EC 10-1986 103 Economic and Social Committee

Court of Auditors egy in which competition has a key part to play ...' 2.4.40. On 15 October the Court of Audi- between companies.'Removal tors re-elected Mr Marcel Mart President Cooperation barriers is the prerequisite for with effect from 18 October in accordance of internal of the Community's domestic with the Treaty of 22luly 1975. development markei ... The smallest possible geographi- cal yardstick is now the Community ...' Economic and Social Committee lnnouation. 'A strategy to ,develop Com- munity industry must hinge on the promotion of innovation: the ability to create 240th plenary sess/on and incorporate innovation is today the key factor determining a company's competitive 2.4.4L. The Economic and Social Com- success on the world market ...' mitte held the inaugural session of its new rerm on 27, 22 and 23 October. Most of State aids. 'The Committee realizes how the session was taken up with procedural difficult it is for the Commission to questions relating to membership of the implement an aids strategy as part of a nrotros and sections and election of the coherent competition policy ...' Eu.."r. The Committee elected Mr Fons 'The Committee is Margot (Belgium various interests) to Public undertakings. alive to the difficulties caused for the Com- replace Mr Muhr as- Chairman. mission by the reticence of the Member Discussions proper were confined to the States, bui hopes that it will nevertheless Commission's Fifteenth Report on Compe- be possible to-achieve satisfactory results, tition Policy and the proposed amendment espicially if the Commission ensures that of the Directive on roadworthiness tests for thi responsibility of the member govern- motor vehicles. ments in this matter becomes public knowledge. The difficulties posed by the national moiopolies, especially the fiscal monopol- Policy Fifteenth Report on Competition ies, are still moie serious ... Support should neveftheless be given to the Commission's adopted nem. 2.4.42. The Committee endeavours to ai least reduce the impact of abstentions, an opinion on con., with four these State monopolies on trade ...' the Commission's Fifteenth Report on Competition Policy.l Air and sea transport. 'The steps taken by the Commission to ensure compliance with the Committee expresses the In its opinion the rules of open competition have already active and realistic compe- view that 'an had positive results and should be encour- policy will have to take account of tition aged ...' two fattors currently of particular import- i ance: the advent of worldwide markets, and Co-relation with other common policies. economic innovation ... Against a world 'Competition policy must develop - in backdrop of rapid change, the Committee a.corda.,ce wit[ the Treaty, like the other endorsei the Commission's conviction that policies social, trade, tax, transport, and "the promotion of dynamic, ilnovative ihe overall- policy on consumer Protection. compeiition will continue to be a key yard- Competition policy, which should be stick- in applying Articles 85 and 85 to dynamic and innovative, is seriously con- restrictions of competition"... sirained by the lack of harmonization and

coordination ...' i Against this backdrop of maior change, the crEation of a single market, as gradually as may be necessaiy, is a vital and urgently needed tool for the new Community strat- I Bull. EC 6-1986, point 2.1.79.

1M Bull. EC 10-1985 ECSC Consultative Committee

Legal procedure; certainty.in legal relations. the steel market in 1987 (-r point 2.4.45), 'The Committee notes the substantial pro- discussed the Community action procedural improvement (speed, guarantees for gramme to assist steel restructuring areis,3 adversary parties). [t] also welcomes the and adopted a resolution on the establish- increased use by the Commission ... of com- ment of the ECSC operating budget for munications and guidelines to notify com- 1987. panies and Member States o[ its approach, benchmark thus providing them with a Organization of the steel marketin 7987 which will help to clarify the law and make for certainty in legal relations ...' 2.4.45. The Committee delivered an opin- Relations with international organizations. ion on the organization of the steel market The Committee also mentions'the increas- in 1987. ing importance of active participation by Mr Narjes explained the Commission's pro- the Community in the work of the inter- posals for further liberalization of the Com- national organizations, particularly on mat- munity steel market in 1987.4 The Com- ters covered by Community policies.' mission plans to remove a further 20oh of steel production from the quota arrange- Roadworthiness tests for motor vehicles ments from 1 January 1987 in addition to and their trailers the 20o/o liberalized in 1986. With the broad support of the Committee 2.4.43. The Committee adopted unanim- Mr Castegnaro (workers, Luxembourg) ously an opinion on the proposal I for a moved a draft resolution stating that further Council Directive amending the Directive liberalization was premature as restructur- of 29 December L975 on the approximation ing was not yet complete. The consumers of the laws of the Member States relating (but not the stockholders) and, to a lesser to roadworthiness tests for motor vehicles extent, the Dutch steel producers opposed trailers.2 The Committee wel- and their the resolution. comed the objectives of the proposal, which is aimed primarily at increasing road safety Several minor amendments were made and and could have an impact on environmental a point was added asking the Council to protection and on fuel savings. The pro- transfer the appropriations needed to posal will also help to eliminate differences finance the social measures proposed by the between Member States and eventually to Commission 5 from the generil budget to bring the Community together in the area the ECSC budget in order to cushion the o[ road safety. effects of the restructuring of the steel and coal industries. The general discussion included an examination of the Community action programme to assist steel restructur- ECSC Consu ltative Committee lng areas.' By 55 votes to 8, with four abstentions, the 259th meeting Committee adopted a resolution in which it noted that the 20 million tonne annual 2.4.44. The ECSC Consultative Commit- surplus of hot-rolled steel products was too tee held its 259th meeting extraordi- high, that the restructuring of the Com- nary meeting on 17 October with Mr Roy Evans in -the chair. The Commission t was represented by Mr Karl-Heinz Narjes, 2 OJ C 133,3r.5.1986; Bull. EC 4-1985, point 2.1.151. Vice-President with special responsibility r oJ L 47,18.2.Dn. for industrial affairs. The Committee deli- Bull. EC7/8-1986, point 2.1.29. 4 Bull. EC 9-1986, point 1.2.1 et seq. vered an opinion, pursuant to Article 55 of 5 Bull. EC 4-1983, point 2.3.7; Bull. EC 7/8-1985, point the ECSC Treaty, on the organization of 2.1.85; Bull. EC 5-1985, point 2.1.33.

Bull. EC 10-1986 European lnvestment Bank munity steel industry was not yet complete between Tarbes and Soumoulou, rerouting and that moves to continue the liberaliza- of the RN20 in Haute Vienne, the Montau- tion set in motion on 1 January 1985 were ban southern bypass, the P6rigueux bypass, premature; it recorded the disturbing trend and widening of the RN9 in Aveyron and in the foreign trade balance in steel products the RN20 south of Cahors, Lot. The loan and feared a further serious crisis in the will also be used to part-finance the 11.2 Community industry. It accordingly called km Knuthange-Hayange section of the A30 on the Commission, the governments of the in Moselle and the dualling of the 8.9 km Member States and the Council to suspend spur of the A55 north of Marseilles. Most of the liberalization process forthwith, to these projects are also receiving assistance devise a crisis management plan, to curb from the European Regional Development the increase in steel imports, to prepare for Fund (ERDF). and introduce the second phase of restruc- A global loan (line of credit) of FF 50O turing in parallel with further liberalization million will be onlent by the Caisse d'aide of the Community steel market and, lastly, l'6quipement des collectivit6s locales to adopt a decision to transfer from the ) (CAECL) for small and medium-scale pub- generaf budget the ECSC budget the to lic infrastructure projects implemented by 122.5 million ECU needed to finance the local authorities (region, departments and social measures until the end of the year municipalities), chambers of commerce and and to continue to fund them thereafter. autonomous ports in areas eligible for regional development aid. Since 1980, in European lnvestment Bank addition to this loan, the EIB has channelled FF 3 300 million to CAECL for such projects, mainly to improve the departmental Operations in October road network, port infrastructure and the rural electric grid. 2.4.46. Loans totalling 507.6 million ECU 1 for investments within the Com- A loan of FF 300 million was made to the munity were announced by the EIB in Soci6t6 nationale des chemins de fer franEais (SNCF) (TGV) October 296.1 million in France, 103.8 for the high-speed train proceeds go towards million in- Greece,71.1 million in Germany, Atlantique. The wil 21.8 million in the United Kingdom and the laying of 273 km of double-track line 14.8 million in the Netherlands. Of this designed to carry trains at 300 km per hour: total, 58.4 million ECU was lent from the the 724 km from Paris to Courtalain will the west and the south-west and resources of the New Community Instru- serve both (50 ment (NCI).2 Outside the Communiry the there will be branches to Le Mans km) (99 Bank lent 3 million ECU to Burundi under and Tours km). The new line will con- the third Lom6 Convention. nect up with the network already serving Brittany and the south-west. New trains will also be purchased and stations and Community workshops improved. The TGV Atlantique is the SNCF's major investment project for France the coming years and will reduce and ration- alize energy consumption in the transport 2.4.47. The Bank lent more than FF 2 000 sector, mainly by attracting a large number million in France, mainly for investments in infrastructure and industry. FF I 500 million was for road, motorway Thc convcrsion rarcs ar 30 Scptember 1986 uscd by the: and railway projects and small and med- EIB in statistics for thc final quartcr wcrc 1 ECU pro- BFR 43.35, DKR 7.89, DM 2.09, DR 139.10, ESC 151.35, ium-scale infrastructure projects. Seven FF 6.85, HFL 2.36, IRL 0.75, LFR 43.35, LIT 1 445, jects designed to open up the south-west PTA 137.55, UKL 0.71, USD 1.03. received FF 500 million: the A54 motorway OJ L 298,20.10.1978; Bull. EC 10-1979, point 2.1.10.

10,6 Bull. EC 10-1986 European lnvestment Bank of passengers who would otherwise have technological cooperation. The factory will used their own cars. be given over entirely to the production of applications-specific integrated circuits. The CAECL will onlend FF 88 million to It will use the technology of direct writing on regional authorities in Brittany and the Loire region and in the departments of silicon wafers, as yet not applied in Europe. whose shareholders include British Loire-Atlantique, C6tes-du-Nord, Finistdre, E52, Aerospace, Brown, Boveri, Olivetti, Ille-et-Vilaine and Morbihan for the moder- Bull, Philips, Saab Scania, Telef6nica, Telfin, and nization of major road routes important for venture the trade and tourist traffic between the north capital corporations, will be first company the Community bring (Roscoff, St Brieuc and St Malo) and the in to the design and manufacture of this type south (Quimper, Lorient and Vannes) and of product under one roof. between these peripheral areas and the rest of the country (the AlL motorway between A loan of FF 50 million was granted for a Rennes and Nantes and between St Malo hydroelectric project on the upper Rh6ne, and Fougires). The projects will help open 50 km north of Lyons. This project, to be up some of the more remote inland areas carried out by the Compagnie Nationale du (Pontivy and Loud6ac in particular) and Rh6ne (CNR), includes a dam and a 45 improve routes to the ports of Roscoflf, St MW hydroelectric power station. Using a Malo, Douarnenez and south-west Brittany. renewable energy source, it will save some The region of Lorraine will receive FF 30 54 000 tonnes oil equivalent per year, in line million for bypasses on the RN4 (Paris- with Community objectives. Nancy-Strasbourg) and the RN 59 and RN 65 (textile areas in the Vosges), completion Greece of the A31 motorway to Thionville and a bypass at Longwy, involving 72.4 .km of 2.4.48. Loans totalling DRA 14 500 new carriageway including three viaducts million were made to Greece, including (two at Longwy and one at Thionville). DRA 14 000 million for the modernization The works will involve the Charmes-Vincy, and conversion of Hellenic Aspropyrgos's Arches-Pouxeux, Remiremont, Lun6ville oil refinery near Eleusis in Greater Athens. west, Saint Di6 and Lun6ville east bypasses, The factory is to be redesigned to produce the sections north-west and south-west of lighter oil distillates for the manufacture of Longwy, and the extension of the motorway fuel with lower lead and sulphate contents. to Thionville. The ERDF will also provide The EIB will also help finance plant and financial assistance for some of these links. equipment to reduce air and water pol- A further FF 559 million was lent for invest- lution, thereby improving the quality of the ments in industry. Of this total, FF 499 environment, of particular importance in million is in the form of two global loans the Athens area. to the Cr6dit d'6quipement des PME, the A further DRA 450 million will be used for main financing body for small businesses in infrastructure work to improve conditions France: FF 400 million the to from NCI at Athens airport, especially at the east ter- finance investment by small businesses in minal. The project, which will improve industry and local services in areas not eli- both capacity and security, involves extend- gible for regional development aid; and FF ing the charter terminal and the arrival area 99 million from the EIB's own resources for and includes a number of service facilities similar investments in areas eligible flor such and eight security towers. aid. European Silicon Structures SA (ES2) received a loan of FF 50 million to build an integrated circuits factory. This plant is the Germany fruit of cooperation between a number of industrial firms in the Community and is 2.4.49. A loan of DM 150 million was part of the Eureka programme for European granted to help finance the construction or

Bull. EC l0-1985 t07 European lnvestment Bank adaptation of thermal power stations with equipment for the repair and overhaul of a a view to improving energy supplies and large range of jet engines and components, reducing dependence on imported oil and including undercarriages and auxiliary bringing existing production capacity into power units. The investment will help create line with new national legislation on the 270 jobs in a development area which has environment. suffered job losses in mining, shipbuilding and traditional manufacturing industries. Of this sum, DM 100 million will part- finance the construction of a coal-fired elec- Netherlands tricity- and heat-generating station near Hanover to replace three units which do 2.4.51. In the Netherlands a loan of HFL not meet the new legal requirements. It will 35 million was granted to help finance the be fitted with the latest flue-gas-treatment construction of a factory in Geleen for the equipment, thereby substantially reducing manufacture of aspartame, an artificial atmospheric pollution in the area. The plant sweetener not currently produced in will comprise two coal-fired steam gener- Europe. This product, which is low in calor- ators producing a total of 415 MW of heat ies and tastes like sugar, will be manufac- and 218 MW of electricity. tured using a new inexpensive enzyme- based process not previously used in the The remaining DM 50 million will go Community. Directly and indirectly the towards installing a fluidized-bed system in project will create some 140 jobs in southern the \Wuppertal-Elberfeld coal-fired power Limburg, a former coalmining area with a station. This is the cleanest process avail- very high unemployment rate. able at present and will replace three co- generators by a single two-boiler unit with Outside the Community a total capacity of about 300 MW/th. This project will substantially improve the qual- ACP States ity of the air in this densely populated region and bring emissions within the new legal 2.4.52. The EIB lent 3 million ECU under requirements. the third Lom6 Convention to help finance small businesses in the industrial, agro- industrial and tourism sectors in Burundi. United Kingdom This global loan has been made to the Ban- que Nationale pour le D6veloppement 2.4.50. Loans totalling UKL 15 million Economique (BNDE) from risk capital were granted in the United Kingdom. UKL resources provided for under the Conven- 10 million will go towards protecting the tion and managed by the EIB. The interest environment in the south-west by installing rate and term will vary according to the use drainage networks in the counties of Avon, actually made of the funds: up to 10 years Somerset and Dorset, thereby improving the and 2o/o for the financing of feasibility stud- quality of the River Avon near Bristol and ies; up to 25 years and 2o/o in the case reducing coastal pollution at the resorts of of equity participations in individual firms Minehead and \ileymouth. The remaining designed to bolster their capital base and UKL 5 million will help finance the expan- facilitate their start-up or expansion; up to sion of an aircraft engine overhaul factory in 15 years and 3oh for conditional loans to Scotland. The loan will enable Caledonian firms. BNDE was established in 1955 and Airmotive Ltd, based at Prestwick Inter- is Burundi's leading development bank; its national Airport near Glasgow, to install main shareholder is the State.

108 Bull. EC 10-1985 PART TI1 REE DOCUMENTATION

\ \ 1. ECU

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

31 October 19851 Conuersion rates into national currencies for the ECU used in connection with the common agricuhural policy Belgian franc and Luxembourg franc (convertible) 43.3557 October 1985 Belgian franc and (financial) Valuc in Luxembourg franc 43.6588 National currency national currency of onc ECU Danish krone 7.85828 Belgian franc and German mark 2.08796 Luxembourg franc 47.$101 46.87122 Greek drachma 141.424 Danish krone 8.58 163 I Portuguese escudo 153.074 8.540642

French franc 5.8 1506 German mark 2.41M73 2.397924 Dutch guilder 2.3587 5 2.385155

Irish pound 0.765734 Greek drachma 716.673

Italian lira I 444.35 Portuguese escudo 153.2836 151.8122 Spanish peseta 140.242 French franc 7.312483 7.545467 Pound sterling 0.720932 7.207718 7.201.3tl United States dollar 1.01039 7.099672

Swiss franc 1.73382 Dutch guilder 2.7162G 2.701784 Swedish krona 7.11817 2.68749s

Norwegian krone 7.62084 Irish pound 0.8177561 0.7824782 Canadian dollar 1.40555 Italian lira I 539.00e Austrian schilling 14.7062 1 554.0d

Finnish mark 5.07669 Spanish peseta 147.2081 145.7962 yen 165.552 Japanese Pound sterling 0.6540443 0.6356261 Australian dollar 1.57627 0.6269942

1.99091 New Zealand dollar I For lrvestock products. 2 For crop products. I ol c 276,1. u.1986. J For mrlk and mrlk products. 4 for ccreals. 5 For othcr products. 6 For sheepmeat and goatmeat. NB. Explanatory notes on the ECU and 'grcen' rarcs can bc 7 For pigmeat. found in Bull. EC 7/8-1982, points 3.1.1 to 3.1.3, and Bull. 8 For winc. 9 for ccreals and orlseeds. EC 10-1984, point 3.1.1.

110 Bull. EC 10-1986 2. Additional references in the Official Journal

3.2.1. This section lists rhe titles of legal instru- Bull. EC 7/8-1986 ments and notices of Community institutions or organs which have appeared in the Official Journal since the last Bulletin was published but relating Points 1.2.1 to 1.2.6 to items appearing in earlier issues of the Bulletin; the references were not available when the Bulletin Proposal for a Council Regulation concerning the framework programme of Community activities in went to Press. the field of research and technological develop- The number of the Bulletin and the point to which ment (1987 to 1991) this additional information refers is followed by OJ No C275,31.10.1986 the title shown on the cover of the Official Journal, issue of publication. the number of the and the date Point 2.1.10

Commission Decision of 16 1985 authorizing Bull. EC 4-7986 July Spain to adopt protective measures in respect of urea imports Points 1.3.1 to 1.3.8 OJ No L 303,29.10.1986

Proposal for a Council Regulation amending Regu- Point 2.1..89 lations (EEC) No 797 /85, (EEC) No 270/79, (EEC) No 1350/78 and (EEC) No 355/77 as regards agri- Proposal for a Council Directive amending Direc- cultural structures, the adjustment of agriculture tive77/388/EEC on the harmonization of the laws to the new market situation and the preservation of the Member States relating to turnover taxes in of the countryside respect of the common value-added tax scheme applicable to small and medium-sized businesses Proposal for a Council Decision amending Decision 83/641/EEC adopting joint research pro- OJ No C272,28.10.1986 grammes and programmes for coordinating agricultural research Point 2.1.130 OJ No C273,29.10.1985 Commission Decision of 20 August 1985 approving an integrated Mediterranean proBramme for the Bull. EC 5-1986 island of Crete (Greece) OJ No L282,3.10.1986 Point 2.1.54 Point 2.2.34 Commission Decision of 2l May 1985 on aid granted by the Federal Republic of Germany and Proposal for a Council Regulation on food-aid rhe Land of Bavaria to a producer of polyamide policy and food-aid management and polyester yarn situated in Deggendorf OJ No C265,21.10.1985 OJ No L 300,24.10.1985 Point 2.4.34

Bull. EC 6-1986 Special report No 2/86 on the ERDF's specific Community regional development measures (non- quota measures) accompanied by the Com- Point 2.1.152 mission's replies OJ No C262,20.10.1985 Proposal for a Council Decision concerning the conclusion, on behalf of the Community, of the Convention for the protection, management and Points 2.4.36 to 2.4.47 development of the marine and coastal environment of the eastern African region and the two Opinions adopted by the Economic and Social Protocols annexed thereto Committee during its session of 2 and 3 July 1985 OJ No C 253, 10.10.1986 9J N" C263,20.10.1985

Bull. EC 10-1986 111 I nf ringement procedures

Bull. EC 9-1986 Point 2.1.114

Amended proposal for a Council Regulation (EEC) Point 2.1.97 laying down general rules on the definition, description and presentation of spirituous beverages Proposal for a Council Directive on the approxi- Amended proposal for a Council Regulation (EEC) mation of the laws of the Member States concern- laying down general rules on the definition, ing products which, appearing to be other than description and presentation of vermouths and they are, endanger the health or safety of con- other wines of fresh grapes flavoured with plants sumers or other aromatic substances OJ No C272,28.10.1986 OJ No C259,U.10.1986

3. !nfringement procedures

Initiation of proceedings for failure laws, regulations and administrative provisions of to implement directives the Member States relating to restrictions on the marketing and use of certain dangerous substances 3.3.1. In October the Commission sent letters of and preparationss (Belgium, Germany, Ireland, formal notice for failure to incorporate directives Italy). into national law (the Commission not having been informed of national implementing measures) in Commission Directive of 18 April 19847 adapting the following cases: the Council Directive of 26 June 1978 on the approximation of the laws of the Member States relating to the classification, packaging and label- (pesticides) 8 Internal market and industrial affairs ling o1 dangerous preparitions- (Greece).

Council Directive of 13 December 1983 1 amend- the second time the Council Directive of ing for Transport 18 December 7975 on the approximation of the laws of the Member States relating to certain partly or wholly dehydrated preserved milk for human Council Directive of 25 October 1983 9 amending consumption 2 lBelgium, Denmark, Germany, the Council Directive of 13 May 1955 concerning Greece, France, Ireland, Italy, Luxembourg, the standardization of certain rules relating to Netherlands, United Kingdom). authorizations for the carriage of goods by road between Member Stateslo and the first Council Council Directive 31 March 1982 on the of Directive of 23 July 1962 on the establishment of approximation of the laws of the Member Stares common rules for certain types of carriage of goods relating to methods of testing the biodegradability by road between Member Statesll (Greece). of non-ionic surfactants r and amending the Council Directive of 22 November 1973 a (Greece). 19823 amending Council Directive of 31 March oJ L 357,21.12.1983. the Council Directive of 22 November 1973 on the oJ L 24,30.1.t976. approximation of the laws of the Member States oJ L 109,22.4.t982. oJ L 347,17.t2.t973. relating to methods of .testing the biodegradability oJ L',U3,24.9.t983. of anionic surfactantsa (Greece). oJ L 262,27.9.tv76. oJ L 144,30.5.1984. Council Directive of 19 September 19835 amend- oJ L 206,29.7.1978. oJ L 332, 28.1 1.1983. ing for the fifth time (asbestos) the Council Direc- l0 oJ 88, 24.5.1965. tive of 27 July 1976 on the approximation of the ll oJ 70,6.8.1962.

112 Bull. EC l0-1986 I nfringement procedures

Environment and consumer protection the interests of members and others, are required by Member States

Bull. EC 10-1985 113 Grants for research into European integration, 1,987 -88

In order to encourage university research in the field of Ertropean integration, the Commission of the European Communities will award, in July 1987,

20 RESEARCH GRANTS OF A MAXIMUM OF 4 5OO ECUI

CONDITIONS:

l. The awards will be given to young university teaching staff at the start of their career who, individually or as a team, are doing research work on European integration. 2. Application forms are available from the Press and Information Offices of the European Communi- ties given below.2 The application musr be submitted in duplicate and should contain: an application form; a 5-10 page typed description of the research project; a curriculum vitae; a certificate from rhe institution, confirming the position currently held by the applicant; an estimate of the cosrs involved. 3. Applicants should not be over 40 years of age. 4. Awards are not renewable. 5. The maximum award of 4 500 ECU is paid in two insralments, ar the beginning and at the end of . the research. 6. Award holders who do not complete their research must reimbuse the grant. 7, Employees of the institutions of the European Communities as well as their spouses and children are not eligible to apply. 8. The manuscript of the research should amount ro a minimum of 40 000 words. Languages admitted: Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Spanish. Final type-written text ro be submitted in duplicate. Deadline for submission of the research: 1 October 1988. 9. The Commission of the European Communities may assist with the costs of publishing rhe work. 10. The awards will be made by 15 July 1987 ar the larest. 11. Applications must be submitted by 31 March 1,987 to: Commission of the European Communities Directorate-General Information, Communication, Culture University Information 200 rue de la Loi 8-1049 Brussels (TeI.235 45 83 or 235 25 85)

| 4 500 t-cu = circa BFR/LFR 2m 000, DKR 35 0m, DM I0 000, DR 620 000, ESC 580 000, FF 30 000, Hl-L I I 000, IRL 3 500, LIT 6 5m 000, PTA 620 000, UKL 3 200. 2 Applrcarion forms. can bc obtained from rhe above adrlress or from rhe Press and Information Offices of thc F-uropean Communrties lrsted helow: ATH!-NS: 2, Vassthssis Softas, T.K. 1502, Athinai 134. ANKARA: KuleL Sokak 15, Glzi Osman Paga, Ankara. BONN: Zrtclmannstra8e 22, D-5300 Bonn. BANCKOK: Thai Mrlrtary Bank Bld,,9th & lOth FIrs,34, Phya BRUSSF-LS: Rue Archrmide 73, B.l0,l0 Bruxelles. Thai Road, Bangkok, COPI-NHAGI-N: Holbrohus, Ostcrgade 51, Postbox 144, CANBF-RRA: Caprtol ccntre, Frankhn Street, PO Box 609, DK-10O4 Kobcnhavn-K. Manuka ACT 2503 Canberra. DUBLIN: 39 Molesworth Street, f)ubhn 2 CARACAS: Valle Arnba, Callc Cohbri, Carretera de Barruta, THE HAGUE: Langc Voorhour 29, Den Haag. Caracas. LISBON: 35, rua do Sacramento i Lapa, 1200 Lisboa. CF-NEVA: rue de Vermont,37-39, CH-l2ll Gcnlve 20. |pNDO\ S Sgrey's Gate, London SWI P3AT. OTTATVA: Office Tower (Suite l l l0), 350 Spraks Strcer, Ottawa LUXF.MBOURC: Bitiment Jean Monnet, Luxembourg- Onr. KIR 758. . KIgltcrg. .. TOKYO: Kowa 25 Burldrng 8-7 Sanbancho Chiyoda.Ku, Tokyo NIADRID: Calle dc Serrano 41,5a planta, Madrid 28001. 102. PARIS:61, ruc dcs Bclles fcurlles, F-75782 Paris Cedex 16. VASHINCTON: 2100 M Street N.V (Surte 707) Vashington ROIvtF.: Vra Poh,29, I-00187 ROMA. DC 20037, USA.

tt4 Bull. EC 10-1986