Statement on the broad lines of Commission policy presented by Jacques Delors, President of the Commission, to the European Parliament and reply to the ensuing Parliamentary debate Strasbourg, 17 and 18 January 1989

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--. Commission of the European Communities Bulletin of the European Communities

Supplement 1/89 EN Supplements 1989

1/89 Statement on the broad lines of Commission policy and reply to the ensuing Parlia- mentary debate

2/89 Programme of the Commission for 1989

I Bulletin of the European Communities

Supplement 1/89

Statement on the broad lines of Commission policy

presented by Jacques Delors, President of the Commission, to the European Parliament and reply to the ensuing Parliamentary debate

Strasbourg, 17 and 18 January 1989

EUROPEAN COMMUNITIES

Commission This publication is also available in the following languages:

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Printed in Belgium Contents

Statement on the broad lines of Commission policy 5

Reply by Jacques Delors to the ensuing Parliamentary debate on the broad lines of Commission policy 20

s. l/89

Statement on the broad tions of our contemporaries into new con- structs. The challenge is still there. Although lines of Commission policy economic success is vital, it will not be en- ough to create a large frontier-free market Strasbourg, 17 January 1989 nor, as implied by the Single Act, an econo- mic and social area. It is for us, in advance Mr President, Ladies and Gentlemen, of 1993, to put some flesh on the Communi- ty's bones and, dare I suggest, give it a little Four years ago I came to this House to more soul. present the main thrust of the new Commis- sion's policy. ended my address on that I You will see from this that as regards the occasion by telling you that Europe was spirit that will guide its activities, the ap- faced with three major challenges. The same proach to be followed, and the objectives to is true today. be achieved at all costs, the new Commission has unhesitatingly opted for continuity. We The first of the challenges I mentioned then cannot accept the Community's lack of as- was the challenge of approach. I said that we sertiveness in the international scene. We would have demonstrate we can act to that cannot ignore mounting disorder and injus- Twelve as and not simply mark time, or tice in the world. We are determined that next. muddle through from one day to the Europe will remain faithful to respect for the the end the three-phase revitalization At of individual and all that is best in the Euro- process, the method we adopted has borne pean model of society. The Community as agreement 1992 deadline, fruit with on the such must assume its responsibilities. negotiation of the Single Act reforming and broadening the Treaty of Rome, and the restoration of order to the Community's fin- What, then, is the picture now? Europe is on ances, opening up new opportunities for ac- the move again, our house is in order and on tion. The approach remains valid today. the economic front we are keeping pace with Nothing will distract us from our determina- our major trading partners. Without false tion to make a success of the Single Act. humility or boasting we can say that we are well on the way to achieving the goals that The second challenge I referred to was the we set ourselves. Plainly, Europe is undergo- challenge of influence. The imperative is un- ing profound and far-reaching change. And changed. We still need to demonstrate that the fact that it is proceeding so smoothly the Community speaks with one voice, that should not hide the revolutionary nature of it is an actor rather than a spectator on the the course we have embarked upon. We have contemporary stage. Despite accusations overcome our past weaknesses and are now that it is too inward-looking a sign of the fashioning a different kind of Europe, mov- times the Community is being- taken more ing steadily towards European union, the and more- seriously. There is a queue of ap- ultimate objective, may I remind you, of the plicants at the door seeking membership or Single Act. closer cooperation, even as we are assessing how much remains to be done. We are now half way to 1992 the date has undoubtedly captured the public- imagina- Europe as a partner an expression coined tion and already there is a palpable sense by the Commission - calls for more cohe- of movement- on all fronts, in particular sion, a greater sense- of responsibility, and thanks to and not, as some people more initiative. History is knocking at our thought, in spite- of the addition of Spain door. Are we going to pretend that we can- and Portugal. Through- excellent preparation not hear? prior to joining the Community, these two countries have been able to play their full The third challenge I mentioned four years part from the outset. And they have brought ago was the challenge of civilization. I said with them a youthful energy and enthusiasm then that we needed to reaffirm our values for the task, as new recruits so often do. The and fuse the sometimes contradictory aspira- Spanish Presidency, I am sure, will once s. l/89 again show the value and vigour of this in- enhancing the European Monetary System jection of new blood. and demonstrating its twofold importance as a powerful incentive for convergence I do not propose to bore you with an exhaus- between our economies and as an island of tive catalogue of the work done over the past relative stability in a monetary environment four years. Nor do I propose to give you still dominated by unpredictable forces and details of our programme for 1989 I will uncontrollable fluctuations. do that next month. But I cannot ignore- the fact that, at the half-way stage, decisions Besides free movement of goods, services have already been taken on practically half and capital, there remains the fourth free- the measures need to create the single Euro- dom laid down in the Treaty of Rome: the pean market; and the route for the re- free movement of persons. The directive on mainder has been clearly mapped out. Bu- the mutual recognition of diplomas will sinessmen and industrialists know that there eventually ensure that holders will be able to will be no surprises; the way ahead is clear. exercise their profession anywhere in the That is probably why they appear keener Community. This, surely, is a clear sign of than the politicians. It is difficult to exagger- Europe's changing economic and social di- ate the value of the 1992 framework and mension. Hence too the need, which I dis- programme as a means of mitigating uncer- cussed with both sides of industry on Thurs- tainty and bolstering decision-makers' stra- day last, to step up preparations for a Euro- tegies in our unpredictable world. pean labour market.

Let us look first at the single, frontier-free The impetus of change has caught on in market. Apart from consistency in decision- every sphere of Community activity. There making, what is most striking is the qualita- will be a single market for everything from tive change: there has been an immense leap transport to energy to spin-off products forward, with the harmonization of techni- from scientific advances. The result, already cal regulations and standards, simple mutual percolating through, will be a wider choice recognition sometimes taking its place. Sub- for consumers. Another sign of progress is stantial progress has been made on many the way the steel industry, after six years of fronts. tight regulation, has emerged from the trauma into which it was plunged by its Although they account for a large propor- worst structural crisis since the founding of tion of economic activity in the Community, the European Coal and Steel Comunity. public contracts are all too often confined to national bidders. Tendering will become But as I have often said in recent months more open under our directives. you- cannot fall in love with the single -market. Fernand Braudel, a lucid observer It is also clear that we have said goodbye to of the moves towards integration in the early the days when it took 18 years to adopt a 1960s, was thinking of the same thing when directive on architects, or 16 years for an- he said: 'It would be mistaking human na- other on pharmacists. ture to serve up nothing but clever sums; they look so pallid beside the heady, though All the measures required for the liberaliza- not always mindless, enthusiasm which has tion of capital movements have been adopt- mobilized Europe in the past. Can a Euro- ed, thus ensuring that a genuine European pean consciousness be built purely on fig- financial services market can be created; this ures? Or is that not precisely what figures is vital to ensure the competitiveness of our may fail to capture, what may develop in economies and secure the finance they re- ways that cannot be calculated?' quire. And it also ties in neatly with the need, which we must not lose sight of, to That is why I am constantly stressing the bring our tax systems closer into line and to need not only for a frontier-free area but improve monetary cooperation. Steps have also for the flanking policies which will open already been taken in this direction - in up new horizons for the men and women Palermo in 1985 and in Nyborg in 1987 - who make up this Community of ours. To 6 s. l/89 put it succinctly, the Single Act but all the reopened at European level, despite the risks Single Act. and pitfalls involved. Employers and workers debated and delivered joint opin- It is obvious that we must advance on all ions whose importance should not be under- fronts. estimated. On 12 January of last year, by which time some people had come to believe, Europe will never be built if working men perhaps rightly, that neither side was really and women white-collar workers, man- listening to the other, the leaders of Euro- agers, farmers,- industrialists, professional pean and national employers' organizations people are not among the first to be and trade unions gave fresh, realistic and involved.- concrete momentum to the social dialogue. The Commission will do everything it can to foster these practi- Europe will never be built if, with such a talks and make sure that potentially powerful instrument for forging cal conclusions permeate industrial relations closer cultural links as television, we aban- at.national and regional level, in specific don the field to others be it the Americans industries and in individual firms, in a sort or the Japanese. - of two-way flow. In this way everybody can make a contribution to a revitalized Europe. Europe will never be built if we all continue, Solidarity must also be in evidence in rela- in piecemeal fashion, to conduct the re- tions between the various regions and other search which is the basis for our prosperity and our hope for the future. local authorities. Parliament has often made this point. Each of them must be allowed to try its luck and make the most of its compar- Europe will never be we our built if allow ative advantage, its human, natural and countryside to be despoiled and our environ- technical resources. This is why I attach so ment to be laid waste. much importance to implementation of the new common policies proposed by the Com- young Europe will never be built if people do mission in its paper entitled 'Making a suc- not see it as a collective undertaking that will cess of the Single Act', adopted by the Euro- shape their future. pean Council in February of last year. This too presents a genuine challenge to the way On the social front, I gave a personal com- we think and act. Success will not depend mitment last year which has been and will solely on the Commission's dynamism and continue to be honoured. The Commission know-how. Far from it! Success will depend has already started work on a charter of on each region's potential for innovation. fundamental social rights to give concrete Success will only be possible if national bur- form and life to the European model of eaucracies accept that they cannot keep tabs society. To make sure that the various tradi- on everything and stop thinking solely in tions and susceptibilities in this Community terms of financial transfers. The Commis- of ours are respected, the Commission has sion for its part will take steps to encourage proposed a choice between three forms of and coordinate such initiatives and inter-re- worker participation as a preliminary to gional cooperation. It will also promote the drawing up the European company statute, major European infrastructure network that something which the vast majority of indus- will make it possible to travel and trade trialists regard as essential. It has also drawn quickly and cheaply throughout Europe. up texts to give effect to the provisions of Article I l8a on the harmonization of condi- Solidarity also finds expression in the inter- tions in relation to health and safety at dependence of all types of business activity. work. You will agree that there is plenty of This is borne out by the distribution of port- scope for action and hard work here in the folios within the new Commission. From years ahead. large corporations to small businesses and cooperatives, from the production of goods As early as January 1985, I personally took a and services to their distribution, the Com- hand in efforts to get the social dialogue mission is taking steps to help. s. t/89 At a time of profound change, research and couraging it is to see, as I have, the enthu- education are the sinews of economic war. siasm of students, teachers and businessmen who, as a result of the exchange schemes, This is why we adopted the first framework have become active campaigners for a fifth programme for research and development freedom, perhaps the most important free- for 1987-91 based on the Single Act. We had dom of all, the freedom to exchange ideas to fight tooth and nail for the funding, al- and experience. though we still think it will not be enough to allow us to meet all the challenges. In its We are making less progress than I would wake, a number of specific programmes have wished on the environment. I will re- have been proposed and adopted for infor- turn to this later. For now I will just mention mation technology, for telecommunications, the decisions that have been taken to combat for the introduction of more advanced pro- pollution, whether this involves the intro- cesses into what are described as the tradi- duction of clean engines or the development tional industries. Many other programmes of standards for large incineration plants. demonstrate the Community's desire to im- This demonstrates that there is no conflict prove the exploitation of new discoveries in between the single market and the environ- Europe. I would like to stress the multiply- ment, on the contrary, that they go hand in ing effect of these progammes, their creative hand. aspects and the pioneering role they play. The member of my team responsible for this Since Europe must serve all its members, its portfolio intends to diversify our responses policy must based on consistency, cohesion to the needs arising from innovation and and solidarity. Consistency, because there is increased competition. You will have an op- a determination to make simultaneous pro- portunity of debating these matters in the gress on all fronts, to deregulate and har- course of the year. monize, in areas as varied as takeover bids, insurance, and banking. Cohesion, because In the interests of competitiveness and the the Community is not content to be a mere preservation of Europe's cultural identity, free trade area backed by occasional finan- the Community does not intend to allow the cial transfers: it has ambitions to become an Japanese to monopolize audiovisual techno- organized area, our economic and social logy or the Americans to monopolize pro- area. Solidarity, because the doubling of the grammes. The Commission has therefore structural Funds, the programming and con- proposed action on three aspects of the centration of assistance, will enable the problem: the organization of a European Member States as a group to help those audiovisual area, the application of the most countries which need to make major adjust- advanced technologies and high-definition ments. And I would like to stress that I am television in particular, and the promotion also thinking of remote areas for which the of audiovisual productions, backed modest- Commission has proposed specific mea- ly but effectively by the Media programme. sures. The audiovisual Eureka programme, pro- posed by President Mitterrand, will give I am proud to say that the Commission has Europe's artistic and creative community the honoured its undertaking the Brussels opportunities they need if they are to enrich European Council is our witness- to put its our cultural heritage. house in order. Let me quote -you a few examples. Reform of the common agricul- Our first steps in the field of education, tural policy is well in hand. You only have to backed by Parliament, have proved promis- look at our reduced stocks of grain or butter ing, as demonstrated by the genuine success the result of an active disposal pro- of our youth exchanges, thanks to coopera- gramme- to see that. As you know, the tion between universities and firms under the purpose of- the reform was to allow the mar- Comett programme and inter-university ex- ket to guide production, and to alleviate the changes under the Erasmus programme. consequences for vulnerable farmers by in- What better guarantee could there be of this troducing specific measures. Reform is the newly emerging European osmosis? How en- only way of offering a long-term future to

E s. l/89 our farmers, the pillars of 'green Europe'. tober 1987 crash, economists were at pains Reform is the only way of ensuring that to explain how we could end up with a farmers do not desert the countryside and worldwide recession. I would like to make guaranteeing - the Commission will see to the point that the economists were not this - development of the family farm in wrong, as many have claimed; it is just that the spirit of the Treaty of Rome. Reform they were listened to for once. A monetary will make a vital contribution to the new policy designed to cushion the shocks caused frontier for which I have been pleading con- by the crash, stabilization of the dollar at a stantly - redevelopment of our rural areas, time when some people wanted to see it re- a pledge of our willingness to combat the sume its decline, an improvement in the flight from the land and preserve the balance terms of trade as a result of the fall in oil between town and country. prices - all these factors combine to fuel the machinery of the world economy and to sus- But reform only makes sense if there is also tain growth. budgetary discipline. The rules are being, and will be, adhered to. We have committed However, there are no grounds for eu- ourselves to this in an interinstitutional phoria. We must remain vigilant and on our agreement. Adoption of the 1989 budget on guard. You know that there are many fac- time and without fuss is the best demonstra- tors which could threaten expansion. This is tion of what has been achieved in the eyes of another reason why the Community - using those who, year after year, saw the Com- its combined strength - is prepared to munity locked in futile confrontation. The shoulder its share of responsibility in creat- fact that our house is now in order means ing a world economic order which is more that the Community is back under orderly stable, more effective and more equitable. It management, that there is no more laxity or is therefore a message of hope that the Com- inconsistency. mission and the Council too is bringing today. - - This movement, this discipline, are enabling But to stay with Europe, do you think that a the Community to keep pace with the econo- Community lacking in self-confidence, nar- mies its major trading partners. Its of row in its outlook, and bogged down in growth rate in 1988 was the highest for 12 disputes as yesterday's Community was years; its investment performance better - would have been able to seize the oppor- than at any time in the last 2l years. Some - tunities which arose? Do you think it right to 1.6 million jobs were created, compared ignore the structural aspects of this spectacu- with the million jobs lost in 1982. In particu- lar recovery, when they in fact largely ex- lar, the youth employment situation, which plain why inflation is under control in most in the past had caused us grave concern, European countries in a year rapid showed a relative improvement for the third of growth? I know this, because most of the year running in most Member States. am I businessmen I meet tell me that prospect not trying to tell you that the problem the of of 1992 has acted as a spur to investment. unemployment has been solved those who We can also see to what extent this new- claim this are all too often forced- to eat their found confidence can change the attitudes words. But in these figures I can see a glim- and expectations of business. And since all mer of hope for a solution to the most dis- this has benefited from the sounder base turbing problem facing our society, encour- formed by a structural decline in inflation, agement to continue in the same direction. less rigidity, partially regained competitive- ness and greater transparency, our Europe, The sceptics and I meet plenty of them about to give birth to the single market, has will see this -improvement as no more - than been able to take full advantage of the pre- the effect of the favourable developments in vailing trends in the international economy, the economic situation worldwide. And is it after some of its members seemed cast for a fact that the major industrialized nations ever in the role of economic sluggard. are doing better than at any time since the early 1970s. For some this is all the more I have spoken at some length about the econ- surprising since, in the aftermath of the Oc- omic situation because any reference to the s. l/89 social dimension is bound to raise the prob- vinced of the need to improve the decision- lem of unemployment. We are accused of making procedure, but some had dreams of selling dreams with 1992, but in fact part of a major reform. This never came about, but the dream is coming true already. There has the extension of qualified-majority voting been progress on employment. has made our task considerably easier. Am I being unduly optimistic? I think not. I, for my part, cannot but welcome the deci- Now at last, we can say that Europe is work- sion taken then to increase Parliament's in- ing. Of course, I cannot deny that there are volvement in the decision-making process. difficulties ahead of us. They are both poli- Those who predicted that this would slow cal and technical, and involve immigration down our work have been proved wrong, as policies, taxation of savings, the conver- the Commission can testify. Over the last gence of rates of indirect taxes, and arrange- four years, Parliament has played a very ments for cooperation on drugs, crime and positive role, as we expected it to. A note of terrorism. Solutions must be found if physi- caution, however: no imbalance should be cal frontiers are to be abolished once and for allowed to develop between your Assembly all. But the difficulties are also psychologi- and the national parliaments. I would stress cal, and that is the major difference between once again how important it is for national 1985 and today. Because, believe me, now parliaments to be increasingly involved in that the demands of the Single Act have our work. I think it is for you, Members of really struck home, resistance is growing in the European Parliament, to step up your every Member State. approaches to your counterparts at home. That, no doubt, is why some people scoff at While Parliament has played its role in the our success and point only to the problems, cooperation procedure to the full, it is im- in an attempt to be different and avoid shar- possible to gloss over the delays in the Coun- ing in the satisfaction of seeing Europe come cil and the age-old problems which hamper into its own again. We all know these be- the progress of our common project. As grudgers. But we, for our part, have never Lord Cockfield recalled in his mid-term re- denied that the single market would require view: 'Although there are four years left considerable efforts on the part of the before 3l December 1992, Member States Member States to adjust to competing in must be given time to incorporate Commun- what will be a worldwide market. But, by ity measures into national law... . Effective- reference to the concessions that, unfor- ly this mean that the Council must complete tunately, is the word used - which each most of its work in the next two years. That country will have to make in- order to over- in turn will require a considerable accelera- come these difficulties, can anyone reasona- tion in its striking rate.' May I say in passing bly contend that in economic and social that there is one area agriculture where terms the disadvantages will outweigh the the Council's attitude- has been particularly- advantages accruing from implementation disturbing over the last two or three months. of the Single Act? We know the historical reasons, but we can- not help wondering why agricultural ques- I am tempted therefore to echo the celebrat- tions are not dealt with by the same proce- ed remark of a French politician who de- dures and with the same rigour as matters clared that at long last the problems were which are filtered by Coreper. starting, as I am confident that the solutions to our problems will reveal that European Has the Community met the challenge of union is more of a reality than it might influence? Has it recovered the capacity to appear. act, rather than react to events? The mount- ing 'Fortress Europe' campaign in the Unit- Could this step forward have been taken ed States and Japan would seem to suggest without an increase in the effectiveness of that it has. This accusation is unfounded, our institutions? I doubt it. I can still re- but is evidence of our renewed dynamism. member the institutional debate in this House prior to adoption of the Single Act. I say unfounded because, economically All of us, yourselves and myself, were con- speaking, it would be absurd for the largest

10 s. t/89 exporter in the world to close its frontiers to Let us speak frankly since we are among foreign products. Community trade repre- friends. It is not to my mind in the sents 2090 of world trade (3890 if intra- present climate that- the United States- and Community trade is included) as against Europe, the world's largest agricultural pro- l59o for the United States and 90/o for Ja- ducers, will reach agreement and so stop pan. Looking at these figures it is obvious, disrupting world markets in an all-out war surely, that Europe would be the first victim of escalating subsidies. The present climate of mounting protectionism, particularly is not conducive to a fruitful relationship, since the Community is more dependent the only relationship worthy of the deep than its partners on international trade for friendship between our nations. It is not too disposing of its output. late to return to the atmosphere of mutual understanding which has so often marked If this commonsense argument is not en- relations between the United States and Eur- ough, the Community could point to the ope in the past. Europe is prepared to go efforts it has made in recent years on the along this road on condition that Europeans vexed issue of farm subsidies. You are all are respected. Because we have a shared des- aware of our dispute with the United States tiny as members of the free world, because it in the Uruguay Round. But who has right on is in our common interest, I trust that before their side? Those like ourselves who long we will be able to resume our coopera- actually reform agricultural- policy -in line tion, in all areas, with a different attitude with international recommendations and re- and different methods. duce subsidies by 2090, or those who voice lofty ambitions for the future, but continue And let us not forget our other major day after day with a policy directed towards partner. We intend to pursue our efforts to confrontation on world markets? I ask you strengthen commercial, financial and, I again: who has right on their side? hope, cultural relations with Japan. Let there be no doubt, there is still a great deal Because Europe is demonstrating a new- to be done. found vitality, because envious eyes are being cast on a market of 320 million people To come back to Europe in its broadest with a high standard of living, there are sense, our relations with the EFTA countries those who have no compunction about ac- at both multilateral and bilateral level need cusing us of digging moats and building to be highlighted. Some real progress has drawbridges. Let us not be taken in by this. been made. But has it been fast enough? I will have something to say on this later. Our accusers are those who would like to see an open Europe with no common policy, no The Community's new attractiveness can reactions, no political will. Our accusers are also be seen in the historic breakthrough in those who, within their own walls, enact East-West relations over the last four years, protectionist trade laws or devise ways of with the establishment of diplomatic rela- slowing down the first tentative moves tions with the Soviet Union and five other towards market liberalization. We would say countries, the parallel opening of official this to them: the single market will be open, relations with Comecon, and the conclusion but it will not be given away. Europe will be of trade agreements with Hungary and firm and it has already shown that it can Czechoslovakia. be -in the event of unfair trade practices. Europe- will continue to refer disputes to All in all the Community's neighbours are GATT. Europe will react in a determined showing increasing interest. This is to be manner to unlawful, discriminatory action welcomed and Europe must begin to develop by non-member countries. In short, Europe what might be termed 'flexible proximity will not be intimidated but will continue, as policies' tailored to a wide variety of situa- it has since the beginning of the Uruguay tions, even extending to the countries of Round, to maintain an open, constructive North Africa. I would remind you that one attitude as a means of contributing to the of those countries, Morocco, has shown par- vital expansion of multilateral trade. ticular interest in the Community. We must s. l/89 11 not lose sight of this, even though Morocco territory. It is well aware of the limits of its by its own admission is at present powers, even though it does play a full part mainly- preoccupied with discussions- with its in political cooperation meetings. But the close partners with a view to the formation Community's destiny is indivisible. A strong of a greater Maghreb. We are watching these Europe must be our obsession. This being so discussions with keen and friendly interest I feel bound to say that if the gap between because we cooperate closely with Algeria, progress on the economic front and the hesi- Morocco and Tunisia under bilateral agree- tations of political cooperation widens ments. further it will unfortunately lead to a wea- kening of our dynamism and our will. For it But I do not want to paint too idyllic a is increasingly difficult to separate econo- picture by confining my remarks to econo- mics from politics. It should also be remem- mics and trade. The Community may well be bered that the Twelve solemnly affirmed in attracting interest, but I wonder sometimes the preamble to the Single Act that they were if it displays refound dignity in all circum- prepared to create a European union: that stances. At the Rhodes European Council, I means one for 12 and 12 for one. expressed my personal regret that polical cooperation was making less headway than As I see it these comments on Europe's hesi- economic cooperation and that the Twelve tant approach apply to external relations were reluctant to agree on common positions across the board. Its role in world trade or to take joint initiatives in the East-West apart, Europe wants to be a truly loyal dialogue. partner, but vigilant and ambitious, anxious to build a fairer, more effective economic I was told that the countries of Europe are order. present and active in the CSCE conference in Vienna. I need hardly say that we are all Helping to create a fairer order means reviv- delighted that the process started in Helsinki ing the North-South Dialogue which has in 1975 by 35 countries is continuing. been in abeyance because the crisis, the sud- den accession to wealth of a number of oil- The agreements reached in Vienna will open producing countries, and the emergence of up new prospects for balanced disarmament, newly industrialized countries generated a broader economic, scientific and cultural feeling the world order was about to change. cooperation and the elimination of certain But, as you well know, this is far from true obstacles to effective enjoyment of human for one part of the world. The spectre of a rights. The Community as such is involved major financial crisis has, admittedly, faded. in this and must take the opportunity to But at a cost to the indebted countries, un- express its views more forcefully. dermining democratic systems which are so- metimes fragile because they are new. The But let me ask the question: Are the people response to indebtedness cannot be confined of Europe really aware that relations to what is termed structural adjustment between the big powers are of immediate democracy has too much to lose! - concern to them? It is, after all, their terri- tory that houses formidable military arsen- Let us look at the figures: adjustment led to als. It is their territory that may tomorrow a steady fall of 2t/o ayear in the standard of be the theatre of a nuclear confrontation, living of middle-income countries between and even if this dreadful possibility is ruled 1980 and 1988, with another half a point in out, there are still those who can play on 1988. In sub-Saharan Africa, per capita in- people's fears. come is now 2590 lower than it was in the 1970s. That is why I persist in thinking that the Twelve must take a more united and imagin- And has all this led to an increase in the ative stand in political cooperation. growth potential of indebted countries? The answer is no, I am afraid, because a short- These comments of mine do not mean that sighted adjustment policy means that alth- the Commission is straying into forbidden ough we sometimes effect cures, the general t2 s. r/89 state of the patient is often so weakened that Being a partner in a fairer, more effective any further progress is out of the question. world economic order also means doing so- mething about the environment. It is true that there have been some improve- This is surely one of the concerns that we ments in recent times. Guidelines for the can share with the 'other Europeans'. From poorest were agreed Toronto countries at the Chernobyl to the Danube they know that Summit and let me say passing how in there is a price to be paid for neglecting or good it was- to see Europeans voting together interfering with nature. You know what is at on this. Then the market itself began to stake. It is the day-to-day relationship allow debt reduction techniques. between man and his environment, between society and nature. Europe is in the front Nevertheless, in a year of strong growth like line of the worldwide campaign for conser- 1988, with international trade expanding vation of the environment. steadily, the financial transfer from the poor countries to the rich countries was USD 40 There are two reasons for this. In the first billion, coming on top of the USD 100 bil- place, because it is rich and is already coping lion transferred in the previous four years. with scientific progress which is constantly changing the framework of our lives. Alth- ough our countries are unfortunately We know what the solution is: a combina- no longer alone in experiencing- industrial- tion of a structural effort by the indebted pollution, they were the first to pay the price countries, an increase in private financing of acid rain and degradation of natural re- and greater access to our markets, to the serves of drinking water, the price of agricul- markets of the industrialized world. tural and industrial efficiency pushed to the limit by a mania for productivity. Should the Community, can the Commun- ity, make a contribution? It should and it Secondly, because the very history of its de- can. It should, because democracy and the velopment has been marked for centuries by social balance are under threat, and that a special balance between society and na- affects all Europeans and as the President ture. Since the Middle Ages Europe's popu- of the Council said this morning- our rela- lation has always spread out to fill the coun- tions with Central and South America.- It tryside. With a population of 320 million on can, because the trade link in the finance- a territory of more than two million square trade-currency chain is partly in its hands. It kilometres, Europe is unique today because is as a trade partner, capable of giving but of its population balance and the progressi- also of seeking and winning concessions, veness of its urban hierarchies. We should that the Community can take steps which not forget that this peculiarity has had a would make it possible, by importing more, profound effect on the situation of the fami- to stimulate the potential of these countries. ly, on attitudes to economic and social or- This would alleviate their financial burden ganization, on the place and structure of and create a margin for manoeuvre to pre- towns, and on rural society. This, with all pare for the future with adequate investment due respect, is what makes the European programmes. By setting an example, the personality so special. This is why we must Community could encourage a new ap- preserve it. proach which would make it possible to re- concile restoration of order in the short term And it is this balance which is under threat with development in the medium term. by the flight from the land in many countries and the growing planning and management problems of our large cities. It will have an opportunity of putting for- ward its ideas in the context of the Lom6 IV Faced with this challenge, what can we do? negotiations with the African, caribbean and Pacific countries and in the dialogue, As a first step we could admit that the Com- which augurs well, with the countries of munity has not learned from experience, Central and South America. that it has not mobilized all its resources. s.1/89 13 Next I am tempted to say first we whether public or private, to give us a could -apply the principles defined in the- Sin- network responsible for measurement, veri- gle Act which has given the Community jur- fication, certification, information and isdiction in this area. Let me list them, they sounding the alert. Our neighbours would make good sense: obviously be free to join in the venture and the system could even be linked with world Prevention must take priority over cure; the systems or networks in due course. cost of clearing up must be borne by the people responsible for creating the nuisance, Introduction of this network follows directly or, to use the catchphrase, the pollutor pays; on from the Brundtland report, from which and lastly, the environment must be a vital many lessons have yet to be drawn. In a first component of the Community's other poli- phase, the Commission will take more deter- cies. mined action than in the past in four specific areas: the ozone layer, the greenhouse ef- These principles, though, have to be brought fect, toxic waste and tropical forests. The to life. Things are moving here too atti- Commission will propose and support the tudes are gradually changing. It is reassuring- necessary initiatives within the appropriate that respect for the environment is no longer international agencies. seen as an obstacle to competitiveness but sometimes as an asset. Research into alterna- Europe must clearly give a lead in this cam- tive technologies has demonstrated the econ- paign. But it cannot play its full part until it omic profitability and the positive effects on musters its forces, until public opinion, still employment of protecting the natural world. sharply divided, moves towards a consensus on this major challenge. This is why I see a The Single Act has given the Community need for a massive information campaign, two important legislative levers: the new for discussion of the environment in the Article l30r gives it power to act whenever a classroom. Our young people must prepare rule has to be drawn up with a direct effect themselves for the task of husbanding the on the management of the natural heritage, immense resources of nature, which is at while the new Article l00a allows it to strive once hospitable and dangerous, generous for high environmental standards in all areas and greedy. linked with the single market. Let me say once again that, at home and These powers place Europe in a strong posi- abroad, consistency, cohesion and solidarity tion to target and coordinate those policies must dictate action by Europe as a partner. which have a direct impact on the quality of natural resources and action could be With one Commission having just completed even more effective,- of course, if decisions its term of office and handed over to another here could be taken by qualified majority, as to finish the job it had started, Europe ob- in other areas. I have given responsibility for viously cannot imagine that time will stand this ambitious programme to an enthusias- still. Any opportunities which arise must be tic, competent member of my team whose seized and challenges met head-on. Because sole responsibility will be that portfolio. history will not wait. It sometimes comes And what a portfolio it is, when you con- and disturbs you when you are trying to sider the international implications of any concentrate on the work in hand, in this case environment policy. weaving together the threads of the Single Act. We can already sketch out a number of lines of action. The Commission will propose the I would like to talk to you about two of the introduction of a European system of envi- opportunities to be seized: the chance to ronmental measurement and verification make progress on a people's Europe and to which could be the precursor of a European establish economic and monetary union. environment agency. The object of the exer- cise will be to create and then establish links You are no doubt well aware that next between regional and national systems, June's elections to the European Parliament

t4 s. l/89 represent an exceptional opportunity for I think not. First because, as you are proving both our institutions. The Commission takes every day, Parliament's real influence in a very keen interest indeed in these elections, decision-making already goes far beyond its which will give the citizens of the 12 Member theoretical powers, and secondly because, as States a chance to participate more fully in everyone is aware, Parliament is the institu- the debate and give a clear demonstration of tion of the future. I am convinced that, just their dual allegiance, to their native country as the Single Act introduced the cooperation and to Europe. procedure, a new development will take place in the common policies which will re- The Commission's policy for recovery has sult in increased power for your Assembly. undeniably given priority to people at work Indeed Chancellor Kohl expressed this view rather than individual citizens. But, though quite clearly at the Rhodes European Coun- their real turn will come when frontiers are cil. removed, private citizens have not been en- tirely neglected: the increase in tax-free This brings me very naturally to what lies allowances, the impending elimination of the beyond the Single Act: the second opportun- last remaining exchange controls, the elimin- ity which we must seize is the establishment ation of double taxation as regards VAT, the of economic and monetary union. granting of equal social rights in the country of residence, the steady progress made I know that this House is already convinced towards the mutual recognition of profes- that the Community will not reap all the sional qualifications, all of these provide benefits of the Single Act unless, at the same tangible proof that the Community is not a time, the Member States improve coopera- technocratic machine, but a human venture. tion on macroeconomic and monetary po- They are the proof as yet modest that licy. The study carried out under the gui- the Community is also- I am tempted- to dance of Mr Cecchini provides convincing say above all designed- to serve men and proof of this, particularly as regards the women at work- and in their private lives. I prospects for job creation: two million with- am referring in particular to the proposal we out common policies, five million with com- made, at your request, on the granting of mon policies. voting rights for all Community non-nation- This was why, as long ago as 1985, the Com- als in local elections, and to town twinning, mission made proposals on which you recently passed a unanimous for strengthening resolution. the European Monetary System and intro- ducing a cooperative growth strategy. Some The debate in the run-up to the June elec- steps were taken on the monetary front, but tions, which I hope will cover a wide range the Commission failed to persuade govern- of topics, offers an unparalleled opportunity ments of the relevance of its proposals on of demonstrating to the people of Europe macroeconomic policy. The economic situa- that the European venture concerns them tion has undoubtedly improved, but I can individually. That is your responsibility as assure you that the Twelve have still a great their elected representatives. You can count deal to gain from pooling their potential to on the Commission's support. create growth and jobs. But the elections also raise the question of Our proposals, therefore, are still valid to- Parliament's powers. It is impossible to day, and will be updated in the light of overlook the paradox inherent in electing a developments in the international situation. Parliament which, despite the amending Once capital movements are liberalized on I powers conferred on it by the Single Act to July 1990, steps should be taken to increase extend its previous, purely advisory role, still cooperation, if the Community is to take full has no real decision-making power except in advantage of the common financial area relation to the budget and to new association which will have been created. This will ena- agreements and enlargements. Is there not a ble us to put the savings of individual Euro- risk that the people will not turn out at peans to the best use, to attract capital from elections in which they cannot see any clear outside and to enhance the position of our relevance? financial markets. s. l/89 15 It is essential, then, that economic and mon- already looming. We need to begin thinking etary cooperation be stepped up on I July about the years beyond. 1990. But is this enough? Not according to the Hanover European Council, which de- We must set our sights on two goals: provid- cided to examine, in Madrid next June, ways ing the Community with the dimension and means of moving on to economic and needed to tackle the problems of education, monetary union. culture and society, and finding a response to the call from the 'other Europeans'. Let there be no mistake: this will be a quan- tum leap on two counts. Economic and The first challenge reflects a recurrent ques- monetary opens new possibilities union up tion: is Europe still capable of outstanding for economic prosperity and job creation, in achievement, how can we reanimate the addition those to arising from implementa- forces which gave birth to European civiliza- Single and tion of the Act. But economic tion and revive its humanist inspiration? The monetary union can be achieved by only answer clearly lies in the three areas of edu- means a further of change within the institu- cation, culture and society. tions to set up a European central banking system and a framework to enhance the con- sistency and effectiveness of national econo- Education and training will inevitably oc- mic policies. cupy a central place in our common policies in the future. For centuries men's lives fol- The ad ftoc committee set up by the Euro- lowed the rhythm of the seasons, repeating patterns, pean Council will be submitting its report by the same with traditions handed generation the appointed deadline. This will allow the down from one to the next. But pattern Heads of State or Government to consider the of life today is different: people the form that economic and monetary union are living longer, they are being required to change jobs, geographical should eventually take. But they will also be mobility is be- presented with a plan for the establishment coming a necessity and technology is chang- of that union, in stages, at a realistic and ing the tools of everyday life. Typists are give sensible pace. Experience has taught us that having to up their typewriters for word processors people gradual progress towards economic and and everywhere are having monetary union would be considerably faci- to adapt to new developments. Ten years litated by an appropriate institutional after we leave school or university, our knowledge and framework. If this is the case, it will be skills can be obsolescent. necessary, as in 1985, to open the way for another intergovernmental conference to Employers and trade unions are aware of prepare institutional provisions designed, this; as recently as Thursday last they agreed like those of the Single Act, to amend the to make education and training one of the Treaty of Rome. major topics of the social dialogue. We rea- lize that the Commission's powers in this I do not doubt that Parliament, through the field are limited, that the Community needs work already under way in its Committee on to do for qualifications what it has already Economic and Monetary Affairs I am done for diplomas. But the time has also thinking here of the Franz report- and come, I believe, for governments to review later through its debate on the report- of the their experience and to compare their od hoc committee, will make a contribution, choices. It is they, after all, who are calling as it did in the case of the Single Act, to this for a general rethink of education policy in decisive new stage, which will outline the today's and tomorrow's society. political and institutional framework for an economic, monetary and social Europe. And with the growth of trade not only in goods and services but also in ideas a fifth We have seen that there are opportunities to freedom, which is not mentioned- in the be seized, but there are also challenges to be Treaties, but one which is essential if we are met if Europe is to advange beyond the Sin- to give flesh and substance to our aims we gle Act. History will not wait and 1992 is will perhaps have to set new objects,- pro- t6 s. l/89 moting exchanges between young workers, initial report on this application to the sixth-formers and younger schoolchildren. Council by the end of the year.

Indeed, why not institute systematic ex- But other European countries are making changes between school classes in the approaches too. Should we go further? And Member States, so that every secondary pu- if so, how? pil spends at least a month at school in another Member State? There are vacation Let us consider our close EFTA friends first. camps for skiing, climbing, water sports and We have been travelling with them along the so on. Why not for 1992? They could even path opened up by the Luxembourg Declara- be organized this year! tion of 1984 on the strengthening of pragma- tic cooperation. With each step we take the Education, culture, society the scope is slope is getting steeper. We are coming up to vast. The Community as such- has hardly the point where the climber wants to stop to scratched the surface. Beyond these first get his breath, to check that he is going in steps, we must be on the alert for develop- the right direction and that he is properly ment emerging today which might threaten equipped to go on. There are two options: the balance of our society and the freedom of the individual in the future. Our dream is (i) we can stick to our present relations, of a more assertive Europe able to set a essentially bilateral, with the ultimate aim of shining example to the world and to take the creating a free trade area encompassing the lead in the fight for human rights wherever Community and EFTA; they are trampled under foot. (ii) or, alternatively, we can look for a new, But we must not close our eyes to the fact more structured partnership with common that we will only be able to meet these new decision-making and administrative institu- challenges by closer cooperation within Eur- tions to make our activities more effective ope. This applies as much to high-definition and to highlight the political dimension of television as it does, for example, to the our cooperation in the economic, social, fin- search for an AIDS vaccine yet another ancial and cultural spheres. goal which calls for action to coordinate- and perhaps even merge current research efforts It would be premature to go into the details in several Member States. Surely we can of this institutional framework. I have my match our achievements in the campaign own ideas, but they need to be discussed by against cancer with similar progress in the the new Commission and then informally, fight against this new scourge of humanity. without obligation, with the countries con- cerned. As far as the 'other Europeans' are con- cerned, the question is quite simple: how do It should be noted hower that the options we reconcile the successful integration of the would change if EFTA were to strengthen its Twelve without rebuffing those who are just own structures. In that case the framework as entitled to call themselves Europeans? As for cooperation would rest on the two pillars you know, the Commission has already of our organizations. If it did not, we would adopted a position on this: internal develop- simply have a system based on Community ment takes priority over enlargement. Noth- rules, which could be extended - in specific ing must distract us from our duty to make a areas - to interested EFTA countries and success of the Single Act. This position has then perhaps, at some date in the future, to not however prevented us from strengthen- other European nations. ing agreements with the EFTA countries, with certain countries of Eastern Europe, But if we leave the institutional aspect of with those countries that I like to call the such a venture aside for a moment and focus orphans of Europe Cyprus, Malta, Yu- on the substance of this broader-based coop- goslavia and with- Turkey, which has ap- eration, several delicate questions arise. It plied for -membership. Let me say in passing becomes clear in fact that our EFTA friends that the Commission will be presenting its are basically attracted, in varying degrees, s. r/89 t7 by the prospect of enjoyng the benefits of a But I am not forgetting the others who are frontier-free market. But we all know that knocking at our door. I have already spoken the single market forms a whole with its of them. But I cannot close this chapter advantages and disadvantages, its possibili- without mentioning Mr Gorbachev's 'com- ties and limitations. Can our EFTA friends mon European house'. Of course we are be allowed to pick and choose? I have some aware of the exact geographical dimensions misgivings here. of Europe. Of course we want peace, trade and cooperation to be features of tomor- The single market is first and foremost a row's Europe. But let us not get too carried customs union. away or allow ourselves to be beguiled. To make the point, I would say that our vision Are our partners prepared to abide by the is of a 'European village' where understand- common commercial policy that any cus- ing would reign, where economic and cul- toms union must apply to outsiders? Do they tural activities would develop in mutual share our basic conceptions? The single mar- trust. But if I were asked to depict that ket also implies harmonization. Are our village today, I would see in it a house called partners willing to transpose the common the 'European Community'. We are its sole rules essential to the free movement of goods architects; we are the keepers of its keys; but into their domestic law and, in consequence, we are prepared to open its doors to talk accept the supervision of the Court of Jus- with our neighbours. tice, which has demonstrated its outstanding competence and impartiality? The same question arises in connection with State aids It seems to me that, in the new movement and the social conditions of fair competition towards European integration, we have directed towards better living and working managed to reconcile vision with pragma- conditions. These are the questions that tism. I have made no secret of the shortcom- arise; these are the questions we will be ask- ings and inconsistencies, as I see them, of ing. our venture. But it was a good idea to record the progress achieved in four years, with the help of all concerned. It was a good idea to But the Community is much more than a stress the radical change of attitude in the large market. It is a frontier-free economic Community, although fears still need to be and social area on the way to becoming a dispelled and much remains to be done to political union entailing closer cooperation meet the next deadline. When path on foreign policy and security. The marriage the climbs steeply, when the going gets rough, contract is, as it were, indissoluble, even when we get discouraged, we must hold on though its clauses have not been applied in to two simple ideas: the imperative full. Only that affectio societatis which need to unite to meet the challenges of history, and binds our 12 countries enables us rise to the extraordinary stimulus provided above the difficulties and contradictions, to by the prospect of a united Europe, as Jean Mon- advance in all areas of our collective activity. net imagined it. It is extremely difficult, within this all-em- bracing union, to provide a choice of menus. He said, and I quote: These comments are simply designed to fuel the discussion that is already under way in each EFTA These country. issues will no 'Gradually to create among Europeans the doubt be on the agenda for the next EFTA broadest common interest, served by com- meeting, to be held March in with Norway in mon democratic institutions to which the the chair. necessary sovereignty has been delegated. This is the dynamic that has never ceased to My own feeling is that the Twelve must be operate, removing prejudice, doing away prepared for a full and frank discussion of with frontiers, enlarging to continental scale, the scope for closer cooperation with the within a few years, the process that took EFTA countries. centuries to form our ancient nations'.

1t s. l/89 Jean Monnet was right. Strong institutions This insistence on subsidiarity is echoed in are vital to our success. But so is the ap- your Treaty of European Union, drafted proach. I would like to comment on this, in under the guiding hand of Altiero Spinelli. conclusion, to rule out ambiguity and ob- This principle has another, even more co- viate futile doctrinal discussions. Europe is gent, justification. Europe was in danger of enjoying a new-found vitality. Economic ac- being paralysed by internal division. Eur- tivity is being stimulated. But competition ope's diversity, by contrast, makes it prodi- must be supplemented, tempered, human- giously rich. This diversity must be pre- ized by cooperation between countries, re- served, so that it can bear fruit for the com- gions, firms, employers and unions. The mon good. When all is said and done, our abolition of all barriers to trade stimulates feeling of being involved in the shared ad- our energies, but no market can operate venture of European integration can only without a minimum of rules to ensure fair strengthen our sense of belonging to one of competition and prevent social dumping. our ancient nations. Let me say once again Our national economies are based on a com- that there is no need for us to abandon our bination of market forces, social dialogue, national pride, any more than our philoso- action by the public authorities, national phical or political preferences. For surely macroeconomic policies and the monetary our foremost concern is to champion the re- policy of the central banks. Who can contest newed flowering of democracy, to champion this? How, without all that, can we conceive human rights and pluralism? of a European area vested with a political will, capable of achieving deliberately cho- Let me repeat, at the end of an overJong sen ends? And in so doing, adhering to the address, on the eve of an election campaign principle of subsidiarity to avoid wasteful full of promise for the future, that Europe and excessive centralization. The Commis- must choose between pluralism and extinc- sion is on its guard, but it is not, you will tion. Europe must be European, or Europe appreciate, the only institution involved. will be nothing.

s. l/89 19 Reply by Jacques Delors to And, finally, I would like to give such clari- fication as is necessary of relations between the ensuing Parliamentary the European Parliament and the Commis- debate on the broad lines of sion beyond the compagnonnage (I find this Commission policy an appropriate word if it can be translated into all the languages), beyond the comrade- ship between fellow-workers that I am de- Sfrasbourg, 18 January 1989 lighted to say has prevailed in relations between Parliament and the Commission Mr President, ladies and gentlemen, allow these past four years. me to thank all the speakers and immediate- ly reassure Mr Seefeld. I am not going to read out a prepared speech. But the point is First, then, keeping faith with the chosen taken, and Mr Bangemann and I will pass it method. The Commission takes the view on to all the othqr Commissioners. that while it has been able I say'has been able' advisedly to play its- part in lending fresh impetus - I find it necessary, in order to keep the to the construction of Europe, alongside length my reply within reasonable all those, here in this House, in of governments, bounds, to match today's debate to the our among opinion-formers and campaigners, chronology of Parliament's business. The who have made their con- tributions, object of the exercise yesterday was to take it is not laying claim to the credit. This is stock and to outline, the prospects for deve- because it realized that in the absence shared political lopment on a number of selected points over of a will on all aspects, it the four years ahead. The next part-session was necessary to identify those areas where is going to provide us with the opportunity there was a need, from the governments' viewpoint, jointly. to discuss institutional matters, in connec- to act It was therefore a joint tion with Mr Herman's report and the Com- matter of bringing out this need for action, and was mission's more detailed programme for the it this that led to the choice year 1989. On this occasion, therefore, I of the single internal market as the starting- point. wish to concentrate, in. general terms, on We have a constant task of persua- four points that you have raised, with apolo- sion, of getting viewpoints to converge. Nothing gies for not taking up all the others men- can ever be taken for granted with governments. tioned by the various speakers, but these, I the Nothing can be taken for granted, assure you, have been noted for the 1989 and national and domestic concerns programme. generally take precedence over European matters. Today, for instance, the debate you are about is The four points are these: to hold regarded by some coun- tries as being three times as important as the outlook for the Community First, as I said yesterday, the Commission is over the next four years. When is said keeping faith with the method adopted four all and done, how- ever, this method enabled us, I repeat, get years ago. Why? What are the conse- to it accepted quences, the implications, going to be for that there was a need for a large our future work? market with no internal frontiers.

Secondly, the Community has to address the Next came the need to amend the Treaty consolidation/enlargement debate. I spoke through the Single Act, which offers the of this at length yesterday. I wanted to make advantage, in comparison with the Treaty of the position clear. If I was not completely Rome, of being much more specific, of put- successful, I shall add further clarification ting us under binding commitment on all today. points.

Thirdly, the Commission has not lost sight Thirdly and lastly, there was the need to of the fact that the objective is political Eur- have effective policies, to reform those al- ope. I shall have something to say about this ready in existence and the means by which also. they were financed.

20 s. l/89 Nothing I can reassure Mr Prout on this appoints a person from the top rank - and is going- to deflect us from carrying out we have appointed Mr Bangemann, Vice- the- Single Act and realizing its central objec- President of the Commission, with special tive: completion of the large market with no responsibility for the internal market - to internal frontiers. I know how difficult this assess the difficulties involved in each prob- is going to be. The new Commission faces a lem raised by the abolition of physical fron- very arduous task, although we must be op- tiers and test the governments' political will timistic but not unduly so. We have to to go ahead, then perhaps we can manage to draw up -concrete proposals that are accepta- reach our goal. But please do not underesti- ble and, if I may return to my obsession with mate what is involved. persuading the 12 governments of the ob- vious need to act jointly, let me quote four The same goes for the social aspects. Let us examples about which I shall have more to be frank about this. You read the papers. say next month: the tax dimension, the re- Over the past six months you have seen the moval of physical frontiers, the social statements made by governments, the diame- aspects, and the environment. trically opposed and antagonistic statements made by the employers and unions. Do you The tax dimension. You yourselves, in your think it was easy on 12 January to get that committees, are finding it difficult to work agreement providing a basis for continuation out a solution. For myself, I spent my of the social dialogue? Do you think that Christmas holidays at work on the taxation was achieved without work, without of income from securities. Are the govern- method? Have you any idea of the difficul- ments really weighing up the disadvantages ties? Are you aware, for instance, that some for them of having to change their systems of the employers were discussing the gui- against the advantages of liberalization of dance draft on the company governed by cipital movements offering all the podentia- European law without having read it? Are lities I mentioned yesterday? you aware that a month ago the employers were still saying: 'We are happy to talk to On the abolition of physical frontiers, you the unions, but nothing we do together has are getting impatient, and I understand that. any binding force.' And the unions were But it is not for me, after all, to account to telling me: 'We are happy to talk to the you for what happened at the Rhodes Euro- employers, but on condition that all our pean Council meeting. The governments joint opinions are converted by you into clashed violently, not on how to go about directives.' Do you think it was easy? So we abolishing physical frontiers, but on matters need your help, but we also need you to of principle. make a thorough analysis of the difficulties involved. I spoke yesterday of diversity. Do I gave the governments a plan, not of a you realize that within the employers' organ- primrose path but of an assault course, izations at European level there is no agree- showing all the committees that concern ment, and the same goes for the trade union themselves with the various matters that organizations? There is no agreement on have a bearing on the removal of physical what can be done at European level. Do you frontiers: not just taxation, but common im- realize what all this means? Does your Com- migration policies, the right of abode, and mittee on Social Affairs and Employment, action to combat drug abuse, criminality, for instance, realize what it means? Putting terrorism and delinquency as well. And if I forward a schedule of ideal measures, of suggested that each government, each Head ideal proposals, is not enough; it is necessary of Government, should appoint a trusted to appreciate the difficulties. representative, it is because I am obsessed, perhaps wrongly, with the question: what Lastly, on the environment, Mr Arndt said I can be done to prevent these groups losing was a little too optimistic. He is right. There their way? You know what a group is like at are still very wide differences of views. That the end of two years. [t gets carried away by is why I have called for an information its own logic, losing sight of the purpose for paper. That is why I also referred yesterday which it was set up. So if each government to agricultural policy in conjuction with the s. 1/89 2t environment. We have reached the limits of Mr Ulburghs spoke of efforts to combat productivism. But we are carrying on. Be- poverty. First of all, the figure of 44 million hind the hormones war, what do we find? poor people is one that I cannot go along Attempts to beat the world record annual with. No, 44 million out of 320 million is milk yield per cow. And behind that, what unrealistic. Such a proportion might be valid do we find? Pollution of our land and water. for the United States, but not for Europe. So I think you would be helping us a great deal what is the problem? You were right to ask if you took more care over weighing up the the question, Mr Ulburghs. I have been difficulties involved in these problems. For trying to get something done for four years. the Commission's duty - and I shall return It is that the Member States do not want us to this in a moment - is to measure these to campaign collectively against poverty. It difficulties according to the yardstick of is the same as with the churches. Each insists what is feasible. It is humdrum work, of on looking after its own poor. course, but it has to be done. Mrs Veil spoke of an industrial strategy. That said, I take note of the recommenda- With just this in view, we have reorganized tion from Mr Klepsch concerning the 1989 our work along the following lines. First of programme, in which it is necessary for you all, there is to be a forward studies unit to find coverage of all the problems that are which is going to maintain constant moni- of concern to you. In the Commission's 1989 toring of the state of progress towards Euro- programme there is going to be a need for pean integration and, through an office for selectivity, in support of a strategy. By the businesses, plot trends in their strategies. In end of the year, there must have been pro- addition, the Commissioner in charge of in- gress on the most difficult issues. We must dustrial affairs is going to be organizing sec- have found a solution for approximation of tor studies, not only in the sectors in diffi- taxes on income from securities, the dead- culty, like steel and textiles, so that we can lock on the abolition of physical frontiers recommend preventive measures and even must have been broken, while in the social counter-attacking action. The Commissioner area agreement must have been reached on in charge of research and technology, with the company governed by European law and the backing of Mr Bangemann, plans to put the social charter, and, as for the environ- the emphasis on the competitiveness angle in ment, something will have to come from research programmes. what I said yesterday. Making fresh propo- sals is not enough; we have to apply what I have asked the Directors-General to give has already been brought into force. Believe up the practice of using the entire Greek me, I have plenty to worry about with the vocabulary for the christening of pro- application of the new common policies, grammes, since I myself can no longer re- particularly the structural policies. This is member what the names stand for, and in- going to be a test, believe me, a test of the stead to concentrate on the essentials. Are Community's ability to be more than a free- we going to be a force in tomorrow's aircraft trade area. That will be the real test. industry, in high-definition television? Are we still going to be able to sustain a semicon- I have to tell you that if, come 1993-94, the ductors industry? These are the questions reaction to these policies is criticism from that have to be addressed, not forgetting the the experts and disappointment from the large sectors of industry, such as motor vehi- communities concerned, and our own eval- cle manufacture. uation shows that the degree of cohesion has not been raised, then we shall have The second point that I felt had to discuss is failed. The Single Act will have been defeat- the problem of consolidation and enlarge- ed. Of course, in pursuing these common ment. Mr Pannella and Mr de la Malbne policies - this is for Mr Escuder Croft - referred to this. Mr de la Malbne was right we are not forgetting the regions that are when he said that it is easier to enlarge than remote from the centre of the Community, to consolidate. If I mentioned this subject it as I said yesterday, unprompted, in my state- is because I myself have been getting worried ment. about all this airy-fairy talk anticipating a

22 s. r/89 watered-down Community as a wider entity. dening gap between economic Europe and This kind of talk provides ammunition for the Europe of foreign policy must be closed. those who do not want to go all the way on what was decided upon in the Single Act. In other words, coming to my third point, we have to develop political Europe. At a Consequently, if people are concerned, they time when, as Mr Cervetti stressed, every- should not speak to me. They should speak thing is on the move in Europe, there are to all those who are making these fine hopeful signs to be found. As I said, we must be clear-minded, but we must also have speeches, who of course are living proof of presence. voice one of the basic facts of politics: there are a Europe must find its and it past many people who believe that once they have must not wait, as it did on two occa- spoken, they have made something happen; sions, until its big brother has spoken before its Are you unfortunately, that is not so. it miraculously rediscovers unity. proud of that? I at any rate am not! That is why we must also put the accent on Europe's I explained the position yesterday in a part personality. That is why I spoke of the envir- of my speech, doubtless one of the most onment and linked the environment to the tedious, with a view to its being read attenti- history and characteristic traits of European vely by the leaders of the other European society. Re-read the historians and geo- countries, and by those of the Twelve as graphers of our Europe. That is why, Mr. well. There are two simple ideas. First, how Maher and Mr Fitzgerald, I have spoken can we fail to adopt a politically - I almost time and again about development of the said spiritually - open attitude towards our rural world, although I admit to having had fellow Europeans, of whichever nationality? some difficulty in making myself under- On the other hand, it is necessary to be quite stood. It has been assumed that I have been clear as to the tenor of any contract. In this talking about the rural world in order to context, I recalled the demands inherent in defend the status quo of the common agri- our own affectio societatis. It is my deep- cultural policy. Far from it. But who can seated conviction, speaking personally, that find it acceptable that there should be deser- we shall be in a better position to carry out tification in southern Germany, in France, the hoped-for political enlargements once we in southern Italy, and soon in Spain, Portu- have consolidated, strengthened our unity gal, the Peloponnese and lreland? and elevated it to the political plane. To anyone who is worried about this, I would That is why I spoke about the social dia- point out that at the beginning of December logue. Mrs Fontaine, if I may mention this Chancellor Kohl said the same in the Bun- in passing, I was being cautious. I could destag in reply to those who had raised the have used the words 'associative life'. Mr question of the prospects for German unity. Cardoso e Cunha is already in charge of an The thrust of his speech was this: we shall operational directorate combining small and progress towards German unity through the medium-sized businesses, distribution, and construction of Europe and the strengthen- the cooperatives and mutual societies sector, ing of European unity. which is very close to the associative sector, and I hope that a year from now he will be What I wanted to say, then, was that we able to tell me: Mr Delors, I am now in a must maintain an open attitude but at the position to take on the associative sector as same time remain vigilant and clear in our well. minds. May I remind you here of my little parable about the European village. Good It was for the same reason that I emphasized neighourliness throughout the village, but the role of Europe as partner. This is the the Community has its own house. That source of the thinking behind the proposal I means that Europe must be European. This made concerning indebted countries with message is not for the other European coun- revenues in the middle range. What does it tries only, but for the States as well. Conse- consist of? I am proposing do you think quently, if Europe wants to be really Euro- our governments are going- to let this one pean, as I said yesterday, the constantly wi- through on the nod? - that we take simul- s. l/89 23 taneous action to open up our markets and 12 countries, as far as possible by bringing to provide financial assistance. Do you think them all safely into harbour, as the previous that is going to be accepted? It exemplifies Commission did with no little difficulty the role of Europe as partner, since it would in February 1988,- at the European Coun- require us to make sacrifices at home. cil- meeting. That is the only way to make progress. It is frustrating. I too would like to grandiose On this political Europe that must be deve- make speeches about political loped, which is a Europe of partnership, Europe but if I did so, one or other of the which must have confidence in itself, and its governments would immediately tell me that personality, Mr de la MalEne asked a pertin- it was impossible. And I am well paid to tell ent question: what is to become of the you that. States? I do not wish to go into all aspects of this subject, but continue to say: Europe will The European Parliament must act as a help those who help themselves! However, goad. We each have our role, we each have Mr de la Malbne, you will see the report on our mission. It is necessary to distinguish economic and monetary union, if my view between them. The Commission has the task prevails! I am only the chairman of that of proposing and, in addition, of gathering committee, and I myself am taking enor- support. It is not possible for me - and I mous precautions to be realistic and to allow shall never do this as President of the Com- mission to resign myself to leaving a scope for the States to exercise a major share - of responsibility over macroeconomic poli- country on the sidelines, as we have come cies. That is my personal position, and I close to doing over the past four years. No, I think this view will prevail. Finally on this shall never do that. On the contrary, I shall point, real political will is going to be needed devote all my energies to keeping them to- here, as Mrs Simone Veil said, echoing the gether as 12! That is my duty. However, for you to go further you are a anxiety I had expressed in my speech. I let - after all the matter rest there. pluralistic Assembly is something I can understand. On a matter- that I feel it neces- sary to include here, although I shall have I come now to my fourth point: relations more to say about it on another occasion, I between the European Parliament and the have asked for closer attention to be paid by Commission. I think it fair to say that they our staff to your committees' proceedings good are and fruitful. But we can do better. from the moment a matter is referred to I shall come back to the institutional issues them. It is my view that on such difficult when Herman the report is debated, bul issues as taxation or the abolition of physical please not accuse me having do of not men- frontiers, your work in committee can be going tioned them. I said that this was to be very useful to us. We in the Commission the last elected European Parliament with have no monopoly of wisdom! I learnt a the current limited powers, and that de. the great deal, for example, from your debates bate on economic and monetary union, tc on economic and monetary union and taxa- which there is an institutional aspect that tion. In full agreement with Mr Bangemann, you should not underestimate, would give I have asked the Commission to arrange for you the opportunity to state your views. In. our staff to pay all due attention to the work deed, you should be getting ready for this. Ir of Parliament's committees, following an is- will be difficult, since the report is to ber sue from beginning to end. delivered at the end of April, and your lasr part-session will be the one ) in May, but Finally, Mrs Veil, Mr de la MalEne and Mr shall have a word about this with your Com. Le Pen all told me in their various ways that mittee Economic on and Monetary Affain, I was too optimistic. I am not promising you and Industrial Policy. a cloudless future. My various statements will bear that out. I am aware of the difficul- I regard the European Parliament as thr: ties. But why, after all, begrudge us our figurehead of European union. As for thr: pleasure when things are going a little bet- Commission, it has to seek to make progresri ter? Why not admit as much, when there are - I repeat - by securing a consensus of all so many Jeremiahs around? Some of them 24 s. l/89 do it because they want to look original, where I really stand, what I think at bottom, while others refuse to think like the ordinary I can tell you without wishing to offend people, who, as everyone knows, have noth- anyone, that I have always lived by Grams- ing to be said for them apart from their ci's motto: 'the pessimism of lucidity, the common sense. But if you want to know optimism of the will.'

s. l/89 25 European Communities-Commission

Statement on the broad lines of Commisslon poticy presented by Jacques Delors, President of the Commission, to the European Parliament

Supplement 1/89-Bull. EC

Luxembourg: Office for Official Publications of the European Communities 1989 -25 pp. - 17.6 x 25.0 cm DA, DE, GR, EN, FR, IT, NL, ES, PT lsBN 92-825-9659-1

Catalogue number: CB-NF-89-001 -EN-C

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Pending presentation of the Commission's programme for 1989 in February, Jacques Delors made a statement to Parliament on 17 January on the thrust ol Commission policy and replied to the ensuing debate on 18 January. Venta y suscripciones. Salg og abonnement. Verkauf und Abonnement. nolnorrq xor ouv6pop6g Sales and subscriptions . Vente et abonnements . Vendita e abbonamenta Verkoop en abonnementen . Venda e assinaturas

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