Bulletln of the EUROPEAN COMMUNITIES E'> Lr- Commission

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Bulletln OF THE EUROPEAN COMMUNITIES e'> lr- Commission

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\ P No 718 1e85 Volume 1B The Bulletin of the European Communities reports on the activities of the Commission and the other Community institutions. lt is edited by the Secretariat-General of the Commission (rue de la Loi 200, B-1049 Brus- sels) and published eleven times a year (one issue covers July and August) in the official Community languages, Spanish and Portuguese.

Reproduction is authorized provided the source is acknowledged.

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

Supplements to the Bulletin are published in a separate series at irregular intervals. They contain official Commission material (e.9. communications t' 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 7lA 1 985 Sent to press in October 1985 Volume 18 co nte nts

PART ONE PETfIi*',, 1. lnstitutional reform Convening of the intergovernmental conference - 7 2. Perspectives for the common agricultural policy Com- mission Green Paper - 11 3. Mediterranean policy of the enlarged Community Mainten- ance of traditional agricultural trade - 17 4. General system for the recognition of higher education diplomas 19 5. Product liability 20 6. Comett programme: university-industry cooperation in training for the new technologies 21 7. The European steel industry after 1 985 22

PA RT TWO fi,"r'Wi'rcusr 1e8s 1. Building the Community 26 - Economic and monetary policy 26 - lnternal market and industrial affairs 28 - lndustrial innovation and the information market 34 - customs union 34 - Competition 37 - Financial institutions and taxation 46 - Employment, education and social policy 47 - Regional policy 51 - Environment and consumers 54 - Agriculture 59 - Fisheries 67 - Transport 70 - Energy 70 - Research and development 74 2. Enlargement and bilateral relations with Portugal and Spain 80 3. External relations 81 - Commercial policy 81 - Relations with industrialized countries 84 - Relations with other countries and regions 87 o Mediterranean countries 87 o Countries of the Gulf and the Arabian peninsula 89 o Asia 89 o Latin America 90 o State-trading countries 90 - Development 91 - lnternational organizations and conferences 97 - Diplomatic relations 97 4. Financing Community activities 98 5. Political and institutional matters 104 - Political cooperation 104 - European policy and relations between the institutions 106 lnstitutions and organs of the Communities 107 - o Parliament 107 o Council 112 o Commission 114 o Court of Justice 11 5 o Court of Auditors 131 o ECSC Consultative Committee 131 o European lnvestment Bank 133

PART THREE DOCU M ENTATION ' 1. ECU 138 2. Additional references in the OfficialJournal 139 3. lnfringement procedures 141 4. Statement on Luxembourg's term as Council President 145 ti tl ii il lt Supplements 1 985 it 1185 The thrust of Commission policy: Statement by Jacques Delors, President of the Commission, to the European Parlia- ment and extracts from his reply to the ensuing debate

2/gS Consumer redress

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

4185 Programme of the Commission for 1985

.5/85 Progress towards a common transport policy Maritime transport -

'6185 Advanced manufacturing equipment in the Community Commission communication -

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Standardized abbreviations lor the designation of csrtain monotary units in tho ditteront languages ol the Community: ECU - Europoan currency unit BFR = B€lgische frank / Franc belge DKR = Dansk krone DM = Deutsche Mark DR : Greek drachma FF = Franc frangais HFL = Nederlandse gulden (Hollandse tlori,n) IRL = lrish pound / puni LFR : Franc luxembourgeois LIT = Lira italiana UKL = Pound sterling USD : Unit€d States dollar 1 . Institutional reform

Convening of the December 79844 and presented its final report to the European Council on 19 i ntergovern menta I conference s March this year. this report-both sers our measures for strengthening policiei 1.1.1. At its meetingon22and23 July the and institutions and suggests a way of Council delivered a favourable opinion on achieving these reforms (an intergovern- the convening of a Conference of Represen- mental conference to negotiate a draft Euro- tatives of the Governments of the Member pean Union Treaty). Some members of the States, after receiving the opinions of Parlia- Committee entered reservations or made ment and the Commission. comments on some points of the report, but a large majority unreservedly endorsed all This conference has been convened bv the the proposed reforms. Council President. The first meeting will be held on 9 September. 1.1.5. At the European Council held in Brussels on 28 and 29 March 1985 there was an exchange of views on the Dooge Background Committee report, and the Council agreed that detailed examination of the Commit- 1.L.2. On 14 February 1984 Parliament, at tee's proposals would continue by means the initiative of Mr Altiero Spinelli, adopted of bilateral contacts, so that the European by a large majority a draft Treaty establish- Council could arrive at final conclusions at ing the European Union,l which has been its next meeting in Milan.6 presented to the parliaments and governments of the Member States. This draft was 1.1.6. On2l May Italy (presiding over the broadly based on the Commission's 1975 Council) then submitted a draft brief for Report on European Union. the intergovernmental conference which In respnse to Parliament's intitiative, Presi- involved negotiating a treaty for the gradual dent Mitterrand told Parliament on24 May completion of European Union. In response 1984 that France was willing 'to examine to this initiative, the Netherlands Govern- and defend your project, the inspiration ment proposed that the main aim of the behind which it approves' and suggested conference be to revise the EEC Treaty in preparatory consultations, perhaps leading accordance with Article 236 and to draw up to a conference of the Member States inter- a protocol to the Treaty to consolidate and ested.2 institutionalize political cooperation.

1.1.3. The European Council, meeting at The brief for the conference was discussed Fontainebleau on 25 and 26 lune 1984, by the Foreign Ministers at their informal decided to set up an ad hoc Committee on meeting in Stresa on 8 and 9 June,7 when Institutional Affairs, consisting of personal the British Government submitted a docu- representatives of the Heads of State or ment on the decision-making process Government of the Member States and the (modifications not requiring changes in the President of the Commission.3 The Com- Treaty) and a draft agreement on political mittee was 'to make suggestions for the cooperation. improvement of the operation of European cooperation in both the Community field and that of political, any other, cooper- or I Bull. EC 2-1984, point l-l.l et seq. ation'. z 3 Bull. EC 5-1984, point 3.4.1. 4 Bull. EC 6-1984, point 1.1.9 (section 7). 1.1.4. The ad Doc Committee, chaired by s Bull. EC 11-1984, point 3.5.1. Senator Dooge, submitted an interim Bull. EC 3-1985, points 2.4.3 and 3.5.1. James 6 Bull. EC 3-1985, point 1.2.9. report to the Dublin European Council in 7 Bull. EC 6-1985, point 2.5.2.

Bull. EC 7/8-1985 Convening of the intergovernmental conference

1.1.7. Other initiatives were forthcoming conference.l At the end of this discussion just before and during the European the President noted that the maioriy Council meeting in Milan on 28 and 29 June required by Article ?36 of the EEC Treatyl 1985: was in favour of convening an intergovernmental conference to draw up (i) a French memorandum on progress in European integration, (i) a treaty on a common foreign and (ii) a Franco-German draft Treaty on the security policy, European Union, (ii) the amendments to the EEC Treaty, (iii) a British paper on the role of the in accordance with Article 235, required European Parliament, for the implementation of the institutional changes concerning the Council's decision- (iv) a German paper concerning the con- making procedure, the Commissions's clusion of a Treaty on the European Union. executive powers, the powers of Parliament and new areas of activity. 1.1.8. The Commission, which had played the extension to an active part in the work of the Dooge Committee and the preparations for the 1.1.10. In accordance with the procedure European Council in Milan, supported the laid down in Article 246 EEC the Luxem- idea of an intergovernmental conference as bourg Government submitted on 2 July a requested by Parliament and proposed in proposal for the revision of the EEC Treaty, the Doog Committee report. But without in the following terms: Com- waiting for this overall reform, the 'A revision of the Treaty establishing the European mission proposed at the European Council Economic Community should be undertaken with meeting a limited amendment to three pro- a view to visions of the EEC Treaty when the Treaties pro- Accession of Portugal and Spain were r improving the Council's decision-making of cedures, ratified. The object was to render decision- making more democratic and efficient. The . strengthening the Commission's executive amendments concerned Article 57(2) (f.ree- POwer, dom of establishment in the professions), o increasing the powers of the European Parlia- Article 99 (harmonization of indirect tax- ment, ation) and Article 100 (harmonization of extending Community policies to include proposal o and legislation). One was that the una- new areas of activity. nimity required in the Council should be replaced by a qualified maiority when a These amendments should be based on the pro- majority of the members of Parliament had posal made by the Dooge Committee and the backed a Commission proposal. The other Adonnino Committee and also on certain aspects was to give the Commission, assisted by of the Commission proposal concerning freedom an advisory committee, greater executive of movement of persons.' powers.

!flhen the European Council tended to fav- I Bull. EC 6-1985, point 1.2.2. our convening an intergovernmental confer- 2 'The Government of any Member State or the Com- ence, the Commission withdrew this pro- mission may submit to the Council proposals for the amend- posal, which had made in the belief that ment of this Treaty. If the Council, after consulting the it Assembly and, where appropriate, the Commission, delivers a decision could be taken straightaway in an opinion in favour of calling a conference of represcnta- the context of enlargement. tives of the Governments of thc Member States, the conference shall be convened by the Presidcnt of the Council 1.1.9. The Milan European Council held for the purpose of determining by common accord the amendments to be made to this Treaty. The amendments a wide-ranging discussion of institutional shall enter inro force after being ratified by all the Membcr questions and, in particular, considered the States in accordance with their respective constitutional idea of convening an intergovernmental requirements.'

8 Bull. EC 7/8-1985 Convening of the intergovernmental conference

Parliament's opinion to a common foreign and security policy, changes to be made to the dicision-making process and the 1.1.11. Even before being formally con- inclusion of new spheres of activity in Community comPetence, sulted by the Council, on 9 July Parliament delivered an opinion in favour of convening Following this decision the Luxembourg Govern- an intergovernmental conference. 1 In its ment presented a proposal for amendments to the Treaty establishing the European Economic resolution Parliament insisted that it should Community to the Council of the European Com- participate on an equal footing with the munities. Conference of Representatives of the Mem- The Commission naturally supports the con- ber States in drawing up and approving the 2. vening of an intergovernmental conference. This the draft Treaty before it was submitted to initiative is a logical extension of the process set Member States for ratification. It also in train many years ago which prompted pro- insisted that real reform of the Community duction by the European Parliament of its draft political cooperation requires a Treaty establishing the European Union and pres- and of . , treaty encompassing all Community poli- entation of a report by the ad boc Committee cies and the institutions needed to for Institutional Affairs set up by the European at Fontainebleau in 1984. As agreed demo- Council June implement them in an efficient and by the European Council in Milan it is necessary, cratic manner. in the general context of transition to European Union,lo make fresh progress not only on economic and social integration but also on foreign The Commission's opinion policy. Indeed, the fact that the two form an indi- visible whole should be recognized by incorporat- 1.1.12. Consulted by the Council at its ing the proposed new provisions in a single framework. 22 and 23 July meeting, the Commission delivered a favourable opinion on the con- 3. The proposed institutional changes should vening of an intergovernmental conference strengthen the democratic base of the European venture through increased involvement the with a view to amending and expanding the of European Parliament, using procedures designed need a EEC Treaty.2 It emphasized the for to faiilitate rather than complicate decision mak- unified institutional framework for Com- ing. This was the tenor of the suggestion the Com- munity and political cooperation activities mfusion made to the European Council in Milan. Com- ----one Council, one Parliament, one A second series of amendments should concentrate mission-which alone would prove effec- on the Council and the Commission. The Com- tive and speed progress towards European munity today finds it difficult to take decisions or Union. For this reason it wanted a single takes them too late. If it is to face up to the conference to deal with all these problems. challenges of the modern world the Community, as It also requested that Parliament should be proposed by the Luxembourg Government, must implove decision making within the Council closely involved in the work of the confer- (notably by extending majority voting) and give ence. the Commission increased executive Powers. 'The Commission of the European Communities, The vears have also revealed the need for reform in an'other area: if the Community is to achieve its Having regard to Article 236 of the EEC Treaty' allotted aims and live up to the expectations of the must Having regard to the proposal for amendments to people of Europe, Community competence the Treaty establishing the European Economic be defined and, in certain instances, extended. Community presented the Luxembourg Firstly, the Community should be in a position to by policies Government to the Council of the European Com- press ahead with implementation of the even the aims of munities by letter dated 2 1985, |rovided for by the Treaties if July iction taken are not exclusively economic (the the creation people's Europe following opinion: obstacles to of a hereby delivers the could, for instance, be removed). Secondly, the 1. The European Council in Milan on28 and29 Community should be in a position to Pro- Iune 1985 detided to convene a conference of iepresentatives of the Governments of the Member Stites to draft the provisions needed to achieve I oJ c 229,9.9.1985. concrete progress on European Union with regard 2 coM(85) 455 final.

Bull. EC 718-1985 Convening of the intergovernmental conference

mote-in areas sulch as human rights, education business rapidly can the Community, without and the arts-the shared values which are an essen- more ado, channel all its energies into accomplish- tial ingredient of European identity. ing the priority tasks it has assigned itself. 4. Efforts to consolidate, strengthen and widen 9, The Commission will present proposals on all cooperation between the Member States on com- areas covered by the conference in due course.' mon foreign and security policy (the expression used in the Milan communiqu6) must draw on the Mr Delors, the Commission President, and experience of fifteen years of political cooperation. Mr Ripa di Meana, the Member with special responsibility institutional ques- 5. If there is a genuine desire to move towards for European Union, it is imperative rhat the two areas tions, will take political responsibility for of activity be combined. Otherwise fresh obstacles the work and will represent the Commission will be created, multiplying possible sources of at the conference's ministerial-level meet- conflict and weakening the potential and dyna- ings, sharing the tasks between them. The mism of the Community established by the Treat- Commission is resolved to play an active ies of Paris and Rome. Realistic conditions for role and to take all the initiatives likely to osmosis between economic, social, financial, and monetary affairs on the one hand and foreign lead to the successful outcome of this new policy on the other must be established. development in the history of Europe. At the end of the day only unified institutions-one Council, one Parliament, one Commission-will prove effective and speed progress towards Euro- The Council's opinion pean Union. 1.1.13. At its meeting on 22 and 23 6. The step-by-step approach adopted to estab- July lish the common market should be emulated by the Council delivered an opinion in favour those drafting the proposed new provisions. What of calling a Conference of the Representa- is essential, however, is that the conference should tives of the Governments of the Member define objectives with the clarilty and courage the States. This conference, called by the current situation requires in the interests of Euro- Council President, would take place at Fo- Pean rntegratron, reign Minister level. The Commission 7. The objectives and principles endorsed by the would participate fully in the conference, Commission colour its view of how the conference and Spain and Portugal would also be rep- should conduct its business. resented. The first meeting would be held If Community and political cooperation activities in Luxembourg on 9 September. A working are to remain within a single institutional frame- party was instructed to prepare its proceed- work, it is essential that a single conference deal ings concerning the revision of the EEC with both. Treaty. Most Member States would be rep- If the obiectives set in Milan are not to be compro- resented by their Permanent Representa- mised, discussions must proceed at a steady pace tive, and the working party would be chair- and representatives of the Governments of the ed by Mr Dondelinger, Secretary-General at Member States attending the conference must be the Luxembourg Ministry of Foreign in a position to devote the necessary time and energy to the exercise. A time Iimit must be jput Affairs. The Political Committee, consisring on discussions so that the European Council in of the Political Directors of the Ministeries Luxembourg can debate the findings of the confer- of Foreign Affairs, was instructed to draw ence and take decisions. up the text of a draft rreary concerning Finally, the European Parliament should be closely policical cooperation with a view to a com- involved in the work of the conference and con- mon foreign and security policy. sulted on the outcome. The conference would submit its con- 8. In conclusuon, the Commission, subject to clusions on all these points to rhe European the observations set out above, hereby delivers a Council meeting in December. favourable opinion on the convening of a conference of representatives of the Governments of the '1. The Council of the European Communiries, Member States with a view to amending and Having regard to the conclusions of the European expanding the Treaties establishing the European Council meeting in Milan with a view to maling Communities. Only if the conference completes its tangible progress towards European Union,

10 Bull. EC 7/8-798s Green paper on CAP perspectives

Having regard to Article 235 of the EEC Treaty, 3. The Ministeri for Foreign Affairs instruct a I$(/orking Party to prepare its proceedings concern- . Having regard to the proposal for the amendment ing the revision of the Treaty. Each Member State of that Treaty submitted to the Council by the will appoint its representative to the \,)florking Government of the Grand Duchy of Luxembourg Party. The Chairman will be designated by the in a letter dated 2 July 1985, President of the Conference. Having regard to the Opinion delivered by the 4. The Ministers for Foreign Affairs instruct the European Parliament on 22 July 1985, Political Committee to draw up by 15 October Having regard to the Opinion delivered by the 1985 the text of a draft treaty on the basis in particular of the Franco-German and United King- Commission on 22 July 1985, dom drafts concerning political cooperation with Has decided to deliver an opinion in favour of a view to a common foreign and security policy. calling a Conference of Representatives of the This draft will be considered byl the Ministers for Governments of the Member States for the purpose Foreign Affairs meeting for the purpose within the of determining by common accord the amend- Conference convened under 2 above. ments to be made to the EEC Treaty. 5. The Ministers will submit their conclusions on 2. The President of the Council, in accordance all these points to the European Council meeting in with Article ?36(2), accordingly convenes a Con- December 1985.' ference of Representatives of the Governments of the Member States to examine the proposal sub- 1.1.14. Meanwhile, following the Euro- mitted by the Luxembourg Government on 5 July has 1985. This conference, which will take place at pean Council meeting in Milan, work Minister for Foreign Affairs level, together with a itarted within the Council on the adiust- Commission representative, will meet in Luxem- ments that can be made to the operation o[ bourg on 9 September. Spain and Portugal will be the institutions without amendment of the represented at this Conference. Treaty in order to improve the Council's the The Secretary-General will make the necessary decision-making procedure, strengthen arrangements to provide the secretariat for the Commission's management role and Conference, enhance Parliament's powers.

2. Perspectives for the common agricultural policy

It is designed to provide the framework for Commission Green Paper a dialogue between the Community institutions and with agricultural organizations with a view to defining the outlook for 1.2.1. On 23 July the Commission sent to Community agriculture. the Council and to Parliament a Green When it presented its 1985/85 price pro- Paper entitled 'Perspectives for the common 2 agiicultural policy'. t This consultative posals to ihe Council last January and its document, which takes account of the basic principles on which the CAP is built and a ieforms approved in recent years, follows t COM(85) 333 final; Newsflash, Greea Europe, No 33, thorough review of the agricultural situ- July 1985, Brussels. ation. 2 0J c 67,14.3.1985; Bull. EC 1-1985, point 7.2.1 et seq.

Bull. EC 7t8-1985 11 Green paper on CAP perspectives

1985 programme in March,l the Com- be adopted by the members who are to join mission had already stated that it was aware in 1985. that if 'the common agricultural policy, while respecting Article 39 of the Treaty, However, given the changes the CAP has failed to offer a better future to the next undergone since its inception and develop- generation, its "renationalization" would ments in the general European economy and be inevitable, with all the damage this in world trade, the Community must now would be bound to inflict on the process of consider whether it wishes to maintain a European integration.' substantial number of workers on the land or not. In fact, to this question there can 1.2.2. The Green Paper presents a number only be one reply. The need to maintain the of basic choices relating to the future devel- social fabric in rural areas, to conserve the opment of the agricultural policy. The natural environment and to safeguard a Commission calls upon the other insti- Iandscape created by two millenia of farm- tutions and agricultural organizations to ing are factors militating overwhelmingly in make their own suggestions and comments favour of the major social option for a in coming months. 'green Europe' which protects jobs for those in agriculture while at the same time serving The Commission stresses that this paper in the long-term interest of all of Europe's no way anticipates its finalconclusions, and citizens. If the Commission's choice is that it will give fullest consideration to the endorsed by the other Community insti- views expressed during the consultations. It tutions, the challenge which must be faced also stresses that the document is, of its is how to ensure the maintenance of a sig- nature, supplementary and selective-sup- nificant number of persons in agriculture plementary in that follows up and adds it by methods which do not involve an unac- to the line of reflection already pursued by ceptable waste of economic and financial the preceding Commission, and selective in resources. Agriculture, like the rest of the that it endeavours to pinpoint the main economy, is subject to the laws of supply fields in which policy choices must be taken, and demand. A persistent build-up of sur- although this does not mean that other pluses, generated by market and price dis- aspects of the policy can be neglected. equilibria, is not a satisfactory option for In its consultations the Commission also the CAP. The Community's role as an intends to include the views of Portugal and exporter of agricultural products cannot be Spain, which are due to join the Community enhanced if exports are merely the forced on 1 January 1986; the general discussion on disposal of unwanted surpluses; nor can the the CAP must allow for this new dimension. problems of the Third Vorld, in which millions still go hungry, be properly solved in the long term by the agriculture of the The rea! problem developed countries.

1.2.3. The common agricultural policy is Diversification of the instruments of the fundamental to the process of European CAP, by the use of supplementary mechan- integration. It was in this sector, from 7962 isms involving both the market organiz- onwards, that a profound effort towards ations and the socio-strucrural objectives of economic integration was commenced by the policy, should be achieved in accordance the original six Member States, in parallel with the basic principles (a single marker, with the creation of a common market in Community preference and financial soli- industrial goods. In this sense, the CAP was darity) and without abandoning the reforms and remains part of the 'marriage contract' agreed by the Council from 1982 to 1984 of the European Community; it was accepted by the new members who joined the Community in 7973 and 1981, and will I Supplcment 4/85 Bull. EC, point 73. - t2 Bull. EC 7/8-1985 Green paper on CAP perspectives

(restrictive policy on prices, guarantee CAP was originally framed, and it has thresholds, etc.). resulted in the policy using one main instrument for the ihe achievement of a range of objectives. Now that the limits of this The need for perspectives approach have been reached, the question inCvitably arises what supplementary 1.2.4. There is no'miracle' solution to the instruments could usefully be developed. problems besetting Community agriculture. But there are possibilities which can be Major steps have been taken recently in exploited, provided that the agricultural this direction with the Council's decisions policy on agricultural seCtor is prepared to face the challenge' The concerning1 the new DurDose of the consultative document is to structures and the integrated Mediter- indicate a number of the options which can ranean programmes.2 Further in-depth means be considered: study is now needed on ways and of ensuring that the place of agriculture _in (i) With regard to productioz. Although society can be bettei assured. The need for there are difficulties on a number of mar- this study is all the greater because a restric- kets, entailing reforms of the market organ- tive policy on prices if pursued by the izatirons, the iector most urgently in need of Countil is bound to affect farm incomes review is that of cereals. At the same time, and because the accession of Portugal and the possibilites of alternative production Spain involves a particular challenge. havs been considered, with a view to promoting existing and even novel crops. The Community must ensure that the social Although measures to bring the hierarchy and economic conditions of farmers and of pricel into better equilibrium could well farm workers do not suffer from these facilitate these developments, budgetary developments, and that the social fabric of resources may also be needed. the rural areas is not destroyed by a steady drift from the land. In some areas, iobs (ii) With regard to outlets. The develop- in farming and farming itself, if necessary ment of modern technology is leading to supported by subsidies, are the only way new uses for agricultural products, notably of-ensuring that the countryside does not for industrial and energy purposes. The become a wilderness. The maintenance of analvsis in the Green PaDer shows that there a significant number of persons in farming is a potential for incriased demand, but is not, however, incompatible with the that in present conditions its scope is still development-which should be encour- limited,-and there are maior problems in ased-wherebv some of their income connection with financing. In this context, ,E ru., from oiher sources (part-time farm- the paper also considers the Community's ing). This is why the Commission paper role-in- agricultural trade, where a number prisents a number of options concerning of options should be considered; it is obvi- the following fields: ous that exports must be competitiver and here the question of the financial co- (i) tlte role of agricuhure as d protector of responsibility of farmers also arises. the enuironment: if. the farm sector were prepared to accept new disciplines in this context, society should grant the necessary Diversifying the instruments funds; of the CAP (ii) an improued integration of agriculture in regional deuelopment' agricultural policy 1.2.5. So far, a key feature of the CAP has alone cannot solve all the problems farmers been its emphasis on price support, and this is reflected in the share of EAGGF spending accounted for by guarantee operations. The I OJ L 95, 2.4.1985; OJ L 93, 30.3'1985; OJ L 85' disequilibrium beiween price support and 27.3.1985; Bull. EC 3-1985, point 2.7.71,1 et seq. othei measures was not intended when the 2 0J L 197,27.7.1985; Bull. EC 6-1985, point 2.1.89.

Bull. EC 7/8-1985 Green paper on CAP perspectives

have to contend with; the contribution of effective demand, bettei control of rhe other policies can make must therefore be growth of agricultdral production in the considered: agricultural policy must be seen Community must be achieved. This means in the wider context of overall policy for a realistic policy on ;irices, emphasizing the the countryside; economic function of this policy. It is true (iii) direct income aids to farrners: in the that policy on prices has not always been context of a restrictive policy on prices, consistent, but the vicissitudes of the past supplementary action in the form of income 15 years do show: aids must be contemplated; an income aid (i) that price adjustments (including any system and regional development measures real reductions under a restrictive policy) designed to create other opportunities for must be such as to give clear signals to incomes in agriculture would tend to comp- farmers; action must be strong enough not lement one another; in the absence of a to be outweighed by technical progress; more dynamic regional policy, the need for specific aid to incomes in the farm secror (ii) that although in the short term, in would be even greater. limited cases, the effect of this may be to step up production, the overall outcome of lower prices is a lower rate of increase in The need for choices production; however, there may be a time 1.2.6. The acceptance of the constraints lag of several years before a market-oriented of a more market-oriented policy, which price policy takes full effect; this is why it in any case is largely imposed upon the must be pursued consistently over a fairly Community by the realities of economic long period of time. life, could release financial resources for the If these two conditions are not fulfilled, development of new instruments of agricul- there is a serious risk that the policy on tural policy. As regards outlets on the prices will not in fact affect production at internal and external markets of the Com- all. munity, there is also the question of a possible financial participation by producers. The advantages of a quota system lie in its immediate impact on production and the But a number of choices will have be to possibility it should offer of relieving the made, allowing for the fact that CAP expen- Community budget of the cost of disposing diture must keep within the limits set by of output exceeding certain levels. Foi milk the financial guidelines, which means that ,h.q;;,;;;;.;;il as a 'lesser evil' coml agricultural expenditure cannot be permit- pared with the alternative, which would ted to grow as fast as the Community's own have consisted in reducing farmgate prices resources. Therefore, if the Community by up to 72o/o. The disadvantages the were to embark on new types of expenditure of quota system include problems to support agriculture (e.g. income the of nego- aids) or tiating, to increase significantly presenr types of managing, monitoring and review- ing the quotas, pro- expenditure (e.g. disposal subsidies), then and the freezing of duction structures, which inhibit bro- corresponding savings would have to be gains made elsewhere. Among the options sub- ductivity and preyent regional mitted for consideration in the-discussion, specialization in the Community. Quotas create'economic some are more fundamental than others: rent' situations in that they policy on prices and markets, external trade confer a 'right to produce', and also involve and the need to support incomes. the risk of renationalization.

A fundamental choice: Exports: the Community's policy on prices or quantitative responsibility and the farmer's restrictions responsibility 1.2.7. Given the swift pace of technical 1.2.8. The Community has been playing progress and the slow rate of expansion an increasing role in world trade in agricul-

14 Bull. EC 7/8-1985 Green paper on CAP perspectives tural products, and it therefore has a high protection and low protection, without responsibility to the world market, on in-reising the general average level of pro- which it has become the leading exporter tection of Community agriculture. This of milk products and beef/veal, the second would involve difficult international nego- exportef of cereals and sugar, and is also a tiations because raising some of the 'bound' leider for wine, spirituous beverages and low or zero levels of protection could well processed products. This situatiotr reflects affect certain countries which would have the maintenance of an export system intro- little to gain from the lower levels of protec- duced at a time when the Community nor- tion of other products the Community mally had deficits for most agricultural would be offering in return. Nor must it be products. forgotten that the adjustments entailed to achleve a framework of external protection Since the Community has become, in struc- more balanced than the present arrange- tural terms, at net exporter of most of its ment would have a varying impact on the main products, the unlimited maintenance various types of production within the of export refunds has meant that exported Community. For this reason, too' any products enjoy the same price and disposal change serving to restore the balance of guarantees as products marketed within the external protaction, however desirable, eommunity. The gap between world prices must also be gradual. and Community prices, and the export risk, have thus been aicounted for entirely from the Community budget. At the same time, The need for income support Community farmerJ have been insulated agricul- from price movements on world markets, 1.2.10. The adjustments to the new situ- which have therefore not influenced their tural policy could well create a production decisions, although a growing ation to which European farmers would support this, the most share of Community production is in fact have to adapt. To the exported. coherent and rational solution in medium and long term would seem to be: is Community policy to maintain a If it adjustments in substantial involvement in world exports (i) facilitating structural of agricultural and food products, and if the agricultural sectorl expo"rts can be the expression of a real (ii) promoting alternative products and export policy, present machinery must be new uses for agricultural products in order reviewed. In so far as the Community to create alternative income and employ- remains or becomes a heavier net exporter, ment possibilities in the sector; in structural terms, a growing proPortion (iii) stimulating the development of the of the risks connected with exports may economic environment in rural areas in have to be assumed, in one form or another, order to create additional income and by the farmers themselves. employment possibilities outside the sector. Measures to attain these objectives would more balanced external . Imports: have to be taken now. However, many of protection? them would be in the nature of invest- i.e. their full impact would only be 1.2.9. The Community arrangements for ments', felt after a number of years. AIso, there may agricultural imports are based on protection be number of regional situations where bv variable levies for the main traditional a the scope for creating alternative employ- iommunity products and little or no pro- ment is very limited or would be very costly, tection in the case of products of which the but where farming on a permanent basis is Community produces far less than it needs. needed to conserve and protect the country- If the system were to be reformed, it might side and to maintain a minimum desirable be possible to agree on a trade-off between economic and social fabric.

Bull. EC 718-1985 15 Green paper on CAP perspectives

The Commission suggests possible answers tition in agriculture and in the Community to these problems through direct aids to can be preserved; presented income. Although they are in (iii) for aids paid to protect the environ- various forms, the options could be comment, such schemes would be organized in bined adapted or to the various situations the Community interest as much as in that in European farming. For direct aids to of the Member States or of the regions. incomes, the Commission emphasizes that great care would have to be taken to keep, It is inconceivable that the Community as far as possible, such schemes neutral with should not take part, since, for several respect to production and compatible with countries, agriculture has been a key factor policy concerning the markets. Special in their involvement in the Community attention would also have to be paid to enterprise. The Community contribution the practical administrative aspects if such would have to be fixed in the light of general schemes were to be introduced. budget restrictions and budget needs in other areas of Community activity. Differ- Four fundamental types of aid scheme are ent approaches should be studied, such as suggested as a basis for discussion in the the variation of the Community contri- relevant chapter of the Green Paper: an bution in the light of the situation in agri- early retirement scheme, a scheme compris- culture in the various Member States and ing a structural policy component, a social in the light of their financial capacity. Such approach, and a buying-out scheme for variation should always reflect the principle environment protection purposes. of financial solidarity among the Member States. When it referred to the possibility of income aids in its July 1983 document,l the Com- mission had already recommended that These, the some or all of such aids might be financed 1.2.11. ,t.n,."r. broad lines of the Commission's paper on the from the Community budget. outlook for European agriculture. The Commission will The Community must be involved, since: be consulting the other Community institutions and interested agricultural organiz- (i) the income support provided by the ations and should be in a position to presenr CAP would be partly transferred from the its conclusions on the future of the CAP in support by the market organizations to that appropriate form towards the end of the of direct aids to incomesl year. (ii) in any case, Community financing is a necessary adjunct to Community rules and I Supplement 4/83 Bull. EC; Bull. EC 7/8-1983, points criteria, so that conditions of free compe- 1.1.1 to 1.1.20; COM(83)- 500 Final.

t6 Bull. EC 7/8-1985 3. Mediterranean policy of the enlarged Community

being to Maintenance of traditional for European- agriculture, their aim manase alreidy existing preferential agricultural trade arran[ements, having iegard to clearly identified trade flows. 1.3.1. On 18 July the Commission sent Shortly the Commission will bring forward to the Council a proposal for negotiating oroooials to reinforce economic and also the trade directives with a view-to adapting iin*.i"I and technical cooperation with the part of cooperation or association agree- Mediterranean countries. between the Community and the *.nt. 1 southern Mediterranean countries to the 1.3.2. So that the Mediterranean countries situation consequent upon the imminent will be able to maintain their traditional enlargement of tire Community. The undfr- agricultural exports to the Community, the Ivine-Duroose of the directives is to enable Commission proposes measures to ensure ti'raltionil trade to be maintained between that such exporis can compete on equal these countries and the CommunitY, terms with Portuguese and Spanish exports notably for agricultural products which at during the traditional period provided for z present enioy preferential treatment. in the Act of Accession. This means that the commitments expressed It also proposes specific measures' as outli- repeatedly by the Community and. con- ned be-low, in respect of certain sensitive fiimed bv the Council on 30 March will products (citrus fruit, tomatoes, wine and be honoured.3 The Council unanimously olive oil). stressed the importance of the links between the Community and the Mediterranean The Commission proposes two types of constitutes countries and made the point that the Com- measure for citrus fruit, which munity intended to maintain traditional the bulk-some 80%-of the Mediter- trade flows which risked being disturbed by ranean countries' farm exports: enlargement. (i) elimination of residual customs duties currently applied to cirtus fruit once Portu- for both parties since This is of importance eal and Spain reach in a few years' time market takes the southern Mediterranean Ihe oreferential level for the Mediterranean i.e. nearly 10% of the Community's exports, countries; they will then be eliminated in market but half as much as the American parallel; three times as much as the Japanese market' The Community's largest trade surplus is (ii) for products subject at certain times on this market, totalling 8 000 million ECU of'the y."t to referente prices which will in 1984. continue to be applied, the Commission proposes aligning the conditions for calcu- The Community market is absolutely essen- iating entry pricEs on the method selected tial to the Mediterranean countries: it for Portugil ind Spain from the fifth year accounts for 60o/o of Tunisia's foreign trade, after accession. 50% of Algeria's, and over 40o/o in the case a ceil- of Morocco, Egypt and Syria. Olive oil from These -someprovisions would apply up to Tunisia, for initince, is the equivalent of ing of 800 000 tonnes, which corre- recent years, only 4o/o of the Twelve's total production sponds to average exports in but'accounts f.or 43o/o of Tunisii's agricultural exports and employs 20o/o of the coun- I Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, try's labour force. Lebanon, Syria, Cyprus, Malta, Yugoslavia. 2 The Community already accords free access to industrial The Commission stresses that these pro- products from the Mediterranean countries' posals will not involve an additional burden 3 Bull. EC 3-1985, point 2.2.19.

Bull. EC 7/8-1985 17 Mediterranean policy account being taken of the individual sup- 1.3.3. Morocco at present enjoys exemp- plier country involved (notably Moroccb, tion from cusroms duties on ail iish proi- Tunisia, Israel and Cyprus). ucts, except preserved tuna and preserved sardines. The Commission propbses that The same provisions would apply to fresh these arrangements be continued until the tomatoes, some 50 000 tonnes per year, completion of negotiations for a fishery mainly exported by Morocco. agreement between Morocco and the Twelve. These negotiations should be con- Either tariff quotas or timerables will be applied to early potatoes, cluded by the end of August 1987, which is which amount to when Morocco's some 270 000 tonnes a year from Cyprus, bilateral fishing agreements with Portugal Egypt, Israel, Malta and Morocco. and Spain expire.- Imports of wine are to be kept at approxi- 1.3.4. The Commission also adopted spe- mately 1 million hectolitres, and quality cial directives for negotiations with Cyprus, wine will be favoured by modulation of Malta and Yugoslavia in ordii ro the reference prices. A free-at-frontier offer implement the above provisions (-+ points price will be fixed annually for wine in bulk. 2.3.23 to 2.3.25). The Community's con- The mechanism as a whole will be reviewed tractual trade arrangements with Cyprus with the partner countries before the end of and Malta have expired and are ar pielent the transitional period, i.e. 31 December being continued by means of unjlateral 1995, in order to decide whar measures measures. Accordingly, the Commission should be taken ro enable traditional proposes opening negoriations with Cyprus on how to implement the second imports to be maintained from I January stage of 1995 onwards. the Association Agreement, in conformity with the Council statement of 30 March,l For olive oil, the Community will decide, and opening negoriations with Malta to in negotiation with Tunisia, on appropriate extend the first stage of the Association means of ensuring thar the quaniitiei tra- Agreement. ditionally exported to the Community market (45 000 tonnes a year) are maintained in the period 1986-90. I Bull. EC 3-1985, point 2.2.20.

18 Bull. EC 7/8-1985 4. General system for the recognition of higher education diplomas

1.4.1. On 9 July the Commission pre- (ii) Tbe system is based'on the compara- sented to the Council a proposalfor aDirec- bility of training leuels. In fact, university- tive on a general system for the recognition level training courses provided by the Mem- of higher education diplomas. I ber States are broadly similar in character. An individual holding a higher iducation The principle on which this proposal is diploma is therefore in principle qualified based issued from the European Council in to exercise his professional activity in a Fontainebleau in June 1984,2 while its main Member State other than that in which he lines, set out in the report by the ad hoc was trained. This principle is not absolute, Committee for a People's Europe, r were however; comparability does not exclude approved by the European Council in Brus- special features and differences. The system sEli in March this year. a The proposal provides for compensatory measures based therefore gives substance to a unanimous on professional experience or the com- political resolve; it was also foreshadowed pletion of a period of supervised practice in in the Commission tWhite Paper_on the com- the host country. pletion of the internal market.5 The instru- (iii) The system calls increased cooper- ment enshrines a new approach to the prob- for ation between the Metnber States. This lems of the recognition of diplomas. Instead cooperation, based on mutual confidence, is of stipulating precise criteria on the basis precondition operation. of which university diplomas obtained in a for its successful Exchanges of information, the utilization of one Member State would be recognized as the network of national information centres equivalent to those issued in another, this and coordination the activities the new approach is grounded on the principle of of competent national authorities are all essen- that a Community citizen considered to be tial for the success of the newly instituted qualified to exercise a professional activity procedure. in one Member State must also be considered qualified to exercise that activity in (iv) Finally, the system is euolutiue. The another Member State. results of its operation may lead to a recon- sideration of its field of application and, The characteristics of the proposed system possibly, its extension to other categories are as follows: of individuals who are not holders of higher education diplomas. (i) The system is general. It lays down rules and establishes a procedure which will make it possible-without prior harmonization of the conditions for access to or the exercise of professional activities-to meet the individual and immediate requirements I Supplement 8/85-Bull. EC; OJ C 217, 28.8.1985; COM of all those who hold higher education dip- (85)2 355 final. professional Bull. EC 6-1984, point 1.1.9 (section 6). lomas and wish to exercise a 3 Bull. EC 3-1985, point 3.5.1. activity in a place other than that in which a Bull. EC 3-1985, point 7.2.7. they received their training. 5 Bull. EC 6-1985, poim l.4.7 et seq.

Bull. EC 7/8-1985 19 5. Product liability

1.5.1. The adoption by the Council on no more than 10 years from the time when 25 July of the Directive concerning liability the defective product was put into circu- for defective products I illustrates once lation. more the efficacy of the new impetus that has been given to completion of the The principle of strict liability on the part internal market. z of the producer means that the injured person must prove the damage, the defect The approximation of Member States' in the product and the causal realtionship legislation in this area was essential: the between the two. Nevertheless, to ensure disparities from one country to another a fair apportionment of the risks between were liable to distort competition, hinder injured person and producer, the Directive the free movement of goods within the provides that the producer can escape liab- common market and engender differences ility if he can show certain exonerating in the levels of protection afforded to circumstances-if he can prove, for European consumers. instance, that the state of scientific and In adopting the Directive, the Councilhas technical knowledge at the time when he helped to bring about a major step for- put the product into circulation was not ward in consumer protection, affording such as to enable the existence of the defect injured persons the possibility of specific to be discovered. However, during a tran- recourse against producers of defective sition period of seven years, Member products. For seven Member States, this States may legislate for the liability of the involves changing from the traditional sys- producer in respect of development risks tem of liability for negligence to a system and for a financial limit on total liability of manufacturers' strict liability, thus for personal inlury caused by identical eliminating the serious inadequacies, in an items with the same defect, which may not age of increasing technology, of systems be less than 70 million ECU. After this based for the most part on fault liability. period, the Council, on the basis of a The adoption of the Directive will make report by the Commission concerning the for speedier and less costly litigation, mak- effect of these options on consumer protec- ing it easier for inlured persons and their tion and the functioning of the common families to obtain compensation for dam- market, will decide what definitive system age caused by death or personal injury, or should be adopted. damage to items of property caused by defective products, subject to a lower Member States are to give effect to the threshold of 500 ECU. Compensation for provisions of the Directive within three non-material damage is covered by the years from the date of its notification. relevant provisions of national law.

The rights conferred on injured persons 1 oJ L 210,7.8.199s. under the Directive are to be available for 2 Bull. EC 5-1985, point 1.3.1 el se4.

20 Bull. EC 7/8-1985 6. Comett programme: university-industry cooperation in training for the new technologies

New technologies and social (iii) to stimulate exchanges of experience change in higher education between Member States regarding university-industry cooperation in training. 1.6.1. On 6 August the Commission presented a communication to the Council, together with a proposal for a decision, lmplementation in two stages on Comett-the action programme of the Community in education and training for 1.5.3. The programme will be implemen- technology.l This programme is designed ted in two stages spread over seven years to strengthen cooperation between universi- (1986-92). The first stage, lasting for four ties and other higher education institutions years, will see the launching (in 1985) and and industry in the area of advanced train- development (from 1987 to 1989) of a series ing for the new technologies; it takes up of actions which can be intensified or adap- ideas developed earlier by the Commission ted during the second stage (1990-92) in the in its communications on technological light of experience acquired during the first. change and social adjustment2 and embod- ies the conclusions drawn by the Council 1.6.4. The programme will make it possi- meeting on employment and social affairs ble to draw on Community financidal support---estimated 80 million ECU in June 19843 and by the Council and at about Ministers of Education meeting within the for the first stag-for the following five series of actions: Council in June 1985.4 The initiative by the Commission also constitutes a direct (i) establishment and development of a response to the request formulated by the European network of University-lndustry Eurooean Council in Fontainebleau on 25 Training Partnerships (UITPs), with grants June'19S{s and reiterated in Brussels on 29 being provided towards the cost of the March this year.5 European liaison activities of each part- nershlip; The proposal was framed after a series of consultations at Community level, begin- (ii) the launching of Community exchange ning with the European conference held in schemes between universities and industry, Galway in DecembEr 7984.7 with grants and fellowships being awarded to students and to academic and industrial staff wishing to spend a period in another Comett's three objectives Member State for study or training purposes; 1.5.2. The Comett programme has three (iii) the design, development and evalua- aims: tion of joint training projects relating to the needs of high-technology firms or aiming at (i) to promote a sense of European iden- the rapid dissemination of research results; tity, especially by encouraging the provision of training periods for students in firms in other Member States; I OJ C 234, 13.9.1985; COM(85) 431 final. (ii) to promote economies of scale by the 2 Bull. EC 1-1984, point 1.3.1. et seq. joint organization of new training program- 3 Bull. EC 6-1984, point 2.7.47. 4 Bull. EC 5-1985, point 2.1.70. mes designed to remedy the shortage of 5 Bull. EC 6-1984, point 1.1.9 (section 5). manpower with specialized skills resulting 6 Bull. EC 3-1985, point 1.2.4. from the speed of technological advance; 7 Bull. EC 12-1984, point 2.1.94.

Bull. EC 7/8-1985 2t Steel after 1985

(iv) the promotion of ioint efforts by the research and technological cooperation (e.g. universities and industry to develop open Esprit, RACE, Brite, the plan to stimulate learning systems and pool teacher training scientific and technical cooperation and activities; interchange and the plan for the transnatio- (v) the creation of a data base on nal development of the supporting infra- university-industry cooperation, exchanges structure for innovation and technology transfer). of experience, and the monitoring and evaluation of the measures undertaken. Given the importance of what is at stake, the Commission emphasized the need for a 1.6.5. The Comett programme is intended decision by the end of the year so that the to complement existing Community pro- preparatory work can be started as early as grammes in the areas of education, training, possible in 1985.

7. The European steel industry after 1985

1.7.1. The rules constituting the Com- 1985. The transition period should be munity's steel aids code expire on 31 shorter for long products than for flat prod- December. With this in mind the Com- ucts, and at the same time the compulsory mission transmitted to the Council on 16 minimum prices should be progressively July three communications concerning suspended and replaced by a system of guide respectively the organization of the steel pnces. market after 1985,I the rules on aid and The Commission also intends to reinforce financial transfers to the steel industry after the implementation of Community meas- 19852 and stronger Community structural ures in support of the industry's restructur- measures to assist steel restructuring ing (ECSC loans,loans from the New Com- areas.3 munity Instrument, interest-rate subsidies) and also aid from the structural Funds, Social Fund) with a view to creating new Organization of the market jobs in the areas particularly affected by the steel crisis. 1.7.2. Where market organization is con- 1.7.3. At its meeting on industry and steel cerned, the Commission reaffirmed its held on 25 July (--+ point 2.5.15) the determination to ensure a progressive return Council held an intitial detailed discussion to the normal conditions of a competitive on the Commission's proposal concerning market in accordance with the ECSC the organization of the Community's steel Treaty. In 1986 a start must be made on market after 1985 and approved the follow- liberalizing the steel market; although con- ing conclusions: tinuing overcapacity warrants maintenance (i) '...having taken note of the Commission's of some control and some organization of views concerning the market surveillance arrange- the market, the Commission believes that ments proposed for the years after 1985; this should cease by the end of 1988. It takes the view that the period of manifest crisis 1 coM (85) 382 final. within the meaning of the ECSC Treaty 2 coM (85) 376 final. should be extended for three years after 3 CoM (85) 384 final.

22 Bull. EC 7/8-1985 Steel atter 1 985

(ii) convinced of the need to return as swiftly as While the arrangements concerning the possible, in an orderly manner, to a market in organization of the market would progress- which Community undertakings freely compete; ively become more flexible, the rules on aids (iii) being aware, however, that the process of would be reinforced, authorization being restructuring is still in progress and that a trans- granted only for aids for research, environ- itional period limited to a maximum of three years mental protection and, under very strict rs necessary; conditions, encouraging firms to undertake (iv) calls on the Commission to prepare, in line further plant closures during the extended with the principles set out in the second and third period of market organization. indents, a specific document on which the Council will take a final decision on the basis of Article 58 The Commission will also supervise closely of the ECSC Treaty, with the aim of continuing the financial transfers made by the Member market arrangements.' surveillance States to check whether they contain elements of aid falling within the scope of Government aid the abovementioned rules.

1.7.4. As regards the Member States' aids 1.7.5. Detailed discussions were held on and financial transfers to steel undertakings the Commission's proposals at the after the aids code expires, the Commission Council's meeting on industry and steel on announced its intention of introducing 25 July, and the Council requested the Com- strict, limitative arrangements. mission to develop its guidelines further.

Bull. EC 7/8-1985 23

FAr,RT ACTIVITIES lN JULY IAUGUST 1985 1 . Building the Community

Economic and monetary policy meeting of the Monetary Committee to examine the siruation'created by the lira,s collap-se-against the dollar and by the clos- Council g. o.f foreign-exchange markets in Italy, The details of the realignment were ser our in the following communiqu6: 2.1.1. The Council devoted mosr of its economic and financial affairs meetins on 'On 20 8 (--+ point 2.5.16) July 1985 the Ministers and Central Bank July to establishine"the Governors of rhe EEC 1986 reference .budgEtary member countries have framework for by mutual agreemenr, in a common discipline' (--+ point ,.o.alur. 2.4.5).It also co"nduc- involving the Commission and on the Lasis oi ted the second-quarter examination of the proposal from the Monetary Committee, decided" economic situation in the Community on an adjustment of central iates within ih. Erro_ (--+ point 2.1.2). pean Monetary System, as follows: Italian lira: -5%. Economic situation Other currencies: * 2o/o.

The new bilateral central rares are the following 2.1.2. Acting on the basis of a Iune com- (in units of national currency per ECU): munication from the Commission,l the Council carried out the second-quarter IRL 0.724578 examination of the economic situation in the Community, in accordance with its FF 6.86402 Decision of 18 Febru ary 1974 on the attain- DKR 8.12857 ment of a high degree of convergence of the HFL 2.52208 economic policies of the Member States.2 DM 2.2384 The Council endorsed the Commission,s BFR 44.832 opinion that there was no need at Dresenr LFR 44.832 to adjust rhe economic policy euidelines for LIT5 1985 which it had adop?ed on-19 December 1520.6 1984.3 Ir also took noie of the qu"niir"riu. UKL6 0.555312 guidelines for Member Stares' budsets for DRA 100.719.' 1986 advocated by the Commissioi in its communication. 1 The new parity grid of bilateral cenrral rates and compulsory intervention rates as at Zz 2.1.3. 1985 is as 'CommitteeOn 4 July the Economic and Social July follows: delivered an own-initiative opinion on the economic situation in the Community (mid-1985) (--+ point 2.5.111.+

European Monetary System I Bull. EC-1985, point Zl ;4. . oJ L 63,5.3.1974. : qj t_*, 14.2.1985;Bull. EC 12-t9g4,point2.1.3. oJ c 218,29.8.1985. Realignment of 20 July 5" 6 Bull. EC 3-1983, points 1.2.1. to 1.2.4. Since srerhng (UKL) and the drachma (DRA) do not participate 2.1.4. The month of July saw a new in the EMS exchange-rate mechanism, tieir ccn- rra-l rates in ECU have only a realignment of the c.nt.a-'l rates wittrin iheoretical value: Sull. eC S_ the 1983, point 2.1.8; Bull. EMS.s EC 9-1984, poinr 2.1.4; Bull. EC 6_ The decision followed ; l..iliiy 1985, point 2.1.7.

26 Bull. EC 7/8-1985 Economic and monetary PolicY

Table L Central rates of EMS currencies - (parity grid applicable from 22luly 1985)

Brusscls Frankfurt Copcnhagcn Dublin Paris Romc Amsterdam (LIT) (HFL) (BFR/LFR) (DM) (DKR) (IRL) (FF)

29.3832 278.35 54020.0 HFL lOO * 2.25o/o 18 r 8.0 90.n0 329.63 60291.5 central rate 100 1777.58 88.7526 322.297 28.7295 272.158 266.10 55786.0 - 2.L5o/o 1738.0 86.780 315.130 28.0904

15.659 3501.,10 BFR/LFR * 2.25o/o 5.7535 5.105 18.543 1.5530 15.3105 3391.77 100 central rate 5.62561 100 4.99288 18.13i2 1.61621 14.97 3194.30 - 2.25o/o 5.5005 4.882 17.727 1.5803

33.1015 313.63 72131.0 DM 1OO * 2.75Yo 115.235 2048.35 371.40 67932.5 central rate 112.573 2002.85 100 363.141 32.3703 306.648 299.85 63978.0 - 2.250/o 110.1675 1958.50 355.06 31.54s5

9.tr68 86.355 19853.0 DKR 1OO * 2.25o/o 31.7325 554.10 28.155 18706.9 central rate 31.0n3 551.536 27.5375 100 8.91396 84.4432 82.s65 17678.0 - 2.25Yo 30.3375 539.30 26.925 8.7157

11.4735 9.6885 2228.29 IRL 1 * Z.L|',/o 3.5600 63.2810 3.160 2098.6 central rate 3.48075 61.8732 3.08925 11.2184 1 9.47313 9.262J 1976.46 - 2.25olo 3.4030 60.4965 3.021 r0.9687

10.7964 23522.0 FF lOO * 2.L5o/o 37.58 668.0 33.350 12t.lL 22153.2 central rate 36.7434 653.144 32.6107 118.42i 10.5562 100 20853.0 - 2.L5o/o 35.925 538.60 31.885 115.78 10.3214

5.676 0.505956 4.7930 LIT 1OOO I 60/o 1.76100 31.305 1.5630 1000 central rate 1.65861 29.4831 1.47205 5.34553 0.476508 4.51402 0.448n5 4.2515 - 6o/o 1.56200 27.765 1.3865 5.035

1520.50 ECU I central rate 2.52208 44.8320 2.23840 8.12857 0.724578 6.86402

Strengthening the EMS Community borrowings and the role of the ECU Adiustments to CommunitY loan to France 2.1.5. On 4 July the Economic and Social 2.1.6. At the request of the French autho- Committee delivered its opinion on the pro- rities, the Commission carried out in July posal l for amending the Regulation of 18 December 1978 relating to the European 2 I oJ c 777,70.7.7985; Bull. EC 5-1985, point 2.1.2. Monetary System as regards the use of 2 oJ L 379,30.72.7978. 3 ECUs by 'other holders' (--+ point 2.5.38).3 oJ c 218,29.8.1985.

27 Bull. EC 7/8-1985 lnternal market and industrial affairs

two operations to improve the terms of part Governments of the Member States meeting of the Community Ioan of 4 000I miliion within the Council a draft resolution on th; ECU granted to France in 1983. Since the introduction of appropriate signs at Com- 2 French authorities had announced in May munity internal and external frontiers.4 their intention of making an early repayment, in Augusr, of the USD 550 mil'lion This draft resolurion follows on from the tranche of the syndicated loan of USD 1 240 White Paper on rhe completion of the million,3 it renegotiated the terms of the internal market, sent by the Commission to remaining USD 590 million tranche. This the Council in June,5 and aims to pur inro was done in two stages: an operation involv- practice some of the recommendations ing USD 350 million and one involving USD made by the ad hoc Commitee on a 240 million. These operarions, which are in People's Europe in _its report to the Milan addition to rhat carlied our by the Com- European Council.6 mission in May,2 will enable France ro The Commission's proposals stem from the make considerable savings on interest rates observation that at present there is nothing relative to LIBOR point 2.4.14). 1+ to indicate to traulllers when they cross frontiers that they are enrering thi Com- Monetary Committee munity or moving from one Community country to another. Vhat is more, the con- 2.1.7. The Monetary Committee held its tinued existence of increasingly anachron- 312th meeting in Brussels on 2 July, with Mr istic signs at the Community'J internal bor- Tietmeyer in the chair. It discussed among ders has the effect of negating the existence other things monerary policy cohesion iil of the Community in the eyeiof its citizens, the Community. It also ieviewed the econ- since they have to pass a 'customs Dost' omic and monerary situation in Belgium. whether entering rur.;a;; 5,i;";; a non-member country."niiti.r Economic Policy Committee Conscquenrly, the gommission is calling for the abolition of signs which bear the 2.1.8. The Economic Policy Committee word 'customs' at or near internal Com- held its 155th and 157th meetinss on 1 and munity borders and the introduction 2 With of July. Mr Guillaume in t-he chair, it signs at internal and external borders discussed, 'medium-term' bear- in its compo- ing the name of the Member State which sition, its work programme and examined travellers are entering and for the first a reference to the time the problem of flexibility fact that it belongs to the Community. in goods and service markets. In its fuil composition, with Mr Byatt in the chair, it On 11 studied ways and means of promoting more 2.1.:10. July, again as parr of the follow-up to the !flhite Piper employment-intensive growth. lt also held on ihe internal market,5 the Commission sent a.n exchange of views on tools for assessing the Council proposal the utility of economic policy coordinarion a for a Regulation abolishing cer- in present conditions. tain postal charges for customs presentation (.--+ point 2.1.36) and a proposil to amend the Directive of 1 Decemb'er 1983 on the facilitation of physical inspections and !nternal market administrative formalities in iespect of the and industrial affairs

I Bull. EC 5-1983, point 2.1.3. Strengthening the internal market 2 Bull. EC 5-1985, point 2.1.4. 3 Bull. EC 7/8-1983, point 2.1.4. 4 COM(85) 462final. 2.1.9. The Commission sent to the 5 Bull. EC 6-1985, point 1.3.7 et seq. Council and to the Representatives of the 6 Bull. EC 6-1985, point 1.4,1 et seq.

28 Bull. EC 7/8-1985 lnternal market and industrial affairs carriage of goods between Member States the entry into force of the Directives to (-+ point 2.1,.192). implement measures lor tfrg recognition of diplomas in respect of qualified pharmacists wishing to 2.1.11. In a resolution adopted on 10 July from other Member States Prac- on the Milan European Council,l Parlia- tise as self-employed pharmacists in Greece. The other Mem6er Stat.t will be allowed ment expressed the fear that -the large internal market may not be achieved by the same extended period for the recog- pharmacists wish- 1992 rf the Council fails to approve in good nition of qualified Greek time the various measures presented in the ing to practise in their territory. 2 Commission's schedule. Temporary arrangements have also been made to limit the effects of mutual recognition of diplomas, in view of the difficulties Free movement of Persons oosed bv differences between the Member and freedom to Provide services bt"t., in their legislation regarding the setting up of new piactices; this is unregulated in iome countries and regulated in various Mutual rccognition of diPlomas ways by others. Member States may with- and access to occuPations hold recognition for diplomas issued in other Member States in respect of the opening of new pharmacies. In an effort to avoid for the recognition General system friud, phaimacies which have been estab- diplomas of higher education lished ior less than three years are also regarded as new. This limitation will be sent the 2.1.12. On 9 July the Commission reviewed five years after the entry into force embody- Council a proposal for a Directive of the Directives. ing a new approach to the recognition of hiEher education diplomas (--+ point 1.4-l)- As in the Directives already adopted for T[is proposal, too, follows on from the doctors, dentists, nurses' veterinary sur- V/hite Piper on the completion of the geons and midwives, provisjon is made for internal market. / ioordinating minimum conditions for training. To this end, qualitative and quantitat- ivd criteria have been laid down and a basic Pharmacists minimum list of subiects which must be included in curricula has been drawn up. A 2.1.13. Ar its 22 and 23 July meeting the common definition of the minimum scope Council reached agreement, subject to con- of activity of pharmacists within the Com- sultation with Portugal and Spain, on two munity is also included. The first is aimed at coordinat- Directives. contain provisions ing national.laws, regulations and adminis- Finally, the Directives the activities. in the identital to those incorporated in earlier trative provisions regarding for field of pharmacy, while the second deals Directives concerning the arrangements with the mutual recognition of diplomas, accepting persons benefiting from the recog-- requirements as to proof certificates and other qualifications in phar- nition of-diplomas, good and good rePute and con- macy and includes meisures to facilitate the of character use of titles. effeitive exercice of the right of establish- diti,ons governing the ment. At the same time, the Council setting up of an Advisory 2.1.14. The Committee of Senior Officials endorsed the to Committee on the Training of Pharma- on Public Health met on 2 and 3 July cists. 3 I oJ c 229,9.9.198s. years The Member States will have two 2 Bull. EC 6-1985, point 1.3.1 e' seq. to sive effect to the Directives. However, 3 The Directives were formally adopted on 16 September; Gre"ece has been allowed eight years after oJ L 2s3, 24.9.198s.

Bull. EC 7/8-1985 29 lnternal market and industrial affairs

discuss the issues connected with the appli- National authorities and the Commission cation of the Directives on the free move- are working in close cooperation and are ment of doctors, nurses responsible for gen- exchanging information on this subject. eral care, dental pracitionars and midwives and on the mutual recognition of their dip- 2.1.19. At its July session the Economic Iomas. and Social Committee delivered its opinion I on the proposal for a It also discussed the technical Council Diiec- amendments tive on modified starches intended which needed be made for to to rhe Directives human consumption.3 to take account of changes in the designation of basic and specialized training qualifications in some Member States. Business law 2.1.15. At its July session the Economic and Social Committee delivered its opin- European Economic lnterest Grouping ion 1 on-the proposal for a Directive relaiing to specific training in general medical prac- 2.1.2q. On 25 July the Council adopted a tice, which the Commission sent to the Regulation setting up a European Economic a Council in December 19842 (--+ point Interest Grouping (EEIG), on which ir had 2.s.37). reached a common position in June.5

Free movement of goods 2.1.21. On 11 July Parliament adopted a resolution on rhe Removal of technical ..rl1*:Xfi .it'J:'"l bat vandalism and violence in sporr and administrative barriers (--+ point 2.5.lq.6 to trade

Industrial products lndustry

2.1.16. On 29 July the Commission sent the Council a proposal for a Directive on SteelT the-approximation of the laws, regulations and administrative provisions of the Mem- Market situation ber States relating to the classification, packaging and labelling of dangerous prep- 2.1.22. The steel industry in the Com- arations (-r point 2.1.126). munity (excluding Greece and Ireland) produced 70631 000 tonnes of crude steel 2.1.17. On 24 the Commission pre- July in June increase of 4,6o/o on June sented to the Council a proposal defining 1984. the.principles of sound laboratory pracrice to be applied when carrying oui iests on The production trend by country is given chemical substances (+ point 2.1.125). in Table 2.

Foodstuffs 1 oJ c zt&,29.8.r91s. 1 Ol C 13, 15.1.1985; Bull. EC l2-tg84,point 2.1.10. r oJ c 31, 1.2.1985; Bull. EC 12-1984, plint 2.1.16. 2.1.18. Under the early warning sysrem 1 oJ L 199,31.7.198s. for foodstuffs, the Commission was 5 Bull. EC 5-1985, point2.t.?J. informed 5 oJ c 229,9.9.198s. of the problem of exports to rhe 7 Community of large quanritieJ of wine of International relations are dealt with in the'Relations with industrialized countries' section of the 'External Austrian origin containing diethylene glycol relations' chapter; for social aspects, see point 2.1.85; for (antltreeze). research, see points 2.1,227 and 2.1.228.

30 Bull. EC 7/8-1985 lnternal market and industrial affairs

Table 2 Comtnunity production of steel, June 1984 - June 1985 - '400 hnnes

First hzlf % changc 1985 7o change Junc t98S/198+ . 1985 1984

Belgium 906 - 13.4 5 490 58n 6.6 Denmark 43 + 19.4 233 301 . - 22.6 Germany (FR) 3 649 + 13.3 20 522 t9 7i2 + 4.0 France I 674 + 1.8 9 955 9 924 + 0.4 Italy 2 093 3.1 t2 368 12 470 0.8 Luxembourg 328 + 3.8 2 008 1 992 + 0.8 Netherlands 489 + 2.3 2736 2776 1.4 United Kingdom 7 449 + 14.6 8 205 7 754 + 5.7

Total 10 531 + 4.6 6t 527 50 835 + 1.1

Production in the first half was 51 527 000 and Spanish production went up by 0.9o/o tonnes l.lYo up on the first six months and 3.5o/o respectively. of 1984.- (Greece By contrast, production in the United States 2.1.23. In July the Community excluded) produced 9.8 million tonnes of continues to decline; in June 1985 it was 8.1% down on 1984 and in the first crude steel the same as for July last year June but 4.1% down- on this half 72o/o lower than in the first six months June. of last year. Japanese production in the first Output for the first seven months of 1985 half was up 2.6o/o on the corresponding was 71.3 million tonnes - 0.9% higher period of 1984, but the aggregate figure for than in the corresponding period of 1984. the 30 countries which supply production statistics to the International Iron and Steel The trend of steel production in IISI mem- Institute (llSI) was down by 1%. Portuguese ber countries is given in Table 3.

Table 3 '000 tonnes

First sevcn months Jrlv Julv 9" change 7o change 1985 1984 1985 1984

Belgium 700 805 - 13.2 6 190 5 877 + 5.3 Denmark 26 28 7.1 259 301 - 14.0 Germany (FR) 3 433 3 400 + 1.0 23 95i 19 732 + 21.4 France 1 588 1 639 - 3.1 11 545 9 924 + 15.3 Italy 2 069 | 913 + 8.2 14 437 12 470 + 15.8 Luxembourg 370 325 + 13.8 2 378 t 992 + 19.4 Netherlands 462 498 7.2 3 198 2n6 + 15.2 United Kingdom I 125 7 208 6.9 9 330 7 764 + 20.0

Community total 9 773 9 8t7 0.4 7t 290 60 836 + 17.2

United States 6 s50 6 768 3.1 47 479 46 524 + 2.7 Japan 8 967 9 058 1.1 62 481 52 150 + 19.8 Other 10 734 t0 tz7 + 5.0 74 765 62 598 + 19.2

Total 36 034 35 780 + 0.7 ?55 015 222208 + 15.2

Bull. EC 718-1985 31 lnternal market and industrial affairs

2.1.24. Table 4 shows the trend of Member there has been relative stability, with the States' market shares of Community steel French fall offsetting the Italian and Greek production between 1974 and 1984. Since increase. In 1984 products subject to quota 1981, when the quota system was introduced, accounted for74o/o of total production.

Table 4 Members States' percentage market shares of Community steel production, - 1974 to 1984

1974 1980 1981 1982 1983 1984

Belgium 10.5 9.5 8.8 8.2 8.0 8.5 Denmark 0.4 0.55 0.55 0.52 0.46 0.49 Germany (FR) 33.7 32.9 32.2 31.1 32.0 32.2 Greece t.1 1.3 1.6 1.6 France 17.8 19.8 18.3 18.2 77.2 17.0 Ireland 0.05 0.02 0.02 0.05 0.13 0.15 Italy 16.0 21.3 20.7 22.1 21.5 21.2 Luxembourg 3.9 3.5 3.0 3.1 3.1 i.2 Netherlands 3.3 3.2 3.3 3.4 3.4 3.4 United Kingdom 14.3 8.8 lt.7 1 1.8 12.5 12.0

2.1.25. The Community's steel production tee its opinion, the Commission, in July, and its export of finished steel products approved on second reading the forward increased appreciably in 1984. The Ten's programme for steel for the third quarter consumption was up nearly 60/o on the 1983 of 1985. t In accordance with the opinion level, which was the lowest for fifteen years. of the Consultative Committee, the figures Compared with 1982, the 1984 figure rep- for the total provisional production of crude resented an increase of. 3.7%. With the steel for the quarter were amended because exception of France, where it fell by 4.6o/o, of an improvement in the situation since the steel consumption rose in all the main pro- original iext was drafted.2 The estimate of ducer countries between 1982 and 1984:by crude steel production was revised upwards 8.7"/o in the Federal Republic of Germany, from 29 to 29.5 million tonnes. 8.9o/o in Belgium and Luxembourg,3.4% in Italy and 1.3% in the United Kingdom. General Obiectives The Community's exports in 1984-all products together-accounted for 29.8o/o of 2.1.27. In the Commission adopted3 production, of which 22.4 million tonnes July the General 1990.4 were ECSC products. The main customer Objectives for Steel in The original text was amended take was still the United States, which in 1984 to account principal absorbed 27o/o of. the Community's total of the suggestions contained in the ECSC Consultative Commit- exports to non-member countries, or 4.6 5 million tonnes; in 1983 its share had been tee's resolution and comments from the 18%, or 3.4 million tonnes. Exports to the Portuguese and Spanish Governments. rest of Western Europe rose to 5.4 million tonnes in 1984 from 5.4 million in 1983.

I oJ c 183, ?3.7.1985. Forward programme 2 Bull. EC 5-1985, point 2.1.30. 3 oJ c 219,20.9.1985. 2.1.26. The Council having given its 4 Bull. EC 5-1985, point 2.1.15. assent and the ECSC Consultative Commit- 5 OJ C 190,30.7.1985; Bull. EC 5-1985, point 2.5.26.

32 Bull. EC 7/8-1985 lnternal market and industrial affairs

Crisis measures To balance supply and demand, changes had to be made io the figures for hot- and The Community steel industry cold-rolled sheet, galvanized sheet, revers- after 1985 ing-mill plate and heavy sections. 2.1.28. On 16 July the Commission sent The new rates replace those in the Com- the Council three communications concern- mission Decision-of 22 M"y;3 the corre- ins the oreanization of the steel market after sponding production quotas are increased 19i5, the iules on aid and financial transfers f.rom 3.97 to 4.11 million tonnes in respect to the steel industry after 1985 and stronger of hot-rolled wide strip, from 3.33 to 3.44 assist Community structural measures to million tonnes in respect of cold-rolled sheet steel restructuring areas (-r point 1.7.1 et and from 1.25 to 1.28 million tonnes in seq.) respect of reversing-mill plate. Production quotas Minimum prices 2.1.29. On 25 July the Council gave its under Article 58 of the unanimous assent 2.1.31. The Commission decided on 29 Treaty the Commission's pro- ECSC to to amend for the fourth time 4 its amendment to the system of pro- July iected Decision fixing minimum prices for certain duction quotas with regard to the only steel- steel products 5 with a view to realigning maker in-Denmark.l The planned increase the levels the minimum prices in lire relates to an annual output of at most of following the parity changes made on 20 25 000 tonnes. The relevant decision cannot point 2.1.4). be adopted formally until the ECSC Con- July (+ but sultative Committee has been consulted, The adjustment rePresents a net increase of it will have effect from 1 July. 8.3% in the minimum prices in lire applying 2.1.30. The Commission decided on 31 since 1 April and will come into effect on 1 July to amend the rates of abatement to be August. applied to calculating the quotas for the t6iid quarter of 1985.2 The rates are given Restructuring in Table 5, the new ones being marked with an asterisk. 2.1.32. On 26 July the Commission amended6 its Decision of 18 November Table 5 Rates of abatement for the 1981 on the information to be furnished by - establishment of Production steel undertakings about their invest- quotas, third quarter 1985 ments. T The Commission takes the view that it must be able to ensure that the Part of the quota capacity cuts is has requiied or is requiring that may bc auth

Bull. EC 7/8-1985 33 Customs union

Industrial innovation Customs union and information market Simplification of customs Development of a European formalities information market Single administrative document 2.1.33. On 1,6 July the Commission decided, in response to the wishes expressed 2.1.35. On 8 July the Council adopted two by the European Council at its meeting in Regulations,4 one introducing Community Brussels in March,l to take the sieps export and import declaration forms 5 and necessary for the implementation of a genu- the other amending 5 the Regulation of 13 ine common information market, and December 7977 on Community transit.6 reviewed the work already done in this area. Both tie in with the adoption in February of the Community customs declaration It therefore requested the relevant form depart- known_as 'single ments to submit the administrative docu- to it within three months ment'. / a programme containing specific proposals and a timetable, and at the saml time to draft preliminary proposals, for transmittal Abolition of certain postal charges to the Council, concerning in particular the 2.1.36. On 11 July the Commission senr creation of a European source bf supply and the Council a proposal for a Regulation a European data bank continuum. abolishing certain postal charges for customs presentation. E The proposed Regu- Apollo programme2 lation is designed to do awiy with the fees charged by national postal administrations 2.1.34. An agreemenr between Com- the for presenting to customs consignments sent mission and the European Space Agency from another Member State. Ii forms oarr (ESA) on cooperation within the framework of the Commission's drive to rtr.nnih.r, of the Apollo project 3 was signed in Brus- the internal market, and was one o"f the sels on 31 July. measures included in the White Paper e pre- The project will.provide high-speed digital sented by the Commission ar the Milan transmission for long data messiges, in par- European Council.lo Once adopted, the ticular for document facsimiles; it will iup- Regulation will mark anorher step forward port a small number of information prb- in the creation of a 'people's Europe'. viders (up to 10) wishing to transmit mess- ages to a-large number of widely dispersed General legislation users and will utilize one of the Eutelsat-l satellites designed and developed by the Customs debt ESA in collaboration with- European industry. 2.1.37. On 11 July Parliament endorsedll The recently signed agreement provides for a Commission proposal for a Regulation the development of prororype equipment by I European industry to ESA specifications. 2 Bull. EC 3-1985, point 1.2.4. The agreement also makes the-Commission Apollo: Article procurement with on-line ordering. 3 Bull. EC7/8-1984, point responsible, with the assistance 2.1.40. of the ESA 4 oJ L 179,11.7.198s. and telecommunications administrations, 5 oJ c 203,6,9.1982. for the overall coordination of Apollo, , oJ L 38,9.2.1977. including the archives of the Offic^e for 1 ol 179,21.3.1985;Bull. EC 72-7984,point 1.5.1. 8 oJ c 202, 10.8.1985; Official Publications of the European Com- e- coM(8.5) 355 final. munities Luxembourg Bull. EC 6-1985, point t.3.1 et seq. in and several other 10 Bull. EC 6-1985, point 1.2.5. sources of European information. lt o! c229,9.9.198s.

34 Bull. EC 7/8-1985 Customs union on the entry in the accounts and terms of remitted when the processed products are Dayment of the amounts of the import exported. export duties resulting from a duii.s or 7969 Directive provided only for 23 August the Com- While the cusroms debi.l On of import duties, the new Regu- an amendment to the waiver mission sent the Council lation now allows the inward processing the proposal to take account of Parliament's products z arrangements to be used where- views. obtaiied from processing are liable for export duties, oi where import goods are Repayment or remission of duties s.rbi.ct to measures of commercial policy in the event of their release for free circulation. 2.1.38. AIso on 11 JulY, Parliament endorsed 3 a proposala for a Council Regy- lation amending the Regulation of 2 July Processing under customs control 1979 on the rEpayment or remission of import or export duties.5 2.1.41. On 25 July the Council adopted a Resulationl0 amendins the list in the Annex to ih. R.gulation of 2B'september 198311.as Release for free circulation regards arrangements for processin-g under processing of certain the Economic customs control. The 2.1.39. At its July session petroleum products into products which and Social Committee gave its opinion may be given favourable tariff treatment (--+ point 2.5.39)6 on a proposal for. a meaning of the- Commission Resulation lavine down measures to dis- within the of 4 797712 and 22 .o,i."n. the relei'se for free circulation of Resulations Jrily luly 197713 is now included, as is the manufac- countErfeit goods. T ture of chromium from dichromium triox- ide, and the arrangements for processing und.t customs conlrol will henceforward Customs procedures which with economic imPact cover the usual forms of handling may be carried out in a customs warehouse or a fr.e zone, in accordance with the Direc- Inward processing tive of 21 June 7971.14 2.1.40. On 16 July the Council adopted The new Regulation incorporates most of a Regulation o.r- in*ard processing relief the provisioial measures adopted in the 8 The new-Regulation will Corninittion Resulations of 1- Februaryls have^rrrn"g...nts. iffect from 1 January'4 1987;it replaces and 12 March,ltr which were valid for six the current Direct-ive of March lgegs months only. and, being directly applicable in all Member States, wiil offer [r.rt.. certainty in the law for individual users. 1 0J c 41, 13.2.1985; Bull. EC 72-1984, point 2.1.40. 2 coM(85) 470 final. To a great extent the Regulation proceeds 3 oJ c 229,9.9.198s. along ihe sames lines as the 1969 Directive, 4 0J c 22,24.1.1985; Bull. EC 12-1984, point2.1.42. 5 t- 175,12.7.7979. but ii means the rules of the inward process- 5 oJ be more closely harmonized oJ c 218,29.8.1985. ing system will 7 Bull. EC 72-1984,2.7.39a. par-ticular, oJ c 20,22.1.1985; throughout the Community. In t oJ I- 188,20.7.1985. it is more explicit in its provision Jor two e oJ L 58, 8.3.1969. variants of inward processing relief: one in ro oJ L 198,30.7.1985. duties on non-Com- 11 oJ L /72,5.10.1983. which the import- 12 19j0.Dn. goods placed under the procedure oJ L 171,9.7.1977;oJL266, munity 13 oJ L 195,2.8.197; oJ L 266, 19.10.Dn. for releiport after processing are waived, 11 oJ L 143,29.6.1971. and another in which duties are charged t5 0J L 30,2.2.1985; Bull. EC 2-1985, point 2.1.28' on non-Community goods but repaid or 16 0!L72,13.3.1985; Bull. EC 3-1985' point 2.1.34.

35 Bull. EC 7/8-1985 Customs union

Common Customs Tariff I --deep-fr,ozen fillets of Alaska pollack, falling within CCT subheading ex bS.Ot g Nomenclature II(b) t+.to

2.1.42. In the interests of ensuring uniform Generalized preferences application of the CCT nomencliture, the tariff Committee on Common Customs Tariff Nomenclature took decisions on the classi- 2.1.45. The Council also adopted in July fic,a.tion. of certain goods in the following a Regulation-applying supplementary [en- subheadings: eralized tariff preferences-in respect 6fier- tain products originating in developing 85._19 A,90.79 A III,90.28 A II(b) and92.lt countries and sold ar the Berlin 'Partneis in B;' 50.05 A II(b) 4(ll) 44,51.028II(e)7(cc), Progress' Fair. 51.01 B V(e) 3 and 50.04 B IV(d) l(dd);2 39.01 C VII,28.35 A III and 28.48 A;t 23.02 B I;4 50.04 B IV(b) 1(aa), 60.05 A Ii(b) 4(ll) 22, 60.05 A II(b) 4(ee) 3_3, 51.028 II(e) 5(cc) Customs valuation and 67.02 B II(e) 9(cc). 5 2.1.47. On 27 the Commission 2.1.43. The adjustment June of the European adopted a Regulation on the rares of exch- Monetary System's bilateral central iates ange to be used in the determination of approved on 20 (+ point 2.1.4) means July customs value;11 the aim is to introduce a that new rates applied from 2 August to rhe uniform system of periodic exchange rates conversion of ECUs into national currencies in accordance with the wishes expreised by f9r the purposes of determining the tariff the Council when adopting the Regulation classification of goods and CCTduties. 5 of 20 May 1980 on thi valuation of eoods for customs purposes.l2 Economic tariff matters 2.1.48. On 1 July the Commission adopted a Regulationl3 amending the Suspensions description of certain producs on the lisr of perishable goods eligible for the simplified 2.1.44. On 23 July the Council adopted customs valuation procedures esrablished a Regulation temporarily suspending- the by the Regulation of 12 June 1981.la Also autonomous CCT duty on aldicarb (lSO), amended was rhe Iist of marketing cenrres dissolved in dichloromerhane, falline within annexed to the 1981 Regulation. subheading ex 29.318.7

Tariff quotas

I oJ c 185, 2s.7.1e8s. 7 2.1.45. In July the Council adopted three oJ c 190, 30.7.1985. Regulations opening, allocating and provid- 3 oJ c 201, 9.8.1985. ing the adminisrration of Community 4 oJ c 204, 13.8.1985. -for 5 oJ c 216, 27 .8.1985. tariff quotas in respect of the following 6 proclucts: oJ c 186, 26.7.198s. 7 oJ L 193, 25.7.1985. 8 . certain fishery producrs, salted, falling oJ L204,2.8.1eSs. . 9 oJ L 193, 2s.7.1985. within CCT subheadings ex 03.02 A I(b) l0 oJ L 199, 31.7.1985. and ex 03.02 A II;8 ll oJ L 158, 28.6.1985. lt certain polyester oJ L 134,31.s.1980. . films, falling within ll oJ L 172,2.7.1985. e CCT subheading ex 39.01 C III(a); l4 oj L 154,13.6.1981.

36 Bull. EC 7/8-1985 Competition

electronic equipment (radios, televisions, Competition video record-ersJ. These dealership agreements comprise clauses setting minimum practices, reouiremenis relating to the technical quali- Restrictive and the suitability mergers and dominant fications of the dealers Positions: premises which they must specific cases of their trading meet if they wish to sell Grundig products. Thev must also be able to keep Grundig Prohibited horizontal agreements p.odu.tt in stock and on display according io criteria defined by reference to the scale Transport by inland wateru)aY of their business. Every dealer who can satisfv the conditions is entitled to become 2.1.49. On 10 July the Commission took a Grundig dealer by applying either-to the 1 (EEC) No a Decision under Regulation Darent .Jmprrv direct-or to one of the sole 7017/58 applying rules of competition to iistributors of'the make. At present the transDort bv-rail, road and inland water- Grundig distribution system includes some / inland water- *"y finding that two French 28 000 dealers in the CommunitY. *ay trantpoit associations, the Association of ' Self-Employed Waterway Car-riers This Decision continues the Commission's policy on- selective distri- (Association- Nationale des Travailleurs long-standing - ind6oendants de la Batellerie) and the Fed- bution systems, upheld on numerous eration of Inland Waterway Forwarding occasions- by the Court of Justice. -ln Asents (Chambre Svndicale Nationale des December t9834 an opportunity arose for C6urtieis de Fret Fiuviaux), had infringed the Commission to spell out the principles Article 2 of the Regulation. However, since concerning admission of new dealers to the Resulation wis being applied for the selective dlstribution networks, and it found first tirie, the undertakings concerned were that the Grundig system complies with small and their agreement was in force for those principles. only four months, no fines were imposed. The consumer electronics market is dis- The two parties entered into and applied for tinsuished bv stiff competition between four months an inter-association agreement -"Inufacturers and also between dealers' whereby the forwarding agents levied an This has brought consumer prices -down, . ,*ornt of 70"/o on all charters for desti- and in recent yiars they have risen far less nations abroad, which was later paid to the raoidlv than the general cost of living. Com- Boatmen's Cooperative (Entreprise Artisan- o.lition also lead's to swift renewal o[ prod- ale de Transpoit par Eau), whose obiect is ,.t .rng.t and continuing innovation in the the promotion of inland waterway.traffic- components used in them. Both in Europe Undlr the agreement*the the amount collected, and elsewhere manufacturers have accord- known as 'EATE levY', could be inelv diversified their distribution channels refunded only to EATE members. The anl'seek to provide consumers with as wide agreement had discriminatory effects and a choice as possible. In these circumstances iipaired the competitive position of a num- a manufacturer who endeavours to organize ber of foreign carriers. the distribution of his products in such a way as to quarantee a professional presentation and Tfter-sales seivice should qualify Distribution for exemption from the ban on restrictive practices'laid down by the Treaty. This is Grundig 2.1.50. On 10 the Commission JulY3 1 oJ L 219,17.8.1985. granted exemption until the end of 1989 2 oJ l- 175,23.7.1968. Ior the agreements entered into between 1 oJ L 233,30.8.1985. Grundig AG and its dealers in consumer 4 oj I 376,31.12.7983: Bull. EC 12-1983,point2.1.47.

37 Bull. EC 7/8-1985 Competition

especially the case where the emphasis on r- Giorgio Sichel SpA, Padua (member of after-sales service is not liable to have a the Unione Naziona[e Importatori Distribu- significant effect on price setting. The Com- tori di Occhialeria, Milan). mission was able to check rhai consumers purchasing Grundig products can expect The Commission also found that a regional not only ro receive the standard of aiter- association of opticians, Assopto, Virese, sales service customary in this industry. but which is affiliated ro rh; Natibnai Associ- also to benefit from the often consid6iable ation of Opticians (Federazione Nazionale price differences between different Grundig Ottici Optometristi (Federottica), Milan), dealers. requireC its members to charge fixed retaii prices for spectacle glasses ani contact lenses. Those prices were laid down in a price Restraint of cornpetition list drawn up by the associarion. in the spectacles trade All of these verrical and horizontal price- 2.1.51. In the course of its investisations fixing arrangements restricted price compe- in the specracles trade,l the Comilission tition on the Italian spectaclej market and found that a number of major Iralian manu- were also likely to affeit trade berween Italy and facturers of and dealers in-spectacle frames the other Member Srates to ,n ,ppr..i- and glasses and contact lenses able extent. In the Commission's view, such were price imposing fixed retail prices on rhe opricians fixing covering an entire sectoi and -fixed the they supplied. These prices ap;lied to whole terrirory of a Member State is -Member incompatible with Article 85(l) all sales, including those in other z of the EEC States. Treaty. All the firms concerned declared their readiness ro change their compulsory The following firms were involved: prices into non-binding price recommendations, so thar Industria (lOR) opticians will in future be . Ottiche Riunite SpA free to decide theii own selling prices. (Oftalmico Galileo, Salmrioiraghi, Krone, Ascot), Venice/Marghera, subsidiary of IRI Finally, the Co-mmission found that Safilo, (lstituto per la Ricostruzione Industriale), a qaj.or manufacturer of spectacle frames, Rome prohibited some exclusive- distributors in the Community from reselling goods o. Zeiss srl, Milan (members of the groups covered by contract either directly or 'lenti oftalmiche' and 'conramologia i lenti indirectly to orher Member a contatto' States. Safilo' of the Associazione Nazionale has in the mean time lifted this prohibition, Industria precisione dell' Ottica Fine e di with the result that Safilo dealirs are (Assottica), Milan); now free to export its products to other Member . Essilor Italia SpA, Corsico States.

. Rodenstock Italia SpA, Milan (members Motor dssessors of the group 'lenti oftalmiche' of the Associ- azione Nazionale Industria dell' Ottica Fina 2.1.52. Following represenrations by the e di Precisione (Assottica), Milan); Commission, four Luxembourg irade associations lifted the resrrictions Giuseppe Ratti, Industria Ottica SpA, ihev had Turin:, imposed on seming up in business and operatlng as a motor insurance assessor in . Marcolin SpA, Vallesella di Cadora/ the Grand Duchy of Luxembours; a market Belluno has thus been opened up to assJssors from .. La. M-eccanoptica Leonardo SpA, Agordo/Belluno (members of the Associ- I azione Nazionale Fabbricanti Bull. EC 1-1985, point 2.1.9. Articoli da Answer to lVrittcn pierre- Occhialeria (ANFAO), _z Question No 1130/83 by Mr Milan); Bernard Coust6, OJ C 350, 23.12.1983.

38 Bull. EC 7/8-1985 Competition

other Member States and to insurance com- to the licensee in France and the correspond- panies established in Luxembourg. ing export ban on the licensor and other licinseis in the common market infringed These restrictions, which resulted from an Article 85(1), at least since the expiry of asreement between the four trade associ- the basic patents covered by the licensing ,iionr, concerned the repair of material agreemend nor could they be exempted damaee caused bv traffic accidents. The u'ndet Article 85(3). However, no fines were ,gr..il.nt provided for a collective system imposed since the agreement had been noti- fJr the apploval of assessors who evaluate fied. this type of damage and offer their services iniurance companies under motor The Commission accordingly considered to finding insurance policies so[d in Luxembourg. The that there was no need to make a the agreement during I system prevented nlotor assessorsr as to the validity of -p-articu- basic larlv th-ose comins from other Member the period prior to expiry of the par- Staies, from offering their services freely patents and io the dispute between the 'ties. point out that to the insurance companies concerned-i.e. But the Commission did nearly all the companies writing motor during that period it was possible that cer- either insurance in Luxembourg. tain o"f the agreement's clauses could have fallen outside the scope of Article 85(1) Given the circumstances prevailing in Lux- or have qualified for exemption pursuant embourg, the Commission considered that to Article 85(3). this coll-ective system was in restraint of comoetition and was further reinforced by Abuse of dominant positions the nature of the qualifications required, which favoured asiessors established in Luxembourg to the detriment of those com- IBM thus consti- ine from otf,er Member States, Peter Sutherland, Member of Since the 2.1.54. Mr triinn undue discrimination. the Commission with special responsibility without delay, ,nr.."-.nt was withdrawn for competition policy, announ-ced that the not initiate formal pro- tfr'e Commission did had taken stock of the manner concerned. Commission ceedings against the associations in which IBM had fulfilled the undertaking eiven to the Commission on 1 August Industrial and commercial ig}+.2 As a result of the undertaking the property: copyright Commission suspended the proceedings initiated against IBM on 5 December 1980 to provide Velcro/ Aplix under Artiile 86.lBM undertook certain interface information at the request I the 2.1.53. In a Decision adopted on 12 July of competitors in the Community -for under Article 85(1) of the EEC Treaty, the attachment of their products to its System/ Commission found that the territorial 370 products and also to provide certain Network Architecture (SNA) docu- exclusivity -togranted by a Swiss company, Svstems Velcro SA, a French company, Aplix -.ntt. It also undertook to supply, on SA, in a licensing and trademark agreement request, certain central processing .units concerning the rianufacture and sale of self- wiihout main memory or with the minimum eriooine textile fasteners in France was strictly necessary for testing. rules. i"ncompitible with the competition IRM submitted to the Commission a com- The Commission initiated proceedings fol- prehensive report on the first year's oper- lowing a dispute between the parties-and a ation of the uhdertaking, stating that it has compi-aint. t00h.n the Decision-was.adopted the basic patents covered by the licensing I oJ I- 233,30.8.1985. agreemenf had expired. The Commission 2 Bull. EC7/8-1984,point 1.1.1 et seq.;Rull. EC 10-1984' fJrnd that the terriiorial exclusivity granted point 3.4.1.

39 Bull. EC 718-1985 Competition

fulfilled its obligations and incorporated the , respect of which the Article 92(2) procedure requirements of the undertaking into its had been initiatedl- 56 that'the period business procedures. It has also iitroduced during which firms can receive aid is not procedures lew and amended others ro extended. These amendments to the aid facilit-ate handling requests for in formation. scheme involve reducing the size of firms IBM has published the three new manuals (whose staff numbers aie limited to 1 000 referred to in its undertaking which describe instead of 3 000) qualifying for aid for the aspects of SNA. Since 1 Ausrr, 1,994 ls recruitmenr of additional itaff assiqned to companles haye inquiriEs containing R&D and excluding over ryad.e sofrware housEs from 120 individual re(uests, lZ were the scheme. The rates of assistance will also requests for SNA information and the other be cut. 108 for System/370. IBM stated that the requests varied in content and complexity. Since these changes broadly take into In a few cases requests were reiused b..rrr. account its observations, the Commission they_were outside the scope of the undertak- decided on 16 July to rerminate the procedure. ing. It received no orderjfrom users for the supply of the System/37O cenrral processing unlt wrthout matn memory or with the Regional aids minimum required for testing. The Commission, for its part, monitored Italy closely the,effects of the undertaking during the last 12 months. To this end i-t main- Sardinia tained a wide range of conracts with the computer. industry- and examined carefully 2.1.56. The Commission withdrew the any que-srion raised by other parries. On the objections it raised on 5 February in initiat- basis of the information available to it. the ing_the. Article 93(2) procedure'in respecr Commission is satisfied that IBM has 6een of Section 49 of the Region of Sardinia's fulfilling its undertaking efficiently and in a Finance Act (No 26/84), which provided for spirit of cooperarion. Ploblems concerning the refinancing of SFIRS (Societi Finanziara interpretation of the undertakins have been Industriale Rinascita Sardegna) and CIS solved satisfactorily and those 6utstanding (Credito Industriale Sardo) asencies should be settled shortly. The Commission responsible for assisting firms -in diFficulty will, however, continue to monitor the (Regional A ctNo 66/76) and supporting the operation of the undertaking and is willing restructuring, conversion, diversificalion to step in and assist in solving any future and expansion of firms (Reeional Act No problem. 31/83). The procedure had been initiated on account of the Iack of adequate information on the-procedures for graniing assistance to State aids the industries affected-by thei measures. Following discussions between the Com- General aids mission and the Italian authorities, the latter agreed.to vary these financing schemes Aid for ROD substantially. Under Regional Act No 66/76 (firmsin diffi- Federal Republic of Germany culty) the size of recipient firms has been limited, while combinitions 2.1.55. of this scheme On 8 July the Federal German with other measures havins the same our- Government notified the Commission of its pose are prohibited and thE chemicals'and intention to vary several key features of its proposed scheme of support for employment in research and developmeni-in , oJ c 73, 19.3.1,98s. fi Bull. EC 7/8-1985 Competition

synthetic fibres industries and-in prin- also took account in particular of the fact ciple-the clothing industry are excluded. that the scheme applies to small and If the Region of Sardinia contemplates medium-sized businessesr that the rate of exceptional assistance for the clothing interest payable by the recipients has been industry, it must notify the Commission in raised, that the firms are in industries opera- advance of proposals to grant aid to firms ting mainly for the local market in a employing more than 50 persons. depressed area and that the financing is limited to one measure per firm. Regional Act No 31/83 (restructuring) has been limited small and medium- also to Belgium sized firms, while firms in difficulty, firms covered by Act No 66/76 and firms in the 2.1.58. Having carried out the review pro- chemicals and synthetic fibres industries do vided for in itJDecison of 22 luly 1982,2 not qualify. Furthermore, both the Com- the Commission decided on 31July that the munity rules on aids to the textile and cloth- arrondissements of. Hasselt, Maaseik and ing industry and the Community ceiling in Tongeren would continue to be classified net grant equivalent will be complied with in the 20o/o net grant equivalent category when this Act is applied, whether by itself and that before the end of the three-year or possibly in combination with other period running from this new decision it regional or national provisions. would review once again the socio-econ- In its assessment the Commission accord- omic situation in these arrondissements. ln ingly took account of the fact that the inter- agreeing to retain this 20% ceiling, the est rate charged to the recipients had been Commission noted in particular the very raised, that the financing was restricted to high unemployment in the province of Lim- one measure per firm and that the firms are burg, but it limited the period of application years the in industries which operate mainly on a of the ceiling to three because of local market and in a depressed area where buoyancy of the province's economy and the index numbers for income and uriem- also because, save for the coal industry, the ployment are estimated at 71. and 192 region's industries have only minor struc- respectively compared fo a national average tural problems. of 100. The Commission also decided against amending the provisions of its July 1982 Decision in regard to the Mouscron area Sicily and Noord Hageland. Regional aid may 2.1.57. On 10 July the Commission accordingly no longer be granted in these decided to terminate the Article 93(21 pro- two areas from 23 July. This decision is notable cedure 1 initiated on 19 March 1984 in warranted on account of the respect of Section 1 of Regional Act No improvement in the employment situation progress in 1.19/83, which provided for the refinancing and the substantial in incomes the areas concerned.' I by the Sicilian Region of an Irfis (lstituto Regionale Finanziamento Industrie Sicil- The July 1982 Decision was one whereby I iane) revolving fund used to grant low-inter- the Commissiiln outlined its position on the est loans to firms for building up stocks of development areas designated under Section raw materials and finished proudcts. 11 of the Belgian Economic Expansion Act 1970. 1 its The Commission was able to withdraw its of 30 December In Article o[ classified the objections to these measures, which are to Decision the Commission arrondissements Hasselt, Maaseik and be applied until the end of 1985, in the light of the province of Limburg in the of the changes made to the scheme and Tongeren in the additional information supplied by the Italian authorities on its operational pro- I Bull. EC 3-1984, point 2.1.49. cedures. in its assessment the Commission 2 0J L 312,9.11.7982; Bull. EC 7/8-1982, point 2.1.38.

Bull. EC 7/8-1985 4t Competition

20o/o net grant equivalent category for three on 10 July that the assistance granted by years. The grant of regional aid in the drron- the German Government to a polyamide dissement of Mouscron and in Noord Hage- and polypropylene yarn manufacture in land in the arrondissefttent of Leuven was Bergkamen-in respect of which it had also limited to three years. It also decided initiated the Article 92(3) procedure in Jan- to review the socio-economic situation in uary 3 unlawful ahd incompaiible the areas concerned before that period with the-was common market within the mean- expired. ing of Article 92. The recipient Federal Republic of Germany firm used this aid-in contrast to the intentions declared in its appli- 2.1.59. On 31 Jrly the Commission cation-to increase its production capacity decided to initiate the Article 93(2) pro- for polyamide and polypropylene yarn, I cedure in respect of the grant of aid in the which, where polyamide was concerned, Diiren employment area under the North was at the time contrary to the synthtic a Rhine-Westphalia economic development fibres and yarns aid code. programme. The objections measure to the The Commission concluded that the assist- I are based in particular on the improvement ance, which had been granted in 1983 within the region's employment situation. out prior notification and affected trade Following the Commission's initiation of between Member States to an extent con- the Article 93(2) procedure in respect of the trary to the common interest, did not meet Joint Federal Government/Linder pro- the conditions for exemption under Article gramme for improving regional economic 92(2) and (3). It accordingly decided that structures (Gemeinschaftsaufgabe),1 the the recipient must repay the aid. Dtiren employment area was to be excluded from the programme at the end of a tran- Shipbuilding sition- period expiring on 31 December 7984.2 However, North Rhine-tl7estphalia 2.1.51. On 3 and 31 July the Commission proposed to include it among its develop- decided to terminate the Article 93(2) procedures initiated 1984 respect ment areas from 1 January 1985. Now that in in of aid schemes for the shipbuilding industry noti- the Commission has raised objections to rhe s measure, no regional aid may be granted in fied by the United7 Kingdom,T ltaly,6 the the Diiren employment area until a final Netherlands and Frince. In opening decision is taken. these various procedures the Commission considered that the restructuring measures However, the Commission authorized initially proposed by the Governmenrs con- inclusion of the Soest employment area in cerned were not extensive enough to attain the Land aid scheme, since economic the objectives laid down by the Council activity there is well below the federal aver- Directive of 28 April 1981 on aids to ship- age. It agreed to retain the Land aid scheme buildings in force until3l December 198'5. in the Essen-Miilheim employmenr area It also feared that the large amount of assist- J until 31 December 1985 on account of the ance proposed would have adverse reper- sharp rise in unemployment there. I

Industry aids 1 oJ c 316,4.12.1981; Bull. EC 11-1981, point 2.1.37. z Bull. EC 6-1983, point 2.1.65; Bull. EC 10-1983, point 2.1.48. Synthetic fibres 3 Bull. EC 1-1985, point 2.1.12. a Bull. EC7/8-1983, poinr2.1.46. r Bull. EC7/8-1984, point 2.1.70. Federal i{.epublic of Germany r Bull. EC 10-1984, point2.1.46. 7 Bull. EC 11-1984, point 2.1.45. received 2.1.60. Having the comments of 8 oJ L 132, 23.5.1981; o! L 371, 30.12.198L oJ L 2, interested parties, the Commission decided 3.1.1985.

42 Bull. EC 7/8-1985 Competition cussions on competition between Com- mission by 31 December 1985 of a radical munity yards and jeopardize the successful restructuring plan for the industry. outcome restructuring already under- of The restructuring measures which the Ital- taken by the other Member States. ian Government has decided to take should Following detailed consultations between bring about a considerable reduction in the the Commission and the governments in losses made by the yards belonging partially question in the context 'of the procedures or entirely to the public sector. initiated, it was possible to redefine some features of the proposed measures and to Netherlands clarify the restructuring objectives and means selected to attain them. The Com- 2.1.64. The aid previously authorized by mission thus agreed to aid intensities the Commission for 1984 (the rate varying slightly higher than those authorized under between 1.5% and 7o/o according to the previous schemes on account of the worsen- value of the vessels) may be increased by an ing crisis in the shipbuilding industry in the additional average 3 points on account of Member States concerned and of the extent the very pronounced deterioration in the of the planned restructuring measures. On industry during that year. the basis of assurances received, the following measures were authorized: France examined circum- United Kingdom 2.1.65. Having the stances attached to the procedures and grant of assist- 2.1.62. The Commission approved a total object of the FF 3 000 million Com- budget of UKL 140 million to finance pro- ance to Nord-M6diterran6e, the duction subsidies of up to 22.5o/o of the mission decided that the aid satisfied the the contract price of ships built by Brtish Ship- conditions laid down in Article 4 of I concerning compati- builders, Harland 6c Wolff and the private April 1981 Directive also sector and up to 27.Soh of the price of ships bility with the common market. It grant FF 300 million of more than 70 000 dwt built by Harland & authorized the of a Wolff. The restructuring measures consti- subsidy to Alsthom-Atlantique under tuting the compensatory for Article 5 of the Directive since the assistance iustification the social this scheme should enable the UK Govern- enabled the firm to implement programme. ment to put an end to the losses made by aspects of its restructuring the nationalized yards. 2.1.66. On 31 July the Commission decided to initiate the Article 93(2) procedure in respect of the scheme of assistance Italy for the shipbuilding and ship repair industry proposed to 2.1.53. The Commission authorized which the French Government from 1 1985 to 31 December establishment of a LIT 700 000 million apply January considered that the aids which the budget to finance production aid of up to 7986. k French Government intended to grant to 25o/o of the contract price of vessels (30% the yards-production aid of up to 30% of for yards in the Mezzogiorno). The tonnage medium-sized yards the price of vessels built by largeyards,20o/o built by small and yards (30% qualifying for production aid was restricted of those built by medium-sized exceptional cases) and 10% of those to 80 000 cgt in 1984, 70 000 cgt in 1985 and in by small yards (20% in exceptional 60 000 cgt in 1985. An exception was made built cases), FF I 850 million in restructuring pre- for ship repair aid and a rate of 8% authorized (75% ln the Mezzogiorno), to be paid from a total loan budget of LIT 90 000 t OJ L 137, L3.5.1981; OJ L 371, 30.1.2.1982; OJ L 2, million, subject to submission to the Com- 3.1.1985.

Bull. EC 7/8-t985 Competition

miums for one shipbuilding yard and FF Council- meeting on industry held on 25 300 million for five large ship repair yards March. r This enabled those countries that not compatible with the conditions so wished to notify further aid and financial -werelaid down in Articles 4 and 5 of the April measures in addition to those authorized by 1981 Directive. The proposed aid did not the Commission on 29 June 79$.4 appear to be justified by adequate restructuring efforts aimed at eliminating existing The recent decisions are based on the cri- surplus capacity. The Commission was also teria adopted by the Commission in the concerned about the intensity of the pro- light of the Council's discussions on 26 posed assistance,.which was liable to have March. The Commission accordingly uneven repercussions on the adaptation of authorized aid to promote the financial capacity to market conditions in progress restructuring of undertakings, so as to reduce their debt-service charges least in other Member States. at to the level borne by undertakings that were 2.1.67. Finally, on 3 July the Commission profitable in t984 or to cover costs decided to raise no objection to the grant occasioned by additional capacity by the French Government of production reductions. In return for this assistance, the aid amounting to 20o/o of the contract price Commission required the capacity cuts of a vessel for transporting refined pet- needed to guarantee the viability of recipi- roleum products built by a yard on the ent undertakings or-where it had already Atlantic coast. It took account in particular taken up a position on such viability-ca- of the fact that there was no competition pacity cuts which affected neither viability for this order from other Member States and nor trading conditions. It agreed that some that the rate of aid applied was equivalent to of the additional closures need not be made that in force under the previous scheme, until 1985, to enable the undertakings con- which came to an end on 3L December 1984. cerned to make the investments necessary for transferring to other plants the pro- Steel duction from installations to be closed down. 2.1.58. On 3l July the Commission agreed Before taking these decisions the Com- payment 4 000 million ECU to the of some mission consulted the Member States on all in assistance to the Community steel indus- these matters at multilateral meerings held capacity cuts try in return for additional on 27 and 8 and 9 All the assisr- aid June Jqly. of more than 2 million tonnes. The ance authorized by the Commission must for the per- authorized by the Commission be paid before the end of 1985. This will iod 1980-85 will total some 37 500 million bring to an end the voluntary iestructuring European steel indus- ECU. Altogether the measures introduced by adoption of the aids production try will have reduced its code 2 in 1981 and wili enable the European tonnes since capacity by almost 32 million steel industry to tackle by its own strength, 1980. This conforms to the political com- 1 from the start of next year, a market open- mitment made by the Ten at Elsinore in ing up gradually to free competition. November 1982, thus cre ating the cott- ditions required for a return to viability in 2.1.69. With regard to state aid after the industry in 1985. expiry of the aids code in December, on The decisions recently adopted concern 15 July the Commission transmitted to the Council a communication various undertakings in six Member States: on the rules on Belgium, France, Federal Republic of Ger- many, Ireland, Italy and Luxembourg. I These are the last decisions under the steel 2 Bull. ECtt-1982, point 2.1.15. aids code adopted in 1981.2 Some of OJ L 228, 13.8.1981; Bull. EC 6-1981, point I.4.3. June 3 Bull. EC 3-1985, poinr 2.1.42. the deadlines in the code were extended 1 oJ L 227,19.8.1983; Bull. EC 6-1983, point 1.7.7 et seq following the consensus reached at the

44 Bull. EC 7/8-1985 Competition aid and financial transfers to the steel indus- Public undertakings try after 1985 (-+ point 1.7.1 et seq.).r Transparency of financial relations between Member States and Nationa! monopolies public undertakings of a commercial character 2.1.71. On 24 July the Commission adopted, under Article 90(3) of the EEC France: alcohol monopoly Treity, a Directive 3 extending the scope of the Directive of 25 June 1980 ori the 2.1.70. The French Government has taken transparency of financial relations between steps to reform its alcohol monopoly, thus Member States and public undertakings.4 complying with the Commission's reasoned The originalDirective did not apply to pub- opinion finding that the system was incom- areas of patible with the common market. lic undertakings operating in the energy, water, posts and telecommuni- In June 1984 the Commission found that cations or transport, or to public credit the monopoly was organized in such a way institutions. Given the development of com- as to protect national production of alcohol petition in these sectors and the increasing by making imports of alcohol from other integration of the Member States' econom- Member States more expensive, notably ies, it appeared necessary to ensure the through the charging of a sort of duty that transparency of financial relations between could amount of 50% of the price, net of Member States and public undertakings in tax, of the imported alcohol. The duty in these areas too. question, known as the soulte, was charged The transparency Directive is designed to both on imported alcohol and on alcohol enable the Commission to assess whether produced in France, with the crucial differ- the resources made available to the public ence that, in the case of home-produced undertakings are liable to constitute State alcohol, the revenue was paid to the mon- aids and should be treated as such or opoly, which then used it to purchase the whether, on the contrary, such resources French distillers' alcohol production at a are allocated to undertakings in the form of higher price than that at which it sold the z risk capital under the uormal conditions alcohol. of a market economy. The Commission's trans- The reform of the French alcohol system, action in extending the scope of the parency its efforts to set for 1 September 1985, will liberalize the Directive ties in with rules sector in France, the monopoly applying in clarify application of the competition future only to alcohol distilled from sugar and more particularly those concerning beet. This means in effect that trade in other State aid. The Commission's notice of Sep- public holdings types of alcohol, including alcohol distilled tember 1984 on authorities' in the capital of public-sector and private- from molasses and synthetic alcohol, will 5 no longer involve the Service des Alcools. sector undertakings is a further example area neighbouring on It will in future be possible for all these types of this move in an of alcohol to be marketed freely without that of the transparency Directive. attracting the soulte. The Directive concerns the financial relations established through public funding In thus successfully pressing for changes in the French alcohol monopoly, the Com- 1 mission has managed to settle the main 2 coM(85) 376 final. problem that was still outstanding as Bull. EC 3-1983, point 2.1.40; Bull. EC 4-1983, point 2.1.56; Bull. EC2-1984, point 2.1.57. regards adjustment of the traditional mon- 3 oJ L zz9,zg.g.191s. opolies operating in the original Member 4 OJ L 195,297.7980; Bult. EC 5-1980, point 2.1.34. States. 5 Bull. EC 9-1984, point 3.5.1.

Bull. EC 7/8-1985 Financial institutions and taxation of State-controlled undertakings only, exemption from value-added tax on the whereas the Commissi6n's notice of Sep- temporary importatidn of goods other than tember 19841 mainly concerns cases wheie means of transport. s The Directive applies public authorities' holdings constitute aids to a wide range of gobds that will in future to undertakings in both the public and pri- qualify for exemption when imported for a vate sectors. By extending the scope of the maximum duration of 24 months provided transparency Directive the Commission they remain the property of a person estab- wishes to ensure that the rules on State aid lished outside the territory of the Jvlember are applied equitably also to public under- State of importation takings. 2.1.74. On 76 July the Council also adopted, T in acc6rdance with the agree- E ment reached in June, the twentieth VAT Financia! institutions and taxation Directive, e authorizing the Federal Repub- lic of Germany, by way of derogation from the sixth Directive,l0 to use the VAT mech- Financial i nstitutions anism to grant special aid to farmers by way of compensation for the dismantling of monetary comPensatory amounts. Banks 2.1.75. The Council decisionll granting Coordination of banking legislation the United Kingdom a derogation under Article 27(l) of the sixth VAT Directivelo 2.1.72. On 8 JulyJ the Council approved2 was deemed to have been adoptedl2 on 13 an amendment to its Directive of 12 June since, within two months of the other December 7977 on the coordination of laws, Member States being informed in April, regulations and administrative provisions neither the Commission nor any Member relating to the taking up and pursuit of State had requested that the matter be raised the business of credit institutiond. a The by the Council. The derogation is intended purpose was to allow Greece to continue to to prevent tax evasion under certain mar- apply for a transitional period the criterion keting arrangements. of econbmic need as a condition for the taking up of banking. As with the other 2.1.76. On 3 July the Economic and Social Member States authorized to apply this cri- Committee delivered its opinion (--+ point terion (France, Ireland and Italy), the tran- 2.5391tt on two proposals, the first for an sitional period will come to an end on 15 eighteenth Directivel4 (on the abolition of December 1989. The amended Directive provides though that, on a request from Greece, the Commission may, if appropri- Bull. EC 9-1984, point 3.5.1. ate, propose to the Council that the tran- oJ L 183, 1,6.7.198s. OJ C 153, 13.6.1984; 5-1984, point 2.1.64. sitional period for Greece be extended until Bull. EC OlL322, 17.12.1977; Bull. EC 12-1977, point 2.1.64. 15 December 1.992 by way of exception. 5 oJ L 1,92,24.7.199s. 6 OJ C 244, 13.9.1984; Bull. EC 7/8-1984, point 2.1.84; OJ C 68, 15.2.1985; Bull. EC 2-1985, point 2.1.41. Taxation 7 oJ L 19z,z4.z.t9gs. 8 Bull. EC 6-1985, point 2.1.55. e oJ c 214, 14.8.1984" Bull. EC 7/8-1984, points 2.1.83 and 2.7.717; OJ C 131, 30.5.1985; Bull. EC 5-1985, point lndirect taxes 2.1.36. r0 OJ L 145, 13.6.1977; Bull. EC 5-192, points 1.3.1 to Turnover taxes 1.3.4. rl Bull. EC 6-1985, point 2.1.56. 12 oJ L 199,31.2.198s. 2.1.73. On 15 July the Council adopteds 13 oJ c 218,29.8.199s. the seventeenth VAT Directive, concerning 14 OJ C 347,29.12.1984; Bull. EC 12-1984,point2.1.77.

4 Bull. EC 7/8-1985 Employment, education and social policy certain derogations provided for in the ditions be specified on which the derogation Directive of. 17 May 1977 concerning the for Greece will apply. common system of value-added tax I and ) This new proposal is part of a comprehen- the second for a nineteenth Directive 2 sive scheme launched by Mr Tugendhat in (clarifying and amending certain provisions 79847 and accorded priority by the of the 1977 Directive). January Council the following March. u

Tax exemption Employment, education 2.1.77. On 8 July the Council adopted3 four Directives dealing with tax exemptions and social policy (for travellers, for small consignments of a non-commercial character and for fuel) on Social developments in 1984 a which it had reached agreement in June. 2.1.79. On 4 July the Economic and Social Committee delivered an opinion on social Direct taxes developments in the Community in 1984 1.-+ po'int 2.5.34),e basing itself on the Commission's report. 1o Cooperation between firms from different Member States International Youth Year 2.1.78. On 5 July the Commission sent to the Council a communication on tax 2.1.80. In connection with International measures aimed at encouraging cooperation Youth Year, on 3 July the Commission sent between firms from different Member a memorandum to the Council, Parliament States. S This amends the Commission's and the Economic and Social Committee commenting on progress achieved in activi- proposal of 15 January 7969 on the common tax arrangements applicable to companies ties for young people and setting out policy and subsidiaries of different Member guidelines relating to employ.ment, educa- States.6 The Commission has thus taken tion and vocational training.ll account of the problem posed by the with- The memorandum stressed the need to holding tax levied in the Federal Republic of achieve job-creating economic growth Germany on dividends distributed to parent which must be complemented by action to companies situated in other Member States. develop the Community's human resources. The following compromise arrangement In particular, the Commission proposes to months, has been proposed: undertake, within the next 12 action to: the German withholding tax should not o maximize job-creation potential related exceed 10%; o to the redistribution of work; o the Member States which at present levy a withholding tax on dividend payments t to companies situated in Germany would OJ L 745, 1,3.6.7977; Bull. EC 5-192, points 1.3.1 to 1.3.4. reduce it in proportion to the reduction 2 oJ c 347,29.12.1,984; Bull. EC 12-1984, point 2.1.78. granted in their favour by Germany; the 3 oJ L tB3, 16.2.798s. rate should not, however, exceed 5%. a Bull. EC 5-1985, points 2.1.57 to 2.1.60. 5 coM(85) 350 final. 6 oJ c 39,2.3.1,969. The Commission also proposes that a clause 7 be inserted to deal with the situation that 8 Bull. EC2-7984, point 2.1.58. present Bull. EC 3-1984, point 2.1.56. would result from a reduction of the e oJ c ztq,z9.8.191s. difference between the two rates of corpor- to Bull. EC 4-1985, point 2.1.48. ation tax in Germany, and that the con- rr coM(85) 247 final.

Bull. EC 7/8-1985 Employment, education and social policy

. improve the operation of the labour wage earners as regards recruitment aid for market, especially at local level; the creation of additional iobs. . ensure that all young people acquire a better understanding of the new technolo- Measures for ECSC workers gies before entering the labour market; . encure clciser cooperation between hig- Redeployment aid her education institutions and industry 2.1.84. In the Commission approved (-+ point 1.6.1 et seq.); July a new set of measures under Article 55(2)(b) o increase the occupational and geogra- of the ECSC Treaty involving a total of phical mobility of young people; 34 217 750 ECU.4 The aid consists mainly o assist disadvantaged young people; of income supplements in respect of early retirement, unemployment or re-employ- o exploit the cultural diversity of the ment and aid for vocational training. Community. Table 6 Distribution of appropriations 2.1.81. On 10 July Parliament adopted a - and recipients, by industry and resolution on International Youth Year by Member State (--+ point 2.5.Lq.r

Appropriations Number of committed rccipicnts Employment (ECU)

Iron and steel Employment and the labour market 2.1..82. Conferences on measures for Germany (FR) 2 990 4 569 s00 young people adopted by employers were Ireland 40 35 000 held in the United Kingdom, Ireland, United Kingdom 527 2393 N0 France, the Federal Republic of Germany, Italy and Belgium. They provided an oppor- 3 557 6 997 750 tunity to evaluate and examine the practical Coal aspects of these measures, particularly new Germany (FR) 5 505 27 220 000 recruitment schemes at local level to combat youth unemployment. The findings of these Total 10 062 34 217 750 conferences will be set out in a summary report to disseminate information on inno- vatory practices which could be introduced Social measures for the steel in other Member States. and coal industries

2.1.85. On 28 August the Commission Financial instruments sent to the Council proposals for decisions to make two transfers from the general budget to the ECSC budget-52.S million ECU European Social Fund for the steel industry and 50 million ECU for the coal industry.5 2.1.83. On 19 August the Commission transmitted to the Council a proposal2 t amending the implementing Regulation 2 oJ c 229,9.9.1985. relating to the Council Decision of 17 Octo- 3 oJ c 237,18.9.1985; coM(ss) 451 final. ber 1983 on the tasks of the European Social OJ L 289,22.10.1983; Bull. EC 10-1983, point 1.3.1 er seq- Fund.3 The proposal seeks to-place self- 4 oJ L 237,4.9.199s. employed workers on the same footing as 5 CoM(85) 428 final.

48 Bull. EC 7/8-1985 Employment, education and social policy

At the same time the Commission proposed Vocational training that an exceptional contribution of 265 mil- from 2.1.88. On 15 July the Council adopted a lion ECU be granted to the ECSC 3 the general budget. The cost of measures Decision on the comparability of vocatio- the proposed by the Commission for the period nal trainine oualifications between a had reached igaa-eetot;ls 510 million ECU (180 million Memberut""t.t, on which it for coall and 330 million for steel2). At agreement in June. 122.5 million ECU of this total was transferred in 1984 (60 million for coal and 62.5 New technologies million for steel) and provision is made for identical amounts under the 1985 budget, 2.L.89. On 6 August the Commission sent there remains265 million ECU to be trans- to the Council a communication and a pro- ferred to cover payments still to be financed posal for a Decision adopting an action prog.amme of the Community in education in 1984-85 for the steel industry and 1985- 'and 85 for the coal industry. training for technology (Comett) (--+ point 7.6.7 et seq.). 2.1.90. The second European Summer Education and vocational training School,5 organized by the Commission and the Belgian iuthorities with technical assistance trom the teaching laboratories of Cooperation in education LiAge and Ghent Universities, was held- in Lid[e from 4 to 13 The subject-infor- meeting of July. 2.1.86. The annual informal maiion technologies and primary school senior education officials took place in Ech- part of the Commission work pro- invitation ternach from 1 to 3 July at the -isgramme on IT and the school systems in Education. of the Luxembourg Ministry of the Community for 1985-87.6 Following on from the previous meeting in Montpellier, the theme was the maior 2.1.91. In connection with International reforms in secondary education. The discus- Youth Year (1985), the Commission and the sions focused on the adaptation of curricula Italian authorities organized a seminar on to take account of social and economic 'Young Europeans and new technologies', changes, ways and means of encouraging a which took plice from 7 to 13luly in Turin' spirii of enterprise among young people, Over 150 young people from the ten Mem- and the related implications for assessment ber States had an opportunity to learn about and certification, particularly on comple- new developmentJ in, and applications of, tion of compulsory schooling. information technologies. This group of vounq Deople, aeed 15 to 18, was selected 6v thi tut.inUlr Strt.. usually on the basis Higher education o['b.rt software' competitions; they visited leadine firms to see foi themselves how and 2.1.87. As pa.rt of its. programme to encou- why tf,ese new technologies are changing rage cooperation in higher education bet- the production of goods and services. They ween the Member States, the Commission opportunity to practise joint also had an announced the award of 225 grants for advanced techniques. This seminar demons- study programmes-structured cooperation trated that young people, new technologies progrimmes between higher education inst"itutions-of which 144 are renewals and I 81 are new grants. A total of 148 Prepara- Bull. EC 10-1983' point 2.3.4. 2 Ec 4-1983, point 2.3.7. tory visit grants for ioint study programmes 3 Bull. joint study pro- oJ I- 199,31.7.7985. were also made. Of the 4 OJ C 208, 8.8.1984i Bull. EC 7/8-1984, point 2.1.99. gramme grants, over two thirds benefited 5 Bull. EC718-1984, point 2.1.96. trom financial support for the students' 6 Bull. EC 1-1985, point2.l.?2.

Bull. EC 7t8-7985 49 Employment, education and social policy

and Europe formed a narural alliance which 2.1.96. On 8 July the Commission took a could mean new hope for the continent's Decision setting up a prior communication future. and consultation procedure on migration policies in relation ro non-riemb., countries.6 This requires Member States to Living and working conditions give the Commission and the other Member and social protection States in good time (not later than the time of publication) advance notice of: Equal rights for men and \ilomen . draft measures which they intend to take with regard to workers and members of their 2.1.92. On 12 Parliament delivered its families from non-member counrries July (in opinion I on the Commission memoran- the areas of entry, residence and employ- dum on income taxation and equal treatment, equality of trearmenr in living and ment for men and women.2 Noting that wotking conditions, wages and economic rights, the promotion integration the tax status of married women ii less of into the favourable than that of single women- workforce, society and culiural life, and which discourages marriages--Parliament voluntary return to countries of origin); came out in favour of a neutral system in . draft agreements relating to these mat- this- respect and reiterated the desirability, ters, as well as draft cooperation agreements as the long-term objective of tax reform, oi which they intend ro negotiate or renego- a mandatory system of individual taxation tiate with non-member countries, *lien for husband and wife. The Commission was these agreements involve provisions relating urged- to prepare a drafr directive along to the abovementioned mattersl these lines without delay. . - draft agreements relating to conditions of residence and employmeni of 2.1.93. The Economic their natio- and Social Com- nals working mittee 3 in non-member countries and delivered its opinion on the Com- members mission memorandum 2 of their families, which they on 4 July (+ point intend 2.5.35); to negotiate or renegotiate with those like Parliament, ir ialied on the countries. Commission to draw up a directive. A Member Srare can, on its own initiative, 2.1.94. The United Nations conference request thar consultation be arranged. 'Women The marking the end of the Decade for objectives of the consultation procedure, took place in Nairobi from 13 to 26 July, which is to be organized by thd Commis- with a mandate to assess action taken and sion, are to facilitate the exchange of infor- define strategies for rhe future. The Com- mation and identify problems of common r-n-unlty, ryho;e delegation was headed by interest, ensure that measures taken and Mr Peter Sutherland, Member of the Com- agreements made by Member States do not m-ission with special responsibility for social compromise Community policies, and exa- affairs, and Mr Jean Spautz, Luxembourg's mine the possibility of alhieving progress Minister for Family Affairs, Housing and towards harmonization of national legisla- Social Solidarity, parricipared actively in the tion. conference, which covered a number of This decision topics within the Community's ambit. does not affect the responsibilities of the Advisory and Tichnical

Social integration of immigrants , oJ c 229,9.9.198s. 2.!.:95.. On 15-July the Council formally z Bull. EC 12-1984, point2.1.97. , oJ c 218,29.8.1985. adopted a resolution on guidelines for a . Community policy a oJ c 186,26.7.198s. on migrition, which it r Bull. EC d-1985, point 2.1.47. s had approved in June. . oJ L 217,1,4.8.1985.

50 Bull. EC 7/8-1985 Regional policy

Committees operating under Regulation in respect of radiation levels and adapt them and (EEC) No 1512158 on freedom of movement to th; principles defined in the 1980 ior workers within the Community.l 1984 versions of the Directive establishing basic safetv standards for the health protection of the general public and- workers Social security for migrant workers against the da-ngers of ionizing radiation.8 2.1.97. On 8 August-Council the Commission iransmitted to the a proposal2 amending the Regulation of 14 June 7971 Regional policy on the application-of social security schemes and to employed and self-employedpersons and their iamilies moving within the Commu- Coordination Programmes nity.3 The proposal introduce-s special provisions for ihe coordination of certain non- Regional development Programmes contributory benefits for which the condi- Parliam^ent adopted a of entitlement differ from traditional 2.1.101. On 12 July tions poini 2.5.1q.e on second- I the social security sector. It will resolution 1-r rules in generation development pro- give substance t9 one of the specific regional I thus obieciives set out in the Commission com- [rammes.lo munication to the Council in March on guidelines for a Community policy on Financial instruments irigration (--+ point 2.7.95).4 European Regional Development F und Paul Finet Foundation 2.1.98. The Executive Committee of the ERDF grants Paul Finet Foundation examined 63 applications and awarded 55 grants for a total of Project financing BFR 833 887. 2.1.102. On 15 JulY the Commission approved the first allocation of grants. for Health and safetY tibs from the European Regional D-evelop- ment Fund: 155.15 million ECU for 778 projects nine Member States Public health investment in erc.Sl million ECU' Each costing a toial "t 2.1.99. On 26 July, to take account of of thJinvestment projects concerned costs 5 million ECU. Parliament's opi-nion,5- the Commission less than 5 Council amended its proposal for a The assistance granted under this allocation recommendation concerning the introduc- is distributed among the Member States as tion of a European e*erg.nJy health card.7 shown in Table 7. This would give anyone-rather than only oeoole sufferTne from chronic illnesses-the boriibilitv of clrrying an emergency health t oJ L N7, 19.10.1968. card. The proposal ipgcifies that the card , oj c 2ao,21.9.1985; coM(85) 396 final. 3 230, 22-8.1983; Bull. EC 7/8' should contain no rlferences to hospital oj I 149,5.7.1977; oJ L 1983, ioints 2.1.66 and 2.1.57; OJ L 150, 20'6'1985; Bull' medical file numbers. EC 5-1985, poinr 2.1.79. 4 Bull. EC 2-1985, point 1.3.7 et seq. 5 EC 11-1984' point 2.1.59. (Euratom) 0J c 3i7,17.12.1984; Bull. Health and safety 6 oJ c D3,3.9.1985; coM(85) 439 final. 7 0J c 21,28.1.7984; Bull. EC 12-1983, point 2.1.88. 2.1.100. A working party met in Luxem- 8 oJ L 246, 17.9.1980. bourg on 22 and 23luly to examine.the e oJ c 229,9.9.1985. r0 point 2.1.55. Com-mission's technical recommendations 0J L 211,8.8.1984; Bull. EC 7/8-1984,

51 Bull. EC 7/8-1985 Regional policy

Table 7 - ERDF grants: first 1985 allocation

Number Number Invcstment Assistancc of grant of invcstment assistcd granted daisions proiccts (mrllion ECU)r (mrllion ECU)l

Belgium 5 11 15.27 7.63 Denmark 2 27 15.67 1.11 Germany (FR) 19 60 74.36 9.94 Greece 3 4 4.94 0.98 France 25 323 177.92 34.74 Ireland 4 39 72.61 15.95 Italy 7 20 26.48 10.55 Luxembourg Netherlands 4 6 10.98 2.57 United Kingdom 70 288 218.29 70.67

Total 139 778 616.52 155.15 I Converted ar January 1985 ratcs.

The total of 155.15 million ECU breaks supplementary measures can be financed in down as follows: the same way as those already in force. . 29.06 million ECU to help finance 212 proiects in the industrial, craft and service Financing of studies sectors; 2.1.105. Acting under Article 24 of the . 1,26.09 million ECU to help finance 555 Fund Regulation, the Commission decided infrastructure proiects. in July to granr 0.511 million ECU to finance the This first ERDF allocation for 1985 brings following 13 studies closely connected Fund the number of projects financed since the with operations in the United Kingdom: Fund was set up to 26 634 and the total ass-istance granted to approxim ately 7t 686 . development proiects and a marketing million ECU. framework for the development of tourism in Montgomery; 2.1.103. The ERDF Committee met on 18 o the commercial feasibility and potential and July delivered its opinion on the draft for further tourist-based recieational grant decisions facili- under the second 1985 allo- ties in Kirkleatham; cation from the Fund. o the potential for further tourist-based Financing of programmes facilities in Barmouth; o the viability of reclaiming a former toxic 2.1.104. On 72 July Parliament delivered waste disposal tip for use is an industrial its opinion 1 on the Commission proposals development site in Flint; esented to the Council on 2l December o the feasibility of a museum based on the 7984-for Regulations supplemenring the mining history of Trehafod and Hopkins- second series of specific meisures.2 Iiwel- town; come-d thrse proposals, reaffirming its sup- pory fo_r this type of measure based on genuinely Community criteria. It also end6rsed I ol c229,9.9.1985. the proposal for amending Article 1 45 of OJ C 70, 18.3.1985; Bull. EC 12-1984, point 2.1.113. 3 3 the Fund Regulation to ensure that these OJ C 143, 12.6.1985; Bull. EC 5-1985, poinr 2.1.65.

52 Bull. EC 7/8-1985 Regional policy o the development of tourism in and the 2.1.107. As part of the action in prep- commercial regeneration of Holywell; aration for the integrated Mediterranean programmes, the Commission adopted economic plan based on the use of -on o 2n 15 decisions to grant assistance-for of County Tyrone; ia ;une the natural resources spelial operations, including three studies. o a five-year plan for promoting the indus- These deiisions relate to the regions of Cor- trial development of Lisburn; sica and Languedoc-Roussillon and the in France, Sardinia the creation of a wildfowl centre at department-ltaly, of H6rault o prefectures of Ioannina, Evri- Machynys; in the tania and Flolina and the islands of Lesvos o the economic impact of tourist and and Limnos in Greece, and the fishing and associated arts developments in Merseyside; aquaculture sector in the Mediterranean o the economic revitalization of Skel- regions of those three countries. At the same mersdale; time, the Commission amended its Decision of 14 December 1984 concerning the grant- o the economic impact of the availability ing of assistance for operations formingpart of a proposed highway on the commercial oi the pilot measuie on the island of attraitivLness of industrial land and prem- Lesvos. J ises in Coventry; o the commercial future of the upper 2.1.105. On 12 August the Commission grant assist- reaches of the Manchester Ship Canal. adopted two other decisions to ance in Italy: the first for special operations connected with the pilot measure in Latium a contribution C o ord i n ated a p pl icatio n and the second concerning beds Apulia. of different fina ncial i nstruments to a study of water-bearing in

Integrated operations Integrated Mediterranean Programmes 2.1.109. On 5 August the Commission Following the conciliation meet- 2.1.106. aooroved a srant of UKL 78 000 to Bradford ing with Parliamenton 23 July, the Council, Mitropolitan Borough Council in the which in had reached a common pos- June United Kingdom as a contribution to a pre- 1 proposal Regulation ition on the for a paratory study for an integrated operation. concerning the integrated Mediterranean city of Bradford is faced with serious (lMPs)-2-adopted on th. The progrr*r,i.s social and economic problems as a result of setting up the iami date the Regulation industrial restructuring. IMPs,3 which came into force on 1 August. Council adopted Parliament's sugg€s- The Disaster relief tions on a large number of points, notably two fundamental ones. As Parliament 2.1.110. 24 the Commission procedure for On July wished, the decision-making decided to grant emergency aid of 1 million the IMPs delegates the implementation of ECU to the families of the victims of the 'extensive powers Commission, to the .and disaster which occurred in the Fiemme val- the Council also adopted a very wide field Iey (Dolomites) in Italy on 19 Ju1y. use of the additional -The of application for the disaster (a dam burst) led to the death or line-of 1500 million ECU. Furthermore, with a view to ensuring adequate information on the IMPs, the Council agreed suggested amendments concerning Bull. EC 6-1985, point 2.1.89, to two Bull. EC 4-1984, point 2.1.67. publicationln the Official Journal of Com- olL 197,27.7.1985. mission decisions approving programmes OJ C 175, 15.7.1985; Bull. EC 6-1985, point 2.1.91. and programme contracts. 4 OJL37,8.2.1985; Bull. EC 12-1984, point 2.1.108.

Bull. EC 7/8-1985 53 Environment and consumers

disappearance of more than 300 people and . to stop issuing new permits to dump to serious damage to private property. certain particularly harmful substances and ,f progressively to cut dowh dumping in general; 2.1.111. On 12 July Parliament adopted o to introduce a system of prior authoriza- a resolution on the importance of water tion for all dumping and incineration of resources for the growth and development wastes and materials other than those ban- of certain regions of the Community ned from dumping at sea; (--+ point 2.5.14).r o to set a date by which incineration of waste at sea must cease; r to introduce a uniform set of criteria to Environment and consumers be considered by the national authorities prior to issuing a permit; o to establish a procedure for the Com- Environment mission to assess data on the permits issued, case by case, if so requested. Radioactive substances are not yet covered Prevention and reduction of pollution and will have be dealt and nuisances to with in separare proposals at a later date.

Freshwater and marine pollution Oil pollution of the sea

Dumping at sea 2.1.113. At its July part-session Parlia- ment delivered 'a'favourable opinion I on 2.1.112. On 13 August the Commission the proposal put to the Council by the Com- mission sent the Council a fresh proposal for a on 2 April on a Community infor- Directive on the dumping of waste at iea,2 mation system for the control and reduction with a view to preventing marine pollution. of pollution caused by hydrocarbons dis- It replaces the proposal on the same sub- charged at sea.5 It also asi

54 Bull. EC 7/8-1985 Environment and consumers

Commission held a meeting in Brussels to Party to the Convention on- Long-range 6 sive reoresentatives of the 14 Mediterranean Transboundary Air Pollution. Eount.i.t I an opportunity to examine the situation with deballasting stations in the Protection of the Rbine Mediterranean Sea, to submit proposals and to assess the technical performance and 2.L.117. The Commission took part in the economic viability of floating deballasting fifth plenary assembly of the International stations and the openings available to pro- Commission for the Piotection of the Rhine mote them. against Pollution in Basle on 9 and 10 July' drecommendation ollmeasures to combat conclusions emerging prompted the The pollution of the Rhine by mercury dis- draft recommendation Commission to a charges from industries other than the 23 to send it to the action plan and, on July, chloialkali electrolysis industry was authorities ready for consideration at the adopted and sent to the Contracting Parties ministerial-level meeting. This draft echoes to the Convention for the Protection of the the concern to solve all the oil pollution Rhine against Chemical Pollution. 7 problems in the Mediterranean in line with Annex 1 to the 1973/1978 Marpol Conven- tion, which calls for special rules to ban Protection of groundwater discharges. 2.1.118. At the Commission's initiative Iilflater 2.1.115. On 11 July, in another.move the European Institute for held a under the Barcelona Convention, I the workshop on the protection of groundwater Commission asked the Council for auth- against pbllution by nitrates in Varese from ority to negotiate, on behalf of the Com- 31o 5 July. Representatives from the water munity, measures concerning bathing resources management, agricultural and *ater, shellfish water, shellfish intended for water supply se-tors compared ideas and human consumption, and mercury in mar- familiariied themselves with each other's ine products.2 These measures are to be points of view at this event, which culmi- adopted at the next meeting of the Contract- nated in the drafting of recommendations ing Parties in Genoa from 9 to 15 Sep- which the Commission departments will use tember. when drafting measures to protect.groundwater resources against this spreading form Paris Conuention of groundwater pollution.

2.1.115. On 10 July the Commission asked Air pollution the Council3 for authority to negotiate and sign, on behalf of the Community, an content of gas oil amendment to include atmospheric inputs Sulpbur into the sea in the Paris Convention for the 2.1.119. part of the CommunitY Prevention of Marine Pollution from Land- As scheme to combat air pollution, on 26 based Sources,4 to which the Community July is a Contracting Party. At the International Conference for the Protection of the North I Sea in Bremen in 1984,5 the coastal States The following Mediterranean countries were rep- rescnted: Algeria, Cyprus, France, Greece, Israel, ltaly, agreed a initiative, and the Community ioint Lebanon, Libya, Morocco, Spain, Syria, Tunisia, Turkcy under the auspices of the Paris Commission, and Yrrgoslavia. prevent, reduce or eliminate marine pol- 2 coM(85) 362finil. to 3 Iution via the air. Several Contracting Par- 4 coM(85) 347 final. ties have submitted proposals to that effect. oJ L 194,25.7.7975. 5 Bull. EC 9-1984, point 2.1.65; Bull. EC 11-1984, point The Community too has already built up a 2.1.86. significant body of legislation on air pol- 6 oJ L 171,n.6.1981. lution as well as becoming a Contracting 7 oJ L 240, 19.9t9n.

Bull. EC 7/8-1985 55 Environment and consumers the Commission proposed 1 that the and the Commission so rhat the Com- Council should revise the limit values laid mission can perform its monitoring and down for the sulphur content in gas oil control tasks more effectively. in the Council Directive of 24 November 1975.2 This new proposal should bring The Commission regards this Directive as about a 20 to 25% reduction in the total a critical test of each Member State's com- sulphur dioxide emissions attributable to mitment to the environment policy. It will these fuels, which are used mainly for decide on the follow-up in the light of the heating homes and powering motor information submitted by the governments vehicles. in response to the Directive.

Nitrogen dioxide Long-range transboundary air pollution 2.1.122. The Executive Body for the 2.1.120. On 15 July the Commission com- municated to the Council its decision that Geneva Convention on Long-ranges Trans- there was no need to propose a long-term boundary Air Pollution, to which the limit value for nitrogen dioxide ro protecr Community is a Contracting Party, held its terrestrial and aquatic ecosystems.3 Basing third session in Helsinki from 8 to 12 July. Among other protocol itself on a group of experts' report, the things, a was signed to reduce Commission concluded that not enough sulphur emissions or transfrontier scientific information is available to fix sulphur flows by at least 30%, compared long-term limit values for this pollutant. with 1980 emission levels, by 19%.e Twenty-one Short-term limit values have already been countries, including seven (Belgium, set under the March 1985 Council Direc- Member States Denmark, France, tive.4 This communication is the Com- Germany, Italy, Luxembourg and the Netherlands), mission's response to the request made by have signed the prorocol. The gathering provided the Council on 28 1984. In it, the also an opportunity to June review progress Commission states that it feels that a con- with the work on the Con- sistent and comprehensive reduction policy vention and to set up a working party on is the most appropriate strategy to combat oxides of nitrogen. air pollution and, accordingly, calls on the 2.1.123. Mr Clinton Davis, Member of the Member States to adopt the proposals still Commission with special responsibility for before the Council.5 environment policy, took part in the ministerial-level meeting on air pollution hosted Sulphur dioxide by the Swedish Government in Stockholm on 5 Three Member States also 2.1.121. As required by the Council Direc- July. sent representatives. Mr Clinton Davis could tive of 15 1980,5 on 24 the Com- not July July prevent the adoption of a final declaration mission transmitted to the Council, Parlia- completely conflicting Com- ment and the Economic and Social Commit- with the munity's position. Vhat is more, although tee its first report, drawn up with the help Germany and the Netherlands refused to of the national experts, on the measures taken to implement the Directive, which sets limit values for sulphur dioxide and t 7 oJ c 205, 14.8.1985; coM(85) 3v final. suspended particulates. 2 oJ L 307,27.11.197s. 3 CoM(85) The report analyses the steps taken by the 371 final. 1 OJ l- 87,27.j.1985; Bull. EC 12-1984, point 2.1.125. Member States to set up the network to 5 OJ C 76,22.3.1985; Bull. EC 2-1985, point 2.1.62; Bull. measure the amounts these pollutants EC 5-1985, point 2.1.97. of in 6 the air and to improve conditions whenever 7 oJ L z29,3o.B.t9go. the limit values are exceeded. CoM(85) 368 final. Ir also brings 8 oJ L t7t,z7.6.t9rt. out the need greater for cooperation and e Bull. lZ-1984, point 2.1.127 ;Eighteenth General Rcport, coordination between the Member States point 358.

56 Bull. EC 7/8-1985 Environment and consumers sign, thus standing by the position adopted main objective was to classify and label all by the Council,l Denmark did, so putting the preparations according to their danger itself at odds with the Community's general potential, irrespective of whether they were policy. intended for use in industry or by the public at large. Noise 2.1.124. On 11 July the Commission Protection and rational use amended 2 five Council Directives on the of the environment and natural resources measurement of noise from construction to bring them into line plant and equipment Fauna and flora with the latest scientific research and with the opinion of the Committee on Adap- tation to Technical Progress. Not only the Bird conseruation general Directive of li December 79783 was amended, but also four recent specific 2.1.127. On 25 July the Commission2 Directives on compressors, welding gener- brousht the Counlil'Directive of 2 April ators, power generators and hand-held con- D79Y up to date with the latest findings crete breakers and picks, all of them on the iituation of wild birds. Scientific adopted by the Council on 17 September studies since October 198110 (when the 1979 7984.4 Directive was last amended) showed 70 species and subspecies which needed to be Chemicals added to the 74 already listed in Annex 1 to the Directive. Annex 1 lists the species in to specific Dangerous substances danger of extinction, vulnerable changes in their habitat, considered rare 2.1.125. In response to the specific because of the small size of their popu- reouirements of the Council Directive of 27 lations or because of their restricted distri- Jtie 1967,5 as amended for the sixth time bution or, finally, requiring special atten- on 18 September 7979,6 and to the need to tion because of the specificity of their maintain free movement within the Com- habitat. munity and to comply with the agreements reached within the Organization for Econ- Washington Conuention omic Cooperation and Development, on 24 July the Commission proposed that the 2.1.128. On 30 July the Commission also Council should lay down the principles of amendedll Anneies A and C to the Council good laboratory practice for the potential Directive of 3 December 7982 on the risks which chemicals pose to human beings implementation in the Community of the and the environmenf. T These principles Convention on International Trade in must be applied in order that (a) the results of the tests are of high quality and comparable and (b) the resources used for thebe Bull. EC 6-1985, points 2.1.97 and2.1.98. tests are not wasted by repetition of tests oJ L 233,30.8.1985. made necessary by differences in laboratory oJ L 33, 8.2.1979. OJ L 300, 19.11.1984; Bull. EC 9-1984, point 2.1.70. practice from one Member State to another. oJ L 195, 16.8.1e67. 6 oJ L 259, rs.10.1979. 7 D angerous prep arations OJ C 219,29.8.1985; COM (85) 380 final. 8 OJ C 211, 22.8.1985; COM (85) 354 final. 9 L 103, L5.4.1979; Thirteenth General Report, point 2.1.126. On29 July the Commission sent OJ proposal 281. the Council a for a Directive relat- l0 oJ L 319, 7.1r.1981. ing to the classification, packaging and ll oJ L 231, 29.8.198s. labelling of dangerous preparations. u The

Bull. EC 7/8-1985 57 Environment and consumers

Endangered Species of Vild Fauna and in anti-perspirants and certain preservatives Flora. I which release formaldehyde. These annexes contain lists of species in which only limited or regulated trade is Exchanges of information allowed under the terms of the Convention. The lists annexed to the Convention were 2.1.131. In connection with the Com- amended at the fifth meeting of the confer- munity system for the rapid exchange of ence of the parties to the Convention in information on dangers arising from the 6 Buenos Aires from 22 April to 3 May.2 The use of consumer products, on 26 July the corresponding sections of the 1982 Regu- Commission laid down detailed procedures lation had to be replaced to bring them for the transmission of the relited infor- into line with these amendments, which had mation and adopted the necessary adminis- already been accepted by the Community. trative measures to coordinate the data reaching the Commission regarding products presenting Natural resources a serious and immediate risk for consumers. Transfrontier shipment of hazardous uaste Protection of economic and legal interests 2.1.129. On 22 Jrly the Commission amended the annexes to the Council Direc- tive of 5 December 1984 on the supervision Product liability and control within the Community of the transfrontier shipment of hazardous 2.1.132. On 25 July the Council adopted waste. r The amended text stipulates rhe a Directive concerning liability for defective content of the uniform consignment note, products (-+ point 1.5.1). the corresponding general instructions arrd the uniform declaration for non-ferrous waste. C o nsu mer i nformatio n, ed u catio n and representation Consumers Education

Physical protection 2.1.133. During the last five years the Commission has held extensive consultations and conducted pilot schemes in the Cosmetics field of consumer education in schools. On this basis, on 6 August proposed 2.1.130. On 1,6 the Commission it to the July Council that the need incorporate amended a for the sixth time the Council to consumer education in primary Directive of 27 1975 on the approxi- and secondary luly school curricula should be recognized mation of the laws of the Member States and that teacher training to this relating to cosmetic products. S effeci should be promoted. / The new instrument is designed to ban the use of certain hydroquinone ethers in the composition of cosmetic products; author- t oJ L 384, 31.12.t982; oJ L 367, 29.12.1983. ize the use of 2 Bull. EC 5-1985, point 2.1.75. selenium disulphide in sham- 3 poos, subject to certain restriitions and con- 4 oJ L 326,73.12.7984; Bull. EC 12-1984, point 2.1.132. ditions; and adapt to technical progress cer- oJ L 224,22.8.198s. 5 oJ L 262,27.9.1s76. tain annexes the 1976 Directives in to 1 OJ t- 70, 13.3.1984; Bull. EC 3-1984, point 2.t.ttt. respect of certain zirconium complexes used 7 oJ c ?38, 19.9.t98s; coM(ss) 359 final.

58 Bull. EC 718-1985 Agriculture

The Commission believes that room should macaroni, spaghetti and similar products be found for consumer problems in the edu- according to destination (--+ point 2.3.14). cation of the Community's children and The Council also adopted a Regulation fix- adolescents, not only to provide a foretaste ing the Community contribution to finan- of consumer choices and purchase cing of the compensatory measures for decisions, but also to inculcate an awareness Dutch farmers following the dismantling of of their rights and responsibilities as con- decided 7984 (+ point sumers. The resolution calls on Member MCAs on in 2.1.137). States to ensure the gradual introduction of consumer education into school curricula It reached a joint position on health rules at primary and secondary level so that con- applicable to intra-Community trade in sumer education is systematically provided heat-treated milk (-+ point 2.1.159) and on throughout the period of compulsory edu- general rules on the minimum import price cation. system for dried grapes. The resolution also proposes that wide- Lastly, Mr Andriessen formally presented ranging exchanges of views should be held the Green Paper (+ point 1.2.1 et seq.) on experiments in this area and suggests to the Council, which will hold an initial that various measures should also be taken discussion on it when it meets on 76 and 77 by the Commission itself. In particular, the September. Commission wishes to provide financial aid for pilot teacher training schemes at Agri-monetary measures national and regional level and contribute to the publication and production of teach- 2.1.136. The European Monetary System ing materials and other documents. central rates were adjusted with effect from 22luly (-+ point 2.1.4). Price indication The Italian lira was devalued by 60/o and all currencies kept within a margin of fluc- 2.1.134. To take account of Parliament's tuation of 2.25oh were revalued by 2%; the opinion, issued in April,l in the Com- z ;uly theoretical central rates for sterling mission amended the two proposals for (revalued by7.a7%) and the Greek drachma Directives on price indication for food 3 a (devalued by 11-5a%) were aligned on their and non-food products which had been actual market rates. presented to the Council at the beginning of the year. The net effect of all these measures was a devaluation of the ECU by 0.15o/o, resulting in a corresponding increase in the corrective factor applicable in agriculture. 5 Agriculture The MCAs for ltaly, Greece and the United Kingdom were adjusted with effect from 24 Council July6 on the basis of the exchange rates on 22 and 23 July. This followed a notice from 2.1.135. The Council was unable to agree the Commission that these changes were cereal and rape prices when it met on 15 and about to be made.7 15 July (--+ point 2.5.16). The Commission will therefore continue to apply the meas- I ures necessary to ensure orderly manage- oJ c 722,20.5.7985;Bull. EC 4-7985,point2.1.74. 2 oJ c 205, 14.8.1985; coM(85) 398. ment the markets in these products. of 3 oJ c 8, 13.1.1984. 4 oJ c s3, Ls.z.t9g4. by a quali- The Council did, however, adopt 5 For agricultural research, sce point 2.1.229. fied majority a Regulation allowing the 6 oJ t- r94,zs.z.tg&s. Commission to vary export refunds for 7 oJ L 192,24.7.198s.

Bull. EC 7/8-1985 59 Agriculture

Advance fixing of MCAs had already been the granting of re-storage aid for table wine suspended. 1 covered by a storage contract.9

2.1.137. The Council fixed at 76.5 million ECU in 1985 and 13.5 million ECU in 1985 Milk and milk products the Community contribution 2 to the financing of Dutch measures to compensate far- Market situation mers for income losses resulting from the dismantling of the monetary compenllo? 2.1.140. The period January to MaylJune amounts with effect from 1 January 1985. 1985 saw a reduction, compared with the same period in 1984, of 6o/o in the milk It also formally adopted the twentieth VAT collection, of 73o/o in butter production and Directive, allowing the Federal Republic of of. 77o/o in production of skimmed-milk Germany to grant special farmers as aid to powder. compensation for this same dismantling. a As regards the guaranteed quantities set for the first twelve-month period of imposition Market organizations of the additional levy (2 April 1984 to 31 March 1985), the Commission accepted an application for adjustment in the case of Wine Italy which was duly substantiated by statistics provided by the Italian Government. 2.1.138. As soon as the Commission learnt The guaranteed total quantity for direct that large quantities of Austrian wine con- sales to consumption was reduced'by 475 taining diethylene glycolhad been imported 000 tonnes to 1 115 000 tonnes and the into the Community, the officials of the guranteed total quantity for deliveries to Wine Division and those running the food- purchasers increased by the same amount stuffs rapid alert system (+ point 2.t.18) ' io 8 798 000 tonnes.lo began to coordinate the exchange of information between the authorities of the Mem- 2.L.141. The Commission decided to sus- ber States and Austria. Information on adul- pend subsidies for skimmed-milk powder terated wine was circulated with all speed for use as pig and poultry feed since stocks so that it could be withdrawn from the have been reduced, there are possibilities of market and consumers informed. disposal in other sectors, prices are rela- It emerged from discussion of the subject tively stable and production is dropping as that greater direct cooperation between a result of imposition of the additional levy. Member States and better defined Com- The Community has not yet been able to munity methods for detecting inadmissible make use of the new GATT arrangement substances in wine are required. whereby until the end of 1985 butter at leasr 18 months old can be sold at prices lower 2.1.139. The Commission adopted a num- than the minimum price of USD 1 000 per ber of Regulations on intervention which tonne fob. The minimum quantity that may are due to enter into force at the beginning of the 1985/86 marketing year. These dealt with the granting of aid for the use of con- 1 centrated must, r compulsory distillation of 2 oJ L 19o,22.7.198s. the by-products wine-making oJ L 188,20.7,1985. of and of 3 OJ L 9O, 1.4.1984; Bull. EC 3-1984, point 2.t.tt6 et seq. wine produced from table grapes,5 rules for 4 OJ L 192,247.1985 Bull. EC 6-1985, point 2.1.55. distillation under the special price support 5 oJ I- 212,9.8.198s. 7 6 oJ L 8.8.1985. guarantee (a separate deciiion will be 7 2tl, required to trigger off the distillation oper- oJ L zN,z3.8.t9gs. 8 oJ L 229,28.8.199s. ation itself), a reduction in the purchase e oJ L 203, 1.8.1985. price of enriched wine for distillation, 8 and ro oJ L 1,92,24.2.198s.

60 Bull. EC 7/8-1985 Agriculture be purchased is 100 000 tonnes of butter or in 1983 (46 000 t compared with 48 500 t), 50 000 tonnes of butteroil. although it should be noted that more alpha acid was produced (3 160 t compared with The market situation for fresh milk prod- 2467 r). Markets everywhere remained dif- ucts, whole-milk powder and condensed ficult, not least because of exceptionally milk is relatively stable, with no great high stock levels (estimated world stocks on changes in export figures. eve of 1984 harvest 101 000 t; Communiti Cheese exports are dropping, however, stocks 21 500 t). The Community area fell owing to trading difficulties with lran, nor- to26250 hectares from27 000. mally a large importer, and to a fall in To support hop-growers' incomes for 1984, exports of processed cheese to the United the Council kept the production aid at the States because of the lower value of the same level as in 1983 for the variety groups dollar. 'Aroma' and 'Others' but increased it for 2.1.142. Intervention stocks (public and the'Bitter' group. private) in August 1985 were as follows 2.1.146. At its- part-session Parlia- (August 1984 figures in brackets): July ment endorsed J the Commission's June butter: 1 157 594 t (1 245 993 t); skimmed- proposal laying down, in respect of hops, milk powder:445 728 t (970143 t); cheese: the amount of aid to producers for the 1984 103 514 r (105 082 t). harvest. 4

Beeflveal Cerealss 2.1.143. Beef/veal prices throughout fell Market situation July. In order to halt this trend, towards the end of the month the Commission 2.1.147. Community production of com- adopted the following support measures: mon wheat in 1,984 hit i new record of 70.3 o grant of aid, fixed at a standard rate in million tonnes, 27oh more than in 1983, advance, for the private storage of carcases, the average yield being 6L.7 quintals per half-carcases, forequarters and hind- hectare. This was the result of an excep- quarters of adult male cattle; storage con- tional conjunction of favourable factors, tracts may be applied for between 5 August namely very good weather at sowing and and 22 November 1985, and there is the flowering times and a good health situation possibility of prefinancing; I during the growing period. By way of com- . extension of the list of geographical parison, the 1985 common wheat harvest is forecast the moment be around 62 areas for export refunds (some Far Eastern at to tonnes. countries were added). 2 million The abundant supplies available as a result 2.1.L44. At its July part-session Parlia- of this bumper harvest depressed prices ment adopted a resolution on the beef/veal within the Community during the 1984/85 sector (--+ point 2.5.L4).3 marketing year to some 5 to 10% lower than in 7983/84, and this in turn led to a dowh{vard readjustment for substitute Hops products, notably manioc. This meant that sales of common wheat for animal feed Market situation amounted to only some 13.7 million tonnes t 2.1.145. The process of ad justment of sup- oJ L 205, 3.8.1985. 2 I- 197,27.7.1985. ply demand and oJ to on both Community I oJ c 229,9.9.1985. world markets continued in 1984/85. The 4 Bull. EC 6-1985' point 2.1.125. Community harvest in 1984 was lower than 5 Bull. EC 2-1985, points 2.1.80 and 2.1.81.

Bull. EC 7/8-1985 6t Agriculture compared with 13.5 million tonnes in 1983/ occasioned an excess supply that, because 84. of the stability of outlets, was offered for intervention. The carryover stock therefore the combined effect lower However, of rose from 500 000 tonnes on 1 August 1984 prices on the Community market, the high to 1.1 million tonnes on 1 August of this dollar and increased world market demand year. permitted the export of some 15.9 million tonnes (average refund 19 ECU/tonne) com- 2.1.151. At the end of 1984 the Com- pared with 14.8 million tonnes in 7983/84. mission proposed that the Council alter the The carryover stock on 1 Atrgust was some arrangements for starch and starch prod- 15 million tonnes, of which 10.3 million ucts. 1 tonnes was in intervention storage, the cor- Following discussions held in the interval, responding figures for 1 August 1984 being its initial proposals were modified on 13 7.2 and 3.3 million tonnes. August z to bring them more into line with 2.1.148. The Community market in the Member States' requirements. The basic durum wheat was fairly well balanced in principle, however, is unchanged, namely 1,983/84 owing mainly to an exceptionally to restrict the refund to non-protected, i.e. low production figure of 3.9 million tonnes industrial uses, which are exposed to com- in 1983. petition from outside the Community. ln 7984/85, on the other hand, abundant The changes are the introduction of a tran- supplies following a record harvest of 6.2 sitional period, the establishment of an million tonnes were far greater than could initial list of products qualifying for the be disposed of in and outside the Com- production refund, the fixing of a potato munity and the carryover stock (840 000 starch premium for the season instead of tonnes on 1 Julv 1984) stood somewhere using an adjusted coefficient and of a minimum price for potatoes to be paid by the betrveen 1.5 and 2 million tonnes on 1 July of this year. starch producer to the grower, and the removal of the terminal date for the scheme. 2.1.149. Production of barley, which dropped from 41.4 million tonnes in 1982 to 35.1 million tonnes in 1983, rose again Eggs and poultrymeat in 1984 to 44.3 million tonnes, owing not only to very favourable weather but to the Market situation replacement in northern Europe of two-row varieties by six-row varieties, which give 2.1.152. In 1985 the traditional post- much higher yields. Easter fall in Community egg prices Barley exports in 1.984/85 rose to some 8 occurred, on this occasion accentuated by million tonnes compared with approxi- an increase in production in the first half of mately 4.5 million tonnes in 1983/84. the year and a slight simultaneous drop in exports from the Community. The carryover stock on 1 August was some 3 million tonnes compared with 1.5 million Since poultry feed prices dropped, however, tonnes on 1 August 1.984. the position of produccrs worsened less than in L984, and given that a slight drop 2.1.150. Although the market in rye had in Community production can be counted been tending towards balance for a number on during the coming months the trend to of years, with production dropping in line stabilization of the market should resume with decreasing demand, a slight increase in areas sown in 1984 together with a very marked increase in yields (43.18 quintals I Bull. EC l1-1984, points 2.1.95. per hectare compared rvith 35.3 in 1983) 2 coM(85) 344 final.

62 Bull. EC 7/8-1985 Agriculture with the autumn seasonal increase in authorized by the Council itself, on a pro- demand. posal from the Commission, and for one year at a time only. 2.1.153. The market for the main types of poultry is well balanced in 1985. A slight Lastly, the Commission is proposing, in the increase in demand, in particular for fresh expectation of an enlargement of outlets for whole birds and cuts, is eliciting a cautious sugar in the Community and hence of a increase in production. However, the drop in the quantities that have to be unfavourable outlook for exports remains exported, that producers themselves should worrying af.ter a 70Yo drop in chicken be wholly or partly responsible for the cost exports for the first half of 1985 compared of production refunds on sugar used by the with the same period of 1984. chemical industry. The Commission will therefore shortly be 2.L.154. On 72 the Commission July1 in a position to propose that the Council adopted detailed rules under which, in replace the present refund arrangements by accordance with the marketing standards a more generous scheme under which sugar for eggs as amended by the Council in June can be sold to the chemical industry on 1984,2 type of farming and origin must be more favourable terms. shown on small packs. These rules specify the wording to be used and contain provisions designed to ensure that the infor- Processed fruit and vegetables mation is correct and that its accuracy can be easily checked. The prime purpose of the Market situation rules is to improve consumer information and so enable purchases to be made on the 2.1.156. Production of processed tomato basis of farming type and origin. products has risen to such an extent over the last three marketing years that the guarantee threshold was greatly exceeded Sugar in all cases. This situation led the Com- mission to reduce the minimum price to the 2.1.155. On 18 July the Commission sent the Council a proposal for sugar sector primary producer by 3% in ECU. Process- arrangements for the five marketing years ing aid has been reduced by as much as following expiry of th_e present arrange- 30o/o for tomato concentrate and 40o/o for tomato juice compared with last year.4 ments on 30 June 7986.r The present production quota system and In view of the increase in production the quota volumes will be retained and, in Community also adopted temporary meas- addition, in order to permit effective ures for 1,985/86, 7986/87 and 1987/88 restricting processing aid to specific quanti- implementation of the principle that pro- J ducers should meet market support costs ties. (storage, disposal surpluses), is proof it 2.L.L57. The average of the quantities of posed that the maximum basic levy (A currants used in 1982/83,7983/84 and 1984/ sugar) be increased from2"/o to 2.5o/o of the 85 (69 000 t) was 5% more than the guaran- intervention price and the maximum levy tee threshold (65 000 t). However, the mini- that the Council may impose on B sugar be mum price to currant producers f.or 1.985/ 37.5o/" to 47o/o of that price. increased f.rom 85 was reduced by only 3% in ECU in Moreover, again with the aim of better control of Community sugar production, it is I proposed that henceforward the 'mixed oJ r 181, 13.7.1985. 2 L 172,30.6.1984i Bull. EC 7/8-1984, point 2.1.133. (derogation the oJ price' arrangement from 3 oJ c 219,29.8.798s; coM(85) 433 final. rule of different delivery contracts for vol- 4 oJ L 205,3.8.1985. umes under different quotas) should be 5 oJ L 137,27.s.198s.

Bull. EC 7/8-1985 63 Agriculture accordance with the Council's May It covers trade in pasteurized, UHT and Decision.l The minimum price to sultana sterilized milk, laying down rules on dairy producers is the same as last year. holdings, treatment establishments and transport. It also lays down requirements The Community also adopted rules relating for the admission of raw milk to treatment to the system of minimum import prices for establishments and for the heat-treatment dried giapes from non-memb-er countries.2 processes themselves. Processing aid for dried grapes has been Directive regulates intra-Community reduced by over 10% compared with 1984/ The trade and will help eliminate the existing 85.3 barriers to trade that arise from disparities 2.1.158. In the case of the other products in health legislation. eligible for aid, the market situation has 2.1.160. On 3 the Economic and caused the Commission to exercise caution July 8 as regards the price to primary producers. Social Committee-gave its opinion on the The prices expressed in ECU have not been Commission proposals concerning health increised, and have even been reduced in inspection problems in intra-Community- the case of peaches and pears. Only the trade in fresh meat and on the import of minimum price to pineapple producers was cattle, pigs and fresh meat from non- increased by 5.6o/o in ECU compared with Commuhiiy countries (-+ point 2.5.3\.e 1984/85 in view of the special production conditions for pineapple in the Community. Competition Processing aid for these products, with the exception of cherries and pears in syrup, 2.1.151. Under the terms of Articles 92 was reduced bv around l2o/o in ECU com- and 93 of the Treaty the Commission pared with lDg+tSS.4 decided to make no comment on the introduction of proposed schemes notified by: Processing aid for pears in syrup was reduced by 7.4% in view of the assurances non-member countries given by certain Germany iegarding ave_rage prices for imports to the Community.5 North Rhine-\(/estphalia: promotion of the Lastly, processing aid for cherries in syrup use of draught horses in forests; was raiied by 14o/" in ECU compared with last year, mainly because of the increase in Hamburg: variation of an existing scheme imports. from non-Community countries at for demonstration projects to encourage the relatively low prices. use of new techniques and technologies in horticulture;

Ag ricultu ral legislation Schleswig-Holstein: green belt encourage- ment measures; Health problems

2.1.159. After 74 years of work the oJL137,27.5.1985. Council, on 5 August, adopted a Directive OJ L 197,27.7.1985; OJ L 209,6.8.198s. on health and animal-health problems oJ L 199, 31.7.1985. affecting intra-Community trade in heat- oI L |n,9.7.1e85; OJ L 178, 10.7.1985i OJ L 196, 26.7.1985. treated milk.7 5 oJ L 180,12.7.1985. 6 oJ I- 144, 1.6.199s. This Directive, whose scope is considerable, 7 oJ L 226,24.9.198s. opens the way for Community harmoniza- t oJ c 218, 29.8.1985. tion in the milk and milk products sector. e oJ c 68, 15.3.1985, Bull. EC 2-1985, point 2.1.92.

64 Bull. EC 7/8-1985 Agriculture

Denmark United Kingdom

Amendment of the 1984 budget and 1985 Aid under the Inner Urban Areas Act for draft budget for the Horticultural Product investments relating to the storage and bot- Occupational Fund; tling of imported wine; Aid for marketing through cooperatives by the horticultural sector on the island of France Jersey. Aids for a campaign to promote the con- 2.1.162. The Commission decided to sumption of beef; initiate the Article 93(2) procedure in respect of the following aid: Italy Italy Bill No 859 on measures to promote the sale of rectified concentrated must produced Act refinancing for 1985 Regional Act No in Sicily (investment aid); 27 of.2 June 1980 on measures with regard to agriculture, involving in particular one- Bill No 581/A on roads and rural electrifi- year loans for the purchase of poultry for cation in Sicily (aid to improve the agricul- breeding, the Italian authorities not having tural infrastructure) ; yet replied to the Commission's request that this Act be notified. Ministerial Decree of 8 November 1984 on the granting of aid for the slaughtering of 2.1.163. The Commission decided to ter- dairy cows and their replacement by beef minate the Article 93(2) procedure in respect cows under Act No 94/84 in the framework of the following aids: of the measures authorized at Community levelto limit milk production; Italy Act No 23 of 28 August 1984 of the region rules the recog- of Molise laying down for Molise: measures to improve and develop nition of agricultural producer associations animal husbandry which were the subject (launching and unions thereof aid, aid for of a bill amending Regional Act No 27 of pro- the development of information 4 September 7979, the Italian authorities grammes, advertising, etc.); having complied with the requests of the Apulian regional measures to promote bee- Commission, which stated that it may still keeping (aid for the purchase of hives and reach a final decision finding against an aid selected bees and for disease eradication for sheep farming; work); Valle d'Aosta: regional act containing agri- Marche regional Agricultural Development cultural measures, the Italian authorities Services Act (aids for advisory services); having complied with the Commission's requests; Three instances of application of Act No 700 of 19 December 7983 on the reorganization of the sugar sector. France

1981 Agricultural Conference measures: Luxembourg premiums for restructuring table wine vineyards granted by the Ministry of Agriculture Subsidizing of collective replanting of vine- and the National Table Wine Office; the yards after land consolidation; clarification provided by the French autho-

Bull. EC 7/8-1985 65 Agriculture

rities shows that the measures are in accord- European Agricu ltural Guidance ance with Community law; and Guarantee Fund aid for arid mountain areas, the French authorities having stated that what is Guidance Section involved is a range of. ad hoc aids (totalling FF 44 million) for adding value to specific 2.1.166. Under Council Regulation (EEC) products of southern French mountain No 355/77 on improvement of the con- areas; ditions under which agricultural products are processed and marketed, z the Com- aid granted by the NTWO to groups of mission on 28 June adopted a batch of table wine producers for the establishment decisions granting Guidance Section aid for and launching of such groups. 243 projects, the total sum involved being 93.8 million ECU. 2.1.164. The Commission reached a final decision under Article 93(2) against a Sicil- The maximum Guidance Section contri- ian aid under Act No 7 of 13 March 1982 bution to projects in southern Italy, western on measures for the withdrawal of oranges Ireland, all parts of Greece except Greater from the market for the 1980/Sl marketing Athens and the French overseas depart- year, consisting of the granting of subsidies ments is 50% of the total cost. The break- to two producer associations to finance the down by Member State of the first instal- withdrawal of oranges. ment for 1985 is set out below.

2.1.155. On 12 July Parliament adopted a resolution on policy in respect of the welfare I oJ c 229,9.9.198s. of farm animals (-+ point 2.5.14).r 2 oJ L st,z3.z.Dn.

Table 8 - Processing and marketing of agricultural products

Aid grantcd

Numbcr of proiects in national in ECUI currcncy

Belgium 11 BFR 88 e52;85 1 975 541 Denmark 15 DKR 20 296 416 2 516 017 France 52 FF t00 4u 942 14718 M9 Germany 45 DM 18 900 390 8 448 499 Greece 14 DRA | 535 209 629 15 503 310 Ireland 77 IRL 7 079 356 9 9M770 Italy 37 LIT 42144206949 29 559 324

Luxembourg 1 LFR 5 413 090 720 205 Netherlands tt HFL 5 158 205 2M0 655 United Kingdom 40 UKL s 180 784 8 888 174

Total 243 93 774 544

I May 1985 conversion ratcs.

6 Bull. EC 7/8-1985 Fisheries

2.1.167. Under the iouncil Regulation of Regulation (EEC) No 355/77,10 and others 18 February 1980 on collective projects for were dictated by experience of the first few the restructuring of vineyards,l the Com- years of application of the Regulation. mission in April adopted a batch of decisions granting aid for 1985. Some 5.9 2.1.174. In March the Commission million ECU 2 will be given for 17 projects. adopted a change in the criteria used for selection of projects to be financed from the 2.1.168. Under the Council Regulation of EAGGF Guidance Section under Regulation 30 June 1981 on a common measure to (EEC) No 355/77.10 Very rigorous criteria improve public amenities in certain less- wire called for in the wine and milk sectors favoured agricultural areas of the Federal in view of their surplus production diffi- Republic of Germany,3 the Commission in culties. April adopted a batch of decisions granting Guidance Section aid for 1985. Aid of 4.9 million ECU 4 was approved, to be shared between 23 projects. Fisheries

2.1.159. On 4 February the Commission adopted a Regulation on applications for Resources aid from the EAGGF Guidance Section for projects concerning integrated develop-ment lnternal aspects in the less-favoured areas of Belgium. s 2.1.175. On 8 July the Council adopted a 2.1.170. Under the Council Regulation of Regulation fixing a minimum mesh size of 30 June 1981 on an integrated development 15mm for nets used for fishing for capelin programme for the less-favoured areas of in that part of the zone of the Convention Belgium,3 the Commission in April on Future Multilateral Cooperation in the adopted a decision granting Guidance Sec- North-East Atlantic Fisheries that extends tion aid of 45 672 ECU for 1985.4 beyond the maritime waters falling within the fisheries jurisdiction of the contracting 2.1.171. Under the Council Regulation of parries to rhe Convention.ll This imple- 19 October 1983 introducing a common ments a recommendation from the North- measure for the acceleration of collective East Atlantic Fisheries Commission that is irrigation operations in Greece,6 the Com- binding on the Community as a party to mission in April adopted a decision to grant the Convention. Guidance Settion aid of 2851457 ECU4 for 1985. 2.1.176. On 2 August the Council adopted a Regulation laying down certain technical 2.1.172. In February the Commission measures for the conservation of fish stocks adopted a Regulation amending Regulation in the Antarctic.12 This implements recom- (EEC) No 2051/75 in respect of reimburse- mendations on the prohibition of fishing ment of aids granted by Member States for improvement of the production and market- T t inj of Community Citrus fruit. 2 oJ L 57,29.2.1980. 3 March 1985 conversion rates. 2.1.173. In the Commission adopted oJ L 192,20.7.1981. July 1 oJ c L39,20.9.198s. a Regulation on applications for aid from 5 oJ r- 39,11.2.1985. the EAGGF Guidance Section for projects 6 L 293,L5.10.1983. 7 oJ to improve the conditions under which agri- 8 oJ L 47 , ls .2.1985 . cultural and fishery products are processed oJ r- 243,11.9.198s. e oJ L 3s,4.2.1v78. and marketed.8 Certain changes in the to oJ L 51,?3.LDn. Regulation of 13 January 7978e were 1r oJ L 129,11.2.1985. required following the changes made in 12 oJ L 210,7.8.1985.

Bull. EC 7/8-1985 67 Fisheries and on minimum mesh sizes adopted by review its compatibility with Community the Commission for the Conservation of law and with the common fisheries policy, Antarctic Marine Living Resources that are of an Irish order prohibiting from 7 May binding on the Community as a party to 1985 the fishing or retaining on board of the Convention. mackerel in ICES subareas VI and VII. The Commission found this measure to be com- 2.1.177. Following a meeting held from 25 patible with Article 5(2) of Regulation to 28 June, the Scientific and Technical (EEC) No 170183 of 25 January 1983.7 Fisheries Committee drew up a report giving for each species by stock and region Measures to giue effect the latest scientific opinion available for the to Community rules determination of optimum fishing effort in I the Community zone. 2.1.181. The Commission took note of the following national measures, stating that it Community measures might at any time review their compatibility with Community law and with the common Prohibition measures fisheries policy: 19 German measure in the 2.1.178. On the basis of information sup- r oD July a communication laying down plied by the national authorities on the form of a to faci- exhaustion of certain quotas the Commis- administrative instructions designed (EEC) sion prohibited: litate the application of Regulation No 2807183 of 22 September 1983 u by Ger- . Dutch vessels from fishing for anglerfish man skippers from 1 April 1985 onwards; in ICES division Vb (EEC zone) and sub- . . on 20 August a French framework law areas VI and VII with effect from 25 July,2 and for haddock in divisions IIa, b, c and due to enter into force at the beginning December 1985 and designed ensure d (EEC zone) with effect from 10 August 3 of to compliance fisheries and in division IIa (EEC zone) and subarea with the Community regulations. IV with effect from 17 August;4 and . Belgian vessels from fishing for plaice in ICES divisions VIIf and VIIg with effect External aspects from 26 Jrly, 5 and for sole in division VIIe with effect from 1 August.5 Bilateral relations

National measures Greenland

Protection of local stocks 2.1.182. On 2 August the Council adopted a Regulation e amending that of 26 March 2.1.L79. Under Article 19 of Regulation last allocating Community catch quotas in (EEC) No 171183 of 25 l98J7 the Com- July Greenland waters for 1985.10 mission on 1 August approved two draft orders under the Inshore Fishing (Scotland) Act 1984 by the Secretary of State for Scot- I land, applying to Scottish coastal waters up Ninth Report of thc Scicntific and Technical Fisheries Committee. to half a mile from the coast and up to six 2 oJ L 193,N.7.198s. miles from the baselines respectively. r L 213, 10.8.1985. 1 oJ 5 oJ L 219,17.8.1985. Measures stricter oJ L 196,26.2.198s. 6 oJ L 203, 1.8.1985. than Community rules 7 oJ L 24,27.1.1993. 8 oJ L 276, to.to.tggi. 2.1.180. On 20 August the Commission e oJ L 210,1.8.198s; coM(85) e49 final. took note, stating that it might at any time r0 oJ L 89,29.3.1985; Bull. EC 3-1985, point 2.1.124.

68 Bull. EC 7/8-1985 Fisheries

Multilateral relations 2.1.188. In the matter of State aids the Commission decided to initiate the scrutiny 2.1.183. The Commission represented the procedure laid down in Article 93(2) of the Community at the fifth session of the \Wes- Treaty in respect of an aid granted by the tern Central Atlantic Fishery Commission Land of Lower Saxony in Germany to a (TUYECAFC), held at Castries, St Lucia, from fishery sector firm, involving the purchase 15 to 19 July, and at the eight session ofthe of a factory belonging to the firm for DM Indian Ocean Fishery Commission, held in 30 million and the leasing of it back to the Bangkok from 2 to 6 July. firm for DM 500 000 per year. This is an uneconomic use of State funds, the firm 2.1.154. The Commission represented the having received a financial benefit without Community as an observer at the 37th performing any real service on its own part. annual meeting of the International Vha- ling Commission, held in Bournemouth 2.1.L89. The Commission decided to ter- from 15 to 19 July. minate the Article 93(2) procedure in respect of that part of the Kingdom's seafish industry development programme in regard to Markets and structures which it had decided to continue the procedure in December 1984.s The problem of discrimination against the products of other Market organization Member States that arose from part-financing by means of a parafiscal charge has 2.1.185. On 24 the Commission 1 July disappeared since the measures in question amended its Regulation of 25 luly 1974 are now being financed exclusively from laying down detailed rules of application other sources ind the content of certain of for tte fixing of reference prices and free- them has been modified to ensure that all 2 ^by at-frontier pli..t for carp dividing the who pay the charge benefit. reference piriod running from 1 December to 31 of the following year into two July 2.1.190. The Commission decided to raise parts, 1 December to 31 December and 1 no objection to the following: January to 31 July. On the same day the Commission adopted o the 1985 aids planned by the Danish a Regulation fixing reference prices for ca-rp Trout Fund, the budget for which is DKR for t-hree marketing periods in 1985/86 for 2 885 000; the first time. I o the implementation in Italy of a scheme of assistance for the permanent withdrawal 2.1.186. On26 the Commission sent July fishing vessels; the scheme extends to the Council a proposal for a Regulation of of vessel the financial aid provi- laying down general rules on the granting- other types ded for in the Directive of 4 October 1983 of compensatory allowances in respe-ct of concerning certain measure.s to adiust capa- Atlantic and Mediterranean sardines. r city in thJfisheries sector,4 and it is to run for three years (1985-87). Structures 2.1.187. On 8 August the Commission, under the Regulation of 4 October 1983 on measures to encourage exploratory fishing I and cooperation through joint ventures in oJ L 793,N.7.1985. a 2 oJ L 207,29.7.1974. the fishing sector, approved a Decision on 3 coM(85) 435 final. a German exploratory fishing programme 4 oJ L 290,22.10.1983. in the waters off Svalbard. 5 Bull. EC 12-1984, point 2.1.796.

Bull. EC 7/8-1985 69 Transport

Transport 1 nity budget. The Council had approved these -projects in principle in Diiember 1984.2 The commirmenrs total 75 million Infrastructure ECU, of which 25 million ECU is allocated to Greek road and rail develooment Dro- 2.1.191. On 15 July the Commission deci- jects. All the projects are designld to elimi- ded to grant Community financial support nate transport bottlenecks or to improve for 13 transport infrastructure projects, major transport links between Member using funds available in the 1984 Commu- States.

Table 9 - List of projects financed

Amount of financial suppon (milhon ECU)

. Italy New alignment of the Chiasso-Milan railway line 8.5 . France Mont Blanc access (new road Le Fayet-Les Houches) 3.8 . Greece Varimpompi-Skhimatario secrion of the Evzoni-Athens- Kalamata trunk road 12.5 Larisa-Plati railway 72.5 . Ireland Shankill-Bray bypass 2.4 . Germany (FR) Marshalling yard at Niirnberg 4.2 . United Kingdom London orbital motorway (M25): - Leatherhead-Reigate section 3.5 - M4-M40 section 6.2 Sidcup bypass (A20) 9.0 Rail access to the port of Harwich (Colchester-Harwich Iine) 2.5 . Belgium-France Improvemenr of the Lys waterway 8.1 . Netherlands Railway bridge at Dordrecht 7.7

!nland transport place of deparrure or destination of the goods; to extend the business hours of the Frontier checks and formalities checkpoints located within the Member 2.1.192. On 19 August the Commission States; to delegate to the customs services sent the Council a proposal for a Directive 3 some of the inspections usually carried out to supplement the Directive of 1 December by other servicesl to introduce a procedure 1983 on the facilitation of phvsical insoec- for rapidly informing the Commitsion and tions and administrative'formalities' in the authorities of the Member States of respect of the c.arriage of goods between any problems encountered at frontiers; to Member States.4 develop a computerized information sysiem relating to frontier posts ro be The proposal, which is aimed at further made available to transport operators other fa-cilitating frontier crossings for all modes and agents; to ser up a Facilitation Committee. of transport, is part of the programme set out in the White Paper on the completion of the internal market presenred bv the I For transport research, see point 2.1.219, s ^ Commission in June. i OJ L 333,21.12.7984; Bull. EC l2-l984,poinr2.t.t99. 3 oJ c 232,18.9.1985; coM(85) 436 finat. Its main provisions are: to have inspections 1 OJ I- 359,22.12.1983 Bull. EC 10-1983, point 2.1.68. and formalities carried out preferabiy at rhe s Bull. EC 6-1985, point'1,.3.1 et seq.

70 Bull. EC 7/8-1985 Transport

Railways approve the way in which the draft regulations of the Membei States implement the Council Directive of 4 October lgS2laying Report on the annual accounts down technical req'uirements' for inland 2.1.193. On 22 July the Commission waterway vessels.l0 transmitted to the Council its sixth report (covering 1982) on the transposed annual Air transport of railway underta-kings.l This "..orntr" report, which was prepared in accordance Customs formalities and inspections with the Council Regulation of 12 Decem- ber 1977,2 presents lhe annual accounts of 2.1.197. In an annex to the proposal for a the underta-kings in question.in a uniform Directive on the facilitation of inspections manner to permit a comParative analysis of and formalities in inland transport expenditure and outturn. (+ point 2.1.792), the Commission sent to ihe Council a repoftl1 in which it examines facilitation in respect of intra-Community Road transport air freight. The riport sets out the results of visiti made by Commission staff to a Taxation number of European airports. It states the extent to which Community action to (including 2.1.194. On 8 July the Council adopted a strengthen the internal market new Directive on the duty-free admission of the proposal for a Directive) will help to fuel contained in the fuel tanks of coaches facilitate air freight. The Commission consi- (--r point 2.1.77). ders that a special system should be set up for customs formalities and airport controls so that the time saved as a result of air Social conditions transport is not offset by unnecessary 2.1.195. On 13 August the Commission waiting. sent to the Council a second version r of its proposal4 to amend the Regulatio-n of 25 Safety of certain Maich 7969 onthe harmonization 2.1.198. On 11 July Parliament adopted social legislation relating to road trans- two resolutions on safety in air transport port5 and that of 20 July 7970 on the intro- (-r point 2.5.Lq.12 iuction of recording equipment in road transport.6 The Commission accePts some of th-e amendments proposed by Parlia- lnternational cooPeration mentT but otherwise conliders it essential 18 after obtaining- the maintain its original proposal (aimed at 2.1.199. On July, to on 24 the greater flexibility in the preient system and agreement of the Council June,ll 6etter social conditions for drivers) and has th. t COM(85) 381 final. not adopted the changes suggested by 2 Councilln the common position reached in oJ L 334,24.12.1977. 3 OJ C 223,3.9.1985; COM(85) 458 final. June.8 4 OJ C 100,12.4.1984; Bull. EC 3-1984' point 2.1'158. s oJ L77, 29.3.1969; oJ L 73, 17.3.1979. 6 OJ I- 164,27.7.1970; OJ L 181' 4.7.1973; OJ L 334' lnland waterways 24.12.19n. 7 0J c 122,20.5.1985; Bull. EC 4-1985' point 2.1.98. 8 point 2.1.153. 2.1.196. On 17 July the Commission deli- e Bull. Ec 6-1985, vered three opinions addressed to the Net- oJ L 224,22.8.198s. r0 0J L 301, 28.10.1982; Bull. EC 10-1982, point 2.1'114. herlands, the Federal Republic of Germany ll coM(85) 436 final/Annex. and Luxembourg resPectively. e All three 12 oJ c 229,9.9.1985. call for certain details to be added but 13 Bull. EC 6-1985, point 2.1.155.

Bull. EC 7/8-1985 7l Energy

Commission transmitted to rhe Council a Oil and gas communication proposing a framework for cooperation with Austria on transport. 1 2.1.202. On 13 August the Commission Cooperation between the Communiiy and sent the Council an amendment 9 to its Austria to develop infrastructure for com- proposal for a Regulation on a programme bined transport and closer cooperation of support for technological dLvelopment between railway undertakings, as well as in the hydrocarbons sectorl0 which is other measures to promote combined trans- designed to replace_ the basic Regulation of port, are envisaged. 9 November 7973.r1In rhe new pioposal the Commission takes account of Parliament's amendmentsl2 aimed at giving preference ro small-scale projects or projects mounted by Energy small firms, subject ro rhe condition that not all of the latter are established in the same Member State. Specific problems 2.1.203. On 24 July, pursuant ro rhe provisions of the Regulation of 9 November Solid fuels 2 1973,tt the Commission senr the Council a proposal for a Decision on the granting of New scheme for coking coal and financial support for Community prolects coke for the iron and steel industry in the hydrocarbons secror.13 FinanCial support is requested for 62 of the 95 projecis 2.1.200. On 31 July the Commission asked submitted to the Commission in reply ro its the Council for its assent 3 to amend the invitation.l4 Decision of 25 July 1973 on coking coaland The Community supporr proposed coke for the iron and steel industry in the amounts r.o 42 545 370 ECU for 1985, and Community.4 In March 7984 the term of the total cost of the investment necessary this Decision was extended to cover the for completing the 52 projects is 125 832 534 period 7984-86,s but maximum tonnages ECU. were fixed only for 1984 and 1985; provisi,on was made for the 1985 tonnage to be revised 2.1.204. On26 July the Commission senr downwards before the end of 1985. the Council a proposalls to amend the Regulation of 28 August 1979 The Commission therefore requests that introducing registration crude Community funding be made available for _for oil imports in the Communityl6 and thar of 20 November a maximum of 8 million tonnes (not 10 million as before) and should amounr to a maximum of 35 million ECU in 1,986. I CoM(85) 434 final. 2 For social quesrions regarding the coal industry, see point 2.1.85. State aid to the coal industry 3 oJ c 220, 30.8.1985; coM(85) 419 final. n oJ L 2s9,7s.9.1973; oJ L 106, 21.4.1982; Bull. EC 4- 2.1 .201.. 6 1982, point 2.1.94. After consulting the Council, as r required by the Commission Decision of 25 6 OJ L 80,24.3.1984; Bull. EC 3-1984,poinr2.1.179. February t976,7 the Commission Bull. EC 3-1985, point 2.1.135. informed 7 oJ L 63, 11.3.1926. the Federal Republic of Germany, France, 8 , oJ L 230,29.8.198s. the United Kingdom and Belgium on24 luly oJ c 244,26.9.1985; coM(85) 453 final. ol C 32s,6.12.1984; Bull. EC that the aid paid to their respective Loal rr19 t1-1984, point 2.1.142. industries in 7984 had been authorized. s oJ L 312, 13.11.1973. o.l c 175,16.7.1985; Bull. EC 6-1985, point 2.1.151. f 1 ri coM(85) 38i final. Aid paid by the United Kingdom during 14 1984/85 oJ c 208, 8.8.1984. and further aid for 7983/84 was ri coM(85) 389 final. also approved. 15 oJ L zzo,3o.B.t979.

72 Bull. EC 7/8-1985 Energy

7979 laying down the rules for carrying It hopes that the oil-producing countries that are out the registration.l The purpose of the not members of the IEA will maintain their respon- the refined oil products that amendment is to extend the validity of the sible attitude and that they will shortly be exporting will be distributed Regulations for three years by postponing equitably among all the consumer markets.' their date of expiry from 31 December 1985 to 31 December 1988 in order to retain this instrument of permanent market analysis and price surveillance in the event of ten- Nuclear energy sions in the world market. 2.1.206. On 8 August the Commission transmitted to the Council,4 after receiving 2.1.205. A Commisslon a.t.gr,ion headed a favourable opinion from the Economic by Mr Mosar, the Member with special and Social Committee,5 the final version responsibility for energy, attended a meet- of the third illustrative nuclear programme ing of the Governing Board of the Inter- for the Community 6 together with the text national Energy Agency (lEA) held in Paris of the opinion. on 9 July to discuss 'Lessons of the past, tasks for the future'. Ministers reviewed the Energy savings main energy,problems and.agreed on a final communiqu6 covering all the questions that 2.1.207. On 15 Jrly the Commission were discussed. Following discussions on decided to reaffirm its support for the developments in the international energy Energy Bus concept to save energy in small markei and their implications for future firms by granting financial support amount- agreed pursue energy policy, Ministers to ing to 1 325 000 ECU for the period 1985- their efforts to restructure, 87. The programme, which was introduced As instructed by the Council in March,2 in the Community in 19807 after its earlier the Commission recalled the importa-nce it success in Canada from 1977 onwards, is attaches to free trade in oil products J and geared towards redressing the difficulties its particular concern about what might the small firms have in gaining access to happen in the near future as a result of an information and advice on energy saving in inCrease in exports of oil products from new their own plants. refineries built in certain Middle East and North African countries. 2 On 20 June the Alternative sources Community countries' Energy Ministers agreed to maintain freedom of access to 2.1.208. On 25 July the Commission sent Cbmmunity markets on condition that the the Council, for information, the text of other industrialized countries adopted a two Decisions the Commission had adopted similar policy.3 Discussions on this point granting financial support to demonstration proved difficult because of Japanese reti- projects. The first, taken pursuant to Lence and the evasive position of the United Council Regulation (EEC) No 1971183 of States. 11 July 1983,8 grants a total of 20 41,8 725 ECU (in respect of investment amounting to At the end of the IEA ministerial meeting 94 953 972ECU) to seven projects involving Mr Mosar made the following statement: 'Following negotiations between the Commission and the Community Member States, Ministers I oJ L 297,24.11.1979. attending the Paris meeting were able to agree 2 Bull. EC 3-1985, point 2.1.137. unanimously on this subject and, indeed, on a 3 Bull. EC 5-1985, point 2.1.159. number of other matters that were raised. 4 COM(85) ,101 final. 5 Bull. EC 5-1985, point 2.4.29. The Commission cannot but welcome the spirit of 6 Bull. EC ll-1984, point 2.1.144. solidarity the industrialized countries are continu- 7 OJ L 239,72.9.1980; Bull. EC 7/8-1980, point 2.1.123. ing to display. 8 OJ L 195, 79.7.1983, Bull. EC 7/8-1983, point 2.1.191.

Bull. EC 7/8-1985 73 Research and development

the liquefaction and gasification of solid ilian projects in various sectors of high tech- fuels. The second, adopted under Council nology. Regulation (EEC) No 1972183 of 11 July 1983,1 grants financial support totalling The Ministers and the Commission rep- 16 242 638 ECU (in respect of investment resentatives decided to meet again at the amounting to70484 935 ECU) to 10 dem- invitation of the Federal Republic of Ger- onstration projects involving the substi- many before 15 November to take fresh tution of hydrocarbons by solid fuels. initiatives. In preparation for that meeting, the existing 2.1.209. On 3 July the Economic and team will continue its work in close collab- Social Committee issued an opinion oration with the host country, the Presi- (--+ point 2.5.36)2 on two proposals for dency of the Council and the 3 granting Commission. Regulations financial support A working party composed of senior rep- under five-year programmes beginning on resentatives from each of the participating 1 January 7986 and aimed respectively at countries will assist with the preparation of carrying out demonstration projects relat- the next ministerial meeting. ing to the exploitation of alternative energy sources, energy saving and the substitution 2.1.211. Addressing the conference, Mr of hydrocarbons, and to pilot industrial Delors stressed the significance of the grow- projects and demonstration projects relating awareness in Europe at the present time ing to the liquefaction and gasification of in the technology field, an awareness which solid fuels. had been greatly enhanced, particularly among European firms, by the launching of the project. Concluding his address, he summarized the advantages the Community Research and development could offer the Eureka programme: . A large market (unification of public CommunityR&Dpolicy procurement, adoption of common standards, protection of industrial property). The Community intends to create a market Eureka: of 380 million people in line with the eight- Conference on European technology year programme adopted by the Milan European Council. 2.1.210. Representatives of 17 European . A of experience. The Community countries (the fund 12 members of the enlarged has acquired wide experience in the pro- Community, Austria, Finland, Norway, cesses of cooperation from the pre-competi- Sweden and Switzerland) and of the Com- tive stage onwards. It is now fully integrated mission (Mr Delors, President, and Mr into both the scientific and the production Narjes, Vice-President special with environments. It knows what needs to be responsibility for research and sciencC) met done to maximize the Community's collec- in Paris on 17 at the invitation of the July tive potential and to secure the success of President of France hold a to conference on the research effort. European technology. They acknowledged the importance of early action by Europe o Structures. Its structures, though not to pool its energies and expertise in the exclusive, have worked successfully in vari- high-technology field. ous forms, such as joint projects (JET, for example), and other forms can be con- They thanked the French Governmenr for launching the Eureka project and for convening and organizing the conference. They OJ L 195, 19.7.1983; Bull. EC 7/8-1983, point 2.7.192. expressed their firm support for the Eureka oJ c 218, 29.8.198s. programme, which will involve selected civ- OJ C 109,3.5.1985; Bull. EC 2-1985,point2.7.l2l.

74 Bull. EC 7/8-1985 Research and development sidered (for instance, the Eurotype'\U7arrant multiannual planning of research budgets, proposed by the United Kingdom). which is leading them to define more pre- cisely the medium-term objectives of their . Financing. The methods of financing science and technology policies. No basic must be adapted to the various stages lead- differences were noted between the options ing from research to development, inno- taken by the various Member States, namely vation and marketing. At the pre-competi- microelectronics, data processing, biotech- tive stage, subsidies are essential; the further nology, space and new materials, a fact one moves from there towards the market- which points up the marked intensification ing stage, other forms such as loans and of the technological effort in recent years; risk capital are required. It would be useful the majority of the Member States wish to under these circumstances to examine the develop this effort in the context of inter- possibility of providing a guarantee for cer- national cooperation in order to share the tain forms of financing or, alternatively, of costs involved. In this connection, the making greater use of incentives such as Eureka project was favourably received by concessionary interest rates. Lastly, in the most Member States; should facilitate European Investment Bank and the New it the development of market-oriented high- Community Instrument, the Community technology products, have a major econ- means of financing a wide range has suitable omic impact (e.g. on the environment) or of projects. contribute to the installation of large systems or networks (telecommunications and 2.1.212. The Council, at its meeting of 22 transport). Certain Member States never- and 23 (--+ point 2.6.16), responding July theleis voiced the fear that they would not to the conclusions of the Milan European be able to take as active a part in the project Council l and taking into account the pro- as they would wish, in view of the research gress made by the ad boc Eureka Commit- potential at their disposal. They also wished tee, stressed the need to ensure coordination io see the links made clear between this new and consistency between the work of the framework programme Committee on the one hand and the work initiative and the for Community R 6c D activities and the to be done at Community level on the other Technology Community. I towards strengthening technological cooperation in Europe. The Commission was invited to lay before the Council proposals I nternati o n a I cooperatio n for measures to be taken in a Community context to ensure the strengthening of Euro- 2.1.215. On 25 July the Council formally pean technological cooperation in a coordi- approved the cooperation agreement nated manner consistent with the Eureka bLiween the Community and the Kingdom project. of Norway on a research and development programme in the field of metals and min- 2.1.213. Parliament, in a resolution eral substances. J adopted on 10 July, reaffirmed the imperative need to develop a technological Europe 2.1.216. On 5 August the Commission within a Community framework.2 asked the Council to conclude two scientific and technical cooperation agreements between the Community on the one hand Coordination of national policies and Switzerland a and Sweden, s respectively, on the other. These agreements had 2.1.214. The Scientific and Technical Research Committee (Crest) met in Brussels I on 11 and 12luly to carry out its two-yearly Bull. EC 6-1985, points 1.2.6 and 1.5.1 et seq. 2 oJ c 229,9.9.1985. comparison of national and Community 3 oJ L 211, 8.8.1985. R S. D policies (Copol 85). A trend was 1 COM(85) 446 final. observed in most Member States towards 5 coM(85) 444 final.

Bull. EC 7/8-1985 75 Research and development

been negotiated by the Commission in a tritiurn-handling laboratory. e This 'de- accordance with the brief the Council issued cision to build the laboratory at the JRC's in April.l Ispra Establishment supplements the Decision of 22 December 1983 on the Cooperation will be effected by means of research programme to be carried out by specific agreements that will determine the 'the Research Centre during the period scientific and technical objectives, lay down Joint 1984-87,10 which set aside a builget 6t tZ.S rules governing the dissemination of knowl- million ECU for the project. The construc- edge property and intellectual and settle the tion and operation of the laboratory will financial implications. be fully integrated into the JRC's fusion 2.1.217. On 27 August the Commission technology and safety subprogramme, and also asked the Council for authority to open the laboratory will contribute to the JET (Joint negotiations with a view to concluding European Torus) fusion project. In framework agreements for scientific and general terms, the laboratory will tackle technical cooperation with Norway2 and the problems associated with the operating Finland.3 safety of future fusion power stations.

Nuclear fission energy COST proiects Eighth Smirt 2.1.218. On 15 July the Council approved Conference the conclusion of two Community-COST 2.1.221. One the largest international concertation agreements.4 One relates to of conferences in the a concerted-action project on the use of nuclear technology field, namely the Eighth International Con[erence lignocellulose-containing by-products and on Structural Mechanics in Reactor Tech- other plant residues for animal feeding (Pro- nology (Smirt-S)----organized directly by the ject 84 bis), the other to a concerted-action Commission-was held in Brussels from 19 project on the effects of processing and dis- to 23 August. tribution on the quality and nutritive value of food (Project 91 bis). This conference is one of the main forums for disseminating the results of research in These two projects were adopted in prin- the field of reactor safety and technology. ciple by the Council in April and May 1984 It was attended by more than 1 000 partici- respectively. 5 pants fronr 30 different countries. 2.1.219. On 9 July the Commission Generally speaking, the design and con- requested5 the Council to extend until 31 struction of structures is beset by mechan- December 1985 the Community concerted- ical problems that must be solved if nuclear action project relating to shore-based mari- reactors are to be operated safely and time navigation aid systems (COST Project reliably. 301), which the_ Council adopted on 13 December 1982.7 At the various parallel sessions held in the course of this conference, nearly 100 scien-

Sectoral R & D activities I Bull. EC 4-1985, point 2.1.109. 2 ,108 3 coM(85) final. Energy CoM(85) 4l1final. 4 oJ L 199,31.7.198s. 5 oJ L 103, 16.4.1984; oJ L ts l, 7 .6.1984. 6 oJ c 182,20.7.1985; coM(8s) 354 frnal. Nuclear fusion energy 7 8 OJ L 378,31.12.1982 Bull. EC 1Z-t9gZ,poinr2.t.1t9. I oJ L zlo,7.g.tg}s. 2;1.220. On 25 July the Council adopted e Bull. EC 6-1985, point 2.1.154. the Decision concerning the setting-up of ro oJ L 3, 5.1.1984.

76 Bull. EC 7/8-1985 Research and development tific papers were presented and discussed duction time with the new process, which on such topics as: was recently employed for refuelling the Obrigheim reactol in Baden-Wiirttemberg. . computerized methods of structural analysis; South Korea and China have shown interest o the thermo-mechanical analysis of fuel in this fuel fabrication process. elements and assemblies; energy . exp.erimental structural data on reactors Non-nuclear ln servlce; 2.1.223. The deadline for submission of o the structural analysis of fast-reactor projects, in response to the call- for pro- cores and cooling circuits; posals published on 16 -March,l with a in the programme on . light-wat'erreactorcomponents; view to participation non-nuclear energy, fell on 15 July. o COIICI€teStrUCtUreS; A total of 3 311 proiects were received, containment . extreme loading and covering eight of the nine subprogrammes resPonse; (the energy systems analysis subprogramme o the analysis of the seismic response of was not included in the call for proposals). nuclear reactors; The proposals registered represent a total o reliability of structures; reseaich cost of 967 million ECU, to which the mechanical and thermalproblems of the Community is asked to contribute 520 o com- fusion reactors. million ECU. This amount should be pared with the funds available for the con- Smirt-8 underlined the maturity gained by llusion of contracts, namely some 151 nuclear technology since preceding confer- million ECU. The Community participation ences; the role oT nucleai technology and requested is therefore nearly three-and-a- its impact on scientific disciplines such as ha[f times the total appropriations set aside structural mechanics were more clearly for that purpose. defined. It should be noted that over 42o/o of the proposals emanated from the private sector S el f- diffu s i o n me a sur e ffi e nt s jmainly industry), while such prop-osals in uranium dioxide account for about 52% of the funds requested from the Community. 2.1.222. Measurement of uranium self-diffusion in stoichiometric and hyper-stoichio- The evaluation and selection procedures metric uranium dioxide have been per- will now be able to take place from the formed at the Institute for Transuranium beginning of September until the end of Elements, the Karlsruhe Establishment of Oaober, with meetings of experts and of the Joint Research Centre. The measure- the Management and Coordination Com- menis have shown that uranium diffusion is mittee (CGC) for Non-nuclear Energy. increased by a factor of five in an oxidizing As regards the energy systems analysis sub- atmosphere, with the result that sintering prog.imme, CGC having already of uranium dioxide fuel can be accelerated the a favourable opinion, 30 contracts at lower temperatures in a suitable oxidiz- delivered to a total value of approximately 3.4 million ing gas mixture (below 1 200 oC) than in a ECU are to be concluded. conventional reducing atmosphere. Further calls for proposals will be published A new fuel fabrication technique based on at a later stage for the solar energy, biomass this method is now being used on an indus- and wind energy subprogrammes, mainly trial scale. Kraftwerk-Union in the Federal Republic of Germany rePorts a sevenfold energy saving and a fourfold saving in pro- t OJ C 69,16.3.7985; Bull. EC 3-1985' point 2'1.145.

Bull. EC 7 t8-1985 77 Research and development

for the development of pilot projects. About lndustry one third of the funds available in this area (i.e. 22 million ECU) will be set aside for Telecommunications contracts arising therefrom. RACE: definition phase

Raw materials 2.1.225. On 25 July the Council formally adopted the phase relating ro the definition 2.1.224. On 12 August the Commission of Community measures in the field of rele- transmitted to the Council a proposal for a communications technologies (RACE),2 Decision adopting a multiannual research approvedr by the Research Ministers in action programme on materials (raw June. The definition phase will last eight- materials and advanced materials) for the een months and comprises two parts. period 1986-89.1 The first part will cover the analytical work needed to build a reference model for inte- The programme will cost an estimared toral grated broadband communications (lCB), of 110 million ECU and covers the following to be undertaken wherever possible by fields: organizations such as CEPT (European . raw materials (72 million ECU); primary Conference of Postal and Telecommuni- raw materials (exploration, mining, tech- cations Administrations). The second part nology and mineral processing); secondary will comprise evaluation projects carried out under raw materials (recycling of non-ferrous contract which ale necessary for metals and waste recycling and utilization); clarifying the economic and technical options wood as a renewable raw material (wood and determining the economic and technical feasibility production and utilization); of the reference model. The Council foresees the possibility of r advanced materials (38 million ECU): Community funding for both parts of the metal engineering alloys; ceramics; and programme; the cost of implementing the composite materials. second parr is esrimared at 14 million ECU. The funds would be used chiefly for shared- The main purpose of the definition phase cost research contracts with industry, is to carry out the preliminary work necess- research laboratories and universities, io ary for a closer definition of the operarional which the Community would contribute up needs of IBC. to a maximum of 50%. Brite programme The content of the programme corresponds to industry's current needs and follows on 2.1.226. From among the 559 proposals from previous programmes conducted in submitted to the Commission 4 in response the field of mineral resources, wood utiliza- to the call for proposals s issued in connection, engineering ceramics and waste recyc- tion with the Brite programme,6 it has been l!ng. Furthermore, the development or possible after an initial evaluation bv 53 decline of many traditional or newly emerg- independent experts, followed by two meeting sectors will depend on advanced materials: the Community must therefore t coM(85) 399 final. help the industries concerned (the majority 2 oJ L zto,7.8.t9gs. of which are composed of small and 3 Bull. EC 6-1985, poinr 2.1.154; OJ C 148, 18.5.1985; medium-sized businesses) ro withstand Bull. EC 3-7985, poinr 2.7.147. competition from their counterparts in the 'f Bull. EC 6-198S, point2.7.t7t. 5 oJ C 27,29.1.198\ oJ c d6, 14.3.1985; Bull. EC 3- United States and Japan, which often ben- 1985, point 2.1.148. efit from substantial public funding. 6 oJ L 83, 15.3.1985; Bull. EC 3-1985, point 2.1.141.

78 Bull. EC 7/8-1985 Research and development ings of the Management and Coordination concerning new use-s for products belonging Committee (CGC) for Industrial Tech- to the wine sector. J nologies, held in July, to select 100 proposals in respect of which the Community Environment is to provide half of the funding, accounting for some 50 million ECU in all. 2.1.230. On 1 August the Commission In view of the particularly high quality of transmitted to the Council a proposal for a the submissions, it has been necessary to Decision adopting three multiannual RBcD draw up a reserve list of proiects which, programmes in the field of the environment because of the Community's budgetary (1986-90).4 The main objectives of these restrictions, cannot be funded at the programmes are as follows: moment. This list brings to nearly 200 the o to establish a scientific basis for the total number of projects which would nor- implementation of the Community environ- mally be considered eligible for Community ment policy; financial support. . to continue long-term basic research on The 100 proposals selected involve 432 important environmental problems. (i.e. bodies from all the Member States an The three programmes cover research on average of slightly over four proposals for environmenlal protection, climatology and each project); 600/o of these bodies are major technological hazards. The total industiial firms (of which 24o/o are small funds necessary for their implementation businesses), Z1o/o are research institutes and are estimated at 105 million ECU for the 19% universities. period 7986-90, broken down as follows: . environmental protection 65 million Technical steel research ECU; . climatology 25 million ECU; 2.1.227. On 18 Jrly the Commission decided to transmit, under Article 55 of o major technological hazards 15 million the ECSC Treaty, eight pilot demonstration ECU. projects steel industry the for the to The new R&D programme on environmen- assent, and to the ECSC Council, for its tal protection is the logical follow-up to the Committee, for its opinion.l Consultatiye 198i-85 programme s and covers research work in fields such as the health and eco- On 17 the Commission also 2.1.228. July logical effects of pollutants; the assessment approved the medium-term guidelines for of chemicalsl air, water and soil pollution; tichnical steel research (1986-90),2 which noise; ecosystems; waste; and the reduction ECSC Consultative it transmitted to the technologies. It Council, infor- of pollution by clean should Committee and the for as a matter of priority provide scientific mation. support for the prevention policy conducted These guidelines are drawn up with a view by the Community in the environmental to focusing efforts on the steel industry's field. priority technological requirements and The aims of the climatology programme proiects eligible facilitating the selection of are to study the climatic effects of human for financial assistance from the Com- activity, and in particular the consequences mission.

1 Agriculture COM(85) 387 final. 2 coM(85) 392final. 3 oJ L 203, 1.8.1985. 2.1.229. On 31 July the Commission 1 coM(85) 391 final. adopted a Regulation on R&D measures 5 0J I- 101, 11.4.1981; Bull. EC 3-1981, point 2.1.160.

Bull. EC 7/8-1985 79 Enlargement and bilateral relations with Portugal and Spain

of the increase in the atmospheric CO, con- The programmes are intended ro be centration in Europe due to the burning of implemented in the following ways: fossil fuels, and the impact of climatic o shared-cost contracts with research change on our natural resources. organizations, universities and industry, The new programme on major technologi- preference being given to transnational projects cal hazards should provide support for the that can be carried out under a sihgle contract or a set of related contracts; application of the Directive of 24 July 1982 on the major-accident hazards of certain o coDCerted-action projects enabling spec- industrial activities (the 'seveso Direc- ific research to be coordinated ar Com- tive').1 Research will therefore be encour- munity level; aged in order to improve the prevention, o 'catalytic' activities (workshops and prediction and management of the major assessment studies) and training activiries accidents that can occur during the pro- (doctoral theses and exchinges of duction, storage or transport of dangeious researchers). substances (gas or dust explosions, cata- strophic fires, toxic clouds, etc.). t oJ L 230, 5.8.1982; Bull. EC 6-1982, point 2.1.92.

2. Enlargement and bilateral relations with Portugal and Spain

2.2.1. From 1 July Spain and Portugal into effect on I January 1981,1 the Com- began to be represented by observers at mission and the Portuguese Government Council meetings concerning Community signed three financing agreements on 19 activities after 7 January 1985. This is in July-for two agricultural projects (EEC addition to the consultation mechanisms contribution 2 93I 000 ECU) and a pro- provided for in the Act of Accession for the gramme of technical assistance for the intro- interim period. duction of value-added tax in Portugal (EEC Spain and Portugal were already rep- contribution 378 000 ECU). resented at the meeting of the Europein The objective of the first two projects is Council in Milan on 28 and 29 . June. structural adaptation to improve the con- As in the case of previous enlargements, the ditions of agricultural production, with a Commission is inviting observers from the view to Portugal's accession to the Com- future Member States to meetings of community. The third programme is the Com- mittees operating under its auspices. munity's contribution to a much wider effort 2.2.2. Procedures already undertaken by the Porruguese for ratifying the Government to reform its tax system, with accession instruments were completed by the introduction of VAT as a major fearure. Portugal on 12 July, by Belgium on 15 July and by Spain on 18 July. So far 82.5 million ECU has been disbursed, as €rants, out of the 100 million ECU pro- Portugal vided for in the agreement for such aid. 2.2.3. Under the agreement concerning pre-accession aid for Portugal which came I Fifteenth General Report, point 624.

80 Bull. EC 7/8-1985 3. External relations

Commercia! policy Italy-Polazd: synthetic organic dyestuffs, unwrought zinc ingots and refined zinc (e8.5%);4

Export promotion Italy-Romania: bulked man-made viscose rt.pl. fibres;5 2.3.1. A meeting of heads of the Member States' export promotion bodies took place in Rome on 25 and 25 July, chaired by Italy-Bulgaria: yarn of regenerated textile Mr Willy De Clercq. Spain and Portugal fibres;5 were also represented at the meeting, which was held the headquarters of at Italy-Souiet UnionlGerman Demouatic the Instituto Nazionale per il Commercia Republic: synthetic organic dyestuffs; 5 Estero. A number of decisions were reached concerning the respective roles of the Commission and national departments Italy-Hungary: aluminous cementl 5 in promoting Community exports; these should make for better coordination in future. A preliminary programme of Com- Italy-Poldnd: TNT;5 munity-wide measures was established for 1985, to be funded partly from the Com- munity budget. Italy-People's Republic of China: silk yarn not put up for retail sale;6

lmplementing the common Denmark-Poland: unworked drawn or commercial policy blown glass (including flashed glass) in rectangles. 5

Commercial policy nstru ments .i Trade protection Easing of restrictive measures

2.3.3. The trade protection measures 2.3.2. Under the Council Regulation of taken in July and August are shown in 14 November 1983 on import arrange- Table 10. ments for products originating in State- trading countries, not liberalized at Com- munity level,l the Commission opened the following quotas:

Italy-Alb ania : textlle products; 2

United Kingdom-Albania: textile prod- t oJ L 346,8.12.1983. ucts; r 2 oJ c 178, 16.7.199s. 3 oJ c 194,2.9.198s. 4 oJ c t99,z.g.t9gs. Italy-Czechoslouakia: synthetic organic r oJ c 201,9.8.r985. a dyestuffs; 6 oJ c 205, 14.8.1985.

Bull. EC 7/8-1985 81 Commercial policy

Table 70 - Trade protection ftreasures

Commission

Ant i - dump ing p r o c e e d ings Ant i- dump in g p r o c e e di n gs Definitiue anti-dumping duty on imports Partial acceptance of application for refund of provisional anti- of: dumping duties collected on certain imporrs of: . certain hydraulic excavators originat- . hardboard originating in Sweden ing in Japan oI L2i7,4.9.1985 oJ L 175,6.7.1985 (provisional duty: OJ L 241,31.8.1983; OJ L 361,24.12.1983) (provisional duty: OJ L 58, 8.3.1985) Prouisional anti-dumping duty on imporrs of: o certain kinds polystyrene sheet of . basic chromium sulphate originating in Yugoslavia originating in Spain oJ L 205, 3.8.1985 oJ L 198, 30.7.1985 (notice of initiation: OJ C 276, 16.10.1984) (provisional duty: OJ L 97, 4.4.1985) o roller chains for cycles originating in the Soviet Union or . glycine originating in Japan the People's Republic of China oJ L 218, 15.8.1985 oJ L Zt7, i4.8.1985 (provisional duty: OJ L 107,19.4.7985) (Notice of initiation: OJ C 235, 5.9.1984) Notice of extension of tbe anti-durnping proceedizg concerning imports into Greece of: o c€rtain categories of glass originating in Turkey, Yugosla- via, Bulgaria, Hungary or Czechoslovakia oJ c 200, 8.8.1985 (Notice of initiation: OJ C 55, 14.3.1985) Notice of initiation of an anti-dumping proceedizg concerning imports of: o photocopying apparatus originating in Japan oJ c 194, 2.8.1985 Suspension of definitiue anti-dumping duty on imporrs of: o certain iron or steel coils originating in Brazil oJ L 184, 17.7.1985 (definitive anti-dumping duty: OJ L 210,2.8.1983) o certain hot-rolled sheets and plates, of iron or sreel, originating in Brazil oJ L 184, 17.7.1985 (definitive anti-dumping duty: OJ L 131, 20.5.1985) o certain cold-rolled sheets and plates, of iron or steel, originating in Brazil oJ L 184, 17.7.1985 (definitive anti-dumping duty: OJ L 312,9.11.1982) Cancellation of notice of initiation of an anti-dumping duty concerning imports of: I .ba! bearings and tapered roller bearings originating in Poland oJ c 183, 23.7.1985 Notice of tbe expiry of certain anti-dumping duties, countervailing duties and undertakings oJ c 209, 20.8.1985

82 Bull. EC 7/8-1985 Commercial policy

Export credits eralization of trade in textiles on the basis of a better balance of rights and obligations between contracting parties. Nevertheless, Credits denominated in ECUs given the continuing difficulties faced by the European clothing and textiles industry, 2.3.4. At their 25th meeting on 3 July participants in the Arrangement on guidelines the extension of an appropriate multilateral for officially supported export credits I a- framework was considered necessary. How- greed to the Community's proposal to ever, taking into account developments in establish a commercial interest reference the industry, the Community was ready to rate (CIRR) for the ECU. Consequently, adapt the textile trade regime to present greater officially supported export credits denomi- circumstances and to show flexi- the multilateral nated in ECUs can now be offered at a rate bility in the application of provisions be agreed pro- corresponding to the yield on medium-term and bilateral to ECU bonds as published by the Luxem- vided that a parallel effort was made by the participating inter- bourg stock exchange, plus a margin of other countries in national textile trade towards the opening 0.80%. of their markets, according to the level of their development and their economic capa- Concessional export financing bilities. 2.3.5. Participants also agreed, subiect to MFA countries new definition of tied confirmation, on a 2.3.7. Consultations took place between 2 had been proposed by aid credits which the Community and India in Brussels on 25 the Community. This new definition covers July, and a number of issues relating to all types of tied aid financing transaction the management of the bilateral agreement and thus represents an important step were examined. towards more transparency and discipline in the field of concessional export financing. 2.3.8. Consultations between the Com- munity and Bangladesh were concluded on 29 Jdy, when agreement was reached on Sectoral commercaal the introduction of quantitative limits on policy measures exports of shirts from Bangladesh to France and the United Kingdom. The limits in question are for 1985 and 1985. Textiles M e dit e rr ane an p r efe rent i al c ountr i e s Agreements and arrangements 2.3.9. The Community also held consul- with non-member countries tations with Turkey in Izmir from 2 to 4 July to discuss the possibility of reaching Renewal of the Mubifibre Arrangement agreement on a comprehensive administrative cooperation arrangement. 2.3.6. The GATT Textiles Committee met in Geneva on 23 July to begin considering Electronic goods whether the Multifibre Arrangement should be extended, modified or discontinued after Tariff changes its expiry on 31 1986. The Com- July 2.3.10. On 25 July the Council authorized munity's representative made a statement the Commission to notify GATT of the presenting the broad outline of the Com- munity position on the future of the MFA.3 I He confirmed that in the context of the Twelfth General Report, point 452; Bull. EC 2-1978, point 2.1.35; Bull. EC 4-1978, point 2.2.46;Bull. EC 4-1985, preparation for a new round of multilateral point 2.2.5; Bull. EC 5-1985, point 2.2.13. negotiations, the Community remained 2 Bull. EC 4-1985, points 2.2.5 and 2.2.49. attached to the objective of progressive lib- 3 Bull. EC 6-1985, point 2.3.5.

Bull. EC 7/8-1985 Relations with industrialized countries

Community's intention to renegotiate its out of the video recorder business, the concession on video recorders and open viability of its production of such systems consultations under Article XXVIII with would suffer. Raising the duty on video Contracting Parties claiming negotiating recorders to 14o/o means that tariffs will be rights in respect of the concession. the same on all components of these systems, an important point, as cost compara- The Commission's proposal for adjustment bility is essential to manufacturers. of the tariffs on electronic goods, I now approved by the Council, comprises the fol- The cut in the tariff on semiconductors lowing measures: will bring it into line with duties on other electronic parts and subassemblies, balanc- . an increase from 8% to 14o/o in the duty ing the interests of the information tech- on video recorders, from 1 larutary 7986; nology industry, which uses semiconductors . a reduction from l7o/o to 14o/o in the as an input, against those of Community duty on semiconductors; producers of semiconductors. The Com- o cutS in duties on consumer electronics; munity regards the semiconductor industry these no longer require special tariff protec- as a key strategic sector which needs to tion because of shifts in production location be developed, but is currently experiencing patterns or limited growth potential. problems which make continued protection a necessity. Tariff reductions will be offered to Con- tracting Parties with a substantial interest, to compensate for the increase in duty on video recorders. Japan is the country mainly Relations with industrialized concerned. countries The reasons for the increase in the duty on video recorders are essentially as follows: Multilateral aspects . European manufacturers of video recorders, having embarked on radical Quadripartite meeting restructuring of their activities, are still in a vulnerable position and need protection 2.3.11. Mr 'Willy De Clercq, Member of against Japan and new producers such as the Commission with special responsibility South Korea. The l4o/o duty will largely for external relations and commercial policy, took part in a quadripartite meeting offset the lower production costs of Japan in and other producing countries, while allow- Sault Sainte Marie, Ontario, Canada, with ing enough fair competition to stimulate the Trade Ministers of the United States, greater efficiency on the part of the Com- Canada and Japan. munity industry. Their discussions were devoted largely to . The higher tariff will replace the tem- preparation of a new round of multilateral porary protection extended to the industry trade negotiations in GATT, the partici- until the end of this year by the three- pants agreeing to work towards a consensus year voluntary export restraint agreement by this autumn as a basis for setting up a entero.d into by Japan at the beginning of committee to prepare the new round in 1983.t detail. Tariff protection is more transparent and As usual, a number of bilateral meetings more acceptable to GATT than this sort of were also held at which Mr De Clercq raised 'grey area' protection. a number of questions of current concern the (access . Along with television sets and tuners, to Community for Community video recorders will increasingly form one of the components of integrated video sys- t Bull. EC 6-1985, point 2.3.8. tems. If the European industry was driven 2 Bull. EC 2-1983, point 1.2.4.

84 Bull. EC 7/8-1985 Relations with industrialized countries footwear to US and Canadian markets and not an absolute figure but a percentage of for Community products generally to the the American market (10%) which currently 700 tonnes, to be divided Japanese market). corresponds to257 as follows: United States Germany 112870 tonnes; Italy 83 750 tonnes; Complementary Arrangement on steel Greece 19 585 tonnes; products United Kingdom 14 170 tonnes; France 13 558 tonnes; 2.3.12. On the basis of the mandate it Belgium 12 885 tonnes; received from the Council at the beginning Netherlands 515 tonnes; of June,l the Commission pursue4 and Luxembourg 267 tonnes. conipleted its negotiations with the United States, at the end of which a Complemen- Pasta products tary Arrangement was initialled instituting a , iytt.tn Jf voluntary restraint of -Com- 2.3.14. With the settlement in July of -unity exports in li categories of steel dispute concerning pasta products between produtts which hitherto were only covered the Community and the United States, the bv a consultation clause with the notable possibility of another open trade confron- exception of semifinished- products for tatlon was avertecl. period 1 August to 31 December- 1985. the The American authorities had decided at The-export ceiling for all 11 categories,.is the end of on a substantial increase in 917 short tonl 548 tonnes). The June lg7 079 the duties levied on imports of pasta prod- the outcome of these Council approved ucts from the Community. This measure on 6 August.2 negotiatio;i was taken in retaliation against the prefer- The US authorities had been pressing the ential treatment which the Community Community since February to limit its accords citrus fruit from certain Mediter- exports, which-were considered by the US ranean countries, which a GATT panel had to be too high. r adjudged to entail iniury to American. notably Californian exporters of press statement Mr Willy De Clercq .*poit.tt, In a oringes. The Council had decidfd, in reac- the outcome of the negotiations: welcomed tion to this measure, to raise the customs on the basis of Community export figures dutv levied on lemons and walnuts in shell of the year, 1985 for the first seven months e*pbrted from the United States to the would be up 10-12o/o on 7984. levels Community. that these negotiations He added, however, following contacts between Mr to other, much more In mid-July, were only the prelude De Clercq and Mr Clayton Yeutter, the ones be held this autumn. He difficult io new United States Trade Representative, was aware that the United States would a compromise was worked out precluding the 1982 insist that the Community renew by the two sides of the was due to expire implementation Steel Arrangement, which above retaliatory measures. Under this in December.4

Steel pipes and tubes I Bull. EC 6-1985, point 2.3.9. 2 All thc EEC and ECSC texts concluding the Complemen- The Council also approved on 5 tary Arrangement and implementing the new export restric- 2.3.13. in OJ L 215' 12.8.1985. State tions werc published August the breakdown by Member of 3 Bull. EC 2-1985, point 2.2.12; Bull' EC 6-1985, point the"Community export ieilings for certain 2.3.9. steel pipes and tubes. s 4 0J L 307,1.11.1982 Bull. EC 7/8-1982, point 1.1.1 at seq.' The quota agreed with the United States for 5 oJ L 222,20.8.1985;Bull. EC 1-1985, points 2.2.13 and pipes^OCTG (oil country tubular goods) is 2.2.14.

Bull. EC 7/8-1985 85 Relations with industrialized countries

compromise the Community undertook to room, attended by Mr Narjes, Lord Cock- reduce export refunds for pasta products field, Mr Chiysson and Mr De Clercq. exported to the United States and Canada. The talks, which wer'e conducted On 19 July the Council adopted by a quali- in an fied majority the Regulation enabling the excellent atmosphere, concentrated on Commission to vary export refunds for world economic problems and bilateral macaroni, spaghetti and products relations. The Commission drew the Prime similar - according to their destination. I Minister's attention to the serious monetary and financial problems being faced nor jusr by the industrialized countiies more 2.3.15. On 11 July Parliament adopted a bur, resolution concerning the above dlspute especially, by the developing countries; (+ point 2.5.74).2 these problems could lead to protectionist measures and warranted detailed discussion at the next summit of Western countries in Footwear Tokyo in May 1986.

2.3.15. Following the United Srares norifi- The President and Members of the Com- cation to GATT of the remedy proposals mission stressed the special role to be played the US International Trade Commission by Japan: had made in the context of the safeguard . in the area of trade, in redressing both clause investigation on footwear, the Com- the bilateral trade imbalance and Japan's munity held consultations with the US overall current payments imbalance by under Article XIX of the General Agree- _ genuinely opening up the Japanese market ment on 11 July. The remedy measures pro- and, in particular, giving a verifiable under- posed consist in the introduction of import taking to increase the country's imports of qlotas for all footwear of whatever oiigin manufactures and processed agritultural of a value of more than USD 2.50. proclucts; The Community drew amention to the . in the financial area, by liberalizing the USA's undertaking at recent Western econ- capital market in such a way as to enable omic summits reaffirmed in OECD and European banks to develop their operations GATT to -halt protectionist pressures, in Japan; and pointed- particular out in thai . by improving the quality of its invest- o imports are not the cause of the difficult- ment in Europe. ies the US industry is faced and the with The Commission also expressed its desire Community cannot therefore accept appli- for closer cooperation telecommuni- cability of Article in XIX; cations and research (particularly in nuclear o- the Community is not responsible for fusion) and expressedinrerest in participat- ^the the increase in imports, so action against ing in the cooperation plannei for imports from the Community would not be Pacific area. justified. Mr Nakasone shared the Commission's On 28 August President Reagan decided not views on the importance of monetary prob- to impose restrictions on footwear imports. lems and North-South relations, and-indicated his interest in scientific cooperation both on a bilateral basis and ar the Europe- Japan Pacific level. He stressed the need to bolsler the free trade system and the steps being 2.3.17. The Japanese Prime Minister, Mr taken by Japan to open up its market, and Yasuhiro Nakasone, visited the Com- mission on 19 July. Following a private meeting-with Mr Delors, a working meeting t oJ L 188,20.7.199s. was held in the Commission conference 2 oJ c 229,9.9.198s.

86 Bull. EC 7/8-1985 Relations with other countries and regions looked forward to the start of a new round took place in Lugano on 4 July, with Mr of GATT negotiations. Carlo Jagmetti, Head of the Swiss Mission to the European Communities, as chairman. Mr Delors proposed a meeting between the Commission and the relevant Japanese min- The topics discussed included international isters in mid-November on trade relations, economic questions, the new round of financial problems (opening up of the finan- GATT multilateral trade negotiations, the cial marktts, role of the yen) and scientific functioning of the agreements, EEC-Swiss and technological cooperation. Mr Nak- cooperation outside the agreements and asone agreed to such a meeting being held, implementation of the Luxembourg Joint so that progress to date in these fields could Declaration. J be reviewed. Both sides reported that the agreements 2.3.18. On 30 July the Japanese authori- were functioning well and expressed their ties announced the broad lines of an action desire to pursue and consolidate their coop- programme for the coming three years eration in areas of mutual interest. designed to improve access to the Japanese market in six areas tariffs; import quo- 2.3.21. Following negotiations with tas; standards, certification- and import pro- Switzerland on the basis of directives from cedures; government procurement; financial the Council, the Commission asked the markets; services and import promotion. Council to conclude an agreement in the The Prime Minister took the opportunity form of an exchange of letters on trade to call once more for the liberalization of arrangements for soups, sauces and condi- Japan's markets. ments. Mr De Clercq welcomed this move by the Japanese authorities. The Community will mike a careful and detailed appraisal of the measures announced, and on this basis the Relations with other Commission will report to the Council as countries and regions requested in the statiment of 19 June.l

European Free Trade Association 2 Mediterranean countries 2.3.19. The eighth report on cooperation with the EFTA countries was approved by Overall Mediterranean policy the Council on 22 July. This report high- implementing the declar- lights work on 2.3.22. On 18 July the Commission pro- ations adopted in Luxembourg on 9 April posed to the Council that the trade pro- 79843 and Vienna on 8 May lasta with a visions of the cooperation or association view to closer Community-EFTA cooper- agreements linking the Community with the ation in various economic spheres. countries of the southern Mediterranean be The Council noted with satisfaction the par- adapted to ensure that the traditional ticipation of certain EFTA countries in the export trade of the iountries concerned Eureka project, which will contribute to the would be maintained after enlargement strengthening of technological cooperation (--+ point 1.3.1. et seq.). in Europe (--+ point 2.1.210).

I Bull. EC 6-1985, point 2.3.14. Switzerland 2 For relations with the EFTA countries in the matter of research, see points 2.7.275 to2.1.217. 2.3.20. Meetings of the EEC-Switzerland 3 Bull. EC 4-1984, point 1.2.1 et seq. and ECSC-Switzerland Joint Committees a Bull. EC 5-1985, point 7.6.1 et seq.

Bull. EC 7/8-1985 Relations with other countries and regions

Cyprus ucts, and provide for certain improvements in the agriculture sector when the Com- 2.3.23. On 77 July the Commission rec- munity market situation permits. ommended to the Council that negotiations be opened with Cyprus on arrangements 2.3.25. On 25 July the Council formally for the second stage of the EEC-Cyprus adopted the Commission's negotiating Association Agreement. mandate for the second EEC-Yugoslavii financial cooperation protocol.2 In conformity with the Council statement of 30 March concerning Cyprus,l the proposals make detailed provision for the grad- San Marino ual establishment of a customs union between the Community and Cyprus, and 2.3.27. On 5 August the Commission sent also deal with a number of problems which the Council a communication on nego- enlargement is likely to pose for certain tiations with San Marino for an agreement to traditional Cypriot exports to the Com- regulate a number of legal and economic munlty. issues concerning agriculture, trade, customs, transport and social security. Malta San Marino is not part of Italy, and its foreign relations are not the responsibility 2.3.24. On 77 July the Commission also of a Member State. As far as the Com- recommended to the Council that nego- munity is concerned, therefore, it is a non- tiations be opened for a supplementary pro- member country. Nevertheless, it is within tocol to the EEC-Malta Association Agree- the customs territory of the Community. ment. proposals Its envisage the extension San Marino established diplomatic relations further years provisions for a five of the with the Community in May 1983, and currently governing the first stage of the shortly afterwards expressed a desire to Agreement. negotiate an agreement. J

Yugoslavia Southern and eastern Mediterranean countries 2.3.25. On 8 August the Commission sent the Council a proposal for the negoriation 2.3.28. At irs 22 and 23 July meeting the of new trade arrangements with Yugoslavia, Council adopted common guidelines for the to be implemented in conjunction with the implementation of the new Mediterranean adaptation of the Agreement consequent financial protocols.4 upon the accession of Portugal and Spain. The previous trade arrangements expired They provide essentially for an annual Council policy on 30 June and have accordingly been pro- debate, approval of projects visionally extended. in accordance with the triditional management committee procedure and assessment This proposal rounds off the ser of measures of completed projects. adopted on 15 July to offset the effects of enlargement on the Mediterranean The Financial Regulation will apply to the countries. The same general measures will new Mediterranean financial protocols due thus also apply to Yugoslavia. to take the place of the current protocols and will enter into force nor later than I The new trade arrangements will run for a January 7987. period of five years from the date of their entry into force. Quite apart from the need t to take account of enlargement, they offer Bull. EC 3-1985, point 2.2.20. 2 Bull. EC 12-1984, point 2.2.26. more generous treatment in terms of cus- 3 Bull. EC7/8-1984, point 2.2.22. toms duties and ceilings for industrial prod- a Bull. EC 6-1985, point 2.3.27.

88 Bull. EC 7/8-1985 Relations with other countries and regions

Countries of the Gulf 2.3.31. Visiting Singapore from 13 to 15 and the Arabian Peninsula July, Mr Cheysson had further discussions on international economic affairs and new forms of EEC-Asean cooperation. These Gulf Cooperation Council subjects will again be on the agenda for the meeting of Community and Asean Minis- 2.3.29. At the Council meeting on22 and ters for Economic Affairs to be held in 23 July Mr Cheysson reported on the state Bangkok on 17 and 18 October. of the Commission's exploratory talks with the Gulf Cooperation Council. 2.3.32. In July the Commission proposed to the Council r that a major Community The Council confirmed the economic and exhibition be held in the Asean region on political importance it attached to the devel- the theme 'The City in the year 2000', the opment of relations between the two aim being to show the Asean countries a regions. It also agreed to look again at the representative sample of what the Com- situaton at a later date with a view to a munity has to offer in various fields. ministerial meeting between the Com- munity and the Gulf Cooperation Council. L October marks the end of the first five- year stage of the EEC-Asean Cooperation Agreement, and while trade has flourished, investment in the region by European indus- Asia try has been disappointing.

Association of South-East Pakistan Asian Nations 2.3.33. The new EEC-Pakistan commercial, economic and development cooper- 2.3.30. Mr Cheysson and the President of 4 the Council, Mr Robert Goebbels, rep- ation agreement intialled in January was resented the Community at the annual signed in Brussels on 23 July. meeting I of Asean Foreign Ministers with The open-ended agreement, concluded for their opposite numbers from the 'dialogue' an initial period of five years, sets out coop- countries,2 held in Kuala Lumpur from 11 eration objectives and ways of giving them to 13 July. effect. Special emphasis is placed on cooperation between firms. At both the plenary session and the bilateral EEC-Asean meeting the main subjects of The trade clauses in the new agreement are discussion were Kampuchea, in particular similar to, though more detailed than, those Asean's proposal for 'proximity' talks, and in the 1.97 6 Commercial Cooperation Agree- international economic questions. Inter- ment. In addition, the parties undertake to national cooperation to combat drug abuse hold consultations on bilateral and inter- and terrorism were also discussed. The national trade or economic problems. Community delegation participated as an Economic cooperation extended, observer in discussions between Asean and is to be particular emphasis industrial its Pacific dialogue partners on economic with on cooperation technology transfer, the trends and developments in the Asia-Pacific and region and cooperation in 'human opening-up of new sources of supply and resources' development.

bilateral meeting Cheysson I Bull. EC7/8-1984, point 2.2.?3. At the Mr 2 described the satisfactory state of EEC- Australia, Canada, the Community, Japan, New Zea- land and the United States. stressed need Asean trade relations and the 3 CoM(85) 341 frnal. for new forms of cooperation to strengthen 4 Bull. EC 1-1985, point 2.2.L3; see also Bull. EC 4-1985, long-term economic links. point 2.2.22.

Bull. EC 7/8-1985 Relations with other countries and regions markets, and scientific, technical and energy After giving an account of Argentina's pre- cooperation; cooperation is also envisaged sent difficulties, Mr Reca sought the Com- in other areas of common interest such as munity's support on farm exports and a agriculture, fisheries, forestry, transport number of other issues. and communications and environmental conservation. The Commission was sympathetic to Mr Reca's requests, though pointing out that The development section of the agreement the export sectors of interest to Argentina sets out to improve the effectiveness of the were sensitive for the Community. 'While it Community's aid to Pakistan and coordi- welcomed the possibility of improving nate it with bilateral aid given by the Mem- trade, it indicated that Argentina should do ber States. more to diversify its exports.

2.3.34. On 11 July Parliament adopted a Andean Pact resolution on trade with Taiwan and another on the prospects for trade and econ- 2.3.37. From 25 to 31 July Mr Cheysson omic relations between the Community and visited three Andean Pact countries- Col- Hong Kong (--+ point 2.5.14).1 ombia, Peru and Venezuela. His visit to Colombia was at the invitation of the Government, while in Peru he stood in for Latin America the President of the Commission at the inauguration of the country's new Presi- dent, Mr Alin Garcia. In Venezuela, Mr Central America Cheysson had talks with the President and other members of the Government and met 2.3.35. On22 July the Council authorized representatives of SELA, the Latin Amer- the Commission to negotiate a framework ican Economic System. economic cooperation agreement between the Community and the Central American His discussions with the presidents of all countries of El Salvador, Honduras, Guat- three countries and with the Junta of the emala, Nicaragua, Costa Rica and Panama Andean Pact centred on the Community's in accordance with its directives.2 relations with the region, the Contadora process and the indebtedness of Latin Amer- The idea of negotiations dates from the ican countries. San Jos6 ministerial meeting in September 1984,3 attended by representatives of the Ten, Spain and Portugal, Central America, State-trad i ng cou ntries and the Contadora countries (Colombia, Venezuela, Panama and Mexico). Council for Mutual Economic The agreement will enable the Community Assistance to contribute to the development and stability of Central America and provide practi- 2.3.38. On 30 July Mr De Clercq received cal support for the process of regional inte- the Romanian Ambassador to Belgium, to gration taking place within the Central whom he handed a letter for Mr Vyacheslav American common market. Sychov, Secretary of CMEA. A letter from Mr Sychov had been handed to Mr Delors by the Polish Ambassador on 14 June,4 Argentina containing a proposal that relations be 2.3.36. Mr Lucio Reca, Argentina's Minis- 1 ter for Agriculture, visited the Commission oJ c 229,9.9.198s. 2 Bull. EC 5-1985, point2.2.37. on 22 July for talks with Mr Cheysson and r Bull. EC 9-1984, point 1.3.1. et seq. Mr Andriessen. 4 Bull. EC 6-1985, points 2.3.37 and 2.3.38.

90 Bull. EC 7/8-1985 Development established between the Community and In the case of industrial products other than CMEA by adoption at a high-level meeting textiles, the proposed measures comprise of an appropriate joint statement. the following:. an updating of the preferential amounts; a general imptovement of In its reply, the Commission confirmed the - preferences by the withdrawal of certain Community's willingness to resume the dia- products from the list of 'sensirive' prod- logue with CMEA which was broken off in ucts, and a sizeable reduction in the number 1981, and asked for CMEA's views on rhe of individual country quotas; greater content of such a statement. differ- entiation by excluding a limited number of the Community believes thar whatever the products from preferences in the case of shape of CMEA-Communiry relations, they countries which have reached what can be must not affect its present or future regarded, on the basis of objective crireria, relations with the individual members ofthe as a significant level of competitiveness for organization, and has asked for CMEA's those products (Hong Kong, South Korea, views on the matter. Brazil, Singapore). In the light of CMEA's reactons it will In the case of MFA textile products, the consider the future direction of the talks. Commission is proposing a further increase in the ceiling equivalent ro rhar agreed by the Council for 1984 and 1985. Colta Rica China and Argentina are included in the scheme. The offer for non-MFA textiles is main- 2.3.39. On 11 Parliament endorsed 1 July tained with the same amounts, but plus an the Commission proposal December of upward adjustment to take accounf of the 19842 on the conclusion of a Trade and accession of Portugal and Spain. Economic Cooperation Agreement with the People's Republic of China. With regard to agricultural products, a few new products (offal of bovine animals and horses, trout, asparagus, mandarins, dried pears) of particular interesr to Latin Amer- Development ica have been added ro rhe list of products enjoying-a preferential margin. In the case of -products subject ro quoras or ceilings Generalized tariff preferences (tobacco, pineapple, soluble coffee), tEe Commission is considering adapting rhe levels to take account of enlargement. Scheme proposed for 1986 Further measures are to be taken as regards 2.3.40. On 14 August the Commission the management of the scheme in order to sent to the Council its proposals for the make it operate more reliably and trans- generalized tariff preferences scheme for parently. 7986.r These proposals, which fall within the gen- GSP information seminars eral guidelines for the GSP for the peiiod 2.3.41. In the Commission held 1986-90 presented to the Council in May a July two- day information seminars and take account of the accession of Poriu- on the Com- munity's generalized preferences gal and Spain to the Community, represent scheme in Argentina and Uruguay. an improvement of some 10% on the 1985 offer. The proposed total preferences for 1985 amount to 19 000 million ECU. The I oJ c229,9.9.r98s. Community is thus pursuing its open-door , Bull. EC 12-1984, point 2.2.35. trade policy with respect to the dCveloping J COM(85) 425 final. countries' exports. 4 Bull. EC 5-1985, point 2.2.42.

Bull. EC 7/8-1985 9t Development

These seminars, which were held in C6r- A highly intransigent attitude was adopted doba, Buenos Aires and Montevideo, arou- by the Soviet delegation, which, in the sed considerable interest and were very well absence of the United States, holds, together attended with some 75 participants in with its State-trading partners, 23o/o of. the C6rdoba,- 220 in Buenos Aires and 80 in consumer countries'votes under the present Montevideo, drawn mostly from the busi- Agreement. ness community but also including civil ser- The Council set up a working party to vants concerned with trade policy, trade examine the concept of special stock promotion and the issuing of certificates of rotations, initially presented by the Com- ongrn. munity, and the question of the allocation All aspects of the Community's current gen- of the stock supplies among the consumer eralized preferences scheme were presented countries, initially presented by the USSR. and examined in detail at each of the seminars, which also provided an opportunity, Olive oil on the basis of past experience, for looking into possibilities for improving utilization 2.3.43. At its meeting in April the Inter- in the future. national Olive Oil Council (IOOC) decided to extend the 1979 International Olive Oil Agreement until3l December 1985. Commodities and world It also decided to request Unctad to arrange agreements a conference in Geneva in June 7986, for the negotiation of a new Agreement which could enter into force on 1 1987. Cocoa January In order to make thorough preparations for 2.3.42. The International Cocoa this conference, the IOOC set up a drafting Council I decided at the regular session held committee, which will hold its first meeting in London from 8 to 19 July to extend the in Madrid on 30 September. 1980 International Cocoa Agreement for a On 19 July 2 the Commission asked the further year, on the same terms as agreed Council for authority to participate, with in 1984, i.e. with continued suspension July the assistance of the relevant Council com- of purchases by the buffer stock. mittee, in the work of the IOOC and poss- The Council was unable to revise the inter- ibly in the June 1985 discussions within vention price bracket; on the basis of its Unctad, in order to negotiate a new Inter- examination, however, it concluded that the national Olive Oil Agreement to which the 1980 Agreement had not succeeded in Community can subscribe. attaining its objectives, largely because of the disturbed state of the foreign exchange markets, and the lack of provisions in the Campaign against hunger Agreement enabling the price bracket to be in the world adjusted in line with market realities. Special programme The fact that this conclusion was reached by all the parties to the Agreement may 2.3.44. On 6 August the Commission pre- facilitate the ongoing negotiation of a sented to the Council a proposal3 for a fourth International Agreement and meant Regulation extending from 31 December that on 19 July the President of the Cocoa Conference, Mr Montes (Guatemala) was pro- able to announce that he intended to I Bull. EC 7/8-1984, points 2.2.43 and 2.2.44. pose the resumption of the Conference in 2 COM(85) 378 final. February 1986. 3 OJ C 219, 29.8.1985; COM(85) 442 final.

92 Bull. EC 7/8-1985 Development

7984 to 31 December 7986 the period of Food aid validity of the Regulation of 11 July 1983 implementing a special programme to com- 2.i.45. With the endorsement of the Food bat hunger in the world. I Aid Committee, on 9 July the Commission decided on the food aid operations set out This extension is necessary so that optimum in Table 11. use can be made of the funds under the 1985 budget. 1 OJ L 196,20.7.1983; Bull. EC 7/8-1983,point2.2.65.

Table 7l - Food aid operations lonnes

Ccreals Mrlk powder Butterorl Vegetable orl Sugar

Sierra Leone cif 5 000 Ethiopia fd 500 300 300 Somalia cif 18 000 1 000 300 Madagascar fob 15 000 200 Comoros cif I 000 100 200 Kenya fob 11 000 Lesotho fd 3 000 Lebanon fob 8 000 500 Egypr fob 120 000 1 500 2 000 4 000 India cif 15 000 2 000 Sri Lanka cif 40 000 fd: free at destination.

2.3.46. In July/August the Commission 10 000 t of cereals of UNHCR for distri- decided on the following emergency aid bution to refugees from Honduras; operations: 2200 t of cereals for UNHCR for distri- Ethiopia: 1400 t of milk powder 500 t bution to refugees in Somalia; of butteroil - 1 800 t of cereals for Trocaire/CIDSE Chad: 500 t of milk powder (NGO) for distribution in Kampuchea; Mauritania: 550 t of milk powder - 500 t 2 000 t of cereals and 300 t of sugar for of butteroil UNRWA for Palestinian refugees in Somalia: 500 t of milk powder Lebanon; Sudan: 250 t of milk powder 250 000 ECU for the purchase of biscuits with a high energy value and for the distri- Honduras: 50 t of milk powder bution of these biscuits in the refugee camps Angola: 1 200 t of cereals-500 t of legumes in Ethiopia, Somalia and Sudan by Licross and UNHCR. - 200 t of milk powder. In this last case the aid is intended mainly for the victims of the drought in the province of Namibe. It will be distributed as 2.3.48. In July Parliament adopted two part of a food for work programme. resolutions on emergency measures to be taken by the Community and its Member 2.3.47. The following allocations were States to assist African countries threatened also decided on: by famine and on the failure of the Euro-

Bull. EC 7/8-1985 Development pean Council in Milan to decide on action LLDCs not party to the Lom6 io help these countries (--+ point 2.5.14). I Convention

It also passed a resolution on the instituting 2.3.51. The September 1981 Paris Confer- of a week of solidarity with Third World ence on the leasi-developed countries 3 cal- children and young people (-r point led on developed countries 'to study ways 2.5.14).1 and means of helping the least-developed countries to offset the damaging effect of injury caused by loss of foreign exchange Emergency aid earnings arising from fluctuations in the latter's exports of primary commodities' 2.3.49. In view of the operation being con- and to report to Unctad VL ducted by the NGO 'M6decins du monde' to save refugees on the China Sea, the Com- The Community responded by expressing mission decided on 19 July to grant the its willingness 'to examine in a constructive organization emergency aid of up to 100 000 spirit the most appropriate means of meet- ECU. This will help to cover some of the ing this request, particularly by studying costs of hiring and running the ship used what arrangements could be made and how for the operation. to extend to the least-developed countries not party to the Lom6 II Convention dispo- sitions similar or equivalent to those of Stabex Stabex'. The coordination meetings which took Transfers place before and during Unctad VI in June 19834 failed to produce a Community pos- 2.3.50. On 31 Jrly the Commission ition. decided, under the export earnings stabili- August the Commission sent a com- zation system (Stabex), on a second instal- On 5 munication s which to ment of transfers, to be made to seven ACP to the Council is serve as a basis for working out a common countries for the 1984 application year.2 stance in time for the Unctad meeting in The transfers cover the countries and prod- Geneva from 30 September to 11 October. ucts set out in Table 12. The United Nations list of least-developed countries comprises 36 countries. Twenty- Table 12 Transfers under Stabex seven of these are ACP countries and are - (second instalment 1984) thus covered by Stabex under the Lom6 Convention. The extended Stabex would take in another nine countries: Afghanistan, Bangladesh, Bhutan, Haiti, Maldives, Nepal, Laos, the Yemen Arab Republic and Grenada Fresh bananas 238 623 the People's Democratic Republic of beans 5i7 027 Grenada Cocoa Yemen. Benin Oil-cake 510 647 Burundi Cotton, not carded The Commission points out that if Stabex or combed 586 670 is extended to these countries, it should Comoros Vanilla 3 553 153 include the 48 products already covered Sierra Leone Coffee 5192233 under Lom6 III plus jute and jute-based Tanzania Cashew nuts and kernels 2744 648 t oJ c 229,9.9.198s. Togo Coffee 7 984 610 2 3 Bull. EC 6-1985, point 2.3.54. 4 Bull. EC 9-1981, point 2.2.10. 2t 347 6tt Bull. EC 6-1983, point2.2.47. r coM(85) 443 final.

94 Bull. EC 7/8-1985 Development products. Figures are also given for the . indicate their willingness to join with financial implications of extending the other importers interested by such an scheme. approach in working out appropriate administrative cooperation arrangements The Commission proposes that the Com- for the coordination and implementation of munity and its Member States take the such parallel schemes. opportunity offered by the Geneva meeting to: . announce their intention of unilaterally Financial and technical establishing a system of the Stabex type cooperation under the third Lom6 Convention for the benefit of the least-developed countries which are not already covered, and to that ACP States and OCT end of contacting the countries concerned to reach agreement with them on the practical 2.3.52. In July the Commission decided details of the scheme's implementation; to allocate fourth and fifth EDF resources o appeal to other commodity-importing totalling 45 100 000 ECU to finance projects countries to participate in the initiative by and programmes which it administers in the setting up parallel schemes; and following sectors:

Table 13 milhon ECU

Proicct Grants Loans

Rural production Bahamas Livestock production 0.2 Somalia Livestock production 0.2 Somalia Hydro-agricultural schemes 7.5 Caribbean region Plantations 0.9 Caribbean region Cocoa 2.5 Chad Livestock production 5.3

Economic infrastructure Gambia Roads and bridges 2.7 Equatorial Guinea Roads and bridges 0.8 Tanzania Roads and bridges 4.1 Pacific region Ports and waterways 3.2

Industrialization Rwanda Sysmin 2.8 Botswana Mining and quarrying 1.3 Sierra Leone Mining and quarrying 1.0 Wallis and Futuna Energy proiects 1.2 French Polynesia Agri-food industry 0.7

Social deuelopment Equatorial Guinea Training and study awards 1.1 Lesotho Health 0.6 St Christopher and Nevis Education infrastructure 0.8 Burkina Faso Village water engineering 5.0 Mauritania Vocational training 2.5 Sao Tome Urban sanitation 0.5

Bull. EC 7/8-1985 95 Development

2.3.53. In July and August the Community by Italy, which must normally be for sup- aid programming process was concluded plies (in particular eqiripment). of Italian for 11 ACP countries by the signing of ongln. indicative programmes relating to financial and technical cooperation. The newly signed agreement is the first of its kind, and is aimed at improving coordi- The countries in question were: Burundi, nation and planning, and consequently th( Central African Republic, Dominica, Gren- effectiveness of the aid. ada, Malawi, Mali, Mauritius, Saint Lucia, Saint Vincent and the Grenadines, Senegal and Tanzania. N o n - associated develo pi n g countries The signing of the indicative programme took place at the end of the programming 2.3.55. The Commission decided on 8 mission undertaken by the Commission and July-with the endorsement of the Commit- the European Investment Bank to each ACP tee on Aid to Non-associated Developing State. It was therefore the last step in a Countries-to finance the following out of continued process of discussions between 1984 budget appropriations: the ACP State and the Community during institutes 2 which the ACP State's priorities, the most CGIAR research for research (project cofinanced-aid the appropriate areas for support by the Com- with CGIAR): totalcost 115 436 300 ECU, Com- munity and the ACP State's own measures munity 5.3 ECU; were identified. contribution million Bhutan-rural water supply and sanitation The indicative programmes reflect the ACP (autonomous project): total cost 5.2 million States' concern to and the Community's ECU, Community contribution 4.5 million make the aid more effective and concentrate ECU; it upon rural development and food security, two areas vital to most ACP countries. Non-associated deueloping countries and bodies eligible for EEC financial and techni- 2.3.54. A framework agreement on the cal assistance-services of outside experts cofinancing of development projects and (autonomous project): total cost 4 million programmes was signed in Rome on 12 ECU, Community contribution 4 million July by Mr Andreotti, the Italian Foreign ECU. Minister, and Mr Natali, the Commission Vice-President with special responsibility On 24 July the Commission decided to for development cooperation. increase the Community financing for the 'Minor irrigation in Andhra Pradesh' pro- The agreement comes in response to a ject to 30 million ECU. This sum will be Council resolution of June 1984 calling for drawn from the counterpart funds from the an improvement in the coordination sale of fertilizers supplied to India under between the Commission and the Member project NA/84/10 instead of the 'Minor irri- States of cooperation policies and activities, gation in Madhya Pradesh' project, which cofinancing being one of the most import- Madhya Pradesh has cancelled. ant means to that end. I Italy is to make some 155 million ECU I Bull. EC 6-1984, point 2.2.41. available to the Commission during the five- 2 CGIAR (Consultative Group on International Agricul- year life of the agreement, to be adminis- tural Research), covering five research centres: CIAT (lnter- tered by the Commission in accordance national Centre for Tropical Agriculture), CIP (lnternational with its own procedures for the adminis- Potato Centrc - Lima, Pcru), Icrisat (lnternational Crops tration of development projects and pro- Research Institute for the Semi-Arid Tropics), IRRI (lnternational Rice Research Institute Manila, Phrhppincs), grammes. The Italian authorities reserve the and Isnar (lnternational Service for- National Agriculturc right to approve the contracts to be financed Rcscarch).

96 Bull. EC 7/8-1985 Diplomatic relations

Cooperation via non-governmental Economic Commission for Europe organizations 2.3.58. A special meeting of experts on 2.3.56. In the period 1 January to 31 industrial cooperation was held in Ceneva August this year a total of 76.7 million ECU from 8 to 10 July under the aegis of the was committed by the Commission for the Committee on the Development of Trade. co-financing of 135 projects presented by 81 The main purpose of the meeting was to NGOs. take stock of recent experiences and discuss the problems of and outlook for East-lWest The Commission also committed a total of industrial cooperation. 1 888 550 ECU to 33 campaigns to increase European public awareness of development lssues. 2.3.59. The plenary session of the United Nations Conference bringing to a close the Decade for Women took place in Nairobi ! nternationa! organ izations from 13 to 25 July (--+ point 2.1.94). and conferences Organization for Economic United Nations Cooperation and Development

Economic and Social Council International Energy Agency

2.3.57. The Economic and Social Council 2.3.60. A ministerial meering of the met in Geneva from 3 to 26 July for a Governing Board of the International session on the general theme of the inter- Energy Agency was held in Paris on 9 July relationship of financial, monetary and (-+ point 2.1.205). trade questions. The UN Secretary-General, Mr P6rez de Cu6llar, gave a balanced address on the subject of interdependence Conference on Security and emphasized the importance of the new and Cooperation in Europe round of multilateral trade negotiations and Unctad's role in such a process. He also 2.3.61. On 30 July the Luxembourg For- commented at length on the 'crisis of multi- eign Minister, Mr Jacques Poos, who was in laterism', stressing the need for a political Helsinki for the ceremony marking the 1Oth reappraisal of the multilateral sysrem ar a anniversary of the signing of the Final Act of time when social indicators are declining, the Conference on Security and Cooperation uncertainty is increasing and the develop- in Europe, delivered on behalf of the 10 ment of private links is drawing certain Member States and of the Community an aspects of the world economy outside address in which he reiterated the import- government control. ance they attached to the implementation of all the provisions of the Final Act. The Community, in starements by the Presi- dent of the Council and the Commission representative, emphasized the particular need to tackle the prime causes oflndebted- Diplomatic relations ness. It also reported that its official aid in 1984 amounted to 0.52o/" of the Community 2.3.52. The President of the Council and countries' gross national product, com- the President of the Commission received pared with 0.36% for the OECD's Develop- the following ambassadors, who presented ment Assistance Committee countries taken their letters of credence, to take effect on as a whole. the dates shown:

Bull. EC 7/8-1985 Budgets

25 luly European Communities; HE Mr Alberto Lozano Simonelli, Head of Mission of the HE Mr Zachte Mongo Solo, Representative Republic of Colombia to the European of the Republic of Cameroon to the EEC Communities; HE Mr Claudio Soto Badilla, and Head of Mission to the ECSC and Head of Mission of the Republic of Costa Euratom; HE Mrs Frances Vit6ria Velho Rica to the European Communities; HE Mr Rodrigues, Head of Mission of the People's Dido Florentin-Bogado, Head of Mission Republic of Mozambique to the European of the Republic of Paraguay to the EEC; Communities; HE Mr Oswald M. Gibbs, Head of Mission of Grenada to the Euro- 29 July pean Ahwa Communities; HE Mr Joseph HE Mr Ahmed Ghanem Al-Romaihi, Head Laryea, Head of Mission of the Republic of of Mission of the State of Qatar to the Ghana to the European Communities; European Communities.

26 July Mrs Velho Rodrigues is Mozambique's first ambassador to be accredited to the Com- HE Mr Julio Ego-Aguirre-Alvares, Head munities. This brings the number of diplo- of Mission of the Republic of Peru to the matic missions to 129.

4 Financing Community activities

Budgets 1985 with financial forecasts for the three subsequent years. These forecasts were based mainly on the General budget following assumptions: . that own resources would be increased 1986 budget with the rise in the VAT limit to 7.4o/o; o that Portugal and Spain would be gradu- Prelirninary draft budget ally integrated; 2.4.1. On 31 the Commission, in o that the financial guideline would be July increase EAGGF accordance with Article 78(3) of the ECSC applied to restrict the in Treaty, Article 203(3) of the EEC Treaty Guarantee Section expenditure to the and Article 177(3) of the Euratom Treaty, increase in own resources; sent the budgetary authority the preliminary o that it was planned to increase the share draft general budget of the Communities of research appropriations to 6o/o of. the for l986,which it had adopted on 14 June. 1 total appropriations for commitments in 7989; Three-year financial forecasts o that an additional 1600 million ECU 1985-87-88 would be spent on the integrated Mediter-

2.4.2. As required by'the the Council Decision of 21 April iglO,2 Commission ac- 1 Bull. EC 6-1985, points 1.6.7 to 1.6.14. compani-d its preliminary draft budget for 2 oJ L 94,2s.4.t970.

98 Bull. EC 7/8-1985 Budgets ranean programmes (Chapter 55 B) over a total appropriations for payments required, period of seven years; before any correction for budgetary imbal- o that the correction mechanism would ances is made. The correction for budgetary be applied to the budgetary imbalances in imbalances will bring the highest VAT rates favour of the United Kingdom. up to 1.3650lo in 7987 and 1.384o/o in 1988. 2.4.3. Total expenditure, in rerms of total The remaining margin within the 74% appropriations for both payments and com- VAT limit will amount to some 700 million mitments, will rise by roughly 8.5o/o a year, ECU in 1,987 and 330 million ECU in 1988. or barely 4o/o ayear in real terms-including Allowing for fluctuations on rhe agricul- the sizeable increase in requirements as a tural markets uncertainties result of enlargement. and the sur- rounding the financial impact of enlarge- Total appropriations for payments will rise ment, the forecasts for 7987 and 1988 may from 35 050.7 million ECU in 1985 ro 41 100 very well turn out to be minimum values million ECU in 1988, while total appropri- rather than central estimates. The margin ations for commitments will rise from of some 700 million ECU in 1987 is very 36 359 million ECU in 7986 to 42700 slim indeed. A drop in the USD/ECU exch- million ECU in 1988. ange rate of only 7o/o, a bumper harvest A uniform VAT rate of 7.25oh in L987 and or serious destocking measures would each 1,.28% in 1988 will be necessary to cover the swallow up that margin.

Table t4 Three-year financial forecasts 1986-88 - Expenditure (Appropriations for payments)

Scctor 1984 I 1985 1986 1987 1988

Expenditure

1. EAGGF Guarantee Section (Titles 1 and 2 B) 18 330.8 19 95s.0 20 588.0 22 800 24 400 2. Fisheries and the sea (Chapters 40 to 46 B) 61.3 tlt.7 236.0 310 380 3. Structural expenditure (a) EAGGF Guidance (Chapters 30 ro 34 B) 646.8 632.5 855.0 1 130 I 230 (b) Social Fund (Chaprers 50 and 61 B) 1 505.0 I 410.0 2 399.0 2 s70 2 820 (c) Regional Fund (Chapters 50 and sl B) 1 3s0.5 1 510.0 2 600.0 2710 3 240 (d) Mediterranean programmes (Chapter 55 B) 10.0 10.0 151.0 220 290 (e) Transport (Chapter 58 B) (former ChapterTSB-1984') 7.7 35.5 73.6 90 100

(0 Total (a) to (e) (3 620.s) (3 6e8.1) (5 088.5) (5 720) (7 680)

4. Energy (Chapter 70 B) 133.8 83.3 46.2 100 100

5. Research (Chapter 73 B) 441.0 559.0 634.1 1 000 1 300 5. Innovation (Chapter 75 B) 9.7 73.7 21.3 30 L5 7. Industry (Chapter 77 B) 51.8 44.7 69.3 80 110 8. Development cooperation (Chapters 92 ro 99 B) I 006.s 7 Mi.7 1 551.8 I 730 1 800

Bull. EC 7/8-1985 D Budgets

Table 14 (continued)

Scctor 1984 I 1985 t986 1987 1988

9. Miscellaneous and reserve 240.2 497.22 554.53 270 290 10. Refunds to Member States (a) 10% (Chapter 80 B) I 038.3 1070.3 1239.9 1 320 I 420 (b) Refunds to Greece, Spain and Portugal of part of their VAT/ GNP contributions (Chapters 85 B) 44.2 24.0 1802.6 1 500 1 400 (c) Repayment of 1984 advances (Chapter 87 B) 250.9 250 250 11. Administrative expenditure of the institutions 1223.0 1 332.5 t 667.5 I 8,+0 1 930 12. Specific measures for UK and Ger- many (1984) 1202.0

13. Expenditure (1) to (12) Total 27 403.t 2S 433.2 3s 0s0.7 38 050 41 08s (rounded)- 38 100 41 100 I Exoendrturc'for as dcfincd for thc column'Outturn 1984'in the budgct, i.e.: non.drfferentiated appropriations: paymmts in 1984 against appropriations for 1984 plus carryovcrs to 1985; - for drffercntiatcd appropriations: paymenrs in 1984 against appropriatrons for the ycar and against carryovcrs lrom the PrcYious year. 2lncludrngapanial- payirienioflT2.5rirrlhonECUonadCficitof4l9mrlhonF-CUcarriedovcrfromrhcprcviousyear. J Includrng e icrrvc of 400 mrlhon ECU.

Table 75 Tbree-yedr financial forecasts 1986-88 - Resources and VAT rate

(millon ECU)

Scctor 1984 1985 1986 1987 1988

Resources 1. Miscellaneous revenue 467.71 287.4 263.5 300 330 2. Customs duties 7 960.8 8 595.1 9 700.5 l0 250 11 000 3. Agricultural and sugar levies 2 436.4 2106.6 z 698.7 2 900 3 050 4. VAT/GNP-based financial contributions 74 594.6 15 461.5 22 388.0 24 640 26720 5. Advances from Member States I 001.8 1 981.5

6. Total (1) to (5) 26 460.7 28 433.2 35 050.7 38 100 41 100

7. 7o/" of VAT base/GNP t4 594.6 t5 461.5 77 966.8 19 s20 20 820 8. l.4o/o of VAT base/GNP (1986-88) 25 153.5 27 330 29 150 9. Resources within the limit of (a) 1o/o of VAT/GNP (1984-85) 26 460.7 28 433.2 (b) 7.4o/o of VAT/GNP (1985-88) 37 816.2 40 790 43 530

100 Bull. EC 7/8-1985 Budgets

Table 15 (continued)

Scctor 1984 1985 1986 1987 1988

10. VAT rate (a) Uniform VAT rate before correction of budgetary imbalances (in '/') (1.059) (1.128) 1.245 1.262 1.283 (b) Correction of budgetary imbalances: net amount (7s0) 1 000 1 400 1 400 I 500 - equivalent consumption of - own resources (VAT) (t 202) (1 s15) I 978 2 000 2 100 (c) Highest VAT rate after correction (in (1.151)2 (1.22q2 of budgetary imbalances %) . 1.355 1.355 1.384 11. Difference between net resources and total expenditure in terms of appropriations for payments (Table 5, item 13) (-942.4) ( - 1 515.0) +787.3 + 690 + 330

I This frgurc includes thc surplus from 1983 (307.1 mrlhon ECU) and VAT/GNP balances and corttrnons (- 111.7 mrlhon ECU). 2 Notional rarc = (4) + (5) + (sccond indent of 10 (b)) + (7).

Own resources In this connection, the Council confirmed its wish to examine with Parliament and the Commission the means to ensure the 2.4.4. Following the Council's request last necessary cooperation with a view to May for its opinion on the proposal for a budgetary discipline common to the three Regulation I extending the term of validity institutions. of Resulation No 2892177 of. 79 December 7977,2 implementing in respect of own resources accruing from value-added tax the Decision of 21 April 1970,3 the Court of Financial Regulation Auditors published its opinion on 8 July. It regretted the fact.that the transitional 2.4.6. The Commission updatedT on 3 arrangements had been extended and July 8 the draft Regulation laying down repeated its request that the Commission detailed rules for the implementation of cer- establish a uniform system for determining tain provisions of the-Financial Regulation the methods o[ calculation and the VAT of 2f December 7977 e which it had sent to base. a all the institutions in August 1980.10 This draft provides additional details on the recovery of revenue (a clear distinction will Budgetary discipline

t oJ c 125,22.5.1985, Butl. EC 4-1985, point 2.3.4. 2.4.5. On 23 July the Council formally 2 oJ L 336, 19.12.1977; Bull. EC 12-Dn, point 2.3.114. adopted the flrame of reference for the I oJ L 94,29.4.1970. 4 oJ c 15r,9.6.1983. budgetary year, which it had approved in 5 principle on 8 Bull. EC 6-1985, points 1.6.15 and 1.6.16. July.5 6 Bull. EC 12-1984, point 1.3.1 el seq. 7 point2.3.72. con- Bull. EC 12-1980, This is the first occasion that the 8 coM(85) 33712. clusions of the Council of 4 December 1984 e oJ L 3s6,31.12.19v. 6 on budgetary discipline have been applied. to Bull. EC 7 /8-1980, point 2.3.77.

Bull. EC 7/8-1985 101 Financial operations have to be made between the chargeable report (borrowing and lending operations) event and the recovery of a debt). It will for 1984,2 containing the ECSC financial require the updating of a large number of statements at 31 December 1984, on which amounts which will now have to be the Court of Auditors has delivered its expressed in ECUs (as a result, these opinion. amounts will have to be adjusted in line with changes in Community consumer prices in ECUs). Loans raised

2.4.9. In July the Commission made a DM ECSC operating budget 230 million public issue (the equivalent of 102.4 million ECU) carrying a coupon of 7o/".lt was issued for a term of 10 years Draft 1986 budget at 99.75o/o. The Commission also made a number of private placings in German 2.4.7. On 31 July the Commission drew marks and ECUs for the equivalent of.28.3 up its aide-m6moire on the fixing of the million ECU. ECSC levy rate and on the establishment of the ECSC operating budget for 1986.r As usual, before taking a decision on the Loans paid out levy rate, the Commission, will seek the opinion of Parliament and will transmit the 2.4.10. Acting under Articles 54 and 55 of draft to the ECSC Consultative Committee the ECSC Treaty, the Commission made for information. Ioans in July and August amounting to 228.78 million ECU, broken down as fol- For 1986 the Commission is proposing that lows: the levy rate on ECSC products remain at 0.31% and recommending two transfers from the general budget to finance measures lndustrial loans connected with restructuring in the steel and coal industries (--+ point 2.1.85). 2.4.11. Industrial loans (Article 54) totalling 138.01 million ECU were paid out dur- Redeployment aids (Article 2(b) of the ing the above period. They were granted to ECSC Treaty) rise to 150 million ECU (125 the following companies: million ECU in 1985) while research aids (Article 55) total 60 million ECU (28.5 for steel research,22 for coal research and 9.5 Federal Republic of Germany for social research). Thyssen Stahl AG, Duisburg: construction of a new coke oven battery; Financia! operations Industriekreditbank AG, Di.isseldorf: project to promote the use of Community coal; Westfalenbank AG, Bochum: project to ECSC promote the use of Community coal.

Financial report for 1984 I CoM(8i) 429 tinal. 2 COM(85) 430 final. ECSC Report 1984, Office for 2.4.8. On 8 August the Commission sent Official Publications of the European Communities, Luxem- the other institutions the ECSC financial bourg.

102 Bull. EC 7/8-1985 Financiar "olr,,o*

I Overseas Luxembourg I

I Companhia do Rio Doce, Rio de Janeiro: Supraregional loan for small busihesses: operation of an iron ore mine at Carajas. Soii6t6 Nationale de Cr6dit et d'Invbstisse- ment, Luxembourg.

Subsidized housing United Kingdom 2.4.12. Loans for the building of subsidized housing amounted to 2.17 million ECU, of which 1.3 million ECU was for steelwor- kers and 870 000 ECU was for minewor- kers. 'l Loan in the Chester area: Shottonl Paper Company Ltd (plant at Shotton, Clvrj,yd). Conuersion loans

2.4.13. Conversion loans (Article 56) EEC-NCI totalling 88 million ECU were granted in July and August to the following firms: Loans raised

Federal Republic of Germany Adjustments to Community loan to lrance

I Supraregional loans for small businesses: 2.4.14. In July the Commission refiLanced Bank ftir Gemeinwirtschaft AG, Frankfurt; part of the-syndicated loan raised {n July Bayrische Vereinsbank AG, Munich; Com- 19831 by means of two public issues: the merzbank AG, Diisseldorf; Deutsche Bank first for USD 350 million (the equivalent of AG, Diisseldorf; Westdeutsche Landesbank 441.7 million ECU) for a term of fivb years Girozentrale, Di.isseldorf; Westdeutsche at99 3/4o/o withacoupon of 95/8o/o dndthe Genossenschaft Zentralbank eG, Miins- second for USD 240 million (302.9 inillion ter; \tr(/estdeutsche- Landesbank Girozen- ECU) for a term of three years at 29.72% trale, Mi.inster. with a coupon of 9.25o/o (--+ pointl2.1.6). The two operations involve USD 590 million (744)6 million ECU) swap$ed for dollar at a variable rate. This follows the Italy refinancing of the public issue of USD 1 800 million Q272 milfion ECU) in May.t,z Supraregional loans for small businesses: I I Finlombarda, Milan; Mediocredito Ligure, I Genoa; Mediocredito Lombardo, Milan; 1 Bull. EC7/8-1983, points 2.1.4 and2.3.79. Mediocredito Piemontese, Turin. 2 BuU. EC 5-1985, point 2.1.4.

Bull. EC 7/8-1985 103 5. Political and institutional matters

Political useful instrument for the emancipation of black cooperation workers in South Africa. In view of the important changes that have taken place in the field of Iabour 2.5.1. On the occasion of the Council relations there, the Ten consider that the adap- which meeting on22and 23 (--+ point 2.5.16) tation and strenBthening of the code they are July urgently to undertake should allow it to contribute the Foreign Ministers met within the politi- more effectively to the abolition of the system of calcooperation framework and adopted the racial segregation in force in South Africa. following three statements on southern Africa, Afghanistan, and terrorism and The Ten also note with deep concern the persist- ence of conflicts, the existence of serious threats hilacking: to the sovereignty and economic development of States in southern Africa, and, as regards the independence of Namibia, continuing obstacles to the Southern Africa implementation of United Nations Security Council resolution 135. They earnestly hope that 'The 10 Foreign Ministers express their profound progress can be made through a process of dia- concern over the continuing human suffering cau- logue involving all the parties concerned, with sed in South Africa by the apanheid system, which respect for the territorial integrity and sovereignty they strongly condemn. of all the countries in the area and the principle non-interference their internal affairs.' They deplore all acts of violence. In South Africa, of in violence affects the black population in particular, and the Ten call for its renunciation by all concerned. Afghanistan

The most recent action by the South African autho- 'The Ten express again their concern about the rities in declaring a state of emergency in certain situation in Afghanistan, where fighting is increas- areas of the country marks a sharp deterioration ing and repression is getting worse, infringing the in the situation. It must be brought to an end and fundamental rights of a people struggling to regain all those held under its provisions released. its independence and freedom. The Ten condemn the repeated bombings of the territory of Pakistan, The Ten urge the Government in Pretoria to which, by receiving 3 million refugees, is already embark with determination on a policy involving bearing the heavy consequences of a foreign war. specific actions leading to the abolition of the apartheid system and the implementation of the The Ten, once again, call for the termination of rightful political and civil rights of the black popu- the Soviet intervention, which is at the origin of lation. In the absence of any significant progress the conflict. They consider that only a political within a reasonable period of time, the Ten reserve settlement which conforms to the principles laid the right to reconsider their attitude. down by the international community in the resolutions the General Assembly the United In their view the first requirement is the rapid of of Nations can re-establish peace. opening of a dialogue between the present South African Government and the genuine representa- They support to this end the mediation process by tives of the non-white community, with the the Secretary-General, which they anticipate will declared aim inter alia of. giving proper represen- see rapid progress in particular towards an agree- tation to the black community at the national level. ment on a timetable for the withdrawal of Soviet troops.' To improve the prospects for such a dialogue, the Ten believe that the South African Government should: Terrorism and hiiacking o release immediately and unconditionally Mr Nelson Mandela; 'The Foreign Ministers emphasize their deep con- o end detention without trial; cern at the resurgence of terrorism, air piracy and hiiacking, which offend against every norm of abandon the practice of forced removals; o civilized behaviour, particularly through the out- . remove discriminatory legislation, including rage against innocent lives. the pass laws and the Group Areas Act. They have decided urgently to examine, within The code of conduct for European firms with European political cooperation, and in collabor- subsidiaries in South Africa has proved to be a ation with other Ministers responsible in this field,

1M Bull. EC 7/8-1985 Political coopriration

I the possibilities of establishing and m-aintaining 2.5.3. On 2 August the President Jf th. strenethened international standards for airline e"rn.il released i ,trt.rn.nt on the l,v1inis- and a'irport security with a view to the preparation ters' decision to send a special mission to of conirete recommendations in this area. This Sourf, nfri., wittr the following mandate: would include concerted action by the Ten in support of this oblective in the ICAO. Further- 'The Foreign Ministers of the Community,,Portu- moie, the Ten intend to pursue their action in sal and Solin have decided to send the Eoreign third countries which are not party to the existing f,linirt.rr bf Luxembourg, Italy and the $ether- international conventions ih order to encourage lands, together with a Member of the Comnlission, them to adhere to these conventions. to Pritoiia to discuss the recent serious divelop- ments in South Africa in the light of the cirncern Thev took note with satisfaction of the conclusions expressed by the Ten in their recent statemtnts. of the Ministers for the Interior and Justice meeting in Rome on 20 and 21 June 1985.' The South Africa authorities have agreed to leceive the delegation. The visit will take plac{ when been made.t I suitable ireparations have I I of the meeting in 2.5.2. On the occasion 2.5.4. On 24 August the President the the 1Oth anniver- !f Helsinki to commemorate Council issued the following press ielease of the Helsinki Final Act, sary of the signing on the mission of the three Foreign Minis- the Foreign Ministers met to discuss the ters to South Africa: situation in South Africa. On 1 August they I issued the following statement to the press: 'At their meeting in Helsinki on 31 July the ltutinis- ters for Foreign-Affairs of the Ten, togethbr.with 'The Ministers for Foreign Affairs of the European those of Soairiand Portugal, discussed the policies Community, together wlth the Ministers of Spain to be pursued to help bring about the abolition of and Portugal, met on 31 July 1985 in order to apartheid. examine tlie serious developments in the situation I in South Africa. They took-note of the debate and At that meeting the Ministers decided to lsend a of the resolution of the Security Council. mission to Sout-h Africa, comprising the Ministers for Foreisn Affairs of Luxembourg, Italy ind the Thev confirmed their common attitude as Netherlaids and a Member of the Commisbion, in 1985 and, e*pi.ssed in their declaration of.22 luly order to make known their views and to ldiscuss in'particular, their strong condemnation of the the latest serious developments in South Africa in protlamation of a state of emergency in important the light of the anxietiei expressed by theiTen in parts of that country. their recent declarations. I They also condemned the refusal of the South Affirming their support for the declaratiofr of 21 Afriian Government to have talks with Bishop A;;;;;? ,t. pt.iia'.n, of the Security Codncit on that Governmelt.to.oPen Tutu. They called upon Sou"th Africa and having examined the texf of the of the black a dialogue'with all the representatives soeech delivered bv thJPresident of Soutfi Africa prison and maiorit-y, including thosi who are in o'n 15 Augutt, the Ten, together with Spiin and whose iiberation they requested on 22 ldy. Portugal, iote-that this speeih does not coriespond expectations and contains reterences to Ministers exchanged information about the to their The which clarification is requirAd from measures taken or enviiaged with respect to South i"r.r,i""i .i, African Africa. the South Government. I that the measures they called for in They noted that all Member States apply certain They observe of.22 have not beeh taken restiictions in their relations with South Africa. theii declaration July and the state of violence is continuing. The Ministers asked the Political Committee to I Spain and Portugil, take establish an inventory of these measures and to The Ten, together with of South Africa must hold a full discussion of policies which the Ten the view itr"t1t . Governmint measures' and they stiess the mieht oursue and of measures to take in order to no* trk. concrete urgent need. for opening a real dialogu.e,ivithout coit.ibute to the abolition of apartheid. ;:,r"y*iffi ;;.;[il';:P;.;;;i;i;;;?f ,1. ui".r Thev decided to summon their ambassadors to population. .ornl for consultations to attend this meeting. The Ministers asked the Political Committee to report to them at their next meeting.' I Unofficialtranslation.

Bull. EC 7/8-1985 105 European policy

It is in this spirit that the three Foreign Ministers During the parr-session Parliament also will undertake July their mission to South Africa from adopted resolutions political 30 August to 1 September. on rhe and economic aspects of .European security in {part from visiting the South African authorities, the contexr of European political cooper- the Foreign Ministers intend to meet representative ation, the situation in Chile, the iituaiion pe.rsonalities- from political, socio-economic, of Renata Lesnik and her family and, lastly, religious and cultural circles, whatever the com- the detention of Mr Kaufmann, a Freri'ch mu-nity to which they belong. Their contacts will journalist, include both the official and Ihe non-official oppo- Mr Seurat, a sociologist, and Mr sition. They have, in particular, asked to be able Carton and Mr Fontaine, two Fiench diplo- to talk with Mr Nelson Mandela. mats (--+ point 2.5.15).1

The mission of the three Foreign Ministers must be seen as a fresh effort on thi parr of the Ten and of Spain and Portugal to contribute towards the abolition of aparthei-d. European policy and relations between institutions In the absence of any appreciable progress within the a reasonable period, they reserve thi right to reconsider their attitude.' European policy

2.5.5. In the course of discussions on the Intergovernmental conference agreement to be negotiated between the Community and the Central American 2.5.8. At its meering on 22 and 23 July countries the Ministers agreed that the pol- the Council, following consulrations *ith itical parr of the dialogue wirh these Parliament and the Commission, delivered countries could be included in the Final Act an opinion in favour of holding an inrer- of the ministerial conference to be.held on governmental conference with the task of amending the EEC 11 and 12 November ('San Jos6 II'). Treaty and working our a new common foreign policy and security 2.5.6. Lastly, in the Council's conclusions policy treaty. Accordinfly, rhe conference on action to be taken on institutional mat- was formally convened by the President tlrs ar.ising from the Milan European (+ point 7.1.1 et seq.l. Council, the Foreign Ministers instnicted the Political Committee ro draw up. 15 bv European Foundation October, the text of a draft treat;'on the basis, in particular, of the Franco-German 2.5.9. On 25 the and United Kingdom drafts on political July Council and the Representatives of the Governments cooperation with a view to a common of the for- Member States meering eign and security policy (--+ within the Council point 1.7.1 et adopted Z seq.). a resolution on the European Foundation.3 In it they recommended'that the third category of members of the Foun- 2.1.7. In Parliament July adopted a resol- dation's board should include a suitable ution on the sratements by the-President of number of representatives of the the Council on Council of the outcome of the Milan Europe, the European Cultural Foundation European Council. I It advocated closer in Amsterdam, the Cultural Centre in European political cooperation reiected but Delphi and other similar institutions and the methods envisaged, since they acientu- organizations whose activities are similar or ate the intergovernmental characier of such cooperation by providing for a special treaty and the setting-up of an ad hoc sec- I ol c229,9.9.198s. retariat, which ) might come inro conflict oJ c 199,7.8.198s. with other Community institutions. 3 Bull. EC 3-1982, points 1.2.1 to 1.2.3.

IM Bull. EC 7/8-1985 I

I Parl,iament

I identical to those of the European Foun- in creating a true single market and stl,essing dation. the importance of the Adonnino Commit- tii's c'onclusions on a people's Eul,ope,s Mr Santer turned to political cooperation. he pointed out that the varioui plans 2.5.10. On 10 P".firment adoPted Here, lrf, for refining the operation and principles- four resolutions on the Milan European either by a treaty or by a solemn agreement Council (-+ point 2.5.12).1 already mean the acceptance of -wouldmore binding procedures in a sphere lwhich directly impinged on national sovereignty. lnstitutions and organs He went on to point out that the esiential thesf pro- Communities itiing ;"r to ascertain whether of the nrrri-es and oroiects were possiblelunder ihe rules and methods in forci and said that Parliament 2 the Eurooean Council had tried to *lk. initial ,.ipo.,r. by discussing the following"n five points: improving the Coirnc-il's Strasbourg: I to 12 July decision-making piocess, expanding Parlia- ment's role and the Commission's manage- 2.5.11. The one highlight of Parliament's ment powers extending the Community to July part-session was the debate on the new fi-elds of activity and strengthenirig pol- iesulti of the Milan European Council. itical cooperation. Though there was irnani- Other major topics debated were the pre- mous agreement on the need to improve liminary draft budget for 1985 and agricul- rules an-d methods, there were differences tural trade between the Community and the on how this was to'be done: by morC effec- United States. tive use of the Treaties or by 'starting from The convening of an intergbvern- As is the custom for an incoming Council scratch'. mental conference to consider the reform of President, Mr Santer presented the Jacques the rules of probedure programme for Luxembourg's Presidency i-ti. inititutions and (--+ point 7.7.1. et seq.), which would help (+ point 3.4.1). in studying the terms of that option, ihould not, said Mr Santer, be taken to medn that Milan European Council and convening there were two categories of Member of the intergjovernmental conference ftates. The next speaker, Mr Jacques Delorsf Presi- ionfine 2.5.12. Commenting in the House on the dent of the Commission, did not MilanlEuro- Milan European Council, r Mr himself to an appraisal of the Jacques also spelt out thelpolicl Santer, the President of the Council, found pean Council, brit been and a fair number of positive asPects but con- iryhich the Commission hid iwould believe tliat the ceded that some of the conclusions could be pursuing. He did not two, wiqh one well have been given added point. Community was split in

I showh at Milan I He welcomed the resolve I press with the programme for achiev- oJ c 229,9.9.1985. I to on 2 ing a true internal market by \992, as The complete texts ofthe resolutions adopted by Parlia- in a lVhite ment are reproduced in OJ C 229,9.9.1985, and the report exoounded bv the Commission of the proceedings is contained in OJ Annex 2-f25. The Papera-a single market, which he saw as political groups and nationalities of members speaking in a sine qua non f.or the development of C-om- ih. debates are shown in brackets after their namei: the key munity cooperation (on the pattern of the to the abbreviations can be found in Bull. EC T/8-1984, points 1.2.5 and 2.4.8 (footnote 1). Eureka prolect) in the field of technology I r EC 6-1985, point 7.2.7 et seq. Bull. I and, eveh more so, for a Community tech- 1 EC 6-1985, point 1.3.1 el se4. Bull. I _ ^- nology policy. After mentioning the need to 5 Bull. EC 6-1985, point -1.4.1 et seq.; SupplemintT/85 - develop the EMS as an essential component Bull. EC.

Bull. EC 7/8-1985 Parliament

seven-country bloc in favour of an inter- mission's intention to take an active part governmental conference. There were actu- in the intergovernmental conference while ally four basic conceprs among the Ten. upholding three conditions and principles: Some, loyal to the spirit of thi Trearies, the unity of the institutions; the single mar- wished to go on with economic and social ket,- financial solidarity and Community integration within the single institutions; preference as the foundation of economit others, though they might deny it, wanred and social integration; and a more demo- no more than a free trade area with political cratic Community based on effecriveness. cooperation on external issues. Between these two approaches, some wanted to limit Speaking in his dual capacity as Chairman economic and social integration and thus and rapporteur of Parliament's Committee create, tacitly, a two-speed Europe. And yet on Institutional Affairs, Mr Altiero Spinelli others, finding the Community too bureiu- (Com/l), declared that the Milan European cratic, were attracted by progress through Council constituted a historic turning point intergovernmental agreements. Faced with because it had recognized that if things these different approaches, the Commission stayed as they were today, Europe could was proposing to push the Community for- neither cope with the new problems nor ward on four fronrs, with the emphaiis on sustain its achievements. Parliament hoped, achieving a single market and iniroducing he added, that there would be an inter- technological cooperation. The White governmental conference and that it would Paper on achieving the internal market 1 be a success. He nevertheless believed that, constituted an integrated package and not failing unanimity, those Member States some kind of jumble sale where everyorre which wished to press ahead musr conrrive could buy what he wanted. Mr Delors high- to do so. To those who feared the emerg- lighted the value of the Community dimEn- ence of a two-speed Europe he said that at sion for the development of technoiogy and the moment Europe was moving nowhere the importance of talks, at Community fast..Regretting that the Milan European 2 level, with the Americans on what they were Council had disregarded the draft Treaty doing. Otherwise, they would come looking adopted by Parliament, he called for a sin- for our technology and transfer it to the gle, coherent and realistic Treaty, ham- United States, and there would be no reci- mered out by the different political forces procity, since it was the weaker technologi- as this draft had been. He therefore asked cal force that would suffer transfers of tec-h- for the text that emerged from the inter- nology the wrong way round. governmental conference to be referred to Referring to the procedure for the insti- Parliament and that any conflicts of view , be dealt tutional review, Mr Delors said he was with by a conciliation commirree. against holding two intergovernmental con- Having applauded the fact that, for once, a ferences, one on politicil cooperation, to European Council had not been concerned which the Commission would nor be with money-'no sums were done, there invited, and the other on Treaty business, was no-bargaining and nobody gor-(SoclF) any and intimated that in all probability the money back'-Mr Lionel Jospin Commission would not attend the second was glad that this summit had rtsulted in a either. In fact, he concluded, to hold two much-needed clarification of intentions and such conferences would already mark the that matters of importance had, at last, been disintegration of the Community. It was given their due. Mr Egon Klepsch (EPPID) that very reason, said the President, that agreed that Milan had launched a new made him shun any policy outside the exist- phase in the building of Europe even though ing institutions, for certain Member States the intergovernmental conference could might then feel tempted to take refuge in have been assigned more specific tasks. The political cooperation without facing up to the real problems the Community-. of In 1 Bull. EC 6-1985, point 1.3.7 et seq. conclusion, Mr Delors restated the Com- 2 Bull. EC 2-1984, poinr l.l.l et seq.

108 Bull. EC 7/8-1985 Parlitament

I main thing now was for the next European should not be locked into a Comn{unity Council to be able to adopt decisions on framework so as to afford it a certainlflexi- the decision-making mechanisms' vest the bility. Deploring the constant amplifiCation House with wider powers and responsibili- of the original notion of solidarity ipto a ties and finally meet the need to provide huge blurred mass, he attacked the mbthod Europe with the technological base and use-d to convene the intergovernmental con- internal market which it so needed. This ference: deciding by a maiority to co{clude view was endorsed by Sir Fred Catherwood unanimously tomorrow. In favour of d two- (EDIUK), who believed that the best sol- speed Europe for developing technololy, he ution to the problems of unemployment and was againsi it on matters of basic political public debt Iay in achieving the internal principles. Mr Marco Pannella (NA/l) con- market, and felt that the best way for demned the utopia proposed by the govern- Denmark and the United Kingdom to ments and suggested that they sail thiough defend their vital interests was to belong to the narrow but navigable passage thht the a sufficiently powerful Community that had House had proposed. The Chairman gf the an effective decision-making process. Milan Political Affairs Committee, Mr RQberto was a first step in that direction. Formigoni (EPP/l), suggested thai lhe peoplei of Europe be consulted by lrefer- Observing that Milan had enabled the Com- indirm on the Euiopean Union they,I desired. munity to shake off its paralysis, Mr Giov- anni Cervetti (Com/l) hoped that the inter- Mr Francis Wurtz (Com/F) spoke of zi body sovernmental conference would be a suc- blow to the sovereignty of Member States, fess and in particular would help in moving while Mrs Else Hammerich (RainboQ/DK) from the Europe of governments to the took issue with the authoritarian method at Europe of democracies. The most positive Milan. I feature of Milan was that at least seven I Member States had clearly said that they At the end of the debate the President of would no longer bow to the tyranny of the ihe Council, Mr Jacques Santer, agaiir wel- had slorvest, declared Mr Hans Nord (LiblNL), comed the results of Milan, which adding that the concrete problems raised started the institutional wheels turnirig. He would remain academic unless the Com- also felt that Parliament should be int,olved munity adopted the necessary institutional ir rn.-pr..i.Ji.,gi of the intergovernrhental reforms. Mr Spyridon Plaskovitis (SoclGR) conference. the idea of I affirmed that he was not against the debate the House adoptid-by two objections: After European Union, but voiced votes 73 21 abstentionb-the pol- 185 to with the first concerned the common foreign report by Mr Altiero Spinelli on and the second the economic and social Qof/l) icv. the convening of the intergovernmentel con- imbalance in the Community, which must ference as decided at Milan. The resrilution so as to ensure that the strong- be corrected insists that the House be accepted at States did not impose their will I est Member equal partner in the proceedings of t\e con-"., weaker or smaller ones. It should be on the ference and, pursuant to an amendrrient by possible to make a formal request for a two- il,. epp g.orp, asks that, failing unrdi*ity, speed Europe. the governments of those Member States in Besides praise and caution the House also i"r.'* should proceed to formula{e and heard some outspoken criticism of the man- ,aopi thi ii."iy of Union on th{ basis ner and means employed by the European of farliament's draft. Earlier, duriirg the Council in Milan. Mr Christian de la explanations of vote, Mr Fernand Herman Maldne (ERD/F), for one, called this sum- (EPPIB) had announced his intention lof vot- mit a tactical muddle which was futile in ing for the report. Mr Jean-ThomaslNord- terms of procedure. Pleased with the push min (Lib/F) and Mrs Jacqueline fhome- given to implementing the internal market, Paten6tre (ERD/F) had each sai{ they he urged that technological cooperation would vote in favour although they felt the

Bull. EC 7/8-1985 l@ Parliament issue had been badly presented. Sir Jack order to curb the violence marking certain Stewart-Clark (EDIUK) declared that he sports events. The Commission was asked would vote for it, whereas Mr George Cryer to prepare a proposal for a Directive that (SoclUK) and Mr Thomas Megahy (Socl would ensure that these measures were uni- UK) said they would vote againsr it. formly applied in all the Member States.

Besides this resolution the House passed lnter nat ional Y outb Y e ar. P arliament urged four others on the follow-up ro rhe Milan the Member States to implement an action European Council in respect of the internal programme for youth protection and youth market, new technologies, food aid and pol- rights, called on the Commission to mounr itical cooperation. an 4ction programme - to provide young people with information, education and rhe 2.5.13. Parliament gave opinions on the right to participate, and expressed the hope following Commission propbsals: that an action programme would be launched at Community (i) a Regulation on the entry in the level on behalf of youth accounts and terms payment gmployment. The House also called on rhe of of the youth amounts of the import duties or export 6f -F,qrope to assist in overcoming national differences duties resulting from a cusroms debr in Europe and to con- (+ point 2.1.37); tribute to the further unificaiion of Europe. (ii) a third amendmenr ro the Regulation Second-generation regional deuelopment programmes. on the repayment or remission of import or Parliament considered that programmes export duties (-+ point 2.1.38); these must be only for priority regions, that some of rhem could bt more (iii) a memorandum on income taxation precise and detailed as regards the future and equal treatment for men and women development of regional labour and that it (+ point 2.1.92); was essential to carry out analyses relating to the future situation of economic sectors (iv) amendments to four Regulations con- for which aid was requested. The House cerning specific regional measures and a stressed the need for close cooperation Regulation (--+ on their financing point between the central, 2.1.104); regional and local authorities on the one hand and the Com- (v) an amendment to the Decision estab- mission on the other, in formulating and lishing a Community information system implementing these programmes. Finilly, it for the control and reduction of poliution expressed the hope that the Commission caused by hydrocarbons dischargid at sea would make more intensive use of its pow- (+ point 2.1.113); ers to monitor and investigate the utilizition of resources. (vi) a Regulation fixing, in the hops sector, the amount of aid to producers ior the The importance of water resources for the 1984 harvest (-r point 2.1.146); grgwth and deuelopment of certain regions of the Community. In view of the fact that (vii) a Regulation concerning con- the the Council Directive of 15 July 1980 on the clusion of a'Trade and Economic Coooer- quality of water for human consumption 2 ation Agreement with the People's nepJblic had still not been incorporated into nitional (--+ of China point 2.3.39). legislation in the Fedeial Republic of Ger- Italy, Luxembourg or the Nether- 2.5.14. Parliament passed lnaly, also resolutions lands, Parliament urged the Commission to on the following subjecis. The measures take various measures, including the setting needed to combat uandalism and uiolence up of a data bank on water resources, in sport. As_ an extension of its two June resolutions, 1 the House called for sivift, coordinated preventive I measures, with OJ C 175, 15.7.1985; Bull. EC 6-1985, point 2.5.13. 2 stronger policing and heavier penalties in OJ L 129,30.8.1980; Bull. EC V/8-1980, point 2.1.68.

110 Bull. EC 7/8-1985 ,rr,,ir.n,

I improvements in the water supply for agri- Community protest against thelpref- .r[tu.e and, in particular, the allocation of erential agieements concluded betweeh the appropriations from the ERDF for projects ifd-;;d";r[.i rur.dit.traniari couiltries. ani programmes for the introduction of C".a...irg ihe proliferation of such theas- watei-saving production processes. ,;i;k;;"rilatirally by the United Siates, Parliament called on the Commission fo see The beef and ueal sector. Aware of the that the multilateral framework of lrade oroblems arisins on this market from was upheld and to assess -the compens'ation implementation 6f the new milk policy in the Community was entitled to expect,from Euiope, the House asked the Commission the US following enlargement. to do all it could to dispose of stocks in the I short term particuhrly in the form of Trade witb Taiwan. Believing thal the meat preserves- is food aid and to pro- Community could not neglect the ecoriomic mote exports by introducing -a more flexible importance of Taiwan despite havirig no interveniion system. As regards the internal diplomatic relations with it, Parlidment market, the House called for a boost to the urged the Commission to ensure that Tai- sales of fresh meat and a review of certain ;;;-*; treated in a comparable mhnner import agreements. to other Far Eastern trading partners ivhere Community exports and imports were con- Animal welfare policy. Parliament -hopgd would ratify the cerned. that the Community I (on Council of Europe Conventions 87 ani- The future deuelopment of economi)c and mal welfare) and 55 (on animal welfare trade relations between the European',Com- during transport). This should be followed rnunity and Hong Kong. Parliament lalled by m5re specific legislation covering t-rade on the Commission and Council tqi take conditions-(marketing and transport), farm due account in trade policy of any p{ssible conditions (housing, feeding, treatment/ problems arising from the transfer of pover- and enforcement, care), implementation fignty over Hong Kong in .1997,.a'nd in and' slaughterhouse conditions (handling particular to react immediately and dppro- and stunning). priately to any divergence from the ariange- of Air traffic safety and auiation security. ln h.ntt ipecifiid in t[e Joint Declaration the first of two resolutions Parliament December 1984 by the United Kingdoin and stressed the need for active mutual suPPort the People's Republic of China. democratic societies in resisting I between The institution of a Solidarity withlThird the taking of hostages. The terrorism and World Children Vleek. Aware of th6 need House wanted the general public to be to the active support of publi{ opin- even more fully and drew atten- ,..ur. informed ion for the policy of ihe Commissicin and tion to the risk of terrorism being made to the Membei St"t.t on cooperation ahd aid seem commonplace or even justified as a for the Third World, Parliament called for result of thoughtless reporting. The second such an event to be organized in hll the resolution cafied for a series of technical Member States by means of an information measures, including the electronic checking campaign and various activities in sc[rools. of baggage and theratification by all States I involved-in civil aviation of the Tokyo, Emergency tneasures to be taken tQ assist on air Hague and Montreal Conventions AfricZn iountries threatened by famine. plracy. Parliament emphasized that these mdasures the EEC-llnited States trade in agriculture.The ;u;i b. tak.i, forthwith and urgbd House reiected the reasons for the American Community and the Member States !o link emergency aid with medium-term d{velop- decision to impose exorbitantly high -custom duties on- imports of pasta products ment to enable the countries sufferin[ from which could spell ruin for the more this scourge to achieve self-sufficiCncy in -disadvantaged Mediterranean areas of the food supplies more rapidly. I

I rrr Bull. EC 7/8-1985 I

I Council

2.5.15. In the fields of political cooper- October 1984 concerning Mr Jacques Abou- ation and of human rights Parliament ch_ar,1 Parliament strongly cbnd'emned the passed resolutions on the following sub- taking of hostages (in this case Mr Carron, jects. Mr Fontaine, Mr Kaufmann and Mr Seurat) as an unacceptable political form of blackmail and The and economic aspects of Euro- condemned this attack on the freedom of pean security in the context of political inform-ation (Mr Kaufmann being a cooperation Parliament called on the journalist). Council to promore, within the Western The situation of Renata Lesnik and ber Alliance, a European security programme-for and develop a common positi,on the family. Recalling the fact that since 1981 Mrs Lesnik Member States on securiiy and disarma- had tried in vain to brins over three members of her ment in various bodies (NATO, UN, the family from thl Cri- mea France, Stockholm Conference, etc.). The Council to Parliament the strength of the Helsinki agreements, was urged to make strong representations which recognize freedom of movement for persons to ensure that Europe's security interests and goods urged the Soviet Government might be protected, eipecially as iegards the to authorize- and help the Lesnik familv to implications of the American SDI research be reunited in the country of their choiie. project and the Geneva disarmament talks between the Soviet Union and the United States. Counci! The situation in Chile. Although the mis- 2.5.16. The Council held five meetings in sion of its intergroup on human rights had July and August. The table below listi the been accepted by the Chilean authorities, number, place and date of each meeting, names Parliament called on those authorities to the of the Council President an? Commission representatives end the state of emergency and urged the and the main items of business. Chilean judicial authorities to deil with A more detailed accounr of specific items can be cases of arbitrary imprisonment. found in the sections of the Bulletin referred to in the footnotes. The detention of four French hostages in Lebanon. Recalling its resolution of 2S t OJ C 315,26.11.1984; Bull. EC 1}-19g4,point 2.4.13.

Table 16 - Council meetings in luly and August

Numbcr, place and date of Subicct Prcsidcnt Commissron Main itcms of business meeting

1021st Economic Mr Sant'er Lord Cockfield Budgetary disciplinel Brussels and Mr Christo- 8 July financial phersen Second-quarter examination of affairs economic situation2 Tax measures to encourage cooperation between undertakings fiom different Member States Twentieth VAT Directive3 Approximation of VAT and excise duties follow-up to European Council-

tt2 Bull. EC 7/8-1985 ciouncil

Table 76 (continued)

Numbcr, placc and datc of Subiat Prcsident Commission Main itcms of busincss mceting I

7022nd Agriculture Mr Fischbach Mr Andriessen Cereal pricesa I Brussels Mr Clinton Dav ts Pasta productss I 15 and Green Paper on future of CAP 16 July Protection of forests I General rules relating to sy$tem of grapesminimum import prices foi dried Common measure to improveI processing and marketing-Northdrn conditions in cattlefeed sector in Ire- land I Dismantling of Netherlands positive compensatory amountsl Heat-treated milka I Fixing of maximum levdls for pestic'ide I residues I I 1023rd Foreign Mr Poos Mr Delors Council conclusions on I insti- Brussels affairs Mr Natali tutional matters arising frorl Milan 22 and Mr Narjes European Council I 23 July Lord Cockfield Operational improvements in insti- I Mr Christo- tu?ions I |. phersen Strengtheniqg of technological Mr Cheysson cooperatlon' J I Mr De Clercq Relations with Gulf Statess Mr Ripa di I Central I Meana Americas Textiles: post-MFA III Jrr"ng.- r! ments I relations Trade with USA5 | i Integrated Mediterraneanj nro- grammes' I .1 Implementation of Mediteiranean finincial protocols I I Relations with EFTA countiiess Pre-accession fisheries aid fJr Spain I Chanee in tariff concessions'for cer- )- tain eLctronic productslo I Budgetary disciplinel I Right of establishment iri phar- ") macyrr. 1024th Cancelled I 1025th Industry/ Mr Poos Mr Narjes Steel policy after 198512 | Brussels steel Mr De Clercq Amendment of quota systerh 25 Mr Sutherland July Relations with USA on steels Tariff concessions on certJin electronic productslo I Conclusions of Research Minis- tersls I I

Product liabilityla I

Bull. EC 7/8-1985 113 Commission

Numbcr, placc and datc of Subicct President Commission Main itcms of busincss mceting

1026th Industry/ Mr Goebbels Mr Narjes Relations with USA on steels Brussels sreel Mr De Clercq 5 August

Financing Community activitics. Economic and monetary pohcy. Financial institutions and taxation. Agriculturc. Relations with industrialized countrics. Point 1.1.1 et seq. Rescarch and dcvelopment, Rclations with othcr countrics and regions. Rcgional policy. t0 Commercial policy. il Internal market and industrial affairs. t2 Point 1.7.1 et seq. l3 Rcscarch and development. t4 Point 1.5.1.

Commission sent to the Council, together with proposals I I on the new rules for starch. 2.5.17. Following the Council President's made the Fon- decision to convene an intergovernmental In response to the request at conference on the revision of the Treaty and tainebleau European Council in June 1984 general system for ensuring the equiv- 't the strengthening of political cooperation for'a to rr (+ point 7.7.7 et seq.), the Commission, alence of university diplomas in order bring about the effective freedom of estab- determined to play an active part and take L lishment the Community', the Com- all the steps needed to ensure a successful within proposal outcome for this new development, devoted mission adopted a for a Council part of its work to preparing for the confer- Directive setting out a new approach for providing an immediate and rapid response Jl ence. to the expectations of nationals of Com- I In addition, Mr Delors and Mr Narjes munity countries who hold higher edu- attended the first session of the conference cation diplomas and wish to exercise their f on the Eureka project convened by the professional activities in a Member State French Government. other than the one in which they acquired their professional training (+ point 1.4.1).

Decision, conltflunications and proposals The Commission adopted a draft resolution of the Council and of the Representatives 2.5.18. The Commission sent the Com- of the Governments of the Member States {r munity institutions and other interested meeting within the Council on the introduc- parties at Community level a Green Paper tion of appropriate signboards at the Com- entitled 'Perspectives for the common agri- munity's external frontiers and internal bor- cultural policy' (+ point 7.7.1 et seq.) and ders. invited their comments. The Commission will take account of the views expressed A communication, accompanied by a pro- and present its conclusions towards the end posal for a Decision, on a new action proof the year. gramme for strengthening cooperation between industry and the universities on the A proposal for a Council Regulation on the question of training for the new technol- arrangements in the sugar sector for the ogies (Comett) was sent to the Council. next five marketing years (from 1985) was (--+ point 7.5.7 et seq.).

174 Bull. EC 7/8-1985 I

I Court of Uustice

I The Commission presented to the Council undertaking might constitute a measure its position on the future of the European incompatible with Article 30. steel industry after 1985 with a view to avoiding dangerous uncertainty and specu- 2.5.20.2 In another Commission u France lation on the steel market when the meas- case the Court held that the irrench ures governing steel production expire on Republic had infringed Article 30 by depriv- 31 December (-r point 1.7.1et seq.). ing press undertakings of the benefit iof certain tax advantages in respect of lpubli- The Commission asked the Council for cations which they print in other Member negotiating directives for the adaptation, States. The tax provision, introdubed in consequent upon enlargement, of the trade 1980, was a measure.having an effect equi- aspect of the cooperation or association valent to a quantitative restriction on agreements between the Community and imports: impoited printed matter lonsti- the southern Mediterranean countries tutid goods'placed- at a disadvanthge as (-r point 7.3.7 et seq.). compared with printed matter produced in France. The proposals on the generalized tariff pref- I erences scheme f.or 7986 were presented to

Freedom of movement and social I the Council. provisions I

I 2.5.21. lnDeaku OfficeNational de l'Em- Court of Justice ploi3 the Hungarian son of an Italidn resident in Belgiuri claimed the interimlallow- ance payabl in Belgium to unemployLd p..- Analysis of judgments delivered I sons waiting to begin their lhigher between I April and 30 June 1985 I education. On a reference from a Belgian court, the Court of Justice held thdt such Free movement of goods allowances were 'social advantages'for the purposes of Article 7(2) of Council]Regu- lation No 1512158 on freedom of mo'i,ement 2.5.19. In Commission u Francel the 4 .,\ Court had to consider the compatibility for workers within the Community and with Article 30 EEC of a systematically must therefore be given to Community wor- h unfavourable attitude to postal franking kers on the same basis as to nationdl wor- { machines manufactured in another Member kers; but nationals of non-niember State adopted by the French postal authori- countries could not found such a cliim on ties when dealing with applications for,the Council Regulation-of No 1408/71 5n the schefnes approval necessary before the machines can application social security to persons and moving be marketed. The Court found that to create employed their families within the considerable delay in replying to appli- Community.5 I cations for approval, or to refuse to give I approval on the grounds of various techni- Agriculture I r cal defects which were not explained in tggainstI detail or which proved to be false, could 2.5.22. ln Criminal proceedings 6 constitute a measure prohibited by Article Roelstraete the Court confirmed an'd clari- 30 if this represented an administrative fied its previous findings on the fi*ing by practice with a certain degree of consistency I and generality. It is particularly interesting I order assess this degree of gener- 1 Case2l/84. that in to 2 ality the Court accepted that where only Case 18/84. 3 Case 94/84. a few undertakings were operating on the 1 I oJ I- 2s2,19.10.1968. market in question the attitude adopted by 5 149, s.2.1971. I oJ L , a national administration towards a single 6 Case 116/84. I t Bull. EC 7/8-1985 115 Court of Justice

Member States of a maximum profit margin 2.5.23a. ht Berkholz v'Finanzamt Hamb- to be charged by retailers selling agricultural urg-Mitte-Abstadt,3 concerning the con- products to the consumer; such a margin cept of 'fixed establishment' for purposes formed a major factor in a national price of the sixth VAT Directive, a the Court had control scheme. The Court held that legis- to rule on a case of gambling machines on lation of a Member State which was board a ferry boat; it held that an establish- intended to control retail prices of beef, veal ment qualified as a fixed establishment and pigmeat, and which prohibited retailers within the meaning of the Directive'only from selling their products to consumers at if it required a permanent combination of a price exceeding the purchase price charged human and technical resources necessary at the wholesale stage, plus a maximum for the provision of the services in question gross profit margin covering inter alia any and if it was impractical to connect those import costs which may be borne by the services with the place where the supplier retailer, was contrary to Articles 30 to 36 had established his business. EEC and to the regulations establishing a common organization of the market in Transport those products. This was also the case where the maximum gross profit margin 2.5.24. The judgment in Parliament v incorporated the supply costs borne by the Council,s in which the European Parlia- retailer and, as a result, in certain regions ment, supported by the Commission, had the distribution network for beef, veal and brought an action against the Council, sup- pigmeat was affected. ported by the Netherlands, is interesting Community law did not, however, prohibit from an institutional and procedural stand- point and also for the light which it casts the fixing of a gross profit margin which 1 incorporated, in addition to the retailer's on the common transport policy. As regards net profit, only the marketing costs borne its institutional implications, the ludgment by the retailer at the stage of sale to the confirms the rights of Parliament to bring consumer, provided that the margin was an action on the basis of Article L75 against not fixed at an arbitrary level and allowed another institution, notably the Council, for retailers fair remuneration for their activity. failure to exercise its legislative function in infringement of the Treaty. The case is also 1\, the first successful action brought on the I axatron basis of Article 775, and contains a useful t4 example of what constitutes an invitation 2.5.23. In a second case involving the firm I to act and what does not constitute a defi- Gaston Schul 1 the clarified the Court nition of position, even the Court did method of calculating the VAT payable on if not make any theoretical analysis of the the import by a private person of a second- r! problems in this area. As regards transport, hand article which has already been taxed the Court accepted the case made by Parlia- in the country of export. The basis of assessment and the Commission to the extent that ment was the price of the article less the the Council was found to be in infringement residual VAT charged by the Member State of the Treaty in failing to ensure the free- of export and still contained in that price, l dom to provide services in the field of inter- or, in the absence of such a price, the cus- national inland transport, same toms value. and the This judgment supplements the judgment .delivered in 1982 in the first Gaston Schul I Case 47/84 Staatssecretaris uan Financidn v Gaston case,2 in which the Court laid down certain Schul. 2 rules for the interpretation of Article 95 Case 15/81 Gaston Schul v lflspecteur der Inuoerrechten EEC order ensure the neutrality en Accijnzen (1982) ECR 1409. in to of 3 Case 168/84. the taxation of second-hand articles bought 4 oJ L 14s,13.6J9n. i from private persons. 5 Case 13/83; Bull. EC 5-1985, poinr 7.1.1 et seq. t

lt6 Bull. EC 7/8-1985 I I

I Court of bustice

I freedom as regards the conditions under weakened considerably if the Comnlission which non-resident carriers may operate had to determine each time to which cate- inland transport services within a Member gory of undertakings a company belonged State (cabotage). Ind the difference"s which^ diitingLisf,ed them.

ECSC f, Appointments 2.5.25. Queenborough Rolling Mill v Commission I established an important 2.5.26. On 15 July the Representatives of rule concerning the level of fines for brea- the Governments of the Member lStates ches of the quota system introduced by decided to appoint Mr Fernan{ Sch- i ockweiler as from 7 October to Commission Decision No 1831i81/ECSC. 2 Jud'ge t985 7991t991"and and MislhoMistho as The applicant claimed that the conse- 5 October Mr JeanIean Advocate-General 1 1p85 quences of a fine of 75 ECU for each tonne from January to 6 October produced in breach of the steel quota system 1991.3 I were proportionately far more severe for a Mr Schockweiler and Mr Mischb will re-roller than for an integrated undertaking. replace Mr Pierre Pescatore and Mrl Pieter I The Court, however, found that this fact Verloren van Themaat respectively. could not be regarded as a mitigating cir- I I t cumstance; nor did it constitute a special I affecting undertaking indi- situation the I Case 64/84. vidually; the fine could not be reduced. The 2 oJ I- 180, 1.7.1981. + Court said that the quota system would be 3 oJ L 19t,zj.7.tgqs.

2.5.27. New cases \

)t l ECSC-Steel

207/85 Nuovo Campsider v Com- Annulment of the individual Commission Article 33 ECSC missionl Decision of 24 May 1985 refusing to take any action with a view to controlling the market in ferrous scrap F 209/85 Cockerill-Sambre v Com- Annulment of the individual Commission Article rr.Jr. missionl Decision of 7 June 1985 adlusting production quotas for the first quarrer of 1985

I + 210/85 Cockerill-Sambre v Com- Annulment of the individual Commission Article 33 ECSC missionl Decision of 17 June 1985 notifying the applicant of production quotas granted for the third quarrer of 1985

212/85 Italy v Commission2 Commission's failure to act on a request by Article rr.Jr. Italy to take the necessary measures to maintain the traditional pattern of deliveries of steel products in accordance with Article 15B of Decision 234/84|ECSC I f, Bull. EC 7/8-1985 tt7 Court of Justice

Casc

216/85 Alphasteel v Commission2 Annulment of the individual Commission Article 33 ECSC Decision of 21 June 1985 adjusting production quotas granted for the second quarter of 1985 217/85 Alphasteel v Commission2 Annulment of the individual Commission Article 33 ECSC Decision of 17 June 1985 notifying the applicant of production quotas granted for the third quarter of 1985 226/85 Dillinger Hiittenwerke v Annulment of the individual Commission Article 33 ECSC Commission Decision of 18 June 1985 refusing to adiust the production quotas granted to the applicant for I the periods from the first quarter of 1984 to the second quarter of 1985

Free movement of goods

248/85 Deutsche Lanc6me v Fla- Where a cosmetic preparation contains a sub- Article 777 EEC con Discount Parfiimerie3 stance which in the Member State of manufacture is properly referred to on the packaging as vitamin F, may it be sold in another Member State where the reference to the substance in question infringes domestic legislation?

Customs union +

183/85 Itzehoe v H.J. Repenning What is the transaction value of goods bought Article 177 EEC free of defects which deteriorate before the relevant valuation date? { 203/85 Nicolet Instrument v HZA Validity of Commission Decision 82/586/EEC Article 777 EEC Frankfurt-am-Main Flugh- finding that the apparatus described as a 'Nico- afenl let-high-speed signal averager, model 1174, t with accessories' may not be imported free of customs duty I

?22/85 HZA Osnabriick v Klei- Interpretation of CCT heading No 51.01 as Article 777 EEC I derwerke Hela Lampea regards the classification of jeans t Taxation

193/85 Cooperativa Co-Frutta v Does a consumption tax which applies only to Article 177 EEC I Amministrazione delle Finanze imported products because there is no domestic dello Stato production of the producr in question (in this case bananas) constitute a charge having an effect equivalent to a customs duty or an internal tax intended to protect home-grown fruit?

Competirion

2ll/85 France v Commissionl Partial annulment of the corrigendum pub- Article 173 EEC Iished on 25 April 1985 to Commission Regu- *t lation No 2349/84 on the application of Article 85(3) of the Treaty to certain categories of patent licensing agreements I 118 Bull. EC 7/8-1985 ,l I

Court of Lustice

Casc B"sis I

I 2l.3185 Chairman of the District Interpretation of Articles 37,52,59, 86 and 90 Article ln EEC of Arcachon, La Teste, Guian EEC in relation to the Act of 29 December 19M Mestras and Le Teich v Soci6t6 empowering municipal authorities to grant B.C. and Michel Leclerc3 exclusive franchises to undertakers

State aids 223/85 Riln-Schelde-Verolme Annulment of the Commission Decision of 19 Article l73EEC Machinefabrieken en Scheep- December 1984 concerning aid granted by the swerven v Commission5 Netherlands Government to an engineering company, declaring the aid incompatible with the common market N9/85 France v Commission Annulment of the Commission Decision of 5 Article 173 EEC June 1985 concerning an aid scheme in favour of the textile and clothing industry in France 11 funded by means of parafiscal charges

Social security 197/85 Office National des Pen- Compatability with Community law of Belgian Article 177 EEC sions pour Travailleurs Salari6s rules for the prevention of overlapping benefits (ONPTS) v Stefanutti which refuse a survivor's pension to the widow of a worker of Italian nationality necause she is entitled to a personal invalidity pension in I Italy

Social policy t 192185 Newstead v Department Is a contribution to provision of a survivor's Article 7n EEC of Transport and HM Treasury pension which is required of male civil servants J but not of certain female civil servants compatible with Article 119 EEC and Council Direc- t tivesT5/ll7|EEC and 76/207/EEC, and, if not, do those provisions have direct effect? lr 237/85 Rummler v Dato-Druck5 1. Does it follow from the equal pay Directive, Article 177 EEC 75/ll7/EEC, that in iob classification systems no distinction may be made as to the extent to t which a lob makes demands or requires an effort of the muscles, or whether the work is r( heavv or not? 2. In order to assess the extent to which a lob F makes demands or requires an effort of the muscles, and whether it is heavy or not, must these questions be considered in relation to female workers? 3. Does a system of iob classification which :' does not make this clear satisfy the requirements of the Directive?

Agriculture 182/85 Liitticke v Denkavit Fut- Application by analogy to the aid scheme laid Article 777 EEC t termittel down in Regulation No 77?5/74 of the quality conditions required for intervention storage of skimmed-milk powder laid down by Regu- I lation No 6U/78

Bull. EC 7/8-7985 tt9 Court of Justice

201 and 202/85 1. Kipgen, n6e Interpretation of Article 40 EEC and Council Article 777 EEC Klensch, a widow, trading under Regulations Nos 804/58 and 857/84 with the name Laiterie Ekab6, and regard to a Member State's right to choose the Others and 2. Exploitation reference year for the determination of the Agricole de Niederterhaff v reference quantity for milk allocated Secr6taire d'Etat i I'Agriculture er i Ia Viticulture, with the intervention of Association Agricole Luxlait and of Laiterie Ekab67

215/85 Bundesanstalt fiir land- Interpretation of the expression 'hardening Article 177 EEC wirtschaftliche Marktordnung v temperature' and possibly the validity of Com- Raiffeisen Hauptgenossenschafr8 mission Regulation No 7570/77, since amended by Regulation No 2150/84 218/85 Comit6 Economique Is the extension to all producers of a Member Article 177 EEC Agricole R6gional Fruits er State or region of rules laid down by an agricul- L6gumes de Bretagne v Le Cam- tural committee established in order to har- pron' monize the production, marketing and price of a product and to implement common rules for putting it on the market compatible with Community law?

?34/85 Criminal proceedings Validity of the rules on the information to be Article 177 EEC against Kellera carried on labels laid down in Council Regu- lation No 355/79 and Commission Regulation .i No 997181 on the description and presentation of wrnes and grape musts 238/85 Gebriider Metelmann v 1. Must a preliminary ruling be sought from Article ln EEC l Bundesanstalt fiir landwirtsch- the Court of Justice under the third piragraph aftliche Marktordnunge of Article 177 EEC where the Court has alreadv ruled on similar but not identical cases? 2. Validity of Article 22(4) of Commission Regulation No 262/79 J 244 and 245/85 Cerealmansimi" Annulment of the Commission Decision of 22 Article 173 EEC and Others v Commissionlo March 1985 finding that remission of MCAs is t not iustified in a particular case (REM 40184) 246/85 Associazione Nazionale Annulment of Article 2 of Regulation No 1320/ Article 173 EEC degli Industriali delle Conserve 85 on temporary measures for production aid )\ Alimentari Vegerali Anicav, qo processed tomaro products, which provides and Elvea v Council - for suspension of aid in certain cases 249/85 Albako Margarinefabrik Is the fourth paragraph of Article 189 EEC to Article 777 EEC Maria von der Linde v Bundesan- be interpreted as meaning that a Commission stalt fiir landwirtschaftliche decision intended to promote the sale of bumer Marktordnun93 precludes a court of the Federal Republic of Germany from restraining conduct contrary to t German competition law on the part of an undertaking which, although not a direct addressee of the decision, is involved in its implementation?

N6/85 Italy v Commission Annulment of the Commission Decision of 7 l. June 1985 amending the Decision of 15 November 1982 fixing the standard amounts to be used in financing net losses incurred by I

I 120 Bull. EC 7t8-1985 t I

Court of Jrr,i".

Casc I

intervention agencies in respect of oils and Article 173 EE facts, cereals, iice, sugar, beef, milk and milk products and raw tobacco

Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters 198/85 Carron v Federal Republic Is the procedure for the giving of an address of Germany, in the person of the for service and the imposition of a penalty for Minister for Transport/ failure to give such an address governed by the law of the State in which enforcement is sought' and, if not, what rules are applicable?

Commercial policy 250/85 Brother Industries v 1. Annulment of Council Regulation No 1698/ Articles 173 aid 215 Council and Commissionlo 85 imposing a definitive anti-dumping duty on EECI imports of electronic typewriters originating in so far as it applies to the applicant Iapan,- in 2. Award of damages for flagrant infringement of the anti-dumping regulation and the general principles of Community law I 250/85 Tokyo Electric v Council Annulment of Council Regulation No 1598/85 Article 173 EEC imposing a definitive anti-dumping duty on f imports of electronic typewriters originating in I .. \ Japan, in so far as it applies to the applicant + Administrative questions I 220185 Fadex v Commissionlo Failure by the Commission to pay a bill pre- Article 181 EEC + sented for work done I 264/85 Kenneth Norman Adams Annulment of the Commission decisions noti- Article tsz eJrrro,n and Others v Commission fied to the applicants by the Director of the r JET Joint Undertaking, and compensation for losses they have suffered as a result of I ihe the unlawful recruitment procedures applied to i them rI Infringements 200/85 Commission v Italy Article 95 EEC: differential rates of VAT levied Article 159 EEC on diesel-engined motor vehicles on the basis (l of the cylinder capacity, with the higher rate being applied exilusively to motor vehicles (? impo-rted' particularly fiom other Member States

208/85 Commission v Germanyz Failure to implement Council Direcriv e 7 9 / 831 / Article 169 EEC EEC on dangerous substances t I I the Decision of 13 Feb- Second ,ruojrrrror, '{ 213/85-.Commission v Nether- Failure to comply with landsll ruarv 1985 on lhe preferential tariff for natural of Article 93(2) EEC g"r for horticulturalists in the Netherlands ..t 219/85 Commission v Belgiums Incomplete transposal of Council Directive 79 I Article 159 EEC 831/EEC on dangerous substances I I

\ Bull. EC 7/8-1985 721 Court of Justice

221,/85 Commission v Belgiuml2 Article 52 EEC: provision that reimbursement Article 159 EEC may be made in respect of services in the field of clinical biology dnly if they are carried out in laboratories operated by a legal person governed by private law whose membels and directors are natural persons authorized to carry out medical analyses

224/85 Commission v Francel2 Incorrect transposal of Council Directive 79/ Article 159 EEC 831/EEC on dangerous subsrances

225/85 Commission v Italy Failure to comply with Article 48(4) EEC and Article 169 EEC Articles 4 andT(l) of Council Regulation No 1612/68, by requiring Italian nationality as a condition for establishment in a permanent post as a researcher with the National Research Council

2n/85 Commission v Belgium12 Article 171 EEC: failure to comolv with the Article 159 EEC judgment of the Court of Justice in Case 58/81, which concerned failure t-o implement Councii Directive 78/176/EEC on wasre from the titanium dioxide industry

228/85 Commission v Belgium12 Article i71 EEC: failure to comolv with the Article 159 EEC iudgment of the Court of Justice in ease 59181, l which concerned failure t-o implement Councii Directive 75/442/EEC on waste J

229/85 Commission v Belgiuml2 Article 171 EEC: failure to comply with the Article 159 EEC + judgment of the Court of Justice ii Case 70181, which concerned failure to implement Councii Directive 75/439/EEC on the disposal of wasre oils I 230/85 Commission v Belgiuml2 Article l7l EEC: failure to comply with the Article 169 EEC a judgment of the Court of Justice iri Case 71l81, which concerned failure to implement Councii l Directive 76/4O3/EEC on rhe elimination of poly,chlorinated D biphenyls and polychlorinared I terphenyls

?31/85 Commission v Francel2 Failure to implement Council Directives 8l/ Article 159 EEC 957/EEC and 82/?32/EEC on dangerous substances f' 235/85 Commission v Nether- Failure to comply with the sixth VAT Direc- Article 159 EEC landsl3 tive,77/388/EEC, by failine to subiect to VAT t/ the legal activiries oi notariis and sheriff's offi- r cers

236/85 Commission v Nether- Incorrect transposal of Council Directive 79/ Article 169 EEC I landsl3 409/EEC on rhe conservation of wild birds 239/85 I Commission v Belgium12 Incomplete transposal of Council Directive 78l Article 169 EEC 319/EEC on toxic and dangerous wasre {'

240/85 Commission v Ireland Incorrect transposal of Council Directive 79/ Article 169 EEC 409/EEC on the conservation of wild birds

122 Bull. EC 7/8-1985 Court of Justice

Basis I

I EEC 241/85 Commission v Greece Articles 3(1) and 5 of the Lom6 Convention: Article 159 ban on imports of bananas originating in the ACP countries I

I 247/85 Commission v Belgiuml3 Incorrect transposal of Council Directive 79/ Article 169 EEC 409/EEC on thi conservation of wild birds

I 251/85 Commission v Irelands Article 95 EEC: differential taxation on wine Article 159 EEC and made wine I 252/85 Commission v Francelo Incorrect transposal of Council Directive 79/ Article 159 EEC 409/EEC on the conservation of wild birds

I 261/85 Commission v United Article 35 EEC: ban on the import of unfrozen Article 169 EEC Kingdom pasteurized milk and cream, and ban on the 'use of milk produced in Northern Ireland in the manufaciure of certain milk products in Great Britain and vice versa

262/85 Commission v Italylo Incorrect transposal of Council Directive 79/ Article 159 EEC 409/EEC on the conservation of wild birds

I 263/85 Commission v ItalY Article 30 et seq. EEC: adoption and appli- Article 159 EEC cation of Section 12 of Italian Act No 151 ot mechanism for allocating 10 April 1985 on the I cont;ibutions for the purchase of buses and trams to public transpoit bodies and companies I { t Disputes between the Community and its staff

I v Commission: I 205/85 - Spina v Commissionl2 206/ 85 Beiten v Commissionl2 I - 214/85 - Gherardi Dandolo v Commissionl2 232/85 - Becker v Commissionl2 ?33/85 - Bonino v Commissionlz 242/85 - Geist v Commissionl2 v Court of Auditors: 2M/85 - Stroghili v Court of Auditors2 t, 255/85 - Pressler-Hoeft v Court of Auditors

oJ c 195,3.8.1985. oJ c 200, 8.8.1985. oJ c zl0, 10.9.1985. I ol c 207,17.8.1985. oJ c 242, 24.9.1985. 6 ol c219,29.8.1985. { 7 oJ c 187,27.7.1985. 8 oJ c 202, 10.8.1985. 9 oJ c 216, 27.8.1985. l0 oJ c 235, 14.9.1985. ll oJ c 210, 21.8.1985. l2 oJ c226,6.9.1985. tl OJ C 2,10, 21.9.1985. I

123 I Bull. EC 7/8'7985 Court of Justice

2.5.28. Judgments

Datc and case Hcld

ECSC-Steel

10,7.7985, 27 /84 Wirtschaftsvereinisuns Eisen- und The Commission's decision addressed to rhe Stahlindustrie v - - Commissionl applicant !y letter of 13 January 1984 is declared void in so far as it refuses to communicate figures for the quota adiustments granted to eac-h of the underrakings not belonging to the Eurofer confederation pursuant to Artilles 10 and 14C of the relevant general Decisions, Decisions Nos 2177/83 and ?34/84

Free movement of goods

9.7.1985, 19 /84 - Pharmon v Hoechstl 1. Articles 30 and 35 EEC do not preclude the application of a law of a Member State which gives the- proprietor of a patent the right to prevent the marketing in thit State of a pioduct which has been manufactured in anothei Mem- ber State by the holder of a compulsory licence granted under a parallel patent hild by ihe same proprietor 2. In that respecr, it makes no difference whether a prohibition on exportation is attached to the compulsory licence, whether that licence fixes royalties payable ro rhe patenree or whether the patentee has accepted or refused such royalties

11.7.1985,50 and 51/84 Cin6rhdque and Others v Article 30 EEC does not aDDly to national lesis- F6d6ration - Nationale des Cin6mas Fringais2 lation which regulates thd distribution of ci-ne- matographic works by imposing an interval between one mode of distributing such works and_ another by prohibiting theirlimultaneous exploitation in cinemas and in video cassette form for a limited period if such a prohibirion ,h applies to domestically produced and imported cassettes alike and any barriers to intra-Com- munity trade to which its implementation may give rise do not exceed whai is necessary for ensuring that the exploitation in cinemas of cine- matographic works of all origins maintains priority over other means of distribution \ t 2.7.1985, 90/84 - Finsider v Commissionl Ordered removed from the Court Register

Customs union

4.7.7985, 5l/84 - Land Niedersachsen v HZA Frie- The terms 'scientific instruments and aooararus. drichshafen3 which qualify for duty-free admission', iontained in Article 3(2) of Council Regulation No 1798l 75, must be interpreted as meaning that accessories may be imported free of customs duties only if they are intended for instruments or apparatus I

124 Bull. EC 7/8-1985 1 Court of Justice

Date and case Hcld

which themselves benefit or have benefited from duty-free admission, Where, however, an access- ory'is intended to be incorporated into an instrument or apparatus consiructed in the Com- munity, duty-free admission cannot be granted

4.7.1985, 167 /84 HZA Bremen-Freihafen v Driinert3 Interpretation of CCT headings Nos 44.05 and - 44.7i as regards planed wood and balsa wood

Taxation

41.1985, 168/84 Berkholz v Finanzamt Hamburg- 1. Article 9(1) of the sixth VAT Directive must Mitte-AltstadC - be interpreted as meaning that facilities for con- ductingi business such as the operation of gambling irachines on board a ship sailing on the hieh-seas outside the territory of the country may biregarded as a fixed establishment within the mean'ing of. that provision only if the establishment requires a permanent combrnatlon ot human aid technicil resources necessary for the provision of the services in question and if it.is imoractical to connect those services with the olate the suoplier has established his business i. Article i3(s) of the Directive must be interpreted as meaning that the exemption for which- it provides does not apply to the operation of nrinbline machines insiilled on board the sea- foing veisels referred to in that Article ) Competition { 3.7.7985, 243/83 Binon v Agence et Messageries de Article 85(1) EEC must be interpreted as applying la Presse4 - to a set of agreements between an agency which specializes in'the distribution of newspapers and in one Member State, the majority of 'theoiriodicals publishers of newspapers and periodicals who-are established in that State and a number of oublishers established in other Member States, if ihe effect of that set of agreements is that in practice the approval of retail sales outlets is a matt.r for thai agency or a body set up it within the framework of the said agreements The reouirement. in the framework of a selective distribrition system for newspapers and periodicals which affects trade between Member States, ,vI that imposed prices must be respected renders that svitem incompatible with Article 85(i). However, the Commission may, in considering an application for exemption under Article 85(3), .*amine whether, in a-particular case, such an element of a distribution system may be iustified.

117.7985,299/83 Saint Herblain Distribution and As Community law stands, the second paragraph Oth.rs v Syndicat des- Libraires de Loire-Oc6an2 of Article 5 EEC, in conjunction with Article 3(f) and Article 85, does not prohibit Member States from enacting legislation whereby the retail price of books mrlt 5. fixed by the publisher or by I lU / Bull. EC 7/8-1985 Court of Justice

Datc and carc

the importer and is binding on all rerailers, provided that such legislation is cons6nant with the other specific provisions of the Treaty, in particular those relating to the free movement of goods 71.7.1985,42/84 - Remia and Others v Commission2 Application dismissed (Article 85 EEC, seeking annulment of the Commission Decision of 12 December 1983)

Social policy

71.7.1985,105/84 Foreningen af Arbeldsledere i Dan- 1. The transferor of an undertaking is required - -of mark, representing Mikkelsen v Danmols Inventar2 to meet lis obligations towards employees the undertaking only where they continue to work as employees of the undertaking after the transfer 2. The expression 'employee' within the meaning of DirectiveTT/187/EEC must be interpreted in accordance with the meaning given to it-under the domestic law of the MembiiStates 10.7.1985, 36/85 Bonincontro v Landeshauptstadt Ordered removed from the Court Register Stuttgart -

Social security

4.7.1985, 104/84-Kromhour v Raad van Arbeids The first senrence of Article 10(1)(a) of Council Regulation No 574/72 applies where a child in respect of whom family benefits or family allow- I ances are due is, as a member of the family of one of the recipients of such benefits or allowances, a t person covered by the Community legislation- on social security for employed persons 71,7.1985, 251184 - Scalerta v Union Nationale des l. No particular form is prescribed for the noti- F6d6rations Mutualistes Neutres de Belgiquez fication referred to in Artiile 59 of Council Regu- lation No 574/72laying down the procedurelor I implementing Regulation No 1408771, and rhat notification may be made at any time +. 2. A person who fails to make the notification referred to in Article 59 of Council Regulation No 574/72 laying down the procedure for implementing Regulation No 1408/71, or who does_ so belatedly, does not lose the right ro the benefits relating to the period betwein the transfer of his residence and the date on which the social security institution concerned is J informed of the transfer, provided thar he continues to,satisfy the condirions for the grant of benefits during rhat period

Agriculture I 3.7.1985,20/84 - 1. De Jong Verenigde and 2. Co

Datc and casc

scheme for selling butter at reduced prices es-tab- lished bv that Reeulation are not released if the control looies ceriifvine that the butter has been orocessed cann

3.7.7985,39/84 Maizena v HZA Hamburg-Jonasa Consideration of the first question raised has - revealed no factor of such a kind as to affect the validity of Commission Regulation No 3013/80

9.7.1985, 779/84 Bozzeti v Invernizzi and Ministero 1. The nature of the co-responsibility levy del Tesoro2 - introduced by Council Regulation No 7079177 in respect of which further provisions were adoptid in Commission Regulation No 7822/77, must be determined, from the point of Com- munity law, in the light of the economic function which' it fulfills in so far as it forms part of the system of intervention measures designed to stabiiize the market in milk products. It is for ) the national court to take account of the consequences of that finding for the PurPose of deter- t ,irining whether or not it has lurisdiction in relation to the levy I 2. Consideration of the second question submitted to the Court has disclosed no factor of such a nature as to affect the validity of Council Regulation No 1079/77 or of Commission Regu- t lation No 1822/77

Commercial policy

10.7.1985, 83/85 Eurasian Corporation v Com- Ordered removed from the Court Register mission -

and the Enforcement of t Convention on Jurisdiction ,, Judgments in Civil and Commercial Matters 2.7.1985. 148/84-Deutsche Genossenschaftsbank v Article 36 of the Convention excludes any means parties Brasserii du P€cheura of redress on the -enforcementpart of interested third in resoect of an order even if a -eans of redress is available to such third parties under the law of the State where the enforcement order is granted I 4 4.7,1985,220/84 As-Autoteile Service v Malh# Actions to oppose enforcement, as provided for - under Paragiiph 767 of the German Code of Civil Procedure, do not fall within the jurisdic- I tion provision contained in Article 15(5) of the t Bull. EC 7/8-1985 Court of Justice

Date and casc

Convention; that provision does not, however, makeit possible, in an action to impose enforcement brought before the courts of ihe Contract- ing State- in which enforcement is to take place, to plead - a set-off between the right whose enforcement is being soughr and a ilaim over which the courts of that State would have no jurisdiction if it were raised independently 11.7.1985, 221 /84 - Berghoefer v ASA2 The first paragraph of Article 17 of the Conven- tion must be interpreted as meanine that the formal requiremenra therein laid dowi are saris- fied if it is established that iurisdiction was attributed by oral agreement dealing expressly with that point, that written confirmation oi that agreement by one of the parties was received bv the other and that the latier raised no obiection

Miscellancous (protection of rights of individuals)

71.7.7985,1,37/84 Ministdre Public - v Mutsch2 The principle of free movement of workers, as laid down in Article 48 EEC and more particu- Iarly in Council Regulation No 1512158, iequires that a worker who is a national of one Member State and habitually resides in another Member State be entitled to require that criminal proceedings against him take place in a langua e other than the language normally used in iroleedinss before the court which trie! him if workers wlio I are nationals of the host Member State have that iight in the same circumstances I Development I 10.7.1985, 118/83 - Cooperativa Muratori e Cementi- 1. The application made by the aDDlicants sti v Commissionl under Article 91 of the Rules'of Procidure for an order requiring the Commission to produce I certain documents is dismissed 2. The application is dismissed as inadmissible t in so far as it is based on Articles l7i and IZS EEC 3. The application is dismissed as unfounded in so far as it is based on Article 178 and the second paragraph of Article 215 EEC (EDF Amarti river diversion proiect) - I

Administrative questions I

11.7.1985, lll/84 Institut - National d'Assurances Articles 1 and 2 of the Conditions of Employment Sociales pour Travailleurs Ind6pendants v Cantisani2 o.f Other Seruants of the European' Comminities do not apply to interprerers in respect of periods during which they are engaged-by the Com- mission under the terms of the internal R6ele- mentation concernanr les Interprdtes de Cont6r- ence Ind6pendants (Freelance) [Arraneements Re_gard.ing Freelance Conference Interpriters] of 8 October 1974 I

128 Bull. EC 7/8-1985 J Court of Justice

Date and case Hcld

Infringements

3.7 .7985,277 /83 Commission v Italy4 By imposing on dessert wines imported from - oiher Member States a frontier surcharge on spirits distilled from wine and used in the manu- ficture of dessert wines at a rate higher than that of the charge levied on spirits distilled from wine and used in-the production of Marsala, a dessert wine, Italy has failed to fulful its obligations under Article 95 EEC

10.7.1985, 16/84 Commission v Netherlandsl Application dismissed (sixth VAT Directive - bisis of assessment in the case of movable goods- traded in)

10.7.1985, 17 /84 Commission v Irelandl Aoolication dismissed (sixth VAT Directive - bisis of assessment in the case of movable goods- traded in)

11.7.1985, t78183 Commission v Italy5 By applying to sparkling wines that have an - appellition-of origin, and that under national rules must be produced by natural fermentation in the bottle, i high.. rate of value-added tax than it applies to comparable sparkling -wines produced- in Italy, Italy has failed to fulfil its obligations under Article 95 EEC

11.7.1985, 1Oll84- Commission v Italy2 Bv failine to compile statistical returns in accord- ,n.e witi the ruies laid down in Council Direc- tive78/546/EEC on statistical returns in respect of carriage of goods by road, as part of regional statistics, Italy has failed to fulfil its obligations under that Directive

ll.7 .1985, 707 /84 Commission v Germany2 By exempting from value-added tax the services - piovided by virtue of statutory provisions by iransport undertakings for the Deutsche Bun- despost, the Federal Republic of Germany has failid to fulfil its obligations under the EEC Treaty and under the provisions of the sixth VAT Directive

26.6.1985,219/83 Commission v Netherlands Ordered removed from the Court Register - ( D i rect ives 7 I / 686 / EEC and 7 8 / 687 lEEC on free- i dom of establishment for dentists) Court Register r 26.6.1985, 99 / 84 Commission v France Ordered removed from the - (Article 30 EEC preference for domestic equipment in the processing- of applications for State investment aid)

I Disputes between the Community and its staff + 4.7 .198 5, 17 6 I 83 Allo and Others, 233 / 83 Agostini 1. The applications are dismissed as inadmis- and Others and- 247/83 Ambrosetti and- Others v sible in so Tar as they contain a claim for the - payment of compensatory interest I CommissionT

I Bull. EC 7/8-1985 129 Court of Justice

Datc and casc Held

174/83 Amman and Orhers v Councils 2. The other claims pur forward by the appli- 175/83 - Culmsee and Orhers v Economic and Social cants are remitted to the full Court for consider- CommitteeT- ation of the substance (increase in salary arrears paid in December 1982 under Council Regulation No 3139/82 to include interest to compensare for the financial loss suffered by the applicants)

4.7.1985,264/83 Delhez and Others v Commissione 1. The application is dismissed in the case of - certain applicants inasmuch as ir was lodged out of time by those applicants 2. As regards the other appliiants, the application is dismissed as inadmissible in so far as it contains a claim for the payment of compensatory interest 3. The other claims put forward by the applicants referred to in paragraph 2 are remitted- to the full Court for consideration of the substance (increase in salary arrears paid in December 1982 under Council Regulation No 3139/82 to include interest to compensate for the financial loss suffered by the applicants)

11.7.85,87 and 130/77, 22/83 and 9 and 10/84 The applications, lodged by CS (special contract) Salerno and Others,z 56, 57,58 and 136 to 140/8i- staff at the European Association for Cooper- Hattet and Othersl and 119/83 Appelbaum2 v ation, are dismissed except for the claims aimed -Commission - at revision of their classification in grade and step: The applications in Cases 9 and 10/84 are dismissed as inadmissible. The applications in Cases 87 and 130/77 and 22/83 are dismissed as unfounded. The Commission's decisions appointing the applicants are annulled in so far as they determine grade and step (Cases 66, 67 and 58/83, 136 to l4O/83 and 119/83); for the rest, Cases 66, 67 and 68/83 and 136 to 140/83 are dismissed, and all these cases are remitted to the Commission for a fresh decision 11.7.1985, 236/82 - Brautigam v Councill Judgment for the applicant 3.7.7985,3/83 Abrias and Others v Commission4 Application dismissed (claim that the 'crisis levy' - is unlawful) 11.7.1985,255 and 256/83 - Mr R. v Commission5 Applications dismissed 11.7.1985, 43/84 Maag v - Commission6 Application dismissed as inadmissible I 20.6.1985,141/84 de Compte v European Parliament for the applicanr - Judgment t 4.7.1985, 134/84 - Williams v Courr of Audirors3 Application dismissed t oJ c 195,3.8.1985. 2 oJ c 200,8.8.1985. J oJ c 19r, 31.7.198s. I 4 oJ c 185, 2s.7.198s. 5 oJ c 187, 27.z.tgls. 6 oJ c 202, 10.8.1985. ) 7 oJ c r92, 1.8.198i. I oJ c 210,21.8.1985. e oJ c 194,3.8.1985. i

I 130 Bull. EC 7/8-1985 Economic and Social Committee

Court of Auditors After setting out and commenting on certain statistics, tlie Conimittee examines the pos- 2.5.29. At the end of June the Court of sible causes of the fertility crisis and the Auditors adopted a special report on checks economic and social implications of a conti- on exports of agricultural products giving nued low birth rate in most of the Commu- rise to the payment of refunds. nity countries (e.g. impact on public finince, economic repercussions' potential This report analyses the system set up in working population,- effects on different Membei States to check on exports of pro- sectors, volume and structure of consump- ducts which give rise to the payment of tion, savings and investment, dependence refunds. In 1984 export refunds represented on immigration, competitiveness). nearly 25o/o of. the general budget of the Communities. If present behaviour patterns are maintained, the economic, social and political pic- Europe gives cause for concern, 2.5.30. On 12 July the Court of Auditors ture for adopted a special report on some aspects of esoeciallv in view of the more or less auto- technical aisistance financed by Commu- m'atic effects brought about by the ageing of nity aid and in particular the procedures the population. As the present demographic foiselecting consultancies to be^paid from situition is unfavourable, and as there is no Community funds. indication of it getting better on its own, it is up to the public authorities, as guardians of the long-ttrm interests of the societies in their charfe, to concern themselves with the Economic and Social Committee radicallv new factors which have led to such an imbilance and to help restore a more balanced age structure by making it easier plenary 228th sessron for parentslo choose what size family they want. 2.5.31. The Economic and Social Com- mittee held its 228th plenary session in Brus- opinion a sels on 3 and 4 July with Mr Gerd Muhr in Own-initiative The session included a lengthy the chair.l its assessment of the economic situation 2.5.33. In debate on the economic and social situation in the Community in mid-1985, which the Commit- in the Community, after Committee noted that economic reco- opinion-on the tee adopted an own-initiative very was continuing slowly and expressed economic situation in the first half of the the opinion that it would be helped if Mem- 1985 point 2.5.33) and an opinion on (+ took steps to improve the opera- the Community in ber Siates social devtlopments in tion of the markeis in goods, services and point.2.5.34). 1984 (+ capital. What is more, the Community nee- Several other opinions were adopted, as dei to make an effort to reduce its depen- were changes to the Committee's rules of dence in the world economy and to thus orocedure with a view to the inclusion of give itself greater room for manoeuvre. iepresentatives from Portugal and Spain. This opinion was adopted by 75 votes to 5, with 23 abstentions. Information report Opinions on Commission proposals 2.5.32. The Committee adopted an infor- and on a Commission report mation report analysing demographic By 75 votes to 10, with 13 absten- trends in th-e Community, as characterized 2.5.34. Committee adopted an opinion by the changing profile of the age pyramid, tions, the and looking into the causes, assessing their consequences and suggesting remedies. I oJ c 218,29.8.198s.

Bull. EC 7/8-1985 131 Economic and Social Committee on social developments in the Community built up under previous programmes should in 1984 based on the Commission's Social be preserved. Report.l The Committee noted that employment had continued to rise, reaching 2.5.37. The Committee unanimously an average level of 12.7 million, i.e. 77o/o of adopted an opinion on the Commission's the workforce, despite lower inflation and proposal on specific training in general public expenditure, higher productivity and medical practice, a endorsing its aims and profits and continued wage restraint. The putting forward several further suggestions. Committee stressed the importance of coordinating social and economic policies. 2.5.38. The committee also unanimously adopted a favourable opinion on the use of ECUs 2.5.35. Delivering a favourable opinion on by'other holders'. the 'Memorandum on income taxation and In particular, it felt that the arrangements equal treatment for men and women',2 the enabling 'other holders' to use ECUs should Committee felt that under no circumstances be gradually extended and liberalized so should tax laws imply a value judgment on that the ECU could become an international an individual's family or marital status: they reserve currency and a common currency. should be absolutely neutral in those It also urged that further measures should respects. be taken (such as economic convergence and financial integration) to consolidare rhe The Committee proposed that an individual stability, credibility and identity the system European of taxation on a scale should EMS. be adopted as soon as possible, together with arrangements guaranteeing a fair 2.5.39. The Committee also adopted apportionment of realistic tax relief for favourable opinions on Commission propo- dependants (children, the elderly, invalids, sals concerning: etc.). o modified starches intended for human consumption;5 2.5.36. The Committee unanimously adopted an opinion in favour of two Com- r problems of health control affecting mission proposals regarding energy. intra-Community trade in fresh meat and imports of live cattle and pigs and of fresh As regards the proposal to grant financial meat from third countries;5 support for demonstration projects relating the 18th and 19th VAT harmonization to alternative energy sources, energy saving o Directives;7 however, the Committee pro- and the substitution of hydrocarbons,3 the posed a number of improvements; Committee felt that the programme was capable of stimulating innovation in indus- . measures to discourage the release for try and of having a positive impact on free circulation of counterfeit goods; 8 in its labour-market policy; it also thought that opinion, adopted unanimously, the Com- it was necessary to help disseminate the mittee suggested extending the scope of the results and to envisage the possibility of Regulation to cover counterfeiting of des- extending Community support. igns and models registered in the Member States. 'With regard to financial supporr for demonstration projects relating to ihe lique- I faction gasification 'the Bull. EC 4-1985, point 2.1.48. and of soli"d fuels,3 z Bull. EC 12-1984, poinr2.t.97. Committee's main conclusions were that 3 oJ c 109,3.5.1985; Bull. EC 2-1985, point 2.1.121. the volume 4 OJ C 13, 15.1.1985; Bull. 12-1984, point 2.1.10. of aid envisaged by the Commis- 5 EC sion was the absolute minimum required, 6 OJ C 31, 1.2.1985; Bull. EC 1}-19g4,point 2.1.16. that the duration of the programme ihould oJ C 68, 15.3.1985; Bull. EC 2-1985, point 2.t.92. , OJ C 347,29.12.1984; Bull. EC tz-1984, points 2.1.77 not be curtailed and that the research, deve- and 2.1.78. lopment and demonstration infrastructure 8 oJ c 20,22.1.1985, Bull. EC 12-1984, point 2.1.39a.

132 Bull. EC 7/8-1985 European lnvestment Bank

European lnvestment Bank zogiorno. The increase in capacity will enable growing demand to be met and new routes to be developed. Operations in July and August LIT 90 000 million was lent for the cons- 2.5.40. The European Investment Bank's truction of a section of the Friuli motorway, loans in July and August for investment which will improve North-South communi- in the Community included 708.3 million cations within the Community. Another ECU I for proiects in ltaly, 138.7 million LIT 20 000 million went on work to for projectJ in the United Kingdom, 53.1 increase the capacity of the electrified rail- million in France,50 million in Greece,38.9 way line which runs through part of the million in Belgium, 35.5 million in Ireland Greater Naples area. and 11.8 million in the Netherlands. Finally, LIT 5 000 million went to help To this total of 1056.4 million ECU to rebuild six viaducts on the Naples-Avellino- Member States must be added 204'5 million Bari motorway, which was damaged by the ECU lent to Mediterranean countries (inclu- earthquakes in November 1980. An interest- ding 95 million to Spain and Portugal) and rate subsidy of. 3o/o from the Community 11.64 million ECU to signatory States to the budget wai granted for this loan, under second Lom6 Convention. the heading of aid for reconstruction in disaster-stricken regions. Community Energy. As part of Community policy to reduie dependence on oil imports, a loan Italy of LIT 60 000 million was granted to ENEL (Ente nazionale per l'energia elettrica) for 2.5.41. LIT 1 156 500 million was granted the Alto Lazio nuclear power station at altogether, including some LIT 850 000 mil- Montalto di Castro (Upper Latium), for lion-for development projects in the Mezzo- which the EIB has already contributed a giorno. Distribution of loans by- sector was total of LIT 500 000 million. LIT 51 000 for telecom- I is follows: LIT 726 000 million million granted to Italgas helped convert munications and transport infrastructure, the gas Jistribution network in the city of LIT 291000 million for energy, LIT 102 500 Rorne to natural gas, and to extend the million for industry, particularly for small network. and medium-sized businesses, and LIT 37 000 million for environmental protection. LIT 80 000 million was granted to AGIP for the development of two oilfields in the Telecommunications and trdnsport. LIT Mezzogiorno,ihe total production of which 500 000 million went towards the extension is estiriated at 3 million toe (tonnes of oil and improvement of the Mezzogiorno tele- equivalent) per annum: the Vega field in the phone system (Abruzzi, Molise, Lower Sitilian Chinnel, the largest discovery to Latium,'Campania, Basilicata, Apulia, date in ltaly, and the Torrente Tona field Calabria and Sicily). The new equipment in Molise. will increase the total number of connec- tions by almost 300 000 and offer a more LIT 40 000 million will help finance conver- reliable and improved service, gra4ually sion to natural gas and the extension of the moving over to digital technology, the.use gas distribution grid in Naples. of optiial fibres inlables and the introduc- A LIT 40 000 million global loan (line of tion of new telecommunications services. credit) to Banco nazionale del lavoro will In the transport sector, the EIB lent LIT 111 000 million towards the purchase of 13 I The conversion rates at 28 June used by the EIB in McDonnell Douglas MD 82s and 6 statistics for the first quarter were: I ECU : BFR 45.27' Aeritalia/A6rospatial ATR 42s to moder- DKR 8.07, DM 2.24, DR 99.97, FF 6.85, HFL 2.53' IRL nize and improve air transport in the Mez- 0.72, LFR 45.27,LlT 1 433, UKL 0.57, USD 0.73.

Bull. EC 7/8-1985 133 European lnvestment Bank

help finance small and medium-sized arou-nd Birmingham and the Wolverhamp- schemes designed ro reduce energy ton, Walsall, Dudley, Solihull and Coventry consumption in central and northern Italy. areas, along with the Wolverhampton ring road, the Birmingham Finally, aLlT 20 000 million loan to ENEL middle ring road, thE Black Country route will reinforce the links between rhe French and the Small Heath bypass in Birmingham. and Italian electricity grids, allowing a more efficient utilization of available generating . Another UKL 5 million was for road capacity, which should lead to real savings construction in South Glamorgan, Wales, of-some 250 000 toe per annum. which will improve access to th; industriai and dockland areas of Cardiff. lndustry. The EIB granted a loan of LIT . Finally, in Scotland, UKL 2.5 million 40 000 million for the extension and resrruc- went towards extension of a specialist elec- turing of an electronic components plant in tronic instrumenrs factory near Edinburgh, Catania province (Sicily). granted It also which manufactures advanced-technology three global loans: 40 LIT 000 mil-lion to testing and measuring instruments Isveimer (lstituto for tele- per Io sviluppo dell'ltalia communications. meridionale) and LIT 10 000 million ro the Banca nazionale del lavoro (Sacat) for small France and medium-sized ventures in industry and the hotel trade in the Mezzogiorno, and LIT 2.5.43. In cooperation with the Caisse 12 500 million, also ro the BNL/Sacat, for d'aide i l'6quipement des collectivit6s loca- small and medium-sized ventures in the les (CAECL), the Bank granted loans of FF hotel and tourist industry in the centre and 354 million: FF 250 million was for small north of the country. and medium-sized public works in areas with problems of modernization and Enuironment. LIT 37 000 million was conversion, particularly for departmental granted for environmental protection: LIT roads, ports, railways and air links, and FF 23 000 million to the Veneto region rowards 113.5 million was onlent to the regional the construction of a sewerage scheme for authorities in Brittany and the Loire iegion the lagoon of Venice and LIT t+ OOO million an.d to the departments of Loire-Atlantilue, to the Lombardy region ro reduce pollution C6tes-du-Nord, Finistdre, Ille-er-Viljine in the basins of the Po river and several of and Morbihan, for the modernization of its tributaries. routes gontributing to the economic integration of the various parts of Brittany unde. United Kingdom the regional road piogramme. Soml of the improvements will help to open up inland 2.5.42. Loans of UKL 78.5 million were areas with poor communicati,ons or granted, as follows: imp_rove access ro the ports of Roscoff, St o UKL 50 million to improve the electri- Malo and Douarnenez and the PontJ'Abb6 city grid in Scotland by completing the Tor- region. ness power station, which is expected to gellerate some 1.5 million toe per annum. Greece UKL 30 million of this money ii ro connect 2.5.44. A DR 5 000 million global Ioan to the power sration with the Uk high voltage the Deposits and Loans Fund-will help the grid and with the town of Dunbar, aid local authorities to implement small-scale UKL 20 million is for the consrrucion of infrastructure schemes- leading to more the power station itself, which consists of balanced regional developmentln all parts two groups of advanced gas-cooled reactor. of Greece. o UKL 20 million was granred for road Belgium improvements in the West Midlands, designed to open up industrial development 2.5.45. BFR 1 750 million was granted for centres. The funds are for eight schemes the third unit of Tihange nuclear power

134 Bull. EC 7/8-1985 European lnvestment Bank

station, 30 km from Lidge, bringing total tion agreement, are for investments to help EIB support for the second and third units prepaie the Spanish economy for entry into to BFR iZ OOO million. The third unit will ihe-Community. A 30 million ECU loan to raise total installed capacity to 2770 MW, Red Nacional de los Ferrocarriles Espafroles and output from the power station as a is to go towards removal of serious bottle- whole will allow a reduction in imports of necks on the Madrid-Barcelona-Port Bou around 4 million toe per annum. The (French border) line, one of the main rail scheme has also attracted almost BFR 12 links between Spain and the Community. million from Euratom. 20 million ECU granted to Banco de Cr6dito Industrial is for onlending to small and lreland medium-sized ventures in industry and related services, some two thirds of which will IRL 25.5 million 2.5.46. Loans totalling be in less-developed regions. were. granted in Ireland, of which IRL 15.5 million was for improvements to the na- Finally, a global loan of 10 million ECU to tional road network, including IRL 5.5 mil- Banco de er6dito Local de Espafra will help lion for work in Cork and Dublin and near finance small and medium-sized infrastruc- Leighlinbridge, Mallow, l0flexford lnd ture schemes being carried out by local Wiiklow and IRL 10 million for individual authorities in the less-developed regions. small improvment works to roads throughout the country. 2.5.49. In Portugal the Bank lent 35 million ECU for road improvements and small be directed into increa- IRL 5 million will and medium-sized investments in energy, for oil in_energy sing the substitution of coal protection schemes and the diversification environmental production, so assisting and medium-sized industry. The imports, and IRL 4 mil- small of lreland's energy funds are being made available under the finance new buildings and lion will help pre-accession financial aid arrangement for equipment toexpand classroom, workshop investments aimed at preparing for entry facilities at the National and-laboratory into the Community.20 million ECU is to of Higher Education at Limerick. Institute finance six new sections of the main roads linking Vilar Formoso on the Spanish bor- Netherlands der wi"th the port of Aveiro and with Coim- bra. A 15 million ECU global loan to Banco 2.5.47. HFL 30 million was granted to Portugu6s de Investimento (BPI) will help Verenigde Bloemenveilingen to finance the to fund small and medium-sized ventures in enlargement of the covered flower-auction industry, tourism and non-trading services halls-in Aalsmeer. This enlargement of and schemes aimed at energy saving and about 209 000 m2 was made necessary by environmental protection. the continuous growth of the market in flowers. The loan also aims to help Vere- nigde Bloemenveilingen Aalsmeer in its Outside the Community cahpaign to foster floriculture in the Com- munityind the export of flowers and plants Mediterrane an countries from the EEC. 2.5.50. In Algeria the Bank lent 75 million Acceding countries ECU. 50 million ECU went towards improvement of the road between Jiiel and 2.5.48. In Spain the EIB granted 60 million Constantine in the north-east of the cou- I ECU for raihray improvements and small ntry. The works, which will cut transPort investments in industry and infrastructure. time and costs, involve construction of 100 I These loans, granted under the last exten- km of new road sections and the widening sion of the pre-accession financial coopera- of 33 km of existing road.

Bull. EC 7/8-1985 135 European lnvestment Bank

25 million ECU was for extension of the million ECU drawn. from' risk capital freight port at Bejaia in the eastern part of resources managed by the Bank for the the country. The work involves tht con- European Development Fund. 5 million I struction of a new quay, 750 m long and 72 ECU went towards the rehabilitation and m deep, and 2.5 ha of quay storage area. modernization of a texrile mill at Antsirab6 il ;;;M;dA;,;;;. ih; t.;;r.i;;y;r.j The funds are being made available under Cotonnidre d'Antsirab6 Cotona, with a the first and second financial protocols bet- workforce of 2770, will modernize- the mill, ween Algeria and the Community, a with which uses locally produced cotron and 2% interest-rate subsidy from the Commu- makes a major contribution to the country's nity budget. balance of payments. One of Madagascar's In Syria the Bank lent 28 million ECU for two leading textile manufacturers, Cotona the expansion of a power station at Mehar- sells 80% of its output on the home market. deh, some 260 km north of Damascus. The The project is aimed at renovaring or repla- project comprises two 155 MW oil-fired cing certain equipment in the spinning and turbine units, auxiliary facilities and weaving departments. connection to the national power grid. 3 million ECU was lent in Lesotho ro promote the development and expansion of The loan has 37o interest-rate a subsidy small industrial, agricultural processing, from community budget resources, and is mining and tourism businesses. This global made available under the second financial loan to the Lesotho National Development protocol between Syria and the Commu- Corporation will be onlent finance nlty. to feasibility studies, equity participations, subsi- In Tunisia 5.5 million ECU helped buy ten diary loans and industrial buildings. trawlers to improve the exploitation of In Chad a 2 million ECU loan was granted Tunisian fishing resources. The loan, gran- for investments by small industrial, igricul- ted to Banque Nationale de D6veloppement tural processing, fishing, mining, energy Agricole, is for onlending to small iompa- and transport businesses. The funds will be nies owned by Tunisian fishermen, and made available to the Banque Tchadienne comes under the second financial protocol de Cr6dit et de D6p6ts and the Banque between the Community and Tunisia. 4.5 Internationale pour I Afrique au Tchad and million ECU is from the Bank's own will be onlent for ventures selected in agree- resources and has a 37o interest-rate subsidy ment with the EIB and in consultation with from Community budget resources, while 2 the Chad Government. million ECU comes from Community bud- Finally, 37 W ECU was advanced for a get resources managed by the Bank. feasibility study on the revival and development of the activities of the National Indus- ACP States trial Development Corporation of Swazi- land, the country's priniipal source of fun- 2.5.51. Under the second Lom6 Conven- ding for small and medium-sized industrial tion the Bank granted loans totalling 11.04 concerns.

136 Bull. EC 7/8-1985 \ \ PART THREE DOCUMENTATION 1. ECU

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

30 Augustl Conuersion rates into national currencies for the ECU used in connection with the common agricultural policy Belgian franc and Luxembourg franc (convertible) 45.1270

Belgian franc and Junc Luxembourg franc (financial) 45.5632 National currcncy German mark 2.22753

guilder 2.50768 Dutch Belgian franc and Pound sterling 0.571108 Luxembourg franc 46.4118

Danish krone 8.09212 Danish krone 8.41499

French franc 6.80627 German mark 2.39792r 2.41M72 Italian lira 1496.56 2.385163 Irish pound 0.716249 Greek drachma 77.24794 Greek drachma 106.052 102345s 90.52813 United States dollar 0.800108 French franc 7.000896 Swiss franc 1.82789 6.492114 Spanish peseta 130.947 7.105907 6.868653 Swedish krona 5.53138 Irish pound 0.72l5904 Norwegian krone 6.57535 0.7s011d

Canadian dollar 1.09104 I 341.004 1482.0d Portuguese escudo 133.668 1432.N Austrian schilling 15.5550 Dutch guilder 2.70178r Finnish mark 4.73761 2.7rc^e 2.587493 Japanese yen 189.665 Pound sterling 0.618555 Australian dollar 1.13694

New Zealand dollar 1.47080 I For ccreals and durum whcat- J] For milk and milk products. 4 For othcr oroducts. I oJ c 221,31.8.1985 For secds.' J For mrlk and milk products, bcef/vcal, and shccpmcat and goatmeat, sugzr, durum wheat, ccrcals, eggs and poultrymeat, and pig- NB. Explanatory notes on the ECU and 'green'rates can be mcat. 5 found in Bull. EC 718-1982, points 3.1.1 to 3.1.3, and Bull. For bcef/vcal, shccpmeat and goatmeat, sugar, durum whcat, cereals, cggs poultrymcat. EC 10-1984, point 3.1.1. and

138 Bull. EC 7/8-1985 2. Additional references in the Official Journal

3.2.1. This section lists the titles of legal instru- relations between Member States and third ments and notices of Community institutions or countries in shipping matters and on action relat- organs which have appeared in the Official Jour- ing to such matters in international organizations nal, since the last Bulletin was published but relating to items appearing in earlier issues of the Draft Council Directive concerning a . common Bulletin; the references were not available when interpretation of the concept of'national shipping the Bulletin went to press. line'

The irumber of the Bulletin and the point to which Amendments to the proposal for a Council Regu- this additional information refers is followed by lation laying down detailed rules for the appli- the title shown on the cover of the Official Journal, cation of Articles 85 and 85 of the Treaty to the number of the issue and the date of publication. maritime transport

Draft Council Regulation on unfair pricing prac- Bull. EC 12-1984 tices in maritime transport ol c 212,23.8.1985 Point 2.1.52 Point 2.1.41 Commission Decision of 19 December 1984 on the French system of assistance to industry comprising special investment loans, subsidized loans to enter- Commission Decision of 2 April 1985 on the Ger- prises, additional refinancing loans and FIM man Government's proposal to grant an aid in (lndustrial Modernization Fund) loans favour of a producer of polyamide yarn situated in Neumiinster oJ L 216, 13.8.1985 oJ L 181, 13.7.1985

Bull. EC 1-198s Point 2.1.67

Point 2.1.63 Proposal for a Council Regulation instituting integrated Mediterranean programmes Commission com-unicrtion concerning the multiannual guidance programme for restructuring, oJ c 179, 17.7.1985 modernizing and developing the fishing industry presented by Belgium 2.4.32 2.4.38 oJ c 173, 12.7.1985 Points to

Opinions adopted by the Economic and Social Committee during its session on 24 and 25 April Bull. EC 4-198s 1985 oJ c 159, 8.7.1985 Points 1.2.1, to 1.2.4

Progress towards a common transport policy- Maritime transport: Bull. EC 5-1985 Draft Council Regulation concerning coordinated access cargoes in ocean action to safeguard free to Point 2.1.2 trades

Draft Council Regulation applying the principle of Proposal for a Council Regulation amending freedom to provide services to sea transport Council Regulation (EEC) No 3l8l/78 as regards use of the ECU by 'other holders' Draft Council Decision amending Decision 77/ ,the 587/EEC setting up a consultation procedure on oJ c 171, 10.7.1985

Bull. EC 7/8-1985 139 Additional references in the Official Journal

Point 2.1.3 Council Decision of 10 June 1985 setting up an Advisory Committee on Education and Training in the Field of Architecture Proposal for a Council Decision empowering the Commission to borrow under rhe New Com- oJ L 223,21.8.1985 hunity Instrument for the purpose of promoting investment within the Community Point 2.1.50 oJ c 153, 3.7.1985

Commission Decision of 5 June 1985 concerning Point 2.1.35 an aid scheme in favour of the textile and clothing industry in France funded by means of parafiscal charges Aids to the Community synthetic fibres industry oJ L217,14.8.1985 oJ c 171,10.7.1985

Point 2.3.13 Points 2.4.21 to 2.4.29 Agreement in the form of an exchange of letters Opinions adopted by the Economic and Social between the European Atomic Energy Community Committee during its session on 29 and 30 May (Euratom) and the Government of Canada, 1985 amending the Agreement between the European Energy (Euratom) oJ c 188, 29.7.1985 Atomic Community and the Government of Canada of 5 October 1959 for cooperation in the peaceful uses of atomic energy oJ c 191, 31.7.1985 Bull. EC 6-198s Point 2.5.25 Point 2.1.16 Resolution of the ECSC Consultative Committee on the Community's energy objectives Council Directive of 10 June 1985 on the mutual recognition of diplomas, certificates and other evi- oJ c 190, 30.7.1985 dence of formal qualifications in architecture irii.ai ;;; il;r1;i;cilitate th. .fiectire e*..1 "e cise of the right of establishment and freedom to Point 2.5.26 provide services Resolution Council Recommendation of 10 1985 con- of the ECSC Consultative Committee June on general cerning holders of a diploma in architecture the obiectives for steel 1990 awarded in a third country oJ c 190, 30.7.1985

1,10 Bull. EC 7/8-1985 3. !nfringement procedures

Initiation of proceedings for failure Reasoned opinions to implement directives 3.3.3. In July the Commission delivered reasoned 3.3.1. In July the Commission sent letters of for- opinions in the following cases: mal notice for failure to incorporate directives into national law (the Commission not having been informed of national implementing measures) in Customs union the following three cases: Repayment of national charges having effect equi- valint to customs duties (France, Italy). Customs union Failure to incorporate correctly into national law the Council Directive of 24 luly 1979 on the har- Commission Directive of 26 Jriy 1984 fixing stan- monization of procedures for the release of goods processing dard rates of yield for certain inward for free circulaiion 8 (Belgium). operations and laying down certain rules for the cilculation of imporiduties 1 (Luxembourg). 1 Internal market and industriaI affairs Commission Directive of 26 July 1984 amending the Annex to the Council Directive of 4 March Failure to incorporate correctly into national law 1969 on the harmonization of provisions laid down 7977 to facilitate law, regulation or administrative action in the Council Direttive of 22 March by lawyers of freedom to .ispect of inward processing2 (Luxembourg)' the effective exercise by provide services 9 (Italy). Failure to incorporate correctly into national law Agriculture the Council Directive of 21 January 1980 concerning the mutual recognition of diplomas, certificates Council Directive of 7 February 19833 amending an-d other evidence of formal qualifications in mid- the Council Directive of 25 June 1984 on health wiferv and includine measures to facilitate the problems affecting intra-Community trade in fresh effective exercise of t-he rieht of establishment and (Belgium)' meata lBelgium, Denmark, Greece, France, Ire- freedom to provide servicEslo land, Italy, Luxembourg, Netherlands). Failure to incorporate correctly into national law the Council Directive of 21 January 1980 concerning the coordination of provisions laid down by sent letters of 3.3.2. In August the Commission law, regulation or administrative action relating failure to incorporate directives formal notice for to the taking up and the pursuit of the activities law (the Commission not having been into national of midwiveslo (Belgium). informed of national implementing measures) in the following three cases: Compulsory wording'Made in...'on the labels of textile products (Italy). Rules on public contracts (France). Environment, consumer protection and nuclear safety Agriculture s Commission Directive of 29 July 1983 adapting 1. to technical progress for the fifth time the Council Export of agar preserved meat (Germany)-. Directive of 27 June 7967 on the approximation Inciease in alcoholic strength of Moselle wines of laws, regulations and administrative provisions (Germany). relating to the classification, packaging and labelling of dangerous substances6 (Luxembourg, United Kingdom). I oJ L 245,14.9.1984. 2 oJ L 58, 8.3.1969. Council Directive of 3 December 1982 on Pro- 3 oJ L 59, 5.3.1983. cedures for the surveillance and monitoring of 4 oJ 121,29,7.1964. environments concerned by waste from the 5 oJ L 257, 16.9.1983. titanium dioxide industryT (Luxembourg, United 6 oJ 196, 16.8.1967. Kingdom). 7 oJ L 378,31.12.1982. 8 oJ L 205,1i.8.1979. Council Directive of 3 December 1982 on a limit e oJ L 78,26.3.1977. value for lead in the air 7 (Denmark, Luxembourg)' 10 oJ L 33, 11.2.1980.

Bull. EC 7/8-1985 t4l I nf ringement procedures

Production of wine with the registered designation harmonization of procedures for the export of of origin Caldaro or Lago di Caldaro (kaly). Community goodsT (Belgium). Designation of olive oil intinded for non-member Duty-free importation of military equipment countries (Italy). (Belgium, Denmark, Italy, Luxembourg, Nether- Iands, United Kingdom). Marketing of summer and autumn pears (France). Inspection fees on importation of poultrymeat (Belgium). Transport

Failure to inform the Commission of national Internal market and industrial affairs measures to give effect to the Council Directive of 4 December 1980 on the introduction of a Com- Failure to inform the Commission of national munity driving licence 1 lBelgium). measures to give effect to the Council Directive of 21 January 1980 concerning the mutual recognition Financial institutions and taxation of diplomas, certificates and other evidence of formal qualifications in midwifery and including measures to facilitate the effective exercise of the Failure to inform the Commission of national right of^ establishment and freedom to provide measures to give effect to the Council Directive of servicesu (Greece). 5 March 7979 coordinating the conditions for the admission of securities to official stock exchange Failure to incorporate correctly into national law listing2 (Greece). the Council Directive of.26 January 1982e amending the Council Directive of 15 June 1975 concern- Failure to inform the Commission of national ing the mutual recognition of diplomas, certificates implementing measures to give effect to the and other evidence of formal qualifications in Council Directive 17 1980 of March coordinating medicine, including measures ro facilitate the effec- the requirements for the drawing-up, scrutiny and tive exercise of the right gf establishment and particulars pub- distribution of the listing to be freedom to provide servicesl0 and also the Council lished for the admission of securities to official Directive of 16 1975 concerning the coordi- (Greece). June stock exchange listing3 nation of provisions laid down by law, regulation Failure to inform the Commission of national or administrative action in respecr of activities of measures to give effect to the Council Directive of doctorslo (Belgium). 15 February 1982 on information to be published Failure to incorporate correctly into national law on a regular basis by companies the shares of the Council Directive of 14 December 198111 sup- which have been admitted to official stock ex- plementine the Council Directives Iune change listinga (Greece). of 15 l975,to i lune 1977,12 25 July tg78l3 ani ts Failure to inform the Commission of narional December 197814 concerning the mutual recog- measures to give effect to the Council Direcrive of nition of diplomas, certificares and other evidence 28 March 1983 on tax exemptions applicable to of formal qualifications of doctors, nurses respon- permanent imports from a Member State of the sible for general care, dental practitioners and vet- personal property of individuals s lltaly). erinary surgeons respectively, with regard to acquired rights (Belgium, Netherlands). Failure to inform the Commission of national measures to give effect to the Council Directive of 28 March 1983r determining the scope of Article t 14(1)(d) of the sixth Council Directive of. 17 May 2 oJ L 37s,31.12.1990. 1977 as regards exemption from value-added tax 3 oJ L 66, 16.3.1979. on the final importation of certain goods5 (Italy). 4 oJ L 1oo, 17.4.1980. 5 oJ L 48,20.2.1982. 6 oJ L 105,23.4.1983. 3.3.4. In August the Commission delivered 7 oJ L 14s,13.6.19n. reasoned opinions in the following cases: oJ L 83,30.3.1981. 8 oJ L 33, 11.2.1980. e oJ L 43,1s.2.1982. ro Customs union oJ L 162,30.6.197s. u oJ L 385,31.12.1981. 12 oJ L t26,ts.7.1977. Failure to incorporate correctly into national law ri oJ L 233,24.8.1928. the Council Directive of 24 February 1981 on the 14 oJ L 362,23.12.1928.

142 Bull. EC 7/8-1985 I nf ringement procedures

granted purchasers of British bv the comoetent authorities of the Member States Larger loans to 3 vehicles (United Kingdom)' ii the field of direct taxation (Germany). Suspension and subsequent withdrawal of type- approval for welded wire netting (France). Proceedings terminated Marketing of milk substitutes (Germany). 3.3.5. The Commission decided not to continue Import quotas for fertilizers (Greece). the following infringement proceedings: Access to real-estate loans and renting of housing (Italy). Cases in respect of which a reasoned opinion bad been sent Competition Customs union Air transport refusal to give assistance (Belgium, Denmark,- Germany, Greece, France, Ire- fishing operations in the Baltic Sea (United land, Italy, United Kingdom). Joint Kingdom). Exemption from customs duties for-equipment Employment and social affairs imported from non-member countries for national defence purposes (Germany). Application of. the Grauier judgment snlolrnsnl fee (Belgium). - Internal market and industrial affairs

Agriculture Import ban on seal-based products (Netherlands). in obtaining technical opinions from (Lux- Difficulties National symbol refused for certain butters the Centre Scientifique et Technique du BAtiment embourg). (France). Denaturing of skimmed milk (ltaly). Arrangements concerning caviar substitutes (Greece). Protection of. the Bocksbeutel bottle (Germany). Fines levied on imports of certain goods (Greece).

Personnel and administration Failure to incorporate correctly into national law the Council Directive of 18 December 1978 con- the mutual recognition of diplomas-, certifi- Transfer of pensions rights (Germany). cerning cates and other evidence of formal qualifications in veterinary medicine, including measu-res to facilitate the effective exercise of the right of estab- Financial institutions and taxation lishment and freedom to provide servicesr (ltaly). Failure to inform the Commission of national Failure to incorporate correctly into national law measures to sive effect to the Council Directive of the Council Dirictive of 25 July 1978 concerning certificates 28 March 19-83 I determining the scope of Article the mutual recognition of diplomas, 2 14(1)(d) of the Council Direciive of li May 7977 and other evidenie of the formal qualifications of as resards exemption from value-added tax on the Dractitioners of dentistry, including measures to finallmportatioir of certain goods (lreland). iacilitate the effective exercise of the right of estab- iirh-.nt and freedom to provide services 5 Failure to inform the Commission of national (Netherlands). measures to give effect to the Council Directive of 19 Decembei 1977 concerning mutual assistance bv the comoetent authorities of the Member States I ii the fieldtf direct taxation3 (Germany). oJ L 105,23.4.1983. 2 oJ L 745,73.6.79n. Failure to inform the Commission of national 3 oJ L 336,27J2.79n. Directive of 4 L measures to sive effect to the Council 5 oJ $1,n.D.1979. 5 December i979a amending the Council Directive 6 oJ L 362,2i.12.1978. of l9 December 1977 concerning mutual assistance oJ L L33,24.8.1978.

Bull. EC 7/8-1985 143 I nf ringement procedures

Failure to incorporate correctly into national law Incorrect application of the Council Directive of the Council Directive of 25 July 1978 concerning 17 May 1977 on the harmonization of the larvs of the coordination of provisions laid down by law, the Member States relating to turnover taxes regulation or administrative action in respect of the Common system of value-added tax: uniform basis- activities of dental practitioners I (Netherlands). o[ assessment 5 reduction of the taxable amount (Ireland). - Failure to incorporate correctly inro national law the Council Directive of 15 October 1958 on the abolition of restrictions on movement and residence within the Community for workers of Mem- Agriculture ber States and their familiei2 (lreland).

Failure to incorporate correctly into national law Failure by the Greek intervention agency to respect the Council Directive of.2l May 1973 on the abol- the rights of tenderers for a quantity of 30 000 ition of restrictions on movement and residence tonnes of common wheat (Greece). within the Community for nationals of Member States with regard to establishment and the provision of services 3 (lreland). Environment, consumer protection and Hallmarking of silver-plated articles (Belgium). nuclear safety

Failure to incorporate correctly into national Iaw Compctition the Council Directive of 15 July 1980 relating to the quality of water intended for human consumption 6 (Luxembourg). Incorrect application of the Commission Directive of 25 June 1980 on the transparency of financial relations between Member States and public Failure to incorporate correctly into national law undertakings 4 (France). the Council Directive of 2 April 1979 on the conservation of wild birdsT (Denmark).

Financial institutions and taxation

Incorrect application of the Council Directive of I oJ L 233,24.8.1978. 17 May 1977 on the harmonization the laws of of 2 oJ L xz, 19.10.1968. the Member States relating to turnover taxes 3 - oJ L 1zz,z1.6.t9z3. Common system of value-added tax: uniform basis 4 oJ L 19s,29.7.1980. of assessments application of the flat-rate 5 oJ L 14s, 13.6.Dn. scheme for farmers- to the supply of goods (Luxem- 6 oJ L 229,30.8.1980. bourg). 7 oJ L 103,N.4.1S29.

lU Bull. EC 7/8-1985 4. Statement on Luxembourg's term as Cou ncil President

Luxembourg, 10 July 1 few months will clear the way for constructive cooperation in examining the 1985 draft budget. I 3.4.1 . 'The statement by the President-in-Office am hopeful that at the end of the term of office of of the Council is traditionally taken as an oppor- the Luxembourg Presidency the Community of tunity for a sweeping survey of all the issues arising Twelve will indeed have a budget. The Presidency, in the European context. at any rate, intends to spare no effort to achieve this end. However, since a lengthy enumeration would run counter to the precision necessary in a parliamen- It seems to me that the time has come when we tary debate, I shall try to concenrrate firstly on should again be able together to address the major what I feel are the most essential points. problems of the day. Our Community can once more look to the future. If we do not do it now, First and foremost, I wish to pay tribute to the when the way ahead is clear, then we may never Italian Presidency for the efficiency and skill with do it at all! which it has steered our Community through a difficult period, but one rich in lessons and achieve- The Milan European Council laid down maior ments. If, as I speak to you now, the Community guidelines. Its President has presented its con- seems once more all set to look purposefully clusions to you, especially those concerning the towards the future and the fresh prospects which institutions. it holds, a large part of the credit indisputably For my part, I should like today to describe to you belongs to the Italian Presidency and the remark- the main lines of the Cornmunity action which the able work which it has done. Presidcncy hopes the Council will accomplish in The Luxembourg Presidency will endeavour to this second half of the year. continue the detailed and open dialogue which has There is one major priority which the Presidency been initiated with the European Parliament. of the Council must tackle during these six months, European Parliament was It is our intention that that dialogue should be a priority which the frank and wide-ranging. the first to have the perspicacity and courage to identify. Armed with its mandate from the European against Council, the Presidency will shoulder its responsi- I am of course talking about the fight bilities and will be submitting proposals to unemployment and a return to growth in the Com- strengthen the role which you play in the Com- munlty economy. munity decision-making process. In the mean time I must admit that it is not without misgivings that we will make the best use of the existing pro- I want to attempt to consider, with your help, how visions, the Community can from now on improve its efforts to deal with this major problem. The most For the first time in years we no longer need striking aspect of the problem is the fact that for to devote all our energy and abilities to seeking more than ten years we have had at one and the solutions to a profusion of internal problems. same time a constant increase in the number of Enlargement of the Community to include Spain unemployed and a string of declarations about the and Portugal is now an established fact. New own need to reduce unemployment. resources and a corrective budgetary mechanism Up to the end of the 1970s the Community, alone have been adopted. The financing crisis has been among the developed countries, seemed to be a resolved for the time being. Rationalization and kind of haven of full employment, but the situation reform the common agricultural policy are of has been radically reversed since then. While the under way, as is the process of implementing the United States and were creating millions of integrated Mediterranean programmes. Japan new jobs, the Community was scrapping three Admittedly, there are some clouds on the horizon. million. The ceiling on new own resources, for instance, is Admittedly there was a kind of lull in 1984 and give financial security too low to the Community the constant drop in the number of jobs available over a long period. Relations between our two institutions over the budget also remain difficult. I hope that the process I Speech in Parliament by Mr Jacques F. Poos, incoming of clarification in which the two branches of the President of rhe Council, on Luxembourg's programme for budget authority have been engaged for the past its six-month term.

Bull. EC 7/8-1985 145 Luxembourg's Council programme in the EEC seemed to have been stemmed. But this Is it possible to achieve this kind of job-generating was an illusory respite, for the rise in unemploy- growth? ment has given way to a qualitative deterioration, measured by an increase in the average period of It cannot be accomplished by decree. But we do unemployment, especially among young people. know that the ratio between growth and employ- With an ever-growing number of under-25s con- ment as observed in Europe in the 1970s and 1980s demned to idleness for periods of over a year, our is not an immutable natural law. During those society seems cynically to be producing half a same years this ratio developed quite differently in generation crippled by the lack of work. Japan and the United States.

In the past decade our countries have lived in the These examples do not mean that we in Europe pious hope that unemployment would in the end should or could simply imitate these two countries, cure itself. and in any case their two situations differed hugely. But since these examples prove that growth more Since the start of the 1980s, these illusions have possible, been contradicted by the facts and the various conducive to employment is they invite us seek European Member States have one after another started mak- to solutions appropriate to the ing efforts to reduce inflation, control spiralling context. production costs and restore industry's margins. These solutions depend both on macroeconomic The results after several years show that these policy and on the flexibility of our economies. efforts were inadequate, Admittedly, flexibility is not popular. It is hard to accept and to achieve in a low-growth economy. In the past two years economic growth in the It is a matter not only of recruitment and working United States has been running at70o/o, as against conditions but of the whole organization of econ- some 3% in the EEC. Since the end of the second omic life. world war Europe had always outstripped the United States in terms of growth. What a difference There is, therefore, absolutely no question of a now! challenge to our European system of social solidarity, to which we remain firmly committed. On growth be What is more, such as there is can the contrary, we must ensure that economic attributed chiefly to an increase in exports, itself efficiency goes hand in hand with and the basically the result of the American upturn. lUhat lustice safeguarding of social progress. That is not poss- happen growth US will if the lightning of the ible without a social dialogue which encourages economy starts to run out of wind? European undertakings to be prepared to create There is certainly no miracle answer to unemploy- iobs. The Commission has already taken steps to ment. But if we are not to succumb to this ill which achieve this. These measures must be continued and intensified. affects almost 13% of our active population, i.e. 15 million people in the enlarged Community, we Improvement of the social climate should therefore must set ourselves objectives and decide exactly facilitate structural changes by adapting the labour how to achieve them. market, as well as other markets, to the new economic conditions. The aim is a significant reduction in the rate of unemployment in the Community within a reason- An active, imaginative labour market policy should able time. Even if demographic change can make include the'promotion of vocational training and a limited contribution, the achievement of this aim should implement specific measures tailored to requires first of all an increase in employment over the less-favoured groups, sectors and regions. The a lengthy period. same applies to reorganization and reduction of working time, which, without any threat to the Economic growth will certainly not be sufficient competitiveness of European undertakings, could to generate such a increase, rates iob for ofgrowth be negotiated essentially on a decentralized basis. of more than 5% per annum now seem beyond our grasp. The expected growth in the next few At the same time promotion of the setting up and years will not therefore in itself be enough to expansion of small and medium-sized undertak- resolve the employment problem, ings should be stepped up, for the role of such firms is essential to job creation. V/hile what we need is more dynamic growth, we must at the same time ensure above all that it is While a number of these measures are largely the growth which generates more employment, so that direct responsibility of the Member States, they the number of jobs created by each percentage none the less require a favourable environment point increase in investment of gross domestic and overall framework, which it is highly desirable product is higher than before. to develop at Community level.

146 Bull. EC 7/8-1985 Luxembourg's Council programme

The Brussels European Council of 29 and 30 transport and telecommunications networks to the March and the Milan European Council pin- needs of a large internal market.'. pointed the main areas for action here: Participation by private capital in the financing of o firstly, the achievement by 1992 of the large such a coordinated programme of major infra- single market referred to in the Commission white structures of European iniportance should also be Paper, encouraged. o secondly, convergence of our economic policies prepared and strengthening of the European Monetary Several reports at your request have System, amply developed these ideas and means of actioh. The Luxembourg Presidency believes that it is o thirdly, development of genuine technological now urgent that positive action be taken on these cooperation on a Community-wide scale. proposals of yours, which the Commission has incorporated in its own work programme. The more dynamic economic development, the easier are the processes of economic and social Such a combination of structural and macroecon- adjustment. That is why I believe that it is now omic policies involving increased Community time to add a dash of dynamism to the orher action is fundamentally different from past econ- ingredients of macroeconomic policies aimed at omic revival programmes which have had short- monetary stability, moderation of production costs lived results and have left us with higher rates of and rationalization of public accounts. Abrupr inflation, without providing a lasting solution to changes are anathema to the economy, the problems of growth and employment.

A more dynamic policy is therefore certainly nor What Europe needs is a real joint, non-inflationary possible without a continuation of wage restraint growth proiect relying on the multiplier effects of for some time to come, hence the importance of Community programmes and conceived as part of the dialogue between both sides of industry and the the vast proiect of European integration. authorities, whether governments or Community rePresentatives. With that in view, speedy development of the large internal market in goods, services, capital and The counterpart to moderation in wage claims labour is vital to the economic dynamic of the which should, however, be proposed is to give a Community, greater boost to demand, thereby avoiding the deflationary trap which inevitably lurks at the end In the longer term the fight against unemploymenr of a long period of austerity. will succeed only if Europe again mobilizes its own growth potential and its pool of resources. If, as predicted, the United States cannot continue to the same extent as in the past year to be the So far the Community has itself slowed down its driving force of world economic revival, the dyna- growth by its own lack of achievement. mism necessary for growth in Europe must come from Europe itself.. European integration involves both a very high level of intra-Community trade and a very low V/ithout disregarding the contribution to be made level of integration of economic policy instru- by private and public consumption to a more ments: autonomous revival of the European economies, it interpen- is in the field of investment that there is the clearest o Higb leuel of Community trade need for an element of dynamism. etration. More than half of the Member States' external trade is intra-Community trade. This This means first of all that, in the Member Stares, means that as soon as one Member State achieves present and future margins for manoeuvre even a growth rate appreciably higher than the average where they are narrow must be exploited- to the of its neighbours, it imports more from them and full to reinforce more iob-generating- growth. exports less to them, which soon affects irs trade balance and obliges it to introduce restrictive econ- It also means that the Community as such must omic policies, thereby creating more unemploy- make its own contribution to the dynamic of ment. Because of this high level of trade interpen- growrh. etration which is, moreover, one of the Com- munity's- major achievements each the The expansion of Community borrowing and of Member States is in a position - the Albert Iending mechanisms would make it possible to which and Ball report rightly as finance investment in small and medium-sized describes the 'iimpotence of States" permanently and sensibly to rectify their undertakings, technological innovation and economic growth rates. environmental protection projects. But consideration must also be given to maior infrastructure o Lotu leuel of integration of economic policy investment which would help to adapt European instruments, The Community does not have a

Bull. EC 7/8-1985 147 Luxembourg's Council programme common currency; its common budget, which is have been promised and a timetable for carrying no more than 1% of GDP, is inadequate for the them out in stages has been fixed. counterbalancing role which would be essential; up to now ir has had no common policy fot the The European Council adopted the guidelines future, particularly as regards research and devel- which the Heads of State or Government wish to oPment. dominate the discussions on achieving a single great market by 1992. The challenge is there. A This low level of integration of economic policy considerable effort is required of us all. I can assure instruments is the reason why the Member States you that the Presidency is determined to discharge are forced down the sterile path of deflation. its responsibilities-willingness fully. But we will succeed only Whereas the faster development of California or if the declared at the highest level is Texas favours the expansion of Minnesota or Mas- followed by a commitment by everyone. sachusetts because ihe federation of the United States has a common currency and a powerful A more unified internal market will also lead to federal budget, a Community country is obliged greater monetary convergence and a strengthening to restrict its growth as soon as its expansion of the zone of stability created by the EMS. exceeds the growth of neighbouring countries by- slightly too much and results in an imbalance of Although the present degree of integration of our its external payments. monetaiy policies is very slight, and the objective of true monetary union may seem very far off, I May the representative of the smallest Community consider that our efforts should be directed country here display his natural modesty and towards a continual strengthening of our monetary endorse the conclusion of the two experts cooperation, and first and foremost towards equal appointed by the European Parliament to the effect pariicipation by all Member States in the EMS and thit there is no longer any "go it alone" solution in inciease in the role and more widespread use for any Member State to the problems of economic of the ECU. The Presidency hopes that the current growth. Any solutions must involve them all. discussions on the medium and long-term prospects for the EMS will continue to be productive Twenty-eight years after the Treaty of Rome was ind that they will result in conclusions which can signed, whit should have become a Breat internal be put into operation. economic area is still riddled with barriers and obstacles to free movemenr. The cost of this non- The Presidency will devote particular attention to Europe of barriers and divisions runs into thou- improving the acceptability and negotiability of sandi of millions of ECU. The fragmentation of the ECU and to the conditions of its creation and resources and national protectionism destroys the means which should enable it effectively to initiative, ability and competitiveness. The sol- carry out the functions assigned to it. ution, as has been said over and over again, must be a Community solution or there will be no V/ith regard to technology, Europe as a whole is solution at all. lagging behind its main industrial competitors. A considerable effort in the sphere of development This freedom of movement, in my opinion, should and innovation is necessary at European level. not be limited merely to goods and services' It Such an effort can moreover not be viewed in should also become a tangible reality for our citi- isolation from the completion of the internal mar- ideas which should be rep- zens and a forum for ket which is a precondition for its success. Only a In resented by the free circulation of information. really unified maior market can ensure that scien- giving every European the possibility of access to tific and technological progress is applied on a ihe greatest number of programmes, we will help large industrial scale. to bring Europeans closer together and give them the opportuniiy of deriving maximum profit from Taken in isolation, none of our countries is able to the cultural diversity of our ancient continent. provide the financial means and human resources required by the technological revolution. I there- Strengthening the internal market will create a the Eureka poweiful impetus for the interpenetration of the fore acknowledge the importance of as well as the Lconomies of our Member States and will pull project which France has launched, the them towards greater convergence of our economic proposals submitted by the Commission to vari- policies. The great increase in exchanges of goods, European Council in Milan. The reaction of iervices, persons and ideas will also be a factor of ous major sectors of industry shows to what extent economiC revival and thus of consequent social that project meets a need. The political leaders' progress. meeting to be held in Paris in a few days' time should outline the cooperation structures and pro- The Commission's white paper clearly sets out the cedures which derive the greatest possible benefit full extent of the problem. Proposals for solutions from the Community dimension.

148 Bull. EC 7/8-1985 Luxembourg's Cou ncil programme

On behalf of the Presidency, I should like to thank Other aspects of the Community's energy policy the ad hoc Committee on a People's Europe for its should also be discussed during this six-month work. An impressive number of concrete, construc- period, in particular with regard to new develop- tive proposals have been made which all aim at: ments in the spheres of natural gas, electricity and new and renewable sources of energy. o bringing the Community too often seen as an abstract and even anonymous- entity closer In the sphere of transport, the Council is devoting to its citizens; - its full attention to the judgment given by the Court of last May. The Presidency has o showing that Europe is not confined to the Justice already taken the necessary measures to step up liberalization of movements of goods and services the Council's proceedings. Priority will be given but must become a living cultural, social and edu- to the proposals already submitted or to be submit- cational reality for its citizens, thus creating a real ted the Commission concerning freedom to feeling of belonging to a great community. by provide services, in particular in the various The Presidency considers that the most effective spheres of international and national carriage of line of action is to concentrate on rhe proposals goods and passengers. already submitted to the Council concerning the At the same time, efforts will continue to be made reduction of regulations and practices and a num- in the. sphere of inland, inland. waterway,.air and ber of new aspects which must be put into effect maritime transport in order to implement the com- as matter priority. regard to matters a of With mon transport policy which is essential for the which fall within the Community's sphere of com- harmonious operation of a vast internal market, petence or for which responsibility is shared with the Member States, the Presidency expects the The protection of the environment has become a Commission to submit proposals in line with the major cause of concern. We can no longer con- wishes of the European Council. Five of the Mem- tinue, as in the past, to destroy with impunity ber States - and I welcome the fact that Luxem- the delicate ecological balance upon which our bourg is one of them - have already taken con- existence depends, There is now awareness of this crete steps to open up their frontiers. What five problem and considerable efforts have been made Member States have been able to achieve can be over the last few months to combat air pollution achieved by 10 now and 12 in the near future. effectively, especially that caused by motor vehicles. As you know, these efforts have been At the internal level, the iron and steel industry is widely successful. Agreement was reached between certainly one of the sectors which has undergone nine delegations scarcely two weeks ago concern- the most serious socio-economic problems over ing the setting of European standards for the emis- the last few years. The Community has had to sion of noxious gases by cars. introduce an aid code, a system of production and supply quotas and a pricing system. These We expect to give form to this political agreement measures expire on 31 December 1985. In view of before the summer recess. To be sure, some people this time limit, the Presidency will endeavour, on may feel-and I understand them-that greater the basis of the proposals submitted by the Com- and mo_re rapid progress could have been made. mission, to carry out the task which is incumbent But it rfrust not be forgotten that the compromise upon it up to the end of the year. I believe that which was achieved with difficulty has enabled us the European iron and steel industry must be to maintain the unity of the internal market at the enabled to complete its restructuring under orderly same time. market conditions, The Community's action cannot stop here. The In the field of energy, the Council has received an Presidency proposes concentrating in future on the important communication from the Commission problem emissions from large-scale combustion .Weof concerning new Community objectives for 1995. plants, will moreover take the necessary action Discussions are already under way within the to put into effect the Commission proposal con- Council and a detailed examination will be concerning forest protection in view of the challenge tinued throughout this six-month period. to the conservation of the environment which is set by the very complex phenomenon of acid rain Community regulation of State aid to the coal and by forest fires. industry will expire at the end of the year and agreement should therefore be reached regarding \With regard to consumer protection, the Com- the principle and nature of a system for the post- mission has just sent the Council a communi- 1985 period. That system will have to provide for cation-soon to be followed by proposals-which the transition which is necessary for maintaining aims, 10 years after the definition of an initial employment in this important basic sector of the strategy, at giving fresh impetus to Community European economy. action in this sphere. The European consumer

Bull. EC 7/8-1985 149 Luxembourg's Council programme must be able to derive full benefit from the scale a new dimension to the network of privileged of a real internal market. It is also along those relations which the Community maintains with its lines that the Luxembourg Presidency intends to partners around the Mediterranean. It must give continue examining the proposals still in abeyance. a real incentive to consolidate and stabilize the cooperation links established while adapting them The common agricultural policy is today dogged to the new circumstances resulting from accession. by an acute imbalance on the markets of most On the basis of the proposals awaited from the agricultural .products. It is faced with a.rapid and Commission, the Presidency will seek to ensure continuing increase in agricultural yields, while that the future Mediterranean policy of the Com- consumption is stagnating. And it has to contend munity of Twelve meets these demands. It is in with burgeoning expenditure on market sup- this spirit that the negotiations for adapting the port-a consequence of the imbalance which is various Mediterranean agreements must be becoming more and more incompatible with approached. budgetary discipline. o Secondly, the establishment of more structured Discussions have begun, and a wide-ranging relations with Central and Latin America. I shall debate is imminent on the medium and long-term have occasion to return to this subject in the sec- prospects for the CAP and the adjustments it will tion of my speech devoted to political cooperation. require, allowing also for accession. o The consolidation of our relations with the The objective must continue to be the develop- Asean countries, where the political dialogue is ment, through the gradual re-balancing of the agri- now regularly and permanently established. Rep- cultural markets, of a healthy and efficient Euro- resentatives of the Troika, at ministerial level, and pcan agriculture while complying with the basic of the Commission will, from tomorrow, be taking principles of the CAP as enshrined in the Treaties. part in Kuala Lumpur in dialogue meetings together with the five Pacific countries. A further The Presidency awaits the Commission's com- step will be taken in economic cooperation with munication with great anticipation. And it intends the meeting-the first of its kind-of the Ministers to do its utmost to achieve progress in the examin- for Economic Affairs of the EEC and Asean in ation of this matter. Bangkok in October. Together they will consider Following the signing of the Accession Treaty the ways and means of further strengthening and Council will also have to adopt measures to intensifying the economic ties between the two implement the transitional arrangements agreed groups of countries. on for various agricultural sectors. o Finally, a review of the framework of multilat- In the social sphere, the Luxembourg Presidency eral trade relations and the development of our is determined to see progress made on all the relations with the two great industrial powers, the initiatives and proposals offering an effective United States and Japan. means of combating the problem of unemploy- The world economic last decade has ment, a scourge of society if ever there was one crisis of the and an issue I mentioned a moment ago. revived the alarming spectre of protectionism with its pernicious concomitant of market isolation and It will endeavour to break the deadlock on certain the drying up of trade flows. Protectionism is a important questions and in particular on the Direc- temptation which threatens to stifle the recovery tive on informing and consulting the employees of of the world economy. It strikes first at the poorest undertakings with complex structures. Indeed, a nations and those which have iust reached the Iarge majority of the Member States believe that threshold of development. It is the quintessential this Directive offers a valuable means of achieving role and duty of the European Economic Com- significant progress on a Community scale. munity to guarantee the maintenance of liberal practices in world trade. The examination of the Directives designed to bring about equal treatment for men and women In this connection, the new round of multilateral (parental leave, occupational social security trade negotiations should be an important stage on schemes, self-employed activities) will be con- the road to strengthening the multilateral trading tinued and if possible concluded. system and the expansion of international trade. essential largest In the context of external relations, four areas in It is that our Community, the particular call for our attention: trading power in the world, should play its natural role here. o First, the overall Mediterranean policy which the Community will seek to formulate and These negotiations should produce balanced implement now that enlargement has been agreed results which serve the interests of all the parties, on. The accession of Spain and Portugal will bring developed and developing countries alike.

1s0 Bull. EC 7/8-1985 Luxembourg's Council programme

Alongside the trade negotiations' concerted initiat- The obiectives of the Dublin Plan have been ives iill have to be takin in the appropriate forums achieved and, given the gravity of the situation to improve the operation of the international mon- and the enormity of the needs, their implemen- etaryiystem andto guarantee the flow of financial tation has so far been satisfactory. and other resources to the developing countries. Unfortunately, a repetition of this disaster cannot In the recent past our trade relations with the be ruled out, and it is essential that the Community United States have been marked by certain tensions and the Member States adopt a Preventive and which have given rise to specific measures' The consistent strategy of also helping the recipient Community ieeply regrets thit .t"t. of affairs and countries to develop greater food security. Con- will endeavour to restore the traditionally friendly crete proposals were put by the Commission to and liberal climate of relations between the two the Euroiean Councif in Milan. The Presidency largest trading powers in the world. It is in no one's intends tb have these examined without delay, intErest to bei6me enmeshed in the machinery of and first of all the prcposal concerning a special unilateral measures at a time when, on both sides reserve allocation. If will also see to it, in collabor- of the Atlantic, efforts are being made to ation with the Commission' that the programming strensthen the structures of GATT and to liberal- provided for in the third Lom6 Convention-the ize w"orld trade in the new round of multilateral ivmbol of the continuity of a model of cooperation negotiations. I trust that our relations with the unique in the world-is carried out as soon as United States will continue in future to evolve in possible. accord with the principles to which we are the first policy questions of a to subscribe. Having looked at external lareely economic nature' I should like now to policy, namely the so- Our relations with Japan continue to be dominated tacile the other facet of this dealt by an ever-growing imbalance. Japan shates with called "foreign policy" maiters which are iti Western partners the responsibility for safe- with in European political cooperation. guarding and strengthening the multilateral trade your patience by detail- iyst.* of which it has been the great beneficiary. I shall not however abuse positions principle taken by the The Community will continue to demand easier ing here the of Ten on all these issues. access to the japanese market, particularly in and processed agricultural manufactured foods This would, indeed, be reminding Parliament of products. great importance to It will also attach positions which are also, in substance, its own. ihe liberalization of Japan's financial markets and to internationalizing the yen. I shall therefore deal with foreign policy questions only in relation to the work we to carry initiative by Com- ProPose You will be aware of the recent out over the next six months' econ. The Council has asked the Commission to investigate its significance. The Council's reaction The imorovement of East'\flest relations, and in will be decided on in the light of the Commission's particular Drogress in disarmament, will of course rePort. Le the Luximbourg Presidency's priority obiective.

As you know, a new dimension was added to our Like the Parliament, the 10 Governments have relations with the EFTA countries by the declar- expressed their full support for the US-Soviet nego- ation adopted in Luxembourg in April 1984. This tiations in Geneva. declaration must now be given practical substance. The Commission has recently informed the They approve in particular the scale and the am- Council of its approach to this mattet, which bitiousniss of the obiectives which the Americans should enable some progress to be made on the and the Soviets have set themselves, i.e. "to work creation of this "dynamic European economic out effective agreements aimed at Preventing an space" which is the aim of the Luxembourg Declar- arms race in space and terminating it on earth, at ation. limiting and reducing nuclear arms and at strengthening strategic stability". In addition, the Community will, in the coming months, have to negotiate with the EFTA countries The second round of these negotiations, which the adaptation of the free trade agreements follow- promise to be long and difficult, will be ending ing theiccession of Spain and Portugal. in the next few diys, probably without having achieved any appreciable progress' In the area of development cooPeration, priority will be given to aid by the Community and the It is up to the Ten to encourag€ the-two Parties MembeiStates to the African countries so severely not to'neglect any oPPortunity for achieving sub- affected by drought, desertification and famine. stantial results.

Bull. EC 7/8-1985 151 Luxembourg's Council programme

Five days ago, rhe sixth session of the Conference which will enable us to work towards improving on Confidence- and Security-building Measures the rights of individuals in the East Eriropean and Disarmament in Europe came to an end, in countries until the day comes, unfortunately plob- Stockholm. ably a long time hence, whin the aurhorities in those countries finally understand that "socialism" The, East European countries have finally begun which has no regard for basic freedoms is to show more interest practical no true in confidence- ind socialism. security-building measures, but at the present stage their proposals are inadequate in content and, in This anniversary will therefore enable us to part, do not comply with the terms of the mandate. reaffirm the value of the work done 10 years ago, to confirm our attachment the -for We hope that these positions will evolve and that to "Charter East-West Relations" which the Final rep- it will then also be possible to reach agreement Acr resents and to emphasize the need for every aspect on the detailed procedures for a renewil of the of that document ro be applied on a parallel commitment not to resort to force or to the threat bisis. of force. We will, moreover, in rhe same spirit, marked both by disappointment In mentioning the Stockholm Conference have and rhe will ro persevere, be I celebrating already broached the subject of the CSCE process the fortieth anniversary of the UN Charter which is of such great imporrance for our Govern- in New York this autumnj all too ofren ments as it is for Parliament, the basic precepts of this document, roo, have been violated, although it is still the essential basis for Another meeting convened in this framework has the peaceful and orderly coexistence of the peoples just ended in Ottawa, namely the meering of of this planet. This will provide us with the-oppor- experts on human rights. turity to draw attention to rhe extreme importince which we attach to respect for human rights This conference gave an opportunity for a frank throughout the world. and open examination of the observance by each of the participaring Srares of its commitments on During the next six months rhe Ten will be pursu- human rights as they result from the Final Act and ing their firm policy of establishing relations which the Madrid closing document. are as constructive as possible not only with the Soviet Union but with each Warsaw Pact country. However, it was unable to fulfil the second parr of its mandate-'to draw up conclusions and rec- In this connecrion, I feel I have to state how ommendations to be put to the Governments of extremely disappointed we feel with developments all the participaring Srates'. Indeed, ir ended wirh- in the situation in Poland, where the last remaining out any closing document being adopted. attainments of rhe period prior ro the declaration 'We of martial law are now being eliminated. The Ten are thus unquestionably faced here wirh a will have to consider the conclusions to be drawn semi-failure which will cast a shadow over the from these negative developmenrs. commemoration of the 10th anniversary of the signing of the Final Act, which place will take - in Before moving on from the field of East-West Helsinki on 30 and 31 July and I August. relations, I would like ro reiterate most strongly that we still demand Some will say, what's the use of celebrating this that the occupation of Af- ghanistan by the Soviet Union and the occupation anniversary since balanced progress on each of the of Cambodia by Vietnam be broughr end components of the CSCE process no longer seems to in to be guaranteed and that an immediare stop be put to inadmissible and the East European countries incursions appear determined not ro honour their commit- into the rerritory of neighbouring countries. ments under the seventh principle of the Final Acr? F,ast, However, I am at one with my colleagues from In the Middle the hope which sprang to life the other countries of the Community,-and with in February, when the Jordano-Paleitinian plar- those of the other Western countries, in believing form for a peaceful and iust settlement ro rhe that we must not miss the Helsinki boat. Israeli-Arab conflict was agreed is still extanr. The CSCE process musr be maintained at all costs. It has led to an impetus regarding which Egypt and the United States have expresse? their inrJieit Even though the results over these last ten years and support. have been extremely disappointing as re[ards human rights, some small progress has been made The Ten, for their parr, feel that every opportunity in the other fields covered by the Final Act. which may arise as a result of rhe Amman declaration should be studied and that no efforr should Lastly, the Final Act, supplemented by rhe Madrid be spa'fd to maintain and intensify the present document, remains a means of exeriing pressure stage of movement in the peace process.

152 Bull. EC 7/8-1985 Luxembourg's Council programme

At the same time they intend to facilitate the tures and extending the economic relations of the opening of a dialogue between all parties to the European Community". conflict. Given an atmosphere marked by a degree of movement in the posiiions, it should in fact be We remain convinced that the peace initiative of possible to expect the region as a whole to show the Contadora Group is the only way towards willingness to encourage and increase such move- peace and greater stability in the region. We shall ment. continue to give our active support to that initiative and its obiectives. With that end in view we shall The qucstion of a forum capable of contributing make every effort to arrange, under the Luxem- to a genuine reconciliation remains open. Could bourg Presidency, a second conference along the not the United Nations, and more specifically the lines of the one held in San Jos6. Security Council, offer all interested parties the possibility of contact and valuable guarantees as In the mean time, the Luxembourg Presidency regards a fair balance? would like to call on the countries of Central America not to wait for the signing of the Conta- Israel's decision to withdraw its army from dora Act before bringing into effect the provisions Lebanon, unfortunately not yet completed, is an of that Act which relate to the observance of essential element in a solution to the internal con- human rights. I am sure that this would have a flict dividing that country. However, other con- profound effect on the political climate in the ditions must be fulfilled before there can be any region and beyond. real question of such a solution, in particular general atceptance of a balanced situation in Lebanon The situation in Africa, the famine, delayed econ- and the opening of a genuine dialogue between the omic development and the great human misery of Lebanese communities. so many of the inhabitants of that continent have prompted an encouraging supportive reaction When will the Lebanese be willing or able to take from many Europeans. As Parliament's debates on stock of the damage and put their heads together measures to combat hunger in Africa have shown, about their common interests with a view to agree- one big effort will not be enough, when the ing on a peaceful future? emaciated faces of the famine victims will haunt us long time to come. The measures taken War is not predestined; nor is it in the conflict for a by the Ten in this context will therefore have to between Iran and Iraq, What, now, is the purpose up, particularly with regard to the of that bitter war? The Ten are seriously concerned be followed about the situation in the Gulf, and will support structural causes of the famine. any attempt to mediate in the conflict, particularly From a strictly political point of view, the spotlight the efforts of the United Nations Secretary-Gen- is still on southern Africa and especially South contacts, the Ten will press eral. In their own Africa. for an honourable negotiated solution which is acceptable to both sides. The Ten regret the negative developments in the region. They condemn all acts which run counter As a result of enlargement and of the declaration as Africa's incursions into on relations with Latin America annexed to the to dialogue, such South countries. They refuse to recognize Accession Treaty, the development of the Com- neighbouring taken by munity's relations with these countries, most of the validity of the unilateral decisions which have considerable economic problems, will South Africa in Namibia. importance. take on increased Within the Europe of the Ten a vigorous move- Our relations with the Central American countries ment of opposition to the policy of apartheid will certainly be in the forefront, as the conflicts rightly coniinues its battle for the recognition of dividing that region are of international signifi- human rights. The European Parliament has dis- cance. The Presidency intends to pursue and cussed the situation in South Africa and has con- enlarge on the talks entered into at the Conference demned the wave of repression and violence which has been flowing through that country for many of San Jos6 in Costa Rica. months now. The Governments of the Ten will, The negotiation of an economic and political coop- as in the past, stand firm in their reiection of eration agreement in good and due form between apartheid ind remain fundamentally opposed to the Community and the countries of Central Amer- that regime. ica should play a part, as Parliament expressly hoped in a resolution passed at its June, part- The question of a review of the code of conduct seslion I quote-"in safeguarding lasting for South African subsidiaries of European firms peace in-and the region, combating poverty, achieving will be discussed among the Ten with a view to human rights, social justice and democratic struc- increasing the scope and effectiveness of the code.

Bull. EC 7/8-1985 153 Luxembourg's Council programme

During the months to come special attention will of urgency the possibility of drawing up stricter also have to be paid to the positions adopted by international standards for security at airports and spokesmen for the black community in order to aboard aircraft. what scale of action by the Ten to combat iudge The have just given apartheid would be appropriate. outline which I of the Luxem- bourg Presidency's programme had to be confined Finally I should like to stress that the Ten are to what I felt was essential, yet it is doubtless still deeply concerned at the resurgence of terrorism open to criticism as an over-lengthy list of diverse and aircraft hiiackings. subjects. No political cause can lustify murders, bomb To hold the Presidency of the Community today attacks, the hifacking of aircraft or the taking of is a task as difficult as it is exciting. This is even hostages. truer for the smallest of the Member States. Lux- embourg's European conviction and commitment We are calling in particular for the immediate and are well known and we shall be taking on the task unconditional release of all the hostages still held which awaits us over the next few months with in Lebanon. enthusiasm and real motivation. The Justice or Interior Ministers meeting in Rome on 20 and 21 June 1985 adopted a series of conclusions which we have noted with satisfaction. The support and drive of the European Parliament will be indispensable to us. Only by working It is now up to the Foreign Ministers, meeting in together and in harmony will we be able to pro- political cooperation and in collaboration with the gress towards a more united, integrated and human other relevant Ministers, to examine as a matter Community.'

154 Bull. EC 7/8-1985