The European Community 1991/2: The Professional Reference Book for Business, Media and Government [3. Aufl. Reprint 2019] 9783110869293, 9783110127607

Table of contents :
Contents
Introduction And Acknowledgements
How To Use This Book
Europe 1990 - Member States Of The European Community
The European Community Framework
A-Z of Community Issues
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Y
Z
Directory of Community Institutions
Directory of Representative Organisations
Index

Citation preview

THE EUROPEAN COMMUNITY 1991/2 THIRD EDITION

THE EUROPEAN COMMUNITY 1991/2 THIRD EDITION

Brian Morris Klaus Boehm Maurice Geller

DE GRUYTER • BERLIN • NEW YORK

© Brian Morris, Klaus Boehm and Maurice Geller, 1991 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied, or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 33-34 Alfred Place, London WC1E 7DP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. Third edition first published 1991 by THE MACMILLAN PRESS LTD and WALTER DE GRUYTER & CO. Berlin Typeset and printed in Great Britain

ISBN 3-11-012760-11

Contents Acknowledgements,

vii

How to Use the Book, ix EUROPE 1990 - MEMBER STATES OF THE EUROPEAN COMMUNITY, xiii THE EUROPEAN COMMUNITY FRAMEWORK, xv A-Z OF COMMUNITY ISSUES, 1

11 12

Tables: Coal and steel: ECSC financial aid, 25 Duty-free allowances, 45 Energy, 53 Environment, 58 European investment bank, 70 External trade, 79 Farm fund, 108 Harmonisation, 130 Operation of the regional fund, 196 Summary of the research programmes within the framework programme 1987-91, 201 Rules relating to main self-employed occupations, 206 Social fund: methods of assistance, 214

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Figures: Agriculture, xvi, 4 Budgetary processes, xviii, 18 Consumer protection, xix, 35 Education policy, xx, 49 Energy policy, xxi, 52 Environment policy, xxii, 57 European institutions, xxiii, 64 External trade, xxiv, 106 Community finance policies, xxvi, 114 Harmonisation policy, xxviii, 129 Industrial policy, xxix, 156 Legislative processes of the EC, xxx, 165 Regional policy, xxxi, 198 Research policy, xxxii, 199 Social policy, xxxiv, 206 Transport policy, xxxv, 231 Work and employment, xxxvi, 241

1 2 3 4 5 6 7 8 9 10

DIRECTORY OF COMMUNITY INSTITUTIONS, 247 Secretariat of the European Parliament, 249 Council of Ministers Secretariat, 250 Commission of the European Communities, 257 Members of the European Parliament, 292 v

vi

Contents

DIRECTORY OF REPRESENTATIVE ORGANISATIONS, 309 Representative Representative Representative Representative Representative Representative Representative

INDEX, 335

Organisations Organisations Organisations Organisations Organisations Organisations Organisations

for Industry, 311 for Service Industries, 323 for Wholesale and Retail Trade, 326 for Small and Medium-sized Enterprises, 330 for Professions, 330 for Trade Unions, 333 for Consumers, 333

INTRODUCTION AND ACKNOWLEDGEMENTS The European Community 1991 is the guide to what's what and who's who in the E C - issues and affairs, policy and practice, throughout the Community. It opens up the Single Market, trade, agriculture, education, the environment, European Monetary Union, law, and everything to do with the movement of goods, people, services and capital. It also gives access to Community institutions - the European Parliament, the Commission, the Council of Ministers, the Court of Justice - and the people who run them. This volume aims to reflect both the extraordinary political dynamic within the 12 member states and the Community's rapidly changing relationship with the rest of the world. It provides a benchmark for everyone involved with Europe at a time of all-embracing change. The European Community 1991 was produced by: Brian Morris Works in the City of London as head of a leading international company of actuarial consultants. Previously a civil servant in H M Treasury, after a first career in manufacturing industry. Klaus Boehm Specialises in reference books and publishing sponsorship, developing such titles as The Dictionary of the History of Science, Macmillan & Silk Cut Nautical Almanac, The Student Book, The Equitable Schools Book and The Careers Book. Maurice Geller Writer and editor of books, magazines and newspapers, was editor and consultant for the Open University Business School and the European Community Task Force on Information Technology. Has worked on a number of books with Klaus Boehm including Who's Who in the City and The Company Handbook. Currently works on The Observer Business Section and a variety of other European projects. Contributors were: Rohan Bolton (Contributing Editor); Jeff Lamb (European Commission, UK Information Office); Dr Vivienne Kendall. Thanks and acknowledgements go also to: Avis Furness and Lesley Wright (European Parliament, London Office); Adam McDonaugh (European Investment Bank, Luxembourg); Penelope Allport and John Normansell (Macmillan Press). vii

viii

Introduction and Acknowledgements

The European Community 1991 is completely revised and updated from the awardwinning first and second editions. Unless otherwise indicated, the text should be taken as accurate up to 1 July 1990 and tabular matter as up to 1 May 1990. The material draws on the primary legislation, proposals and documentation of the Community institutions, notably the European Commission and the European Parliament, and information supplied by the Commission Information Office and Parliament Office in London and the Directorates-General of the Commission in Brussels. Extensive reference has been made to the Official Journal of the European Communities (OJ, Series L and C plus supplements and annexes), the Bulletin of the European Communities and the European Documentation literature, among a very substantial body of material from the Office for Official Publication of the European Communities; sources are clearly acknowledged throughout the entries. Other publications which may be singled out as being of especial note include the annual Reports - General and Specific (eg, 'The Agricultural Situation') - on the Activities of the European Communities; Directory of Community Legislation in Force and other acts of the Community institutions', Guide to the Reform of the Community's Structural Funds', Catalogue of Research Programmes within the Framework Programme of the European Community 1987-1991; European Community Environmental Legislation 1967-1987 (all Commission of the European Communities); the Fact Sheets on the European Parliament and the Activities of the European Community; Progress towards European Integration - Survey of the Main Activities of the European Parliament (both European Parliament). Material from earlier editions of this book updated for this volume also referred extensively to Completing the Internal Market: White Paper from the Commission to the European Council, Industrial Innovation a Guide to Community Action, Services and Funding (Commission of the European Communities); Europe Today: State of European Integration (European Parliament Secretariat); Grants and Loans from the European Community (Office for Official Publications). Numerous sources were consulted in the compilation of the Directory section, primarily the members' lists and internal directories of the E C institutions and the Directory of European Community Trade and Professional Associations. Figure 12 on the Legislative Processes of the European Community is based on the 'New Co-operation Procedure' chart in the Department of Trade and Industry publication The Single Market: The Facts. U K readers are particularly advised of the body of valuable material available from the DTI on Community matters, notably the Internal Market Programme, plus business, finance and public purchasing.

HOW TO USE THIS BOOK

The European Community 1991 consists of two main sections: an A - Z of Community Issues and a Directory. The A - Z provides an alphabetical guide defining, describing and commenting upon the issues, policy, practice and institutions of the EC. The Directory comes in two parts: Community Institutions and Representative Organisations, giving a profile of each department or organisation - personnel, responsibilities, address and telephone number, and so on. Wherever appropriate, for further information the A - Z entries give the full reference to identify primary sources of legislation, documentation, etc: 'OJ' stands for Official Journal of the European Communities', 'Com' stands for Commission Document; 'Bull EC' stands for the Bulletin of the European Communities', all other references are self-explanatory. Entries also provide the Directorate-General and department of the European Commission responsible or other body for further inquiry. There are also extensive cross-references in SMALL CAPITALS to other entries in the book, which the reader is encouraged to pursue for the most comprehensive picture. The introductory material provides a map and basic statistical data of the 12 member states and the Framework of the European Community. This consists of a series of figures giving an overview of 17 broad areas of activity, policy and organisation, with headings in small capitals referring to entries in the book. It makes a very good starting point before more detailed reference to relevant topics. All the figures are reproduced with the appropriate alphabetical entry in the A - Z . The Index gives all significant references to be found in the book. Characters in bold type indicate the primary reference; characters in italic indicate a Directory reference; material contained in tables or figures is identified as such.

ix

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Europe 1990 Member States of the European Community

xii

Member States of the European Community

Member States of the European Community

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The European Community Framework

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The European Community Framework

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The European Community Framework

FIG.9 C O M M U N I T Y F I N A N C E POLICIES

The European Community Framework

xxvii

GRANTS AND LOANS IN: • Agriculture: common agricultural policy (seefig.1 ) from the Farm Fund via - price support - see intervention price, export restitution payments - monetary compensatory amounts for exchange rate fluctuations in green currencies - direct grants and loans for farm modernisation, farm retirement, agriculture: production grouping (cotton, fish, fruit and vegetables, honey, hops, silkworms), farm information and training services, farming marginal terrain, agriculture: processing and marketing, forestry, olive groves (see olive oil), fish, milk and milk products • Aid to developing countries, mainly via external trade preferences (see below), but also via the European Development Fund, via bilateral aid between member states and recipients, and directly in food aid, and in special aid to non-associated states • Education (seefig.4; see a/so education grants), specifically for teacher and student exchanges, study visits, language teaching exchange, research on European integration and school milk Energy (see fig.5; see also Table 2: Financial Measures for the Energy Sector), for oil liquefaction and • gasification, for energy research programmes (nuclear energy, energy-saving projects, and energy exploitation, including ALTERNATIVE ENERGY, eg geothermal, solar) and for coal stocking and coal usage in electricity generation • Environment (seefig.6), for experimental contracts for recycling (seerecycling) • External trade (seefig.8), for developing countries via Generalised System of Preferences including Lomé Conventions and STABEX (stabilisation of export earnings), for exports to Japan, and indirectly for sensitive products (e.g. textiles) • Industrial policy (seefig.11), for shipbuilding, for COAL AND STEEL (production, housing projects, redundancy costs, research, conversion projects, and orphans), for all firms in certain coal and steel areas, and for industrial innovation (see a/so external trade above, industry: state aids, small and medium-sized enterprises) • Regional development, from the Regional Fund (see fig.13; see also Table 9: Operations of the Regional Fund), for approved investment for infrastructure assistance, and for approved projects in response to economic circumstances to Community policies • Research (see fig.14), in science and technology, and in medical and public health research (see also energy above, social policy below and Joint Research Centre) • Social policy (see fig.15), from the Social Fund, for training, retraining or resettlement schemes (with special provisions for women and young workers), for handicapped people and for research (see also European Foundation for the Improvement of Living and Working Conditions and poverty) • Work and employment (seefig.17), for exchange visits between young workers

xxviii

The European Community Framework

FIG 10 HARMONISATION POLICY AND THE INTERNAL MARKET PROGRAMME AIM: to achieve a single common market, thereby creating a more favourable environment for stimulating enterprise, competition and trade within the Community (see Table 4)

Creation of suitable conditions for industrial co-operation (see Industrial policy)

Application of Community law Value added tax (VAT) Customs duties

• Company law • Intellectual and industrial property — Community trade mark — Patent law • Corporate taxation

The European Community Framework

xxix

FIG. 11 INDUSTRIAL POLICY A I M S : to encourage industrial innovation and improve Community competitiveness through a Transnational Plan

xxx

The European Community Framework

FIG. 12 LEGISLATIVE PROCESSES COMMISSION proposal

PARLIAMENT opinion

COUNCIL begins deliberating COMMISSION takes a view on the Parliament's opinion (Traditional procedure)

(new co-operation|procedure)

COUNCIL takes final decision

COUNCIL adopts common position by qualified majority within 3 months the PARLIAMENT

approves or takes no Council position

| or |

amends Council common position by absolute majority of members

within one month COMMISSION reviews EP amendments and may revise its proposal within 3 months COUNCIL

| or |

rejects Council common position by an absolute majority

COUNCIL may act only by unanimity

The European Community Framework

FIG 13 REGIONAL POLICY AIM: to help correct principal regional imbalances within the European Community

xxxi

xxxii

The European Community Framework

FIG 14 R E S E A R C H A I M : to improve effectiveness of research through judicious use of available funds and by concentrating on priority research and development areas Coherent policy for r e s e a r c h to promote agricultural and industrial competitiveness, to improve management of r a w m a t e r i a l s and energy resources, to improve living and working conditions, and stimulate efficacy of scientific and technical potential. Definition of research priorities - Monitor (strategic analysis, forecasting and evaluation in matters of research and technology)

r-*

Strategic Analyses in the field of Science and Technology (Sast) Forecasting and Assessment in Science and Technology (Fast)

—

Support Programme for the Evaluation Activities in the field of Research (Spear)

•

Industrial technologies Nuclear fission Fusion Joint Research Centre employing Community research staff ('direct action')

Non-nuclear energies •

Environment and advanced materials

^

Radiation protection Nuclear measurements and standards Nuclear safety (fusion and fission)

The European Community Framework

Co ordination of research activities by member states ('concerted action')

>

Quality of life

• Medical and Health • Human genome analysis • Environment, climatology

Biological resources

• Agro-industrial technologies • Food technologies

Energy

• Non-nuclear energy

Marine resources

• Marine science and technology • Fisheries

Scientific and technical co-operation

• Statistical expert systems

Esprit I Telecommunications (Race)

• Micro-electronics and peripherals • Information processing systems • IT applications technologies

Broadcasting

Information and communications market

Educational applications of IT (Delta) Road safety applications of IT (Drive) Medical and health applications of IT (Aim) r > Diane —• Euro-Abstracts

Information

Information Market Policy Actions (Impact) —

•

Tenders Electronic Daily (Ted)

L - + Business Co-operation Network Environment, climatology —

•

Scientific and technical education and training

Biotechnology Non-nuclear energy

- >

Scientific and technical co-operation Economic science

Science and technology for development

xxxiii

Tropical agriculture Tropical medicine Figure reproduced courtesy of Department of Trade and Industry'

xxxiv

The European Community Framework

FIG 15 SOCIAL POLICY AIMS: to improve workers' conditions and living standards Social Charter for full employment, better living and working conditions, participation of workers in decisionmaking, equality of treatment for women (see also work and employment, fig 17)

The European Community Framework

FIG 16 TRANSPORT POLICY AIM: to ensure free and easy movement of people and goods throughout the European Community

xxxv

xxxvi

The European Community Framework

FIG 17 W O R K A N D E M P L O Y M E N T

A-Zof Community Issues

A Accountants Following attempts dating back to 1970 to achieve mutual recognition of qualifications for accountants, Directive 89/48/EEC (OJ L 19 1989), on the general system for the mutual recognition of higher education diplomas awarded on completion of professional education and training of at least three years' duration, will apply to accountants. It means that a professionally qualified accountant f r o m one m e m b e r state will be able to become a m e m b e r of the equivalent profession in another m e m b e r state without having to requalify. If their education and training differ substantially f r o m that required for accountants in the host m e m b e r state, they may be required to take an aptitude test or a period of supervised practice not exceeding three years. Details of how the directive will be implemented in the m e m b e r states have yet to be finalised but it is due to be implemented by 4 January 1991.

298 1989). T h e directive provides strict procedures for the advertising of alcohol, as well as guidelines on sponsorship and on advertising to children, and imposes a total ban on the advertising of T O B A C C O and tobacco products. In 1989, the Commission proposed legislation on press and poster advertising of tobacco (OJ C 124, 1989). T h e draft Tobacco Advertising Directive called for strict regulation, essentially restricting cigarette advertising to 'pack shots' on a plain background plus substantial health warnings, and a ban on 'indirect' advertising using trade marks and brand names to promote other products such as clothes or holidays. But at its First Reading in March 1990 the E u r o p e a n Parliament called for a total ban. T h e E C health ministers will be considering the issue in R o m e in D e c e m b e r 1990, G e r m a n y , the Netherlands and the U K are opposed to the restrictions but the m o o d among the o t h e r m e m b e r states is for a hard line and a total ban on advertising seems inevitable eventually.

Commission responsibility: D - G III (Internal Market and Industrial Affairs) Directorate D(2).

O t h e r proposals call for measures to allow comparative advertising, which is only permitted at present in the Netherlands and the U K , and on data protection. Current proposals on food and nutrition claims, life assurance and pharmaceuticals, also contain significant measures on advertising.

ACP states T h e countries f r o m Africa, the Caribbean and the Pacific, signatory to the L O M É C O N VENTIONS, of which, with the accession of Namibia, there will be a total of 6 9 (see E X T E R N A L T R A D E , Table 6.8 for list). U n d e r the L o m é Conventions they are party to a series of trade and co-operation agreements with the Community by which they enjoy special aid and concessionary tariff preferences (which are non-reciprocal). See

A I D TO DEVELOPING

COUNTRIES;

Commission responsibility: C o n s u m e r Policy Service; D - G III (Internal M a r k e t and Industrial Affairs); D - G V ( E m p l o y m e n t , Social Affairs and Education).

EXTERNAL

Afghanistan Humanitarian aid was provided to Afghanistan by the Community to the value of Ecu 7.3m, from 1976-1988, for emergency food aid and refugee assistance. A large proportion of humanitarian aid given to Pakistan was also aimed at alleviating the situation of A f g h a n refugees in that country. Afghanistan is eligible for tariff reductions for its exports u n d e r the G E N E R A L I S E D SYSTEM O F P R E F E R E N C E S and as a least-developed country will also be eligible to participate in the S T A B E X system, established for Asian and Latin American L D C s , when its internal difficulties are overcome.

TRADE; L O M É CONVENTIONS.

Commission responsibility: D - G VIII (Development) Directorate D . Advertising U n d e r its C O N S U M E R P R O T E C T I O N policy, the Community in 1984 adopted legislation on misleading and unfair advertising (Directive 84/450/ E E C , OJ L 250 1984). T h e directive contained measures to prohibit misleading information about the characteristics of a product or service, or about the advertiser; it also provided definitions of advertising and of misleading advertising, for Community purposes. T h e trans-frontier B R O A D C A S T I N G directive regulates television advertising, setting minimum intervals between advertisements and a ceiling on the share of total transmission time (89/552/EEC, O J L

See also

A I D TO DEVELOPING COUNTRIES;

EMER-

GENCY AID; E X T E R N A L TRADE.

Commission responsibility: D - G I (External relations) Directorate J; D - G VIII ( D e v e l o p m e n t ) . 3

Community Issues: Agriculture FIG. 1 AGRICULTURE: COMMON AGRICULTURAL POLICY Domestic minimum prices (intervention prices)

PRICE SUPPORT

Paid from Farm Fund via intervention agencies

In national currencies at special exchange rates ('green currencies')

Intervention prices calculated from target prices or guide prices (beef and veal) or basic prices (pigmeat, fruit and vegetables)

Reduced by co-responsibility levies on certain products (milk and milk products) in substantial surplus, then used to subsidise consumption

— »

Exchange fluctuations offset by mqnetary compensatory amounts

As applied to the common organisation of markets for: • Beef and veal • Butter • Cereals - durum wheat

Import restrictions from third countries

Import levies applied if world prices less than Community prices calculated as threshold prices (target prices for cereals, milk products, sugar, transport costs) or reference prices (fruit, vegetables) or sluicegate prices (pigmeat, eggs, poultry)

Plus customs duties as well as levies

• Dried fodder • Eggs • Fats, oils and oilseeds - Colza, rape seed and sunflower seed - Olive oil - Soya beens • Fish • Fruit and vegetables • Hops

Export restitution payments

Paid to exporters if Community prices greater than world prices

• Milk and milk products • Pigmeat • Potatoes • Processed fruit and vegetables • Rice • Sheepmeat and goatmeat • Sugar • Tobacco • Wine

Community Issues: Agriculture: Common Agricultural Policy

Agriculture: Common Agricultural Policy (CAP) The basic principles of the CAP are laid down in the T R E A T Y O F R O M E , Articles 3 8 - 4 7 . The principal aims are: (i) to increase agricultural productivity by promoting technical progress, rationalising agricultural production and optimum utilisation of production factors, especially labour; (ii) to ensure a fair standard of living for those who work in agriculture; (iii) to stabilise markets; (iv) to assure availability of supplies; (v) to ensure reasonable consumer prices. The C A P operates in two ways: (i) it protects the Community market against price fluctuations in world markets through threshold prices or export restrictions; (ii) it guarantees a minimum price for basic agricultural products through I N T E R V E N T I O N PRICES and a system of buying-in products when market prices fall below the intervention price. Financed from the F A R M F U N D , the CAP represents by far the greatest single area of Community expenditure. It had accounted for more than 70 per cent of the Community B U D G E T , though that figure has been somewhat reduced by the budgetary reforms introduced in 1988; in 1989, agriculture and fisheries accounted for 67 per cent of the budget. Over the years, many criticisms have been levelled at the CAP. It has been accused of: (i) penalising consumers, who are unable to benefit from the low prices prevailing on world markets; (ii) being over-protectionist towards imports from third countries; (iii) destabilising world markets through the use of export refunds; (iv) generating surpluses due to the automatic operation of certain withdrawal mechanisms; (v) placing too great a burden on the Community budget. The 1985 Commission Green Paper 'Perspectives for the Common Agricultural Policy' stimulated an intense debate which led to the reform of the CAP; this was achieved by Regulation (EEC) 797/85 (OJ L 93 1985) and its successive amendments (most recent Regulation (EEC) 2156/89, OJ L 207 1989) and by Regulation (EEC) 1760/87 (OJ L 167 1987, amended in OJ L 106 1988). The policy adopted was one of more restrictive pricing, with a gradual reduction of the support prices for producers in surplus, linked with extended producer co-responsibility; the producers made to carry a larger share of the costs of

5

disposing of surplus production; and, limits on intervention guarantees to encourage producers to match their output to market needs. The alterations were intended: (i) to adapt the machinery of the C A P to the new market situation, where the Community is selfsufficient in most agricultural products; (ii) to take account of the need to curb the rise in budget expenditure on agriculture; (iii) to take into account international pressures so as to enable the industrialised countries to reduce public support for agriculture; (iv) to achieve greater liberalisation of trade in the agricultural products negotiated by the G E N E R A L A G R E E M E N T ON T A R I F F S A N D T R A D E (Gatt). Additional measures were introduced in 1988 for the most costly agricultural markets, involving budget STABILISERS which take effect when production and the costs of market support reach critical levels. At the same time the scheme for S E T - A S I D E of agricultural land was introduced, as was the scheme for early retirement for farmers. The adjustments to the C A P include both restrictive measures and structural counterbalances. Restrictive measures are designed to diminish the mechanisms previously in force and make the intervention system more sensitive to market trends by means of: (i) increased producer co-responsibility through the introduction of LEVIES and superlevies in the sugar, cereals and dairy products sectors; (ii) guarantee ceilings for various products, above which price cuts would be imposed in order to stabilise expenditure; (iii) curbing intervention mechanisms in order to make access to intervention more difficult by reducing periods of eligibility, and less attractive by reducing the prices paid; (iv) a restrictive prices policy for reducing prices with the aim of bringing Community prices into line with world prices; (v) strict budgetary discipline with the proviso that Farm Fund Guarantee Section expenditure may not exceed 80 per cent of the growth in the Community's gross domestic product. The structural counterbalances should serve to offset the restrictive measures adopted. These concern: (i) financial aid for conversion of land and largescale production; (ii) the regulation of national aids, and to abolish ceilings on investment in the environment sector;

6

Community Issues: Agriculture: processing and marketing

(iii) extending allowances for farmers in lessfavoured areas; (iv) early retirement measures; (v) a scheme to encourage the cessation of farming; (vi) direct income support for farmers. Since 1986 the agricultural production and markets of Spain and Portugal have been taken into account in the CAP. Customs duties have been removed progressively, and Community price levels are being approached by the two newest EC members; accession compensatory amounts are used at frontiers in the meantime to make up the price differences, and the transition will be largely complete by 1992. The exceptions are for olive oil, fruit and vegetables, soft wheat, dairy products and beef from Spain until the end of 1995, and for most agricultural products from Portugal until the same date. See also

BUDGET:

NET

EFFECTS

ON

MEMBER

individual product entries. Commission responsibility: D-G VI (Agriculture).

STATES; F I N A N C E ;

Agriculture: processing and marketing The processing and marketing of agricultural products was formerly aided from the F A R M F U N D (Guidance Section) under the Common Agricultural Policy (Regulation (EEC) 355/77, OJ L 51 1977). In June 1988, the S T R U C T U R A L F U N D S were reformed (Regulation (EEC) 2052/88, OJ L 185 1988) and the implementing Regulation ((EEC) 4256/88, OJ L 374 1988) defines the agricultural measures which may be financed under the Farm Fund, including the marketing of produce and the processing of agricultural and forestry products. The details of support available for processing and marketing of agricultural products are defined by Regulation (EEC) 866/90 (OJ L 91 1990); those for forestry products by Regulation (EEC) 867/90 (OJ L 91 1990); and those for processing and marketing of fishery and aquaculture products by Regulation (EEC) 4042/89 (OJ L 388 1989). The new regulations provide for grants to national authorities or their agencies, which will administer the assistance. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY; FARM FUND; FINANCE.

Commission responsibility: D-G VI (Agriculture). Agriculture: production grouping Producer organisations or co-operatives play an important part in Community market discipline and interventionbuying of agricultural products. They represent

associations of producers who plan the production and distribution of specific produce and share out the proceeds. Detailed rules for the formation, recognition and operation of producer co-operatives are laid down by Regulation (EEC) 1760/78 (OJ L 166 1978, as last amended by Regulation (EEC) 3875/88, OJ L 346 1988). Rules were adopted in 1988 for applying the regulations to Spain (OJ L 54 1988) and Portugal (OJ L 249 1988); a proposal has also been drawn up with a view to applying the measures in Ireland in a number of sectors, to bring the descriptions and tariff codes into line with the new combined nomenclature based on the harmonised system now in force. Subsidies are available to help established producer co-operatives for certain products (eg, cotton, fruit and vegetables, hops) and for certain areas where co-operative developments are inadequate (eg, Greece, Ireland, Italy, Belgium). Subsidies are payable from the F A R M F U N D (Guidance Section) and may, in general, be granted equivalent to 3 per cent in the first year, 2 per cent in the second and 1 per cent in the third, of the value of the products placed on the market. They may not exceed 60 per cent, 40 per cent and 20 per cent of the actual formation and operational expenses in establishing the co-operatives and are subject to an overall ceiling. The Guidance Section will also refund 25-50 per cent of national government expenditure incurred in establishing co-operatives. See also POLICY;

AGRICULTURE: COMMON AGRICULTURAL

FARM

FUND;

individual product entries;

INTERVENTION PRICE.

Commission responsibility: D-G VI (Agriculture). Agriculture: right of establishment A series of measures lay down the rights of nationals in one member state to work in all fields of agriculture in other member states. They cover the freedom of establishment in agriculture: (i) for agricultural workers from other member states who have worked as such for two years (Directive 63/261/EEC, OJ 62 1963); (ii) on agricultural holdings that have been abandoned or left uncultivated for more than two years (Directive 63/262/EEC, OJ 62 1963); (iii) on freedom to provide services in agriculture and horticulture (Directive 65/1/EEC, OJ 1 1965); (iv) for S E L F - E M P L O Y E D persons offering services in agriculture and horticulture (Directive 71/18/EEC, O J L 8 1971);

Community Issues: Air pollution

(v) of men and women in a self-employed capacity including agriculture, and on protection of selfemployed women during pregnancy and motherhood (Directive 86/613/EEC, OJ L 359 1986); (vi) for self-employed persons in F O R E S T R Y and logging (Directive 67/654/EEC, OJ 263 1967, amended by Directive 73/101/EEC, OJ L 2 1973). Freedom of farmers established in another member state is defined by measures on: (i) transfer from one holding to another (Directive 67/530/EEC, OJ L 190 1967); (ii) agricultural leases (Directive 67/531/EEC, OJ L 190 1967); (iii) access to co-operatives (Directive 67/532/EEC, O J L 190 1967); (iv) access to various forms of credit (Directive 68/192/EEC, OJ L 93 1968); (v) access to various forms of aid (Directive 68/415/ EEC, O J L 308 1968). Commission responsibility: Market and External Affairs).

D-G III

(Internal

Aid to developing countries All developing countries benefit from the Community's G E N E R A L I S E D SYSTEM O F P R E F E R E N C E S and a large number from trade and co-operation agreements with the Community (see E X T E R N A L T R A D E ) . Nearly 7 0 countries enjoy special aid and concessionary tariff preferences under the L O M É C O N V E N T I O N S (see A C P STATES). A small amount of special aid is directed towards N O N - A S S O C I A T E D S T A T E S , particularly for rural development. Community aid comes from three sources: (i) bilateral aid, direct between member states and recipient countries; (ii) through the European D E V E L O P M E N T F U N D about (10 per cent of all Community aid); (iii) under Title 9 of the Community's B U D G E T (Development chapters). Including member states' bilateral agreements, the Community is the second largest single donor of F O O D A I D , after the US, in the world. See also F I N A N C E ; E M E R G E N C Y A I D . Commission responsibility: D - G VIII (Development). Aim The Aim (Advanced Informatics in Medicine) research programme (OJ L 314 1988), currently in a two-year exploratory phase from 1989, is concerned with the development of medical and bio-

7

informatics, in order to sustain quality growth in health care. Commission responsibility: AIM Project, D-G XIII. Tel. 010 322 235 0594/236 3506. Air pollution Environmental concern centres particularly on air pollution which is responsible for acid rain and global warming ('the greenhouse effect'). As part of its environment programme the Community has adopted legislation designed to reduce or avoid pollution of the atmosphere. Some measures are aimed at the quality of the environment and others are directed at the sources of pollution. The first category includes measures: (i) on air quality limit values and guide values for sulphur dioxide and suspended particulates (Directive 80/779/EEC, OJ L 299 1980); (ii) laying down air quality standards for nitrogen dioxide (Directive 85/203/EEC, OJ L 87 1985) member states must draw up plans to meet the 'limit value' by 1 January 1994 at the latest; (iii) establishing a reciprocal exchange of information and data on a number of air polluting substances (Decision 82/459/EEC, OJ L 210 1982). The second category is directed at sources of pollution and includes measures: (i) to ensure that certain types of industrial plant receive authorisation before operation or substantial alteration (Directive 84/360/EEC, OJ L 188 1984); (ii) to reduce the use of chlorofluorocarbons in the filling of aerosol cans (Decision 80/372/EEC, OJ L 90 1980); (iii) on emissions from large combustion plants (Directive 88/609/EEC, OJ L 336 1988) - this directive was only agreed after much deliberation. Two substances contributing to the acid rain problem are to be reduced from existing plant: sulphur, in three stages (1990, 1998 and 2003) and nitrogen oxide in two stages. Stricter standards are to be applied for new plant; (iv) on the protection of the Community's forests against atmospheric pollution (Regulation EEC/ 3528/86, O J L 3 2 6 1986); (v) to reduce pollution from exhaust gases of motor vehicles, including private cars, heavy goods vehicles and diesel engines: exhaust gases from passenger vehicles are covered by Directive 70/220/EEC (OJ L 76 1970 as amended by 88/76/EEC, OJ L 36 1988 and 88/436/EEC, OJ L 214 1988); and emissions from diesel engines for use in vehicles come under Directive 88/77/EEC (OJ L 36 1988).

8

Community Issues: Air travel

The Commission in 1990 put forward proposals to cut pollution from diesel lorries by 40-60 per cent. The stricter emission standards are to be introduced in two phases, the first beginning in July 1992, the second in 1996. In 1985 a Directive 85/210/EEC (OJ L 96 1985) agreed on the compulsory introduction of unleaded petrol from October 1989 and Directive 87/416/EEC (OJ L 225 1987) authorises the member states to prohibit the marketing of regular leaded petrol. The Council in October 1988 adopted legislation enabling the Community to ratify the 1985 Vienna Convention for the protection of the ozone layer and the 1987 Montreal Protocol on substances that deplete the ozone layer. As a result member states are now obliged to reduce by half their production of chlorofluorocarbons within the next ten years. See also E N V I R O N M E N T . Commission responsibility: D-G XI (Environment, Consumer Protection and Nuclear Safety).

See also T R A N S P O R T ; C I V I L A V I A T I O N . Commission responsibility: D-G VII (Transport). Albania

A member of the C O U N C I L F O R M U T U A L from 1949 to 1961. Many member states have no diplomatic relations with Albania. Both the Commission and the European Parliament would like to see an improvement in the situation so that trade and economic relations may be established. Trade is covered by Regulation 3420/ 83 (OJ L 346 1983) on imports from S T A T E T R A D I N G ECONOMIC ASSISTANCE

COUNTRIES.

Commission responsibility: D-G I (External Relations Directorates) H ( l ) and E. Algeria Algeria is the Community's largest trading partner from the Mediterranean region, and is one of the five-nation group collectively known as the Arab M A G H R E B Union. See also

EXTERNAL TRADE,

Table 6.4;

MEDITER-

RANEAN COUNTRIES.

Air travel

See

CIVIL AVIATION; TRANSPORT.

Aircraft industry In recent years, there have been attempts to rectify what has been seen as a lack of overall strategy for the European aeronautical sector. The European Parliament in 1987 drew attention to previous Commission proposals for an action programme for the sector, and for an action programme on aeronautical research, which were never adopted by Council (Bull E C Suppl 11/75 OJ C 265 1975; OJ C 210 1977). A resolution from the European Parliament's Committee on Economic and Monetary Affairs and Industrial Policy, supported by the Committee on Energy, Research and Technology, called for the formulation of a European Community strategy for the sector, particularly in respect of fullest support for co-operative ventures including Airbus (EP Documents A 2-125/87, 1987 and A 2-125/87 Annex, 1987). As a result the Commission in 1989 proposed a two-year pilot phase for a programme of strategic research and technology in aeronautics (Com (88) 293, OJ C 266 1988). The pilot phase will cover aerodynamics, materials, acoustics, computation, airborne systems and equipment, design and manufacturing technology, and propulsion. Competition in the aircraft industry is to be maintained in accordance with the criteria laid down in t h e G E N E R A L A G R E E M E N T ON T A R I F F S A N D T R A D E (GATT)

agreement on trade in civil aircraft.

Inquiries: Chancellerie Diplomatique, 209 avenue Molière, B-1060 Brussels. Commission responsibility: D-G I (External relations) Directorate H(2); D-G VIII (Development). Alternative energy Part of the Community's E N E R G Y policy is to encourage a considerable increase in the use of new and renewable energy sources to replace traditional fuels. R E S E A R C H work has been underway since 1973 devoted to solar and related energy sources, either undertaken by the J O I N T R E S E A R C H C E N T R E (JRC) or in the form of shared contracts concluded between the European Commission and industry, research centres and universities of member countries. A Council Decision in March 1989 (89/236/EEC, OJ L 98 1989) gave approval to a specific research and technological development programme in the field of non-nuclear energies and rational use of energy, from 1989— 1992. The programme is known as Joule, or Joint Opportunities for Unconventional or Long-term Energy Supply, and has almost Ecu 50m allocated to renewable energies. These include wind energy, solar photovoltaic, hydraulic energy, biomass, geothermal energy and deep geology. Commission responsibility: D-G XVII (Energy) Directorate E3; D-G XII (Science, Research and Development) Directorate E. Andean Pact The Andean Pact comprises five Latin American countries who are parties to the

Community Issues: Animal health, meat inspection and hygiene

1969 Cartagena Agreement: Bolivia, Colombia, Ecuador, Peru and Venezuela. A three-year project for regional scientific co-operation between Community and the countries of the Andean Pact in the field of new technologies was announced in February 1990. The Ecu 5m-project aims to create links between Community universities and research institutes and their counterparts in Latin America. See E X T E R N A L T R A D E , Table 6; individual countries. Commission responsibility: D-G I (External relations) Directorate 1(2). Andorra The co-principality, which is situated in the eastern Pyrenees, is not part of the European Community but is subject to Community rules regarding imports from third (non-Community) countries (Regulation 288/82/EEC, OJ L 35 1982, as last amended by Regulation 3365/89/EEC, OJ L 325 1989). Andorra and the E E C in December 1989 initialled an agreement to set up a customs union for industrial products between the two parties. Commission responsibility: D-G I (External relations) Directorate G. Angola Angola signed the third L O M É C O N V E N in April 1985 and became the sixty-sixth A C P

TION

STATE.

See also E X T E R N A L T R A D E , Table 8. Inquiries: Chancellerie diplomatique, 182 rue Franz Merjay, B-1180 Brussels. Commission responsibility: D - G VIII (Development) Directorate C(3). Animal health, meat inspection and hygiene A 1968 resolution laid down a basic policy for adequate protection of animal and human health within the Community, for the free movement of animals and animal products and for common measures to combat disease (OJ C 22 1968). Implementing legislation covers internal Community trade in fresh meat from domestic animals (ie, B E E F A N D V E A L , P I G M E A T , S H E E P M E A T A N D G O A T M E A T ) , live Cattle and pigs (consolidated Directive 64/432/EEC, OJ C 189 1975, as last amended by Directive 89/360/ E E C , OJ L 153 1989); fresh P O U L T R Y (Directive 71/118/EEC, as last amended by Directive 88/657/ EEC, OJ L 382 1988); and, meat products (amended Directive 89/77/EEC, OJ L 93 1989). Other detailed aspects of this policy cover:

9

(i) trade in fresh meats, live cattle and pigs with nonCommunity countries (Directive 72/462/EEC, OJ L 302 1972, as last amended by Directive 89/277, OJ L 93 1989); (ii) Community legislation adopted for the eradication of brucellosis, tuberculosis and leucosis in cattle (Directive 77/391/EEC, OJ L 145 1977 as amended by Regulation (EEC) 3768/85, OJ L 362 1985); (iii) rules for intra-Community trade and imports from non-member countries of frozen sperm of bovine animals (Directive 88/407/EEC, OJ L 194 1988); (iv) trade in pure breeding cattle (Directive 77/504/ EEC, OJ L 206 1977 as last amended by Regulation (EEC) 3768/85, OJ L 362 1985); (v) stunning of animals before slaughter (Directive 74/577/EEC, OJ L 316 1974); (vi) protection of animals during international transport (Directive 77/489/EEC, OJ L 200 1979); (vii) legislation for the eradication of swine fever, swine vesicular disease and enzootic leucosis (respectively, Directives 80/1095/EEC, OJ L 325 1980, as last extended by OJ L 221 1988; 80/1098/EEC, OJ L 325 1980; 80/1102/EEC, OJ L 325 1980 as amended by OJ L 194 1988); (viii) a proposed directive for rules governing the notification of animal diseases (OJ C 248 1981); (ix) legislation for the prohibition of stilbene derivatives and thyrostatic substances (Directive 81/602/ E E C , OJ L 222 1981 as last amended by Directive 85/358/EEC, OJ L 191 1985); (x) establishment of Community criteria for eradication of brucellosis, tuberculosis and enzootic leucosis in cattle (Directive 78/52/EEC, OJ L 15 1978, as last amended by Directive 81/6/EEC, OJ L 14 1981; see also Decision 87/58/EEC, OJ L 24 and 32 1987); (xi) a series of decisions to control foot-and-mouth disease (OJ L 47, 104 and 121, all 1983); (xii) a proposal for a regulation for control of substances with hormonal effect used in livestock farming (OJ C 128 1983; OJ C 170 1984); (xiii) legislation concerning the fees paid by member states for health inspection and checks on fresh meat (Directive 88/408/EEC, OJ L 194 1988), microbiological controls (Directives 85/323/EEC and 85/ 324/EEC, both OJ L 168 1985), medical clearance of staff handling meat (OJ C 179 1984) and the import of meat-based products (Directive 89/227/EEC, OJ L 93 1989). In 1984 the Council of Ministers adopted a resolution for a programme of H A R M O N I S A T I O N of

10

Community Issues: Annual Report

veterinary, plant health and animal F E E D I N G S T U F F S legislation (OJ C 134 1984; OJ L 339 1984). In 1988 the Commission submitted three basic proposals to the Council regarding harmonisation within the veterinary sector as part of the moves towards the single market. The three proposals: (i) provide for the discontinuation of veterinary checks at the Community's internal frontiers whereby protective arrangements would be extended and amended to cover all products subject to veterinary control; (ii) concern the reinforcing of controls at production and marketing stages; (iii) clarify the scope of rules on mutual co-operation between member states' inspection services. The Commission has also drawn up a programme for the computerisation of veterinary procedures applicable to imports (OJ L 89 1988). Other notable measures in this field have concerned: (i) undesirable substances and products in animal nutrition (Directive 87/519/EEC, OJ L 304 1987); (ii) hormone growth promoters (Directive 85/358/ EEC, OJ L 191 1985); (iii) antibiotic residues (Directive 86/469/EEC, OJ L 275 1986); (iv) control of residues in animals and fresh meats (Directive 86/469/EEC, OJ L 275 1986); (v) control of foot and mouth disease (Directive 85/511/EEC, OJ L 315 1985); (vi) Swine fever (Directives 85/320/EEC, 85/321/ E E C and 85/322/EEC, OJ L 168 1985, and Decisions 87/230/EEC and 87/231/EEC, OJ L 99 1987; also Directives 87/486/EEC, 87/487/EEC, 87/489/EEC and Decision 87/488/EEC, all in OJ L 280 1987); (vii) prohibition of the use of hormonal substances in livestock farming (Directive 88/146/EEC, OJ L 70 1988); (viii) trade in animals treated with hormonal substances (Directive 88/299/EEC, OJ L 128 1988); (ix) intra-EC trade in fresh meat and meat products (Directives 88/658/EEC, OJ L 382 1988 and 88/288/ EEC, OJ L 124 1988); (x) health rules for the domestic market and fees for inspection (Directive 88/409/EEC, OJ L 194 1988). (xi) proposed regulations on health rules for production and marketing of fresh meat, meat products and products of animal origin (OJ C 84 1990). See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture).

Annual Report A general report on the activities of the European Community is published annually in the Community languages for presentation to the E U R O P E A N P A R L I A M E N T in the first half of February (as required by Article 1 8 of the M E R G E R T R E A T Y ) . The report is compiled by the Secretariat-General (General Report and Other Periodical Reports Division) and is a useful record of Community activity during the year. Commission responsibility: Office for Official Publications of the European Communities. Antigua and Barbuda One of the A C P a signatory to the L O M É C O N V E N T I O N S .

STATES

and

See E X T E R N A L T R A D E Table 8. Inquiries: Chancellerie diplomatique, Antigua House, 15 Thayer St, London W1 B-l. Commission responsibility: D-G VIII (Development) Directorate B(4). Apiculture

.See

HONEY.

Arab Co-operation Council The Arab Co-operation Council was formed by an agreement signed on 16 February 1989 between Egypt, Iraq, Jordan and the Yemen Arab Republic. The objectives of the agreement are a wider regional co-operation in economic and social development, as well as the maintenance of peace in the Middle East. Other Arab countires are eligible to join the council, on a unanimous vote from existing members. See also E X T E R N A L country entries. Arab

Maghreb

TRADE,

Union

Table 4; individual

(AMU)

See

MAGHREB

COUNTRIES.

Architects Directive 85/384/EEC (OJ L 223 1985) requires member states to recognise any architectural qualification of university degree standard gained in another member state, provided it covers certain areas specified in the directive and provided it is of a specified minimum duration. The directive entered into force in June 1987. An Advisory Committee on Education and Training in the Field of Architecture (Decision 85/385/EEC, O J L 223 1985) advises on comparable training levels throughout the Community. Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D(2).

Community Issues: Auditors

Argentina Argentine imports into the Community are subject to Community commercial rules regarding imports from third (non-Community) countries (Regulation 288/82/EEC, O J L 35 1982, as last a m e n d e d by Regulation 3365/89/EEC, O J L 325 1989). T h e Council in D e c e m b e r 1989 gave its approval for negotiations to begin on a five-year economic and trade agreement between the E C and Argentina. See also E X T E R N A L T R A D E , Table 6. Inquiries: Chancellerie diplomatique, P O Box 2, 225 avenue Louise (7ème étage), B-1050 Brussels. Commission responsibility: D - G I (External relations) Directorate 1(2).

Association agreements A series of agreements concluded mainly in the early years of the E u r o p e a n Economic Community with G R E E C E , T U R K E Y , CYPRUS, and MALTA. These were designed to accommodate the economies of signatory countries with the Community CUSTOMS UNION and C O M M O N CUSTOMS T A R I F F (CCT) pending possible full Community m e m b e r s h i p at some future date. Greece applied for association in 1959 u n d e r the T R E A T Y O F R O M E Article 238, and the agreement came into effect in 1962 allowing Greece a 22-year transitional period to adapt to the customs union and 12 years to the C C T with reciprocal Community obligations. Greece applied for full membership in 1975 and became the tenth m e m b e r of the Community in January 1981. A similar association agreement, which came into effect in 1965, was concluded with Turkey; complete elimination of tariffs is not due until 1995. In 1972 further association agreements were signed with Malta and Cyprus. These were similar in intention to those signed with Greece and Turkey but did not envisage full Community membership. See also individual country entries. Commission responsibility: D - G I (External Relations).

Association of South East Asian Nations ( A S E A N ) A regional organisation f o r m e d by Indonesia, Malaysia, the Philippines, Singapore and Thailand, who in 1967 agreed to work together to accelerate stability, economic growth, and social and cultural development in the area. Brunei Darussalam joined in 1984.

11

See E X T E R N A L T R A D E , Table 6 : 7 ; individual countries. Commission responsibility: D - G I (External relations); D - G VIII (Development) Directorate J(2).

Auditors

T h e eighth C O M P A N Y L A W Directive O J L 1 2 6 1 9 8 4 ) guarantees the level of ability of persons responsible for auditing accounts, thus harmonising the quality of the published accounts of companies and corporate groups. Auditors must attain university entrance level, complete a minimum of three years' practical training and pass an examination of professional competence at final university level before a m e m b e r state may approve them to carry out the audits required by C O M M U N I T Y L A W . Persons who did not initially reach the level of university entrance may also be approved, at the option of the m e m b e r state, if they have 15 years relevant experience or combine seven years relevant experience with a course of practical training. In any event, they must pass the same examination of professional competence. T h e rights acquired by those already approved, or those in training, are protected by appropriate provisions. Firms of auditors may also be approved, but audits by them may only be done by m e m b e r s of their staff qualified under the Directive, and the majority of the m a n a g e m e n t of such firms must also be qualified. M e m b e r states must ensure that all auditors are persons of good repute, and are independent, and that audits are carried out with professional care. As a further safeguard, names and addresses of auditors, including m e m b e r s or shareholders of firms, must be available to the public. (84/253/EEC,

T h e directive on a general system for the mutual recognition of higher education diplomas awarded on completion of professional education and training of at least three years' duration, will apply to qualified auditors (89/48/EEC, O J L 19 1989). This means that an auditor f r o m one m e m e r state will be able to become a m e m b e r of the equivalent profession in another m e m b e r state without having to requalify. If their education and training differ substantially from that required for auditors in the host m e m b e r state, they may be required to take an aptitude test or a period of supervised practice not exceeding three years. Details of how the directive will be implemented in the m e m b e r states have yet to be finalised but it is due to be implemented by 4 January 1991.

12

Community Issues: Australia

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D(2). Australia The Commission submitted to the Council in May 1989 a proposal to allow the negotiation of a framework for scientific and technical co-operation with Australia. See E X T E R N A L T R A D E , Table 6 : 9 . Inquiries: Chancellerie Diplomatique, Guimard Centre, 6/8 rue Guimard, B-1040 Brussels. Commission responsibility: D-G I (External Relations) Directorate B(2). Austria

A founder member of the E U R O P E A N A S S O C I A T I O N . Austria submitted a request for accession to the Community in July 1989, on which the Commission is to deliver an opinion. FREE

See

TRADE

EXTERNAL TRADE,

EUROPEAN

Table 1;

CO-OPERATION

IN

C O M M I T T E E ON

SCIENTIFIC

AND

TECHNICAL RESEARCH; EUREKA.

Inquiries: Chancellerie Diplomatique, 35-36 avenue des Klauwerts, B-1040 Brussels. Commission responsibility: D - G I (External relations) Directorate G(2). Automobiles The European Commission in 1982 began a co-ordinated scheme of action to strengthen the internal car market and promote the development of the industry, while allowing changes in employment patterns and promoting dialogue with the Community's trading partners to take account of the increasing penetration of the Community market by foreign cars, especially from Japan (Bull EC 12 1983). The Community car market has, however, continued to experience difficulties, and many

member states have maintained national restrictions. The European Commission is determined that the internal market in the automotive sector must be achieved, and the new comprehensive approach to harmonisation will ensure the elimination of technical barriers to trade (see H A R M O N I S A T I O N , Table 1: Motor Vehicles). The Commission's Communication on a Single Community Motor Vehicle Market sets the priorities for action as technical harmonisation, approximating indirect taxation, managing state intervention, research and technology policy, training and retraining, and dismantling internal quantitative restrictions (SEC (89) 2275 1989). The ultimate objective is total liberalisation of the market, but this must respect the rules of international trade and avoid a sudden shock to the Community industry: a transitional phase is proposed to avoid flooding the Community market with imports. Community control of state aids for the car industry (applied under the criteria of OJ C 123 1989) means that for two years from 1 January 1989, member states are required to give notice of all aid plans for car manufacturers in excess of Ecu 12m, and to give an annual report on all aid granted. See also A I R P O L L U T I O N , I N S U R A N C E . Commission responsibility: D-G III Market and Industrial Affairs).

(Internal

Azores An autonomous region of Portugal to which C O M M U N I T Y L A W and the C O M M O N C U S T O M S U N I O N both apply. A joint declaration was made as part of the Portuguese Accession Act (as with Madeira), referring to the need for economic and social development of the islands.

B Bahamas

One of the ACP

STATES

and a signatory

Bangladesh Bangladesh is eligible for tariff reductions for its exports under the G E N E R A L I S E D SYSTEM O F P R E F E R E N C E S and as a least-developed country benefits from the S T A B E X system, established for Asian and Latin American LLDCs.

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 8. Inquiries: Bahamas High Commission, 10 Chesterfield St, London W l . Commission responsibility: D-G VIII (Development) Directorate B (4).

See E X T E R N A L T R A D E , Table 6:7; Non-associated states. Inquiries: Chancellerie Diplomatique, 29-31 rue Jacques Jordaens, B-1050 Brussels. Commission responsibility: D-G I (External Relations) Directorate J ( l ) ; D-G VIII (Development) .

Bahrain Bahrain is a party to the charter of the Co-operation Council for Arab states of the Gulf. See E X T E R N A L T R A D E , Table 6:4; G U L F C O OPERATION COUNCIL.

Commission responsibility: D - G I (External Relations) Directorate H(3).

Bankruptcy Discussions on a draft convention on bankruptcy, winding-up arrangements, composition and similar proceedings, most recently published in 1982 (Bull EC 2 1982) have failed to make progress. In 1984 an ad hoc committee set up to examine the convention completed its second reading of the draft but consideration was delayed by the accession to the Community of the new member states, and the convention's excessive complexity.

Bananas Imports of bananas into the European Community from the A C P STATES are regulated by the L O M É C O N V E N T I O N S , in particular by their S T A B E X system. Bananas from some non-ACP countries in Latin America (the Dollar Area) are exported to Western Europe as well as to their main market in the US. The other major producing countries, the Philippines and Taiwan, export primarily to Japan. Bananas are also produced by the following countries with direct connections to EC member states: Canary Islands (Spain), Madeira (Portugal), Crete (Greece), and Martinique and Guadeloupe (France). Because of the differences between the commercial measures applied by the 12 member states to the imports of bananas from outside the Community (France, Italy and Greece, and the UK have authorisation from the EC to apply measures for the protection of their market for bananas against imports from the Dollar Area) the Commission is anxious to introduce a common system. An interdepartmental working party was set up by the Commission in 1989 to carry out a detailed technical examination of the banana market situation and to consider the options for resolving the disparities in advance of the Single Market. The report of the working party is expected to be published in mid1990. Thereafter the Commission is likely to prepare a draft proposal for a directive on the organisation of the market.

In

1990,

the

C O M M I T T E E OF PERMANENT

REPRE-

(Coreper) agreed to the establishment of an ad hoc working party on bankruptcy. It will consider the cross-border implications of bankruptcy and aim to draft a convention on the subject for submission to an intergovernmental conference of member states in due course. SENTATIVES

Commission responsibility: D-G XV (Financial Institutions and Company Law) Directorate B. Bap

(Biotechnology Action Programme) See BIO-

TECHNOLOGY.

Barbados

One of the

A C P STATES

and a signatory

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 14 avenue Lloyd George, B-1050 Brussels. Commission responsibility: D-G VIII (Development) Directorate B (4).

Commission responsibility: D-G VI (Agriculture).

Barley 13

See

CEREALS.

14

Community Issues: Basic price

Basic price Under the Common Agricultural Policy (See A G R I C U L T U R E : CAP) the basis for calculating the buying-in price for P I G M E A T and F R U I T A N D V E G E T A B L E S . With pigmeat, the basic price corresponds to the T A R G E T P R I C E of other market organisations; with fruit and vegetables the basic price is calculated from certain market quotations from previous financial years. See also I N T E R V E N T I O N P R I C E . Commission responsibility: D-G VI (Agriculture). Beaches Community legislation adopted in 1976 (Directive 76/160/EEC, OJ L 31 1976) laid down a 10-year period in which to ensure that all Community bathing waters are free of pollutants harmful to health, such as sewage, pesticides, detergents etc. An annex details the physical, chemical and bacterial limits that are permissible, and the directive demands that constant sampling and inspection be carried out to ensure that these standards are observed. Exceptions are permitted where bathing is prohibited, or where geographical or natural soil conditions create specific problems; in both cases however there must still be adequate health protection. The directive required that member states should inform the European Commission by the end of 1979 of the list of their beaches which would fall into the scope of this law. (For example, as a general rule for identifying such beaches, the UK Department of the Environment, in consultation with local and water authorities, used the criteria of a beach where 500 people regularly bathe at a time or 1500 people per mile, and designated 25 beaches where standards must be respected.) Several member states have yet to comply with this directive, and in May 1990 the Commission confirmed that it had begun legal action in the Court of Justice to remedy this. See also E N V I R O N M E N T ; W A T E R . Commission responsibility: D-G XI (Environment, Consumer Protection and Nuclear Safety) Directorate A (1). Beef and veal Beef and veal came fully under the Common Agricultural Policy rules in 1968 (Regulation (EEC) 805/68, OJ L 148 1968 as last amended by (EEC) 571/8, OJ L 61 1989). This regulation applies to live animals, meat and processed products. G U I D E P R I C E S are fixed annually by the Council for calves and full-grown cattle, with reference to anticipated future trends in production and consumption, and the situation on the market in dairy

products. The guide price is the average price aimed at by the Community for all quantities sold during any marketing year. I N T E R V E N T I O N buying and private storage aids may be decided for member states in which prices fall below a given level. Intervention arrangements for beef and veal were revised and restricted by Regulation (EEC) 467/87 (OJ L 48 1987). Intervention is triggered when the average Community price for a grade or set of grades is less than 91 per cent of the intervention price, and the average market price recorded in the particular member state or region is less than 87 per cent of the intervention price. Intervention measures are regionalised to take account of differences in the conditions of price formation (Regulation (EEC) 1302/73, OJ L 132 1973). The Commission determines the quality and conditions for the sale of the products bought in by the intervention agencies and it is authorised to limit intervention to certain periods or certain products (Regulation (EEC) 2226/78, OJ L 261 1978 as last amended by (EEC) 859/89, OJ L 91 1989). Certain other special measures may be taken when a substantial rise or fall in prices occurs (Regulation (EEC) 1855/74, OJ L 195 1974). To offset the effects of intervention measures on producers' incomes, certain premiums have been designed. A premium is a direct aid to income as compensation for the abolition of permanent, automatic intervention. To maintain incomes of breed producers on farms not selling milk, premiums and supplementary premiums may be granted (Regulation (EEC) 137/80, OJ L 140 1980 as amended by (EEC) 1198/82, OJ L 140 1982; Regulation (EEC) 1244/82, OJ L 143 1982). Premiums are available for the slaughter of certain adult bovine animals other than cows (Regulation (EEC) 870/77, OJ L 106 1977 as amended by (EEC) 1200/ 82, OJ L 140 1982; Regulation (EEC) 1245/82, OJ L 143 1982). The amount of premium may vary according to the time of slaughter. The F A R M F U N D (Guarantee Section) finances 40 per cent of the amount, and the level of premiums depends on the gap between market price and target price in any week. In practice the scheme operates only in the UK and applies to imports from Ireland intended for consumption in the UK. There are also schemes available for the birth of calves (Regulation (EEC) 1201/82, OJ L 140 1982; (EEC) 1243/82, OJ L 143 1982). This is a fixed amount payable by the Farm Fund; in practice the scheme only operated in Greece, Ireland, Italy and

Community Issues: Bolivia

Northern Ireland. In 1987 Greece transferred to a single special premium scheme, under Regulation (EEC) 467/87 (OJ L 48 1987). In all member states except the UK (where there is a slaughter premium) and Northern Ireland (where there is a calf premium), a special premium is payable. Sales of beef at reduced prices to certain categories of consumers (such as welfare institutions in Italy) may be allowed to dispose of surplus stocks (Regulation (EEC) 1857/74, OJ L 195 1974). Imports are subject to customs duties set out in the C O M M O N C U S T O M S T A R I F F , which may be suspended or reduced in certain cases (Regulation (EEC) 425/77, OJ L 61 1977). Special detailed rules for the application of the system of import and export licences in the beef and veal sector are laid out in Regulation (EEC) 2377/80 (OJ L 241 1980 as last amended by (EEC) 2144/89, OJ L 205 1989). Imports are also subject to variable L E V I E S , which comprise the difference between the price at which consignments are imported (including duties) and the guide price. The proportion of the levy paid by the importer depends on the R E F E R E N C E PRICE in the domestic market. There are special import regulations for beef from A C P STATES (Regulation (EEC) 435/80, OJ L 55 1980). Export refunds may be paid to offset the difference between world market prices and the price in the Community. These refunds vary according to the destinations. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D - G VI (Argriculture) Directorate D. Belgium COAL

A

AND

founder member of the STEEL

ATOMIC ENERGY

COMMUNITY,

COMMUNITY

the

and

the

EUROPEAN EUROPEAN EUROPEAN

ECONOMIC COMMUNITY.

Inquiries: Permanent representative (Coreper), 62 rue Belliard, B-1040 Brussels. Belize

One of the

A C P STATES

and a signatory to

t h e L O M É CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, Belize Avenue, High Commission, 200 Sutherland London W9. Commission responsibility: D - G VIII (Development) Directorate B (4).

15

Benin

Originally a signatory to the Y A O U N D E Benin is one of the A C P STATES and a signatory to the L O M É C O N V E N T I O N S . AGREEMENTS,

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 5 avenue de l'Observatoire, B-1180 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(2). Bermuda A UK dependency, Bermuda is eligible for tariff reductions for its exports under the G E N E R A L I S E D SYSTEM O F P R E F E R E N C E S .

Inquiries: UK Foreign and Commonwealth Office, Downing St, London SW1A 2 £ L . Biotechnology A five-year research programme (1985-1989), the Biotechnology Action Programme (BAP) (OJ L 83 1985) was accepted in 1985 with the aim of establishing a supportive infrastructure for biotechnology research in Europe and to encourage the exploitation by industry and agriculture of the materials and methods originating from modern biology. Proposals in connection with the next biotechnology research programme (Bridge - Biotechnology Research for Innovation, Development and Growth in Europe) are under discussion. A research and training programme will include information infrastructures (culture collections, data processing), enabling technologies (protein design, molecular modelling, gene mapping, biotransformation etc), cellular biology and pre-normative research (eg safety assessments and evaluation of toxicity). Two directives were adopted in March 1990 (Directives 90/219/EEC and 90/220/EEC, OJ L 117 1990) which will place important new controls on biotechnology companies in the Community. The measures introduce regulations for activities where organisms obtained by altering the genetic material of bacteria, plants or animals are involved. Commission responsibility: D-G XII (Science, Research and Development). Bolivia A member of the A N D E A N signatory to the Cartagena Agreement.

PACT

and

See E X T E R N A L T R A D E , Table 6:6. Inquiries: Chancellerie Diplomatique, PO Box 6, 176 avenue Louise, B-1050 Brussels.

16

Community Issues: Botswana

Commission responsibility: D - G I (External relations) Directorate H(2); D-G VIII (Development). Botswana

One of the

A C P STATES

and a signatory

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 6.8. Inquiries: Chancellerie Diplomatique, 169 avenue de Tervuren, B-1040 Brussels. Commission responsibility: D-G VIII (Development) Directorate C(3). Bovine spongiform encephalopathy (BSE) Bovine spongiform encephalopathy, also known as mad cow disease, is the neural disease of cattle first indicated in the UK in November 1986. The occurrence of BSE is thought probably to have arisen because cattle had been fed pelleted feed supplements containing meat and bonemeal derived from sheep infected with scrapie. Links with the rare human Creutzfeldt-Jacob disease have been suggested but not proved. Decision 89/469/EEC (OJ L 225 1989) prohibited the export from the UK to the rest of the Community of live cattle born before July 1988, or those born to cows suspected of being infected with BSE. Decision 90/200/EEC (OJ L 105 1990) made additional requirements prohibiting the export from the UK to the rest of the Community of specified organs and tissues from animals suspected of infection with BSE. See also

A N I M A L H E A L T H , M E A T INSPECTION A N D

HYGIENE; B E E F AND VEAL.

Commission reponsibility: D-G VI (Agriculture). Brazil An EEC/Brazil Business Council was established in December 1988, the purpose of which is to advise businesses, in both regions, in the field of industrial and technical co-operation, to assist in the creation of joint ventures and to bring about an improvement in investment. See E X T E R N A L T R A D E , Table 6:6. Inquiries: Chancellerie Diplomatique, 350 avenue Louise, B-1050 Brussels. Commission responsibility: D-G I (External relations) Directorate H(2). Bridge (Biotechnology Research for Innovation, Development and Growth in Europe) See

BIOTECHNOLOGY.

Brite/Euram The four-year programme on Brite/ Euram (Basic Research in Industrial Technologies for Europe/European Research in Advanced Materials) runs from 1989-1992 (OJ L 98 1989). The principal objective is to enhance the competitive position of the Community's manufacturing industries through the support of research and development to provide the industrial and materials technology base required for strategic, innovative product and process development. See also R E S E A R C H ; E C L A I R ; F L A I R . Commission responsibility: D-G XII (Science, Research and Development). Broadcasting The Community's audio-visual industry is one of the most important and fast-growing with expansion expected to increase from Ecu 25bn in 1990 to Ecu 35bn by the end of the century. Community action in this field aims to remove legal and technical restrictions on freedom of broadcasting services, including film and television, across the frontiers of member states. The key directive sets minimum standards for television programmes, guarantees the free circulation in the Community of TV programmes broadcast from any member state and promotes the production and distribution of audio-visual works of European origin (89/552/EEC, OJ L 298 1989). It regulates television advertising, setting minimum intervals between advertisements with a 15 per cent ceiling as a share of total transmission time rising to 20 per cent in peak viewing periods. It forbids pornography and gratuitous violence that could harm young viewers and bans cigarette advertising. Member states are asked to strive 'by practical and appropriate means' towards European-made programmes filling a majority of air-time, excluding news and sports bulletins, advertising and games shows. The directive will come into effect for most member states by 1992 with a further period of grace for Portugal and Greece. The import, distribution and utilisation of films from Community countries are liberalised under Directive 63/607/EEC (OJ L 159 1963); freedom of establishment and services in the cinematographic sector are covered under Directives 65/264/EEC (OJ L 85 1965), 68/369/EEC (OJ L 260 1968) and 70/45/EEC (OJ L 218 1970). The opening up of the television market will influence the development of the standard for high definition television (HDTV), an electronic substitute for cinema-quality film, which is currently of

Community Issues: Budget

major economic and industrial importance. Council Decision 89/337/EEC (OJ L 142 1989) outlined the main objectives of a comprehensive H D T V strategy, launched a major promotion campaign to support the European system and provides for the setting-up of appropriate framework conditions for European equipment manufacturers and service suppliers. A directive was adopted in 1986 on common technical specifications of the MAC/packet family of standards for direct satellite television broadcasting (86/529/ E E C , O J L 3 1 1 1986). It is valid until the end of 1991 and takes into account technological progress. The Commission is putting forward proposals to update this MAC/packet directive in the second half of 1990. The Community's research programmes E S P R I T and R A C E contain several projects relating to television technology. The questions of radio broadcasting and copyright are not as yet the subject of Community legislation. In 1988 the Commission published a green paper on copyright (Com (88) 172) which deals among other things with audio-visual piracy, home copying and computer software protection. The Commission's plans for 1990 (Com (90) 78) include several Community initiatives to provide backing for member state industries in the audio-visual field. These include a draft directive on standards for satellite transmissions, a pilot project for H D T V due autumn 1990 and the introduction of regular services by 1995. Commission responsibility: D-G XIII (Telecommunications, Information Industries and Innovation) Directorate D. Bruges group A group of academics and others led by Lord Harris opposed to further political integration and subsequent loss of sovereignty for individual member states within the European Community. Established after a speech by UK Prime Minister Margaret Thatcher at Bruges in 1988 expressing concern over possible loss of national sovereignty. Inquiries: The Bruges Group, 85/87 Jermyn St, London SW1. Brunei Darussalam A former UK overseas dependency which became independent in 1984. The country is a member of the A S S O C I A T I O N O F SOUTH EAST ASIAN NATIONS.

See

EXTERNAL TRADE,

Table

6:7.

17

Inquiries: Brunei Darussalam High Commission, 49 Cromwell Rd, London SW7. Commission responsibility: D-G I (External relations) Directorate J(2); D-G VIII (Development). BSE

See

B O V I N E SPONGIFORM ENCEPHALOPATHY.

Budget The Budget represents the Community's main policy instrument. The T R E A T Y O F R O M E (Article 200) provided initially that each member country contribute directly to the financing of the budget, based on an agreed share; this system was replaced by one of OWN R E S O U R C E S . The budget represents approximately one per cent of the Community's gross domestic product and approximately three per cent of member countries' total budgetary expenditure. The budget runs from 1 January to 31 December. Procedures for its adoption are laid down in Articles 202-205 of the Treaty of Rome (see B U D G E T A R Y P R O C E D U R E S and E U R O P E A N P A R L I A M E N T ) . The budget must be approved by both the C O U N C I L O F M I N I S T E R S and the E U R O P E A N P A R L I A M E N T and the Parliament has the power to reject it under certain circumstances (Article 203 (8)). In the case of a Parliamentary rejection, the Community must operate on a monthly basis of expenditure equivalent to not more than one-twelfth of the budget appropriations under each head for the preceding financial year until a new budget is approved. Article 202 requires that the budget shall be classified under different chapters, grouping together items of expenditure according to their nature or purpose, and subdivided as necessary. The budget differentiates between appropriations for commitment and expected payments during the year and there is a further division between obligatory payments (eg, those such as the Common Agricultural Policy that derive from the Treaty of Rome) and non-obligatory payments (such as the R E G I O N A L F U N D , not stipulated in the Treaty) and over which the Parliament has considerable discretion. Appropriations for the E U R O P E A N C O U R T O F J U S T I C E and the European Parliament are also included in the budget. Budgetary reforms were introduced in 1988 aiming to control expenditure in certain fields, particularly agriculture - which had accounted for more than 70 per cent of the budget - while providing additional resources for the S T R U C T U R A L F U N D S , channelling finance to poorer regions and reinforcing Community economic and social cohesion. Thus in 1989, agricul-

18

Community Issues: Budget: net effects on member states

ture and fisheries accounted for 67 per cent of the budget, regional policy 9.6 per cent, social policy 7.2 per cent, with energy, research, industry, environment and transport together a total of 3.4 per cent. In the preliminary draft budget for 1991, adopted by the Commission in June 1990, the total volume of payment appropriations has risen by 13.8 per cent to Ecu 53bn which is the equivalent of 1.05 per cent of Community G N P . For the first time, the structural funds account for more than 25 per cent of the total, while the share of guarantee expenditure in agriculture remains roughly stable at 54.7 per cent. See also

FIG 2 BUDGETARY PROCESSES

AGRICULTURE: COMMON AGRICULTURAL

P O L I C Y ; B U D G E T : NET E F F E C T S ON M E M B E R STATES; EUROPEAN

COURT

OF

AUDITORS;

DECISIONS;

DEVELOPMENT FUND; FINANCE.

Commission responsibility: D - G X I X (Budgets). Budget: net effects on member states The sums that member states pay back towards the Community B U D G E T through OWN R E S O U R C E S and those that they receive back in payment through the C O M M O N AGRICULTURAL POLICY, t h e

REGIONAL FUND,

the

and other Community instruments, result in net contributions which vary considerably from one country to another. Gross contributions from own resources are related to a country's imports from non-Community countries ( C U S T O M S D U T I E S and agricultural L E V I E S ) and its level of consumption ( V A L U E A D D E D TAX). Since 1988 a new resource has been created based on gross national product, with each member state contributing according to its G N P and therefore according to its ability to pay. Payments back to member countries from the budget are related to the importance of agriculture in the economy and reimbursement from the F A R M F U N D (which in 1989 accounted for 67 per cent of Community expenditure) and, to a lesser extent, from SOCIAL FUND

t h e REGIONAL a n d SOCIAL FUNDS.

See also F I N A N C E . Commission responsibility: D - G X I X (Budgets). Budgetary procedures Procedures for adopting the B U D G E T are laid down in the T R E A T Y O F R O M E , Articles 202-205. Before 1 July of each year, each institution draws up an estimate of its expenditure for the following year. On the basis of a report prepared by the Secretary-General of the E U R O P E A N PARLIAMENT the Parliamentary Committee on Budgets prepares the draft estimate of expenditure of the Parliament. Five further stages follow.

Major influences are: • imports from non-EC countries • importance of agriculture in domestic economy

the 'fourth own resource' based on GNP ensures that member states contribute according to their ability to pay

(i) The E U R O P E A N C O M M I S S I O N consolidates the estimates, attaches its opinion and presents this preliminary draft budget to the two budgetary authorities, the C O U N C I L O F M I N I S T E R S and the European Parliament, by 1 September. (This preliminary draft budget is published as a Commission document with limited circulation although copies may be seen at Community Information Offices.) (ii) The Council may amend the document, consulting the institutions concerned, and establishes the draft budget, acting by a qualified majority, and places it before Parliament not later than 5 October. (iii) The Parliament has 45 days in which to state its position. The Committee on Budgets examines the draft budget and makes recommendations to the Parliament, which discusses them in a special sitting of the full House. Subject to different Parliamentary voting rules, the House may propose amendments both to obligatory and non-obligatory expenditure. (iv) At the beginning of November the Council begins the second, final examination of the budget when it can amend or reject Parliamentary amendments. If the Council rejects modifications to obligatory expenditure, the Parliament has no right

Community Issues: Business Co-operation Network

to insist on further amendments. The Parliament can, however, re-establish its original amendments to non-obligatory expenditure if it so wishes, in which case consultation follows with the Council to try to reach agreement on controversial items and proposals. (v) This procedure may continue until the Parliament makes its final decision in December, and the president of the Parliament declares the budget to be finally adopted, not later than 20 December. The adopted budget is published in the O F F I C I A L J O U R N A L (Series L ) . The Parliament acting by a majority of its members and two-thirds of the votes cast, may however reject the budget as a whole if it does not agree with the Council modifications to its amendments, and ask for a new draft to be submitted (Article 202 (8)) - as it did in 1984. In the case of a Parliamentary rejection, the Community must operate on a monthly basis of expenditure equivalent to not more than one-twelfth of the budget appropriations under each head for the preceding financial year until a new budget is approved. See

also

BUDGET;

EUROPEAN

PARLIAMENT:

POWERS.

Bulbs, cut flowers and live plants

See

AND FLORICULTURAL PRODUCTS.

L I V E PLANTS

Bulgaria

A founder member of the C O U N C I L F O R A S S I S T A N C E . In April 1 9 8 9 , negotiations began towards the conclusion of a trade, commerce and economic co-operation agreement between Bulgaria and the EC. MUTUAL

Burkina, People's Democratic Republic of Formerly Burkina Faso, one of the A C P STATES and a signatory to the L O M É C O N V E N T I O N S . See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 16 place Guy d'Arezzo, B-1060 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(l). Burma Formally renamed the Union of Myanmar, Burma benefits from the G E N E R A L I S E D S Y S T E M O F P R E F E R E N C E S , and as a less/least-developed country (LLDC) - as defined by the UN - will also be eligible for assistance from the S T A B E X system, when it has settled the internal disturbances that have occurred, particularly with regard to its position on human rights. See E X T E R N A L T R A D E , Table 6:7. Inquiries: Chancellerie Diplomatique, 112 Schumannstrasse, 5300 Bonn. Commission responsibility: D-G I (Development) Directorate J(2). Burundi

Commission responsibility: D-G XIX (Budgets).

ECONOMIC

See E X T E R N A L T R A D E , Table Commission responsibility: Relations) Directorate E ( l ) .

6:3.

D-G

I

(External

Bulletin of the European Communities A monthly periodical published in the official languages of the Community, the Bulletin records Community activities and supplements the A N N U A L R E P O R T . It is designed for a wide readership in government departments, universities, the press, political groups, employers' and workers' associations and other organisations, and is obtainable by subscription. Commission responsibility: Office for Official Publications of the European Communities.

19

One of the

A C P STATES

and a signatory

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 46 square Marie Louise, B-1040 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(3). Business Co-operation Network Known as BCNet, this is a computerised system set up in 1988 involving a network of business advisers, with the aim of helping companies in their search for partners in other Community countries. The project was established to encourage co-operation between smaller firms ( S M A L L A N D M E D I U M - S I Z E D E N T E R PRISES, SMEs) especially on the completion of the internal market in 1992, which is likely to bring an increase in the number of companies involved in transnational co-operation. Companies looking for collaboration of an international nature turn first to one of around 400 advisers throughout the European Community who are members of BC-Net. These independent advisers may be from a local authority, private consultancy, bank, chamber of commerce or regional development agency. The business adviser prepares a co-operation profile of the company which is sent to the BC-Net's central system in

20

Community Issues: Butan

Brussels for matching. The service is completely confidential, with only the advisers immediately concerned being involved. During its two-year experimental phase, lasting to mid-1990, the network has proved very successful. Commission responsibility: Business Co-operation Centre, D-G III. Butan Butan is eligible for tariff reductions for its exports under the G E N E R A L I S E D S Y S T E M O F P R E F E R E N C E S and as a least-developed country benefits from the S T A B E X system, established for Asian and Latin American LLDCs. See E X T E R N A L T R A D E , Table 6 : 7 . Inquiries: Chancellerie Diplomatique, Chemin Champs d'Amier, 1209 Genève, Switzerland. Commission responsibility: D-G I (External relations) Directorate J ( l ) . Bulbs, cut flowers and live plants

See

L I V E PLANTS

AND FLORICULTURAL PRODUCTS.

Butter Butter is subject to Common Agricultural Policy legislation and price support for dairy products (Regulation (EEC) 804/68, OJ L 148 1968, as last amended by Regulation (EEC) 763/89, OJ L 384 1989). Since 1977 the Community has taken a number of measures to stimulate butter consumption, to stop surpluses building up and to dispose of old stocks. Community funds can be made available to subsidise price reductions in member states for butter of Community origin under Regulation (EEC) 1269/79 (OJ L 161 1979 as amended by 1186/ 82, OJ L 140 1982), provided that: (i) the butter concerned is only for direct consumption and that its final selling price reflects the subsidy or price reduction granted;

(ii) the butter is consumed in the member state where the subsidy or price reduction is granted. When production has outweighed demand, building up surpluses, the Community has introduced a number of temporary schemes to encourage greater internal consumption, including: (i) short-term reduced-price sale of specific quantities of butter - eg, 'Christmas butter' (Regulation (EEC) 1901/78, OJ L 216 1978; Regulation (EEC) 3143/85, OJ L 298 1985 as last amended by Regulation (EEC) 2690/89, OJ L 261 1989); (ii) sale of butter bought in at intervention prices for the manufacture of pastry products, ice cream and other foodstuffs (Regulation (EEC) 2479/82, OJ L 264 1982); (iii) reduced-price sales to persons receiving social security, or to orphanages, hospitals, social services, the armed forces, etc (Regulations (EEC) 1761/78 and 1762/78, OJ L 204 1978; and, Regulations (EEC) 2191/81 and 2192/82, OJ L 213 1981). In order to reduce stocks the Community also exports butter to non-Community countries. Faced with 1.3 million tonnes of unsaleable butter, the notorious 'butter mountain', in 1987 the Community made available some Ecu 3.2bn for a special disposal programme. Within two years the Community had succeeded in selling over 1 million tonnes of butter, mostly to non-Community countries, particularly the Soviet Union, or for use in the feed industry; about 130,000 tonnes were sold off very cheaply as cooking butter to consumers in the Community. By the end of 1988 public stocks had fallen to normal stockpiling levels. See also

AGRICULTURE: COMMON AGRICULTURAL

P O L I C Y ; M I L K A N D MILK P R O D U C T S .

Commission responsibility: D-G VI (Agriculture) Directorate D ( l ) .

c Cabinets

Each commissioner in the E U R O P E A N has his own cabinet, a group of his own chosen advisers, usually of the same nationality, who may be seconded civil servants from national government departments or independent political or other experts. Headed by a chef de cabinet, the work of the group is to liaise between the commissioner and his colleagues in the Commission and to act as a general secretariat in handling his affairs. When a commissioner leaves office his cabinet normally disperses.

major areas of Community policy which do not apply including:

COMMISSION

(i) t h e COMMON AGRICULTURAL POLICY;

(ii) the common fisheries policy; (iii) the C U S T O M S U N I O N , of which it does not form part, though certain Canary Islands products are allowed to enter the Community based on tariff quotas. Cape Verde One of the A C P STATES and a signatory to the L O M É C O N V E N T I O N S .

Inquiries: to individual Commissioners; Community Institutions, Commission of the European Communities. Cameroon

One of the

A C P STATES

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, Koninninnegracht 4 4 , N L - 2 5 1 4 , AK The Hague. Commission responsibility: D-G VIII (Development) Directorate B.

and a signatory

t o t h e L O M É CONVENTIONS.

Capital

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 131 avenue Brugmann, B-1060 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(2).

See

FINANCIAL SERVICES.

Cartagena Agreement

See

ANDEAN PACT.

Cassis de Dijon Case The Cassis de Dijon Case ( 1 2 0 / 7 8 European Court Report 6 4 9 ) arose out of difficulties experienced by a German firm which wished to import Cassis liqueur into Germany. Cassis, a low-proof blackcurrant liqueur, did not meet the requirements of German law that only drinks containing at least 32 per cent of alcohol by volume could be sold as liqueurs. The case was referred from a German provincial court to the European Court of Justice for an interpretation of how the German law could be compatible with Article 3 0 of the T R E A T Y O F R O M E . This Article prohibits, in trade between member countries, quantitative restrictions on imports and measures of equivalent effect to such restrictions. The Court judgement, which created a landmark in the liberalisation of intra-Community trade, made clear that Community trade principles, as enshrined in the treaty, took precedence over the German regulation regarding the alcoholic percentage in liqueurs. The implications of the judgement meant that even though member countries may regulate the terms on which domestically produced goods are marketed, the case is different for products imported from other Community states. Any such product (subject to limited exceptions), must be admitted:

Canada Canada and the Community signed an agreement in February 1989, which brought to an end, after a referral to the G A T T ( G E N E R A L A G R E E M E N T ON T A R I F F S A N D T R A D E ) , a conflict centred on the provincial marketing restrictions and discriminatory measures applied in varying degrees by Canadian provincial 'liquor boards' to EC alcoholic beverages exports. Relations in the fisheries sector are dominated by a disagreement between the two parties over conservation and stock management of fish resources, in waters outside Canada's 200-mile zone. See E X T E R N A L T R A D E , Table 6 : 5 . Inquiries: Chancellerie Diplomatique, 2 avenue de Tervuren, B-1040 Brussels. Commission responsibility: D-G I (External relations) Directorate B(2). Canary Islands Community provisions apply to this Spanish territory which is covered by the Spanish Accession Act, Article 25, subject to derogations referred to in Protocol 2. There are however several 21

22

Community Issues: Castor beans

(i) if it has been lawfully produced elsewhere in the Community and conforms to rules and processes of manufacture customarily and traditionally accepted in the exporting country; (ii) is lawfully marketed in the territory of the latter. Thus, an importing country cannot justify prohibiting the sale of a product from another Community country simply on the grounds that the way it applies regulations affecting C O N S U M E R P R O T E C T I O N , public health etc, is different from that imposed on a domestic product. The European Commission believed that, as a result of the Court's judgement, the idea of the Euro-product (Euro-beer, Euro-loaf) was negated; that it can in future proceed more effectively against the erection of N O N - T A R I F F BARRIERS TO TRADE a n d , a s f a r a s

is concerned, it would concentrate on those obstacles to trade, but the exceptional criteria

HARMONISATION

be necessary mainly only to national laws which create which are permissible under set out by the Court.

Commission responsibility: D-G III (Internal Market and Industrial Affairs), Directorate C(l). Castor beans A T A R G E T PRICE is fixed annually. Aid is equal to the difference between the market price and the target price. It is payable to oil mills on condition that a contract is concluded with producers, who must receive a specified guaranteed minimum price (Regulations (EEC) 2081/79 and 2082/79, OJ L 244 1979; see also Regulations (EEC) 1795/79, OJ L 206 1979, and (EEC) 1413/82 OJ L 162 1982). See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture), Directorate C. Cayman Islands A UK dependent territory covered by Decision 86/283/EEC on the association of O V E R S E A S C O U N T R I E S A N D T E R R I T O R I E S within the E E C (OJ L 175 1986 as last amended OJ L 51 1987). Commission responsibility: D-G VIII (Development). Celex The official database of European Community law, including the Treaties, Court of Justice material, secondary legislation as published in the OFFICIAL J O U R N A L OF THE E U R O P E A N COMMUNITIES

and draft legislative proposals, including European Parliament and Economic and Social Committee

opinions. Currently available in English, French, German, Italian, Dutch and Danish, with a Greek version expected in 1990. The Commission makes Celex available through its Eurobases office. Eurobases, Commission of the European Communities, 200 rue de la Loi, B-1049 Brussels. Tel. (02) 235 0001. Central African Republic One of the A C P and a signatory to the L O M E C O N V E N T I O N S .

STATES

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 416 boulevard Lambermont, B-1030 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(3). Central America The European Commission in November 1989 approved a grant of Ecu 43.5m as the first contribution to a three-year, Ecu 120m programme to boost trade between the Community and the five member countries of the General Treaty on Central American Economic Integration: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The programme aims to produce an annual increase in trade of 25 per cent and 1 per cent annual increase in the region's GDP. The aid in Ecus will help overcome foreign currency shortages and finance imports, while also creating a counterpart fund which will help ensure the smooth functioning of the payments system and provide assistance to countries experiencing balance-ofpayments difficulties. See E X T E R N A L T R A D E , Table 6:6; individual countries. Commission responsibility: D-G I (External relations) Directorate 1(1); D-G VIII (Development). Centres for European Business Information Since their inception in 1987 some 200 centres have been established throughout the Community to provide small and medium-sized businesses with information on Community policies, especially in relation to 1992 and the Single Market, covering such areas as legislation, standards and tax matters. They are active in areas of industrial co-operation and partnership and investment in venture capital, and also act as a channel for business to feed information back to the Commission.

Community Issues: Channel Islands and Isle of Man

Cereals Cereals came fully under C o m m o n Agricultural Policy rules in 1967 under Regulation ( E E C ) 2727/75 ( O J L 281 1975). T h e regulation covers: (i) unprocessed cereals - c o m m o n wheat, d u r u m wheat, barley, rye, oats, maize, buckwheat, millet, canary seed, and grain sorghum (except hybrid for sowing); (ii) processed cereals - flour, wheat groats and meal, malt starch ( f r o m cereals and potatoes), glucose, cereal preparations, bran, wheat gluten; (iii) manioc. Since cereals are a primary commodity the fixing of a guaranteed price has a considerable influence on other markets, particularly as regards prices for derived products. T h e Council fixes I N T E R V E N T I O N and T A R G E T PRICES each year and the T H R E S H O L D PRICE is derived f r o m the target price. In the case of wheat, a distinction is also m a d e between the intervention price for wheat used as F E E D I N G S T U F F and a higher reference price for wheat of breadmaking quality. Rye of bread-making quality obtains a higher price than other qualities of rye. Monthly increases to cover costs are set for the annually fixed cereals prices. T h e Council also adopts measures which are intended to bring production into line with market d e m a n d and to safeguard agricultural incomes. These measures have formed part of a far-reaching restructuring of the market organisation in o r d e r to combat over-production and to stabilise expenditure. A guarantee threshold was introduced in 1982, the intention being that if the threshold was exceeded the intervention price would be adjusted downwards. This did not have the desired effect and in 1986 a C O - R E S P O N S I B I L I T Y LEVY was introduced of 3 per cent of the intervention price; an additional 3 per cent is levied of which all or part is r e f u n d e d if the threshold is not exceeded, or if it is exceeded by no more than 3 per cent (Regulation ( E E C ) 1579/86, OJ L 139 1986). In 1988 the Commission adopted several measures including: (i) an unchanged co-responsibility levy (Regulation ( E E C ) 1432/88, O J L 131 1988, as last amended by Regulation ( E E C ) 3075/89, O J L 294 1989); (ii) stricter provisions on intervention, with buyingin limited to a specific period and at only 94 per cent of the intervention price; (iii) a 3 per cent reduction in the intervention price where the guarantee quantity has been exceeded; (iv) greater convergence of the intervention prices

23

for d u r u m wheat and common wheat. Although a lower maximum guaranteed quantity was proposed the annual guarantee threshold has been set at 160 million tonnes, which should apply until 1992. In the 1988/89 marketing year, the first year in which the guarantee threshold arrangements applied, the Community cereal harvest was 2.5 million tonnes, or 1.6 per cent, above the maximum guaranteed quantity. In addition to the co-responsibility levy therefore, 1.4 per cent of special levy was retained, making a total levy of 4.4 per cent of the intervention price, and intervention prices were cut by 3 per cent f r o m the start of the following marketing year. See also

AGRICULTURE: COMMON

AGRICULTURAL

POLICY.

Commission responsibility: D - G VI (Agriculture) Directorate C ( l ) . Ceuta A city on the northern coast of Morocco, and Spanish territory to which Community provisions apply under the Spanish Accession Act, Article 25, subject to derogations referred to in Protocol 2. There are however several major areas of Community policy which do not apply including: (i) t h e COMMON AGRICULTURAL POLICY;

(ii) the c o m m o n fisheries policy; (iii) the C U S T O M S U N I O N , of which it does not form part. Chad

O n e of the

A C P STATES

and a signatory to

t h e LOME CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 52 boulevard L a m b e r m o n t , B-1030 Brussels. Commission responsibility: D - G VIII (Development) Directorate B ( l ) . Channel Islands and Isle of Man These territories have a special relationship with the U K which affects their relationship with the E u r o p e a n Community. The relationship is governed under the T R E A T Y O F ACCESSION, Articles 25-27 and Protocol 3. This protocol requires that there shall be f r e e movement of industrial and agricultural goods between the territories and the Community, and that goods imported f r o m outside the Community shall be subject to the same C O M M O N CUSTOMS T A R I F F and agricultural LEVIES as would apply if imported into the U K . T h e protocol also stipulates that: (i) although treaty provisions relating to free

24

Community Issues: Cheese

movement of workers and the right of establishment do not apply to the islanders, nationals of all Community countries, including the UK, must receive identical treatment within the territories; (ii) in order to ensure the maintenance of free trade, the Commission has the power to vet local aid schemes to industry as with full members of the Community. Their virtual exclusion from Community responsibilities enables island authorities to retain proceeds from import duties and agricultural levies raised on the imports from outside the Community, but as a result, Community funds are not available to their producers nor are M O N E T A R Y C O M P E N S A T O R Y A M O U N T S available for agriculture. Inquiries: Home Office, 50 Queen Anne's Gate, London SW1. Commission responsibility: D-G I (External relations). Cheese

See

M I L K A N D MILK P R O D U C T S .

Chemical industry The chemical industry is the third largest producer of the European Community, and supplies more than a quarter of the world's chemical production. Following the oil crises of the 1970s, the industry has expanded throughout the 1980s, with substantial investment in plant. This expansion is expected to continue in the 1990s with a greater concentration on speciality chemicals, and a greater awareness of limitations on mineral and organic sources and energy. Extensive legislation, both preceding and as part of the Single Market programme, makes requirements on the manufacture, distribution, classification, packaging and labelling, safety in use, transport, and disposal of general chemicals and specific categories. In addition, measures have been adopted on restriction of environmental contamination - to the air, including the ozone layer, groundwater and sea water, and in waste disposal. See

COSMETICS,

FERTILISERS,

DANGEROUS

PESTICIDES,

VIRONMENT, a n d

See

See E X T E R N A L T R A D E , Table 6:6. Inquiries: Chancellerie Diplomatique, 326 avenue Louise (5eme etage), PO Box 22, B-1050 Brussels. Commission responsibility: D-G I (External relations) Directorate 1(2); D-G VIII (Development). China A joint committee was set up under the Trade and Economic Co-operation Agreement, to meet once a year alternately in Peking and Brussels. However, following the events and disturbances in China in June 1989 the Commission has suspended these meetings until further notice. See E X T E R N A L T R A D E , Table 6:3. Inquiries: Chancellerie Diplomatique, 445 avenue de Tervuren, B-1050 Brussels. Commission responsibility: D-G I (External relations) Directorate F(2). Chocolate

See

C O C O A AND CHOCOLATE.

Civil aviation The Commission in 1989 proposed a draft directive on the mutual recognition of licences in civil aviation (Com (89) 472 OJ C 10 1990). The approach of the proposal is mutual recognition improved by reference to the high standards of the 1988-updated annex to the Chicago Conference on International Civil Aviation. The Commission in 1989 set out its policy on relations between the Community and third countries in civil aviation (Spokesman's Service Information Memo P-2 Rev 1990). The policy covers recognition of the Community's competence for international arrangements in this field; the establishment of the Community as an area of cabotage and co-operation on new traffic rights; and, the decisions to open negotiations with the E U R O P E A N F R E E T R A D E A S S O C I A T I O N countries towards an agreement on scheduled air links.

SUBSTANCES,

PHARMACEUTICALS,

EN-

HARMONISATION.

Commission responsibility: D-G III Market and Industrial Affairs). Chicory

Chile and stated that it would be seeking a mandate from the Council to negotiate a trade and economic co-operation agreement.

Commission responsibility: D-G III Market and Industrial Affairs).

(Internal

(Internal

C O F F E E AND CHICORY.

Chile The Commission in December 1989 declared its support for the results of the free elections in

Coal and steel According to European Commission estimates, coal consumption in the Community is expected nearly to double by the end of the century, with British and German coalfields providing most of the new output. Since July 1987 on the basis of the new Community rules on state aid to the coal

Community Issues: Table 1: Coal and Steel-ECSC Financial Aid

25

TABLE I COAL AND STEEL: ECSC FINANCIAL AID

Description of measure 1

2

Industrial loans and interest rebates (ECSC Treaty, Article 54, §§1, 2)

Conversion loans (ECSC Treaty, Article 56 ( l ) ( b ) and (2)(a) Resider (conversion of steel areas) programme (Regulation E E C , 328/88 OJ L 33 1988) Rechar (conversion of coal areas) programme Guidelines in OJ C 20, 1990

Eligibility and selection criteria 1

1

2

Loans are available (i) to facilitate carrying out investment programmes in line with Community policy in the coal and steel industries, thermal power and other sectors (ii) to assist financing of works and installations which contribute directly and primarily to increasing production, reducing production costs or facilitating marketing of coal and steel products (Hi) to enterprises (other than power stations and coking plants), public establishments and local authorities for investment to promote consumption of Community coal for a minimum period of 5 years (except by prior agreement from the Commission)

Eligible investments must be capable of reabsorbing redundant coal and steel workers by the creation of new and economically sound activities Investments may be in the expansion of an existing production facility, or in the creation of a new one (for detailed rules of conversion loans see OJ C 191 1983)

Financial 1

2 3

4

1 2 3

4

5

6

provisions

Loans at normal rates are usually granted by the Commission at the rate ruling on the capital market with no extra charge; they reflect the rate paid by the ECSC on the financial markets on which it has borrowed funds Loans must not exceed 50% of agreed project costs Loans for promotion of consumption of Community coal must not exceed Ecu 15m Categories of investment can receive loans at reduced interest rates (see REGIONAL FUND, Operations of the Regional Fund) which are granted at normal interest rates; the Commission grants interest rebates which are paid to the beneficiaries at dates laid down in the ECSC operational budget; rebate amounts are 3 percentage points per year for the first 5 years of the loan; the Commission determines on a case-by-case basis the portion of investments and loans eligible for rebates Loans may not exceed 50% of estimated project cost Loans are granted at reduced rates of interest Interest subsidies of 3 percentage points over 5 years may be granted in respect of a maximum of Ecu 20,000 per job to be created which borrowers undertake to offer to former ECSC industry workers For sub-loans granted through intermediary financial institutions, interest subsidies may be increased to 2 or 3 percentage points over 5 years for a period limited to that of restructuring the steel industry In ECSC employment areas where loans have not yet created 50% of jobs lost, eligibility criteria can be held to be satisfied in respect of a standard proportion of jobs In priority employment areas beneficiaries must notify new jobs to be created to competent employment offices and local ECSC undertakings likely to be shedding workers; in other areas, beneficiaries must give

Procedures 1

2

3

1

2

3

4

5

Applications must be made directly to the Commission by the companies concerned Applications must be sent in triplicate to D-G XVIII (Credit and Investments) For investments to promote Community coal consumption, applications may be sent to financial intermediaries in receipt of ECSC global loans (see below)

Loans may be granted directly to private undertakings and public bodies in the form of individual loans, or indirectly, in the form of sub-loans, through the intermediary of financial institutions to which the ECSC has granted a global loan Applications for direct loans must be sent to the Commission through the intermediary of the responsible government department concerned Undertakings whose net fixed assets do not exceed Ecu 75m may apply for a sub-loan up to Ecu 7.5m from financial institutions to which a global loan has been granted Costs of the investment project which is the subject of the application may not exceed Ecu 15m Priority is given to borrowers employing fewer than 500 people and in whose capital structure large enterprises hold no more than '/> participation

26

Community Issues: Table 1 : Coal and Steel-ECSC Financial Aid

Table

1—continued Description of measure

3

Workers' housing (ECSC Treaty, Article 54)

Eligibility and selection criteria

1

2

4

Grants towards occupational redeployment and social measures to assist former ECSC workers (ECSC Treaty Article 56(2)(b))

1

2

3

5

Technical and economic research (ECSC Treaty, Article 55)

1

Construction, purchase and modernization of housing for personnel of ECSC industries are eligible; housing may be for rent or owner-occupied Priority is accorded to operations which help to attain Community sectoral objectives and improve living conditions of workers (For latest low-cost housing guidelines 1989-91 see OJ C 176 1989)

Grants can take the form of: (i) income support: tideover allowances in the event of unemployment, severance payment, aid towards early retirement, compensation for loss of pay (in the event of change of activity or new job); (ii) mobility aid: travel costs, removal expenses, resettlement allowance, separation allowances; (Hi) aid towards vocational training of workers having to change employment: operating expenses, equipment expenses, premiums or income supplements for workers in training, re-employment premiums Aid is granted either under bilateral agreements concluded between the Commission and member states, or under 'social measures' - multinational special financing programmes authorised by the Council Grants are conditional upon payment by the member state of an amount at least equal (except in certain cases) to the ECSC contribution Aid is provided to cover expenditure directly incurred for research purposes.

Financial

1

2

3 4

1

2

3

1

provisions

Procedures

priority to recruitment of former ECSC workers Outside ECSC employment areas final amounts of interest rebates are calculated on the number of redundant former ECSC workers actually re-employed

6

Global loan funds are available from the organisations listed above under 'National enquiries'; further information may be obtained from competent Government departments, local consultants of the Commission, and D-G XVI (Regional Policy), Directorate C(3), D-G XVIII (Credit and Investments), Directorate B(5)

Financial institutions or the ECSC undertakings act as intermediaries Loans are generally granted for 20-25 years at an interest rate of 1% plus administration costs of the intermediaries Loans are always paid in national currencies Supplementary loans may be granted on request in any currency at the normal capital market rate

1

Applications are submitted by the persons concerned to their employers Applications are centralised by regional committees on which management and unions are equally represented The committees submit financing proposals and the Commission takes the final decision

2

3

Amounts granted depend on needs and problems of individual member states Grants are essentially similar in form, and generally 50% of cost to public funds over and above grants or allowances under general social security or occupational redeployment schemes Grants under 'social measures' are paid out of resources specifically allocated for this purpose and authorised in successive instalments; appropriations are granted on the basis of expenditure estimated by member states within the limit of the maximum amount of resources available

1

Applications must be submitted to the Commission by national authorities (generally Government departments for Employment/ Labour or Government departments for Industry! Trade)

Aid granted for technical research in the coal and steel industries is equal to 60% of

1

After consultation with the Consultative Committee and obtaining assent of the

Community Issues: Table 1: Coal and Steel-ECSC Financial Aid

Table

1—continued Description

of

measure

Eligibility

2

3

4

and selection

criteria

including staffing, e q u i p m e n t and operating expenses Aid for technical research relating to coal and steel may be granted to any undertaking, research centre or institute, or individual, even if they are not directly connected with coal-mining or the iron and steel industry T h e Commission may grant financial support for pilot and demonstration projects in the iron and steel industry that will permit transition to industrial and commercial exploitation of production techniques, processes and plant and products that are innovatory in themselves o r their applications, for which m a j o r capital expenditure is required to establish technical and/or commercial feasibility; projects must offer prospects of economic viability d e m o n s t r a t e d by previous studies and research Aid for social and medical research takes the form of contributions to staffing costs or costs of research e q u i p m e n t ; priority research subjects are published in the O J under guidelines for research p r o g r a m m e s

Financial

2

3

provisions

expenditure In the case of pilot and/or demonstration projects C o m m u n i t y financial support may not exceed 50% of the total cost of the project Aid for social and medical research is determined on a case-by-case basis

Procedures

2

3

4

5

6

7

8

6

27

Studies on possibilities for reemploying r e d u n d a n t E C S C workers ( E C S C Treaty, Article 46(4))

M e m b e r states may request the Commission's financial assistance for studies concerning diversification of economic activities permitting re-employment of f o r m e r E C S C workers

T h e Commission generally contributes 50% of costs of studies

1

Council of Ministers, the Commission takes decisions on granting aid For pilot and/or demonstration projects, the Commission takes decisions after consulting committees of qualified experts If the decision is positive, the Commission implements it by concluding a contract with the beneficiary which lays down the a m o u n t of aid and conditions on which it is granted Research forming part of a general p r o g r a m m e which itself has received Council assent after consultation of the Consultative C o m m i t t e e is exempt f r o m these procedures Applications for aid for technical research relating to coal and steel should be sent to the Commission by 1 S e p t e m b e r of each year Applications must contain a detailed p r o g r a m m e and supply the following information: (i) aim of the research and results expected; (ii) financing: funds available, a m o u n t of aid r e q u e s t e d ; (Hi) legal status of applicant; (iv) research p r o g r a m m e : means of execution and estimated costs Applications for aid for pilot and/or demonstration projects should b e sent to the Commission ( D - G XII (Science, Research and Development) ) by 1 F e b r u a r y of each year For grants for social and medical research, beneficiaries are selected by one of the following m e t h o d s , depending on the type of project: (i) the Commission makes direct contact with firms or research institutes or centres which it hopes will participate; or (ii) the Commission publishes an invitation to submit proposals to which any interested institute may reply Applications should b e sent to D-G XVI (Regional Policy)

28

Community Issues: Cocoa and chocolate

industry (Commission Decision 2064/86/ECSC OJ L 111 1986) the Commission has approved aid for certain member states to their coal industries, providing that such aid is fully in line with precisely defined objectives. These include competitiveness and security of supply and solving social and regional problems. In 1983 the Council issued recommendations (OJ L 140 1983) on investment in the use of solid fuels in industry, public buildings and district heating systems. The E U R O P E A N C O A L A N D S T E E L C O M M U N I T Y (ECSC) can assist the industry through: (i) loans and interest rebates for industrial or conversion projects; (ii) loans towards improvement of housing conditions for coal workers; (iii) grants to help redundant workers find new jobs; (iv) research. The table on pages 25-7 gives a list of financial aid measures available, with information on eligibility and selection criteria, and financing rules and procedures. The Community is also contributing to the cost of projects concerned with the liquefaction and gasification of solid fuels. Increased assistance for the restructuring of the coal-mining industry in the Community was agreed in November 1989. Under the Rechar programme Community financial aid totalling Ecu 400m will be made available between 1990 and 1994, through the R E G I O N A L F U N D , the S O C I A L F U N D and the European Coal and Steel Community. The ECSC will also be offering Ecu 200m per year in loans. Eligible projects will include improvement of the environment with the creation of green zones, encouraging the establishment of small and medium-sized businesses to improve the economic and social situation of coal mining areas and the retraining of former miners to encourage their mobility. Strict rules on aid to the steel industry in force since 1985 (Decision 3484/85/ECSC, OJ L 340 1985) have been extended to cover the years 1989-1991 (Decision 89/28/ECSC, OJ L 14 1989). These allow only aid for research and development, environmental protection and to a limited extent for closures, and impose on member states an obligation to inform the Commission of any transfer of state resources to this sector to determine whether aid elements are involved. See also E N E R G Y . Commission responsibility: D-G XVII (Energy) Directorate B (Coal).

Cocoa and chocolate Definitions and common rules apply in respect of the composition, manufacturing specifications, packaging and labelling of cocoa and chocolate for human consumption, in order to protect the consumer and to ensure the free movement of these products across the Community (Directive 73/241/EEC, OJ L 288 1973 as last amended by Directive 89/244/EEC, OJ L 142 1989). The directive gives definitions of the products (such as drinking chocolate) which must be adhered to, with certain exceptions (eg, 'milk chocolate' in the UK). It also lays down rules regarding the use of solvents, the size of certain chocolate bars, the composition of fillings, etc. See

CONSUMER PROTECTION.

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate A(2). Coffee and chicory Legislation is designed to protect and inform consumers and to prevent the misleading sale of coffee and chicory (Directive 77/436/EEC, OJ L 172 1977). The directive lays down rules regarding definition, composition, substances which may be used in the manufacture of related products, and packaging and labelling. See

CONSUMER PROTECTION; HARMONISATION.

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate A(2). Colombia A member of the A N D E A N signatory to the Cartagena Agreement.

PACT

and

See E X T E R N A L T R A D E , Table 6:6. Inquiries: Chancellerie Diplomatique, PO Box 5-6, 44 rue Van Eyck, B-1050 Brussels. Commission responsibility: D-G I (External relations) Directorate 1(2): D-G VIII (Development). Colza, rape seed and sunflower seed A T A R G E T PRICE for these products is fixed annually, as well as a basic I N T E R V E N T I O N PRICE and a derived intervention price which takes account of transport costs. A fixed aid payment, representing the difference between the target price and the world market price, is paid annually to producers. It is necessary to fix this aid as oilseeds entering the Community are exempt from L E V I E S or import duties, as are seed oils and oil cake (Regulation (EEC) 136/66, OJ L 172 1966 as last amended by Regulation (EEC) 2902/89, OJ L 280 1989).

Community Issues: Committee of Permanent Representatives

Detailed rules exist for applying the differential amounts for colza, rape seed and sunflower seeds (Regulation ( E E C ) 1813/84, OJ L 170 1984 as last amended by Regulation ( E E C ) 431/89, OJ L 50 1989). Higher target and intervention prices were introduced for colza and rape seed of the 'double zero' varieties (low in glucosinolates and erucic acid) under Regulation ( E E C ) 1454/86 (OJ L 133 1986). This measure was intended to stimulate the production of these varieties, which are the only ones to be supported by the Community from 1991. Intervention was limited to the months of October to May and the buying-in price of 94 per cent of the intervention price was introduced (Regulation ( E E C ) 1915/87, OJ L 183 1987). See also

AGRICULTURE: COMMON

AGRICULTURAL

POLICY.

Commission responsibility: D - G VI (Agriculture) Directorate C(3). Comett (Community Programme in Education and Training for Technology) A seven-year programme (1986-1992) for co-operation between universities and industry in training for technology. The first four-year phase included four schemes: (i) university-enterprise training partnerships to meet needs for qualified personnel; (ii) transnational exchange of students and personnel between universities and industry; (iii) continuing education in new technologies; (iv) training using new information and communications technologies. In the second phase, from 1990-1992, it is planned to consolidate and develop activities launched during the first phase (OJ L 13 1989). Commission responsibility: Task Force for H u m a n Resources, Education, Training and Youth. Commercial Agents Directive 86/653/EEC (OJ L 382 1986) relates to self-employed commercial agents. It contains regulations on the rights and duties of commercial agents and their principals and, with one or two exceptions, it is to be implemented by member states within three years. Commission responsibility: D - G III (Internal Market and Industrial Affairs) Directorate D(2). Committee of Agricultural Organisations in the European Community (Copa) [Comité des Organisations Professionelles Agricoles de la C E E ]

29

A committee whose major concern is to promote the farmers' view in the European Community. It acts as a forum for national farming and related organisations to make known their views, and as a channel for transmitting these views to the European Commission, the Council of Ministers and the European Parliament. Copa has an annual assembly and a praesidium composed of a permanent representative of each m e m b e r organisation. See also R E P R E S E N T A T I V E O R G A N I S A T I O N S . Commission responsibility: D - G VI (Agriculture) Directorate A ( l ) . Committee of Permanent Representatives (Coreper) [Comité des Représentants Permanents de la C E E ] A committee which plays an important role in easing the passage of Community legislation. Coreper consists of Permanent Representatives or Ambassadors from each member country who, with their attendant delegations, represent in Brussels a continuing national interest in the Community. The T R E A T Y O F R O M E did not make legal provision for Coreper, although it functioned actively from 1958; this was remedied under Article 4 of the M E R G E R T R E A T Y , which stated that 'a Committee consisting of Permanent Representatives of the member states shall be responsible for preparing the work of the C O U N C I L O F M I N I S T E R S and carrying out the tasks assigned to it by the Council'. The brevity of the text covers a highly complex and sensitive function wherein the Committee provides a means for testing national reactions to E U R O P E A N C O M M I S S I O N P R O P O S A L S and acts as an interface between the Council of Ministers and the Commission in facilitating final Council adoption of legislation. There is a network of over 50 working parties or committees to assist the Ambassadors in examining commission proposals so that, in close co-operation with the Commission, national viewpoints can be aired and differences often resolved before the Council makes its decision. T o meet the increasing workload Coreper has been divided into two sections: Coreper I, composed of deputy Permanent Representatives who generally discuss matters of a more technical nature; and Coreper II, composed of the Ambassadors, who discuss politically sensitive matters. In practice this means that Council approval is largely a formality in the case of the majority of lesser decisions, but the committee does not attempt to resolve larger political issues which are essentially for Ministers. There have been suggestions that Coreper should be given

30

Community Issues: Committee on Scientific/Technical Research

greater powers of decision-making, so as to relieve the Council further of detailed works. See

EUROPEAN COMMUNITY, Fig. 7;

PREPARATION, F i g .

LEGISLATIVE

12.

Council Secretariat responsibility: D-G A, Directorate II. National enquiries: Ambassadors or Permanent Representatives: Belgium: 62 rue Belliard, B-1040 Brussels. Tel. (02) 233 21 11. Denmark: 73 rue d'Arlon, B-1040 Brussels. Tel. (02) 233 08 11. France: 67 rue Ducale, B 1000 Brussels. Tel. (02) 511 49 55. Germany: rue J de Lalaing, B-1040 Brussels. Tel. (02) 238 18 11. Greece: 71 avenue de Cortenberg, B-1040 Brussels. Tel. (02) 739 65 11. Ireland: PO box 22, 5 avenue Galilée, B-1030 Brussels. Tel. (02)218 06 05. Italy: 74 rue le la Loi, B-1040 Brussels. Tel. (02) 230 81 70. Luxembourg: 211 rue de Moyer, B-1040 Brussels. Tel. (02) 735 20 60. Netherlands: 46 avenue des Arts, B-1040 Brussels. Tel. (02) 513 77 75. Portugal: 11-13 rue Marie-Thérèse, B-1040 Brussels. Tel. (02) 211 12 11. Spain: 52 boulevard du Regent, B-1000 Brussels. Tel. (02) 509 86 11. United Kingdom: 6 rond-point Robert Schuman, B-1040 Brussels. Tel. (02) 230 62 05.

Committee on European Co-operation in Scientific and Technical Research (Cost) [Cooperation Européene dans le Domaine de la Recherche Scientifique et Technique] A committee composed of senior officials responsible for scientific and technical research from 19 European countries - the 12 Community members plus Austria, Finland, Norway, Sweden, Switzerland, Turkey and Yugoslavia. Basically an intergovernmental organisation, it was set up in 1971 to provide scientific and technical collaboration in selected fields, such as informatics, telecommunications, transport, oceanography, metallurgy and materials science, environmental protection, meteorology, agriculture and biotechnology, food technology, socio-technologies, and health and medical research. Cost is serviced by the C O U N C I L O F M I N I S T E R S S E C R E T A R I A T and decisions

are taken by the Committee of Cost Senior Officials, composed of representatives of the 19 Cost member states and the Commission of the European Communities. See also R E S E A R C H . Commission responsibility: D-G XII (Science, Research and Development).

Committee on Scientific and Technical Research (Crest) [Comité de Recherche Scientifique et Technique] A committee established by a Council of Ministers Resolution of 14 January 1974 (OJ L 7 1974) when the Community decided to adopt a common policy in the field of science and technology designed to co-ordinate national research and development policies (excluding defence) and to advise the Council and Commission on new research projects. Crest has various sub-committees assisting it, such as the Committee for Scientific Technical Information and Documentation (CIDST), the Committee for Medical and Public Health Research (CRM) and sub-committees on data-processing and energy. See also E N E R G Y ; R E S E A R C H . Commission responsibility: D-G XII (Science, Research and Development).

Common Agricultural Policy

(CAP)

See

AGRICUL-

TURE: COMMON AGRICULTURAL POLICY.

Common customs tariff (CCT) This tariff represents the duty paid on goods entering the Community C U S T O M S U N I O N at any point. The level averages about 5.5 per cent but certain special duties are levied on agricultural and other products (see C U S T O M S D U T I E S ) . Introduction of the CCT required harmonisation of national customs laws, a continuing process for which the European Commission is responsible, administrative powers having been delegated to it by the Council of Ministers. The Commission is aided in this task by a number of M A N A G E M E N T C O M M I T T E E S . Revenue from the CCT does not belong to member countries but to the Community and represents a major contribution to the Community budget from OWN R E S O U R C E S . The Community in January 1988 introduced a combined nomenclature (CN) for customs classification and statistical purposes. The CN replaced the dual class-

Community Issues: Community trademark

ifications used formerly for CCT and Nimexe (Nomenclature for external trade statistics). See

also

ASSOCIATION;

BUDGET;

EUROPEAN

EXTERNAL

FREE

TRADE;

TRADE FINANCE;

HARMONISATION; NON-TARIFF BARRIERS TO T R A D E .

Commission responsibility: D-G XXI (Customs union and indirect taxation) Directorate A. Community Bureau of Reference (CBR) The Community has since 1973 had a programme on R E F E R E N C E M A T E R I A L S and methods designed to promote collaboration and co-ordination between bodies specialising in this work. 'Reference materials' here means a material of substance of which one or more properties are sufficiently well-established to be used for the calibration of an instrument or the verification of a measurement method. The aim of the programme is to improve the quality and concordance or measurement results obtained in national laboratories from chemical analysis, physical measurements (mass, length, volume, flow, electric power etc) and also biomedical analyses. The fifth CBR research and technical development programme in the field of applied metrology and chemical analyses, 1988-1992 (OJ L 206 1988) has identified five priority areas for particular attention, in order to improve measurements and analyses in the member states and thereby eliminate discrepancies which can be the source of disputes and hinder the establishment of a single Community market by 1992. The priority areas are: (i) food and agriculture - health of farm animals, quality of cereals, fruit and vegetables; (ii) environment - purity of water, air pollutants; (iii) biomedical analysis - cardiovascular diseases, drugs in the human body, enzymes and hormones; (iv) metals analysis; (v) applied metrology. The full catalogue of reference materials available can be obtained free of charge from the CBR and a status report on the 1983-87 CBR programme is available which provides details of more than 20 projects undertaken in the fourth programme. Commission responsibility: D-G XII (Science, Research and Development). Community law Community law stems from the Community constitutions as established by the TREATY OF PARIS

and

the

TREATY

OF R O M E ,

as

amended by the S I N G L E E U R O P E A N A C T . The treaties lay down certain obligatory commitments such

31

as the CUSTOMS U N I O N , the Common Agricultural Policy (see A G R I C U L T U R E : CAP) and the approximation or H A R M O N I S A T I O N of national laws. Article 235 of the Treaty of Rome allows for the development of other activities not laid down in the treaties (eg, the establishment of the R E G I O N A L F U N D ) . Community legislation ( R E G U L A T I O N S , D I R E C T I V E S , D E C I S I O N S ) is binding on member countries but implementation of the law varies according to national custom and institutions. Enforcement is usually the responsibility of national governments but the E U R O P E A N C O M M I S SION is empowered to take direct action against firms or governments that breach rules against restrictive trade practices. Firms can be fined by the Commission, although they have the right to appeal against the decision to the E U R O P E A N C O U R T O F J U S T I C E . Governments who fail to implement Community law are asked to explain their position to the Commission, and if the Commission considers the explanations unsatisfactory it can refer the matter to the Court of Justice. The Court ruling is expected to be binding on governments or other bodies concerned. There are no sanctions available under the Treaty of Rome against governments that flout Court of Justice rulings; it is generally accepted custom that the rulings are obeyed. Implementation of Community law operates at different levels within member countries and may be devolved by governments to regional or local authorities. See also

LEGISLATIVE

PREPARATION,

Fig.

12;

EUROPEAN COMMUNITY.

Commission responsibility: Legal service. Community trademark In 1959 the European Commission began work on the H A R M O N I S A T I O N or unification of industrial property law. The Trademark Working Group, then set up, produced a preliminary draft convention for a European trademark in 1964, but work was suspended during the wider international negotiations which led to the signing of the Trademark Registration Treaty in 1973. In 1976 the Commission published a memorandum (Bull. EC Supp. 8/76 1976) outlining new thinking on a Community trademark. This led to a proposal for a directive harmonising national laws on trademarks and a regulation to establish a Community trademark and Community Trademark Office. The directive was adopted in December 1988 (89/ 104/EEC, OJ L 40 1989). It aims to ensure that

32

Community Issues: Comoros

trademarks enjoy uniform protection under the laws of all member states and indicates rules governing registration of trademarks directly affecting the flow of goods and services within the Community. The directive is to be implemented by 28 December 1991. The draft regulation to establish a Community trademark and Community Trademark Office (Com (80) 635, Com (84) 470), the proposed implementing regulation (Com (85) 844) and a draft regulation on fees (Com (86) 742) still remain on the Council table as the member states have been unable to reach agreement on the site of the Trademark Office and on the choice of its working language. The Commission recommends that the Office should be an autonomous body, under Commission supervision, assisted by an advisory committee. See also

COMPANY

LAW;

COPYRIGHT;

PATENT

LAW.

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D. Comoros

One of the

A C P STATES

1982 (1985 for unregistered companies). In 1986 the Commission issued a draft proposal (OJ C 144 1986) to extend the scope of the fourth and seventh company law directives to certain partnerships and unlimited companies (the seventh directive deals with the consolidated accounts of groups; see C O M P A N Y ( G R O U P ) A C C O U N T S ) . Its purpose is to ensure that businesses where all partners have limited liability are subject to the accounting requirements of said directives. The proposal also covers unlimited companies all of whose shareholders are limited companies. Another proposal was put forward by the Commission in 1988 on amending those directives with respect to the exemptions for small and medium-sized companies and to the drawing-up and publication of accounts in Ecus (European currency units) (OJ C 2 8 7 1 9 8 8 ) . See also S M A L L A N D M E D I U M - S I Z E D E N T E R P R I S E S (SMEs). Commission responsibility: D-G XV (Financial Institutions and Company Law) Directorate B.

and a signatory

t o t h e LOMÉ CONVENTIONS.

Company (group) accounts

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 15 rue de la Néva, Paris. Commission responsibility: D-G VIII (Development) Directorate C (4).

on

Company accounts The Fourth Directive on C O M P A N Y L A W (78/660/EEC, OJ L 222 1978) is concerned with the H A R M O N I S A T I O N of the annual accounts of public and private limited companies. Its effect is to make annual accounts (particularly balance sheets and profit and loss accounts) comparable throughout the Community. Physical presentation of accounts must conform to prescribed layouts, and assets and liabilities must be set out in accordance with fixed rules. The usual basis for valuation is historical cost, but member states may permit alternatives such as current cost valuation provided that: (i) any additional value thereby achieved cannot be treated as a profit, but must be entered in a reserve not available for distribution; (ii) a comparative table must permit the reader to determine both the historical and the current cost basis of valuation. Annual accounts are subject to auditing. The directive allows certain exemptions for small and medium-sized firms. Legislation came into effect in

COMPANY LAW

The Seventh Directive

(83/349/EEC,

OJ

L

193

1983)

which complements the Fourth Directive on company law (see C O M P A N Y A C C O U N T S ) deals with consolidated accounts of groups of undertakings (ie, of parent companies and subsidiaries). The directive gives a definition of the undertakings to be consolidated, that is the accounts of which must be taken together to give a financial view of the group as a whole. The basis for consolidation adopted by the directive is the legal power of control exercised by a parent company over a subsidiary and established either by a majority of voting rights or the rights to appoint the majority of board members or a contract giving control. Under the directive, the consolidated accounts aim to give a true and fair view of the assets, liabilities, financial position and profit and the loss of the undertakings in the group as if they were a single entity. In particular, the book values of shares of the undertakings consolidated are set off against the proportion they represent of the capital and reserves of those undertakings. Intra-group transactions are also eliminated. In 1986 the Commission issued a draft proposal (OJ C 144 1986) to extend the scope of the fourth and seventh company law directives to certain partnerships and unlimited companies (the fourth directive is concerned with the H A R M O N I S A T I O N of the annual accounts of public and private limited

Community Issues: Competition policy

companies; see C O M P A N Y A C C O U N T S ) . Its purpose is to ensure that businesses where all partners have limited liability are subject to the accounting requirements of said directives. The proposal also covers unlimited companies all of whose shareholders are limited companies. Another proposal was put forward by the Commission in 1988 on amending those directives with respect to the exemptions for small and medium-sized companies and to the drawing-up and publication of accounts in Ecus (European currency units) (OJ C 287 1988). See also H A R M O N I S A T I O N . Commission responsibility: D - G XV (Financial Institutions and Company Law) Directorate B. Company capitalisation The Second Directive on C O M P A N Y L A W (77/91/EEC, OJ L 26 1977) aims to regulate the formation of public companies, and the maintenance and alteration of their capital. Public companies now require a minimum subscribed capital of Ecu 25,000. The measure provides for specific responsibility of pre-corporation liabilities, a virtual prohibition of the issue of shares at a discount, and stringent controls on the issue of shares for consideration other than cash. The payment of dividends and interim dividends are also subject to some restrictions. See also H A R M O N I S A T I O N . Commission responsibility: D - G XV (Financial Institutions and Company Law) Directorate B.

33

(vii) A U D I T O R S ' qualifications (Eighth Directive, 84/ 253/EEC, OJ L 125 1984). (viii) disclosure requirements of branches of companies (Eleventh directive, 89/666/EEC, OJ L 395 1989); (ix) single-member private limited companies (Twelfth directive, 89/667/EEC, OJ L 395 1989); Other legislation adopted covers: (i)

EUROPEAN

ECONOMIC

INTEREST

GROUPING

(Regulation E E C 2137/85 OJ L 199 1985); (ii) undertakings for collective investment in transferable securities (Ucits) (Directive 85/611/EEC, OJ (EEIG)

L 3 7 5 1 9 8 5 (see

FINANCIAL SERVICES);

(iii) bank accounts (Directive 86/635/EEC, OJ L 372 1 9 8 6 ) (see

BANKS);

(iv) bank branches (Directive 89/117/EEC, OJ L 44 1989); (v) disclosure of significant shareholdings (Directive 88/627/EEC, OJ L 348 1988); (vi) I N S I D E R D E A L I N G (Directive 89/592/EEC, OJ L 334 1989). Proposals awaiting adoption deal with: (i) company structure (draft fifth directive, Com (83) 185 O J

C

240

1983)

(see

WORKER

PARTICIPATION:

COMPANY STRUCTURE;

(ii) cross-border mergers (draft tenth directive, Com (84) 727 OJ C 23 1985); (iii) minimum rules for takeovers (draft thirteenth directive, Com (88) 823 and Bulletin of the European Communities Supplement 3/89); (iv) partnerships (Com (86) 238 OJ C 144 1986); (v)

SMALL A N D M E D I U M - S I Z E D

ENTERPRISES

(Com

(88) 292); Company law Legislation harmonising company law flows from the T R E A T Y O F R O M E , Article 54(3)(g), as part of the Community policy of the right of establishment and the removal of obstacles to cross-frontier co-operation. Legislation adopted covers: (i) information to be published by companies and methods of disclosure (First Directive, 68/151/EEC, OJ L 65 1968); (ii) C O M P A N Y C A P I T A L I S A T I O N (Second Directive, 77/91/EEC, OJ L 26 1977); (iii) M E R G E R S and E M P L O Y E E P R O T E C T I O N (Third Directive, 78/855/EEC, OJ L 295 1978); (iv) C O M P A N Y A C C O U N T S (Fourth Directive 78/660/ E E C , OJ L 222 1978); (v) division of public limited liability companies (Sixth Directive, 82/891/EEC, OJ L 378 1982); (vi) C O M P A N Y ( G R O U P ) A C C O U N T S (Seventh Directive, 83/349/EEC, OJ L 193 1983);

( v i ) E U R O P E A N COMPANY STATUTE ( C o m ( 8 9 ) 2 6 8 ) .

The above is only the nucleus of Community legislation in the area of company law. Many other measures which directly affect companies have been or are in the process of being adopted (see I N S U R A N C E , TAXATION, STOCK

SOCIAL C H A R T E R ,

EXCHANGE,

PATENTS,

FINANCIAL

SERVICES,

COMMUNITY

TRADE

MARK, EMPLOYEE INFORMATION, MERGERS).

Commission responsibility: D-G XV (Financial Institutions and Company Law) Directorate B. Competition policy In the Community, an effective competition policy is seen as a vital means of making the most of the potential offered by the completion of the internal market in 1992. More competition, it is felt, will strengthen the position of European industry in both world and domestic markets and without a strong competition policy there is a risk

34

Community Issues: Confederation of Industries of the European Community

that Community consumers would be unable to enjoy the benefits of the large integrated market. The competition policy is governed by Articles 8586 of the T R E A T Y O F R O M E . These articles prohibit agreements among enterprises which adversely affect trade between m e m b e r countries, and which have as their object or effect the prevention, restriction or distortion of competition within the common market; or, in the case of any enterprise in a dominant position, they prohibit it from abusing that position. Similar provisions apply to the coal and steel industries under the T R E A T Y O F P A R I S , Article 66. The European Commission has the responsibility under the treaties of ensuring the application of these rules. Basic guidelines are laid down in Regulation ( E E C ) 17/62 (OJ L 13 1962) which requires that all existing and future agreements which come within the scope of the Treaties be notified to the Commission. In addition, the Commission has taken active measures to draw up block exemption regulations. Block exemptions are designed to introduce greater speed and certainty into the policy and to avoid hampering positive co-operation. These exemptions generally indicate which circumstances are admissible and which are not. To date, the following block exemptions have been adopted: (i) exclusive distribution agreements (Regulation ( E E C ) 1983/83, O J L 173 1983); (ii) exclusive purchasing agreements, in particular beer delivery and petrol station contracts (Regulation ( E E C ) 1984/83, OJ L 173 1983); (iii) patents (Regulation ( E E C ) 2394/64); (iv) motor vehicle distribution and servicing agreements (Regulation ( E E C ) 123/85); (v) specialisation agreements (Regulation ( E E C ) 417/85); (vi) research and development agreements (Regulation ( E E C ) 418/85); (vii) agreements and concerted practices in the air transport sector (Regulation ( E E C ) 3976/87); (viii) certain forms of franchise agreements (Regulation ( E E C ) 4087/88); (ix) know-how licensing agreements (Regulation ( E E C ) 556/89). Within these guidelines competition law has been built up by case law, based on Commission and European Court of Justice rulings as applied to firms that have infringed the Treaties. Commission and Court rulings are published in the O F F I C I A L J O U R N A L O F T H E E U R O P E A N C O M M U N I T I E S (Series L ) , the BULLETIN OF THE E U R O P E A N COMMUNITIES a n d

the

Commission's A N N U A L R E P O R T S on competition policy. An expert Advisory Committee on Restrictive Practices and Dominant Positions advises the Commission on cases it decides to investigate. Competition rules also apply to state monopolies, nationalised industries, discriminatory pricing, patents and trademarks. National and Community policies largely run parallel in these matters, but enterprises uncertain of their position should consult a lawyer. See

also

COMMUNITY

HARMONISATION;

LAW;

INDUSTRIAL

COMPANY

POLICY;

LAW;

INDUSTRY:

STATE A I D S .

Commission responsibility: D - G IV (Competition).

Confederation of Industries of the European Community (Unice) [Union des Industries de la Communauté Européene]. A n organisation consisting of the central employers' and industrial federations of 22 European countries. Community federations are full members, while since 1974, the m e m b e r states of the E U R O P E A N F R E E T R A D E A S S O C I A T I O N (Efta) have been associate members. Unice's role is to co-ordinate the views of its members and to serve as their spokesmen at Community level, thus ensuring that the views of business and industry are taken fully into account by European legislators. It is often consulted by the European Commission. Its council of presidents, made up of the heads of the national federations, meets regularly. There is a permanent staff and the work is shared among a number of departments and temporary groups. Their task is to follow the development of various issues of interest to industry, to organise contacts with the trade unions and other associations, as well as with the Commission, the Council of Ministers and the European Parliament. Unice works through five main policy committees Economic and social affairs, External relations, Company affairs, Industrial affairs and Social affairs - and several working groups set up on an ad hoc basis. It participates on behalf of employers within the Standing Committee on Employment and also liaises with a number of international organisations such as Efta and the O E C D ( O R G A N I S A T I O N F O R ECONOMIC CO-OPERATION AND DEVELOPMENT).

Unice, rue Joseph II 40/Bte 4, B-1040 Brussels. Tel. (02) 237 6511.

Community Issues: Consumer protection

Congo

One of the

A C P STATES

and a signatory to

35

FIG. 3 C O N S U M E R PROTECTION

t h e L O M É CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 16 avenue FD Roosevelt, B-1050 Brussels. Commission responsibility: D-G VIII (Development) Directorate B(2). Consumer credit The Directive on consumer credit concerns the establishment of a Community method of calculating the annual percentage rate (APR) for consumer credit (90/88/EEC, OJ L 61 1990). It authorises certain countries to continue using until 1995 the statutory formulae laid down by their national laws. The Commission has issued two Recommendations on credit or payment cards: (i) a European Code of Conduct relating to electronic payment - relations between financial institutions, traders and service establishments, and consumers (87/598/EEC, OJ L 365 1987); (ii) concerning payment systems, and in particular the relationship between cardholder and card issuer, (88/590/EEC, OJ L 317 1988). The Commission decided that a non-binding instrument was the most appropriate approach in this area. It is concerned to keep the balance between co-operation and competition between systems, and the kind of consumer protection that might be required. It is examining agreements on interoperability in which any restrictions on, for example, pricing or access will have to be justified. Commission Service.

responsibility:

Consumer

Policy

Consumer protection Community measures to protect consumer interests have developed irregularly since the basic consumer rights of protection of health and safety, protection of economic interests, redress, information and education, and representation were set out in Resolutions 75/525/EEC (OJ C 92 1975) and 81/603/EEC (OJ C 133 1981). The legal basis for Community interest in consumer affairs is Article 39 of the Treaty of Rome, which states inter alia that the objective of the Common Agricultural Policy is to ensure 'that supplies reach consumers at reasonable prices', and Article 86, which prohibits undertakings from limiting production, markets or technical development to the prejudice of consumers'. In 1973 the European Commission set up the Environment and Consumer Protection Service,

Sales practices

-

Consumer advice

-

M i s l e a d i n g o r u n f a i r advertising ' Education and information

Consumer credit

which became D-G XI on environment, Consumer Protection and Nuclear Safety. The European Court of Justice gave a lead in consumer affairs with its judgement on the C A S S I S D E D I J O N case in 1979. The case established the principle that a product legally manufactured and marketed in one Member State should have access to the market in any other, unless differing standards could be justified on the grounds of health and safety. In February 1989, the new autonomous Consumer Policy Service was established by the Commission in order to develop consumer protection as part of the internal market. The C O N S U M E R S ' C O N S U L T A T I V E C O U N C I L , set up in December 1989, replaces the previous Consumers' Consultative Committee as the representative body of consumers' organisations which gives opinions to the Consumer Policy Service. Legislation relating to consumer protection has concerned misleading and unfair A D V E R T I S I N G (Directive 84/450/EEC, OJ L 250 1984): P R O D U C T LIABILITY (Directive 85/374/EEC, OJ L 210 1985); contracts negotiated away from business premises (doorstep selling, see S A L E S P R A C T I C E S ) (Directive 85/577/EEC, OJ L 372 1985); C O N S U M E R C R E D I T (Directive 87/102/EEC, OJ L 42 1987); dangerous

36

Community Issues: Consumers' Consultative Council

imitation products (Directive 8 7 / 3 5 7 / E E C , OJ L 1 9 2 / 8 7 ) ; B R O A D C A S T I N G activities (Directive 8 9 / 5 5 2 / E E C , OJ L 2 9 8 1 9 8 9 ) ; and a rapid system for exchange of information on dangers from the use of consumer products (Decision 8 9 / 4 5 / E E C , OJ L 1 7 1 9 8 9 ) . Other more specific measures with a consumer interest relate to F O O D : P A C K A G I N G ; F O O D : LABELLING;

FOOD:

ADDITIVES;

COSMETICS;

DAN-

and see also H A R M O N I S A T I O N . Proposed legislation not yet adopted relates to energy efficiency of buildings (OJ C 2 6 7 1 9 8 7 ) ; package travel (OJ C 96 1988 and OJ C 190 1989; see T O U R I S M ) ; and general product safety (OJ C 1 9 3 GEROUS SUBSTANCES;

1989).

In March 1990 the Commission adopted a threeyear action plan for a Community consumer policy. The main features of the policy are: (i) representation - completion of the Consumers' Consultative Council and support for the development of consumer organisations; (ii) information - development of strategy for consumer information programmes, pilot projects and consultation centres; (iii) transparency - legislation to enable the best consumer choice in the financial sector and in international payments; (iv) consumer safety - including measures on rapid exchange of information, liability in the service sector, and modification of the cosmetics directive; (v) comparative testing - this will be promoted, and a proposal will be made allowing comparative advertising, which is now banned in all member states except the UK and the Netherlands; (vi) consumer transactions - various measures will address abusive clauses in contracts; trans-border contracts, guarantees and after-sales service, consumer access to compensation for damage, and contracts agreed at a long distance. Commission responsibility: Consumer Policy Service and D-G III (Internal Market and Industrial Affairs). Consumers' Consultative Council This body was set up by the Commission in December 1989 (Decision 90/55/EEC, OJ L 38 1990). It is formed of 39 representatives of European consumer organisations and national organisations, institutions and individuals qualified in consumer affairs. The CCC came into operation on 1 January 1990, and replaces the previous Consumers' Consultative Committee. The main aim is to establish an advisory body for the

Commission which will reflect the national and Community objectives of the various consumer organisations. Particularly since the accession of Spain, Portugal and Greece, the input of the views of national organisations through the Consumer Advisory Committee had not been adequate. See also C O N S U M E R P R O T E C T I O N . Commission responsibility: Consumer Service.

Policy

Co-ordination Committee for the Textile Industries of the EEC (Comitextil) [Comité de Coordination des Industries Textiles de la CEE] An influential organisation representing national textile manufacturers from all Community countries. Its objective is to define and propose economic, industrial and foreign trade policies in order to ensure the development of the prosperity of the textile industry and its contribution to Community economic growth. Its activity as a textile scientific research centre aims at maximising research results and information for the benefit of all firms. Austria, Finland, Norway, Sweden and Switzerland are associate members of the organisation. Comitextil, 24 rue Montoyer, B-1400 Brussels. Tel. 02 230 95 80. Commission responsibility: D-G III (Internal market and industrial affairs) Directorate D. Copyright In June 1988 the Commission published a green paper entitled Copyright and the challenge of technology - copyright issues requiring immediate attention (Com (88) 172). The paper is intended primarily as a basis for broad consultation of interested parties in certain copyright issues: piracy, home copying of audio and audio-visual material, distribution rights, computer software and databases, and the Commission's role in the external aspects of copyright protection. Following the green paper, the Commission has put forward two draft proposals that are still under discussion: a draft directive on the legal protection of computer programs (Com (88) 816) and a draft on the legal protection of biotechnological inventions (Com (88) 496). A directive on the legal protection of micro-circuits was adopted in December 1986 (87/54/EEC, OJ L 24 1987). Besides offering security within the Community to manufacturers of semi-conductors, this directive should also guarantee them access to US protection systems.

Community Issues: Council for Mutual Economic Assistance

See also C O M M U N I T Y T R A D E M A R K ; P A T E N T L A W . Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D. Co-responsibility levy Introduced in 1977, the coresponsibility levy for milk was a deduction from the price farmers received, which was then used partly to finance certain projects such as the Community subsidy for school milk (Regulation (EEC) 1079/77, OJ L 131 1977). The levy was fixed by the Council of Ministers as a percentage of the I N T E R V E N T I O N PRICE for milk. The intention was that farmers contribute towards the cost of disposal of surplus dairy products, and led ultimately to the introduction of MILK Q U O T A S . A co-responsibility levy for certain cereals was introduced in 1986 under Regulation (EEC) 1579/86 (OJ L 139 1986); this covers all cereals listed under Article 1(a) and (b) of Regulation (EEC) 2727/75 (OJ L 281 1975, last amended in OJ L 274 1989). Again the objective was for cereal producers to contribute to the costs of disposal of surplus, through the reduction in their incomes. See also

AGRICULTURE: COMMON AGRICULTURAL

P O L I C Y ; C E R E A L S ; M I L K A N D MILK P R O D U C T S .

Commission responsibility: D-G VI (Agriculture) Directorate E ( l ) . Cosmetics Protection against the use of dangerous products in cosmetics is embodied in Directive 76/ 768/EEC (OJ L 262 1976). The Directive lays down rules to be observed in respect of composition, labelling and packaging of cosmetic products as well as listing substances which these products must not contain or substances which are allowed subject to certain restrictions, including colouring agents. An approved list of preservatives is given in Directive 85/490/EEC (OJ L 295 1985). The Scientific Committee on Cosmetology advises the European Commission on scientific and technical problems and on the composition and use of these products. See

also

CONSUMER

HARMONISATION:

Commission Service. Cost

See

COMMITTEE

Fig.

PROTECTION,

Table 1 0 . responsibility:

ON

Consumer

EUROPEAN

3;

Policy

COOPER-

ATION IN S C I E N T I F I C A N D T E C H N I C A L R E S E A R C H .

Costa Rica A member country of the General Treaty on Central American Economic Integration.

See E X T E R N A L AMERICA.

TRADE,

Table

6:6;

37

CENTRAL

Inquiries: Chancellerie Diplomatique, PO Box 23, 489 avenue Louise, B-1050 Brussels. Commission responsibility: D-G I (External relations) Directorate I (1); D-G VIII (Development). Cotton The general rules for the system of aid for cotton were set out by Regulation (EEC) 2169/81 (OJ L 211 1981). Community aid is available to producer groups and associations thereof from the F A R M F U N D (Guidance Section). The amount of aid granted corresponds to the difference between the world market price and the T A R G E T P R I C E . See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture) Directorate C(3). Council for Mutual Economic Assistance (CMEA; Comecon) An economic organisation founded in 1949 by the USSR, Bulgaria, Czechoslovakia, Hungary, Poland and Romania. Later admissions were Albania (1949; ceased participation in 1961), the German Democratic Republic (1950), Mongolia (1962), Cuba (1972) and Vietnam (1982). In 1964 Yugoslavia concluded an agreement whereby it would participate in the work of some C M E A bodies. Afghanistan, Angola, Ethiopia, Laos, Mexico, Mozambique, Nicaragua and the People's Democratic Republic of Yemen attend C M E A sessions as observers. There are co-operation agreements with Finland, Iraq, Mexico and Nicaragua. A joint declaration signed in Luxembourg in June 1988 finally established official relations between the E C and Comecon. Shortly after the declaration the EC established diplomatic relations with Cuba, USSR, Bulgaria, Czechoslovakia, G D R , Hungary, and Poland. The supreme authority is the Session of the Council, usually held annually in members' capitals in rotation, under the chairmanship of the delegation of the host country. All members must be present and decisions must be unanimous. Delegations are usually led by prime ministers. The executive committee is made up of one representative of deputy premier rank for each member state and meets at least every once every three months. The administrative organ is the secretariat, based in Moscow.

38

Community Issues: Council of Arab Economic Unity

See also E X T E R N A L T R A D E ; individual country entries. Commission responsibility: D-G I (External relations) Directorate E. C M E A , Prospekt Kalinina 56, Moscow 121205. Council of Arab Economic Unity (CAEU) A regional organisation formed in 1964 whose members include Iraq, Jordan, Kuwait, Mauritania, Palestine Liberation Organisation, Somalia, Sudan, Syria, the United Arab Emirates, Yemen Arab Republic and the People's Democratic Republic of Yemen. See also E X T E R N A L T R A D E , Table 6:4; individual country entries. Commission responsibility: D-G I (External relations) Directorate H(3). Council of Europe The Council of Europe was established in 1949 as an inter-governmental organisation of European states, with 10 founder members: Belgium, Denmark, France, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden and the UK. A further 11 countries subsequently joined: Austria, Cyprus, Germany, Greece, Iceland, Liechtenstein, Malta, Portugal, Spain, Switzerland and Turkey. The Council has two institutions: an inter-governmental Committee of Foreign Ministers and a Consultative Assembly, both served by a Secretariat in Strasbourg. Several expert committees have been established to deal with matters of common interest to the member governments. Following the signing of the European Convention on Human Rights in 1950, the Council set up the European Commission of Human Rights and

the

EUROPEAN

to investigate and Convention.

COURT

OF

HUMAN

RIGHTS

act upon violations of

the

Under its statute, the Council's aim is 'to achieve a greater unity between its members for the purpose of safeguarding and realising the ideals and principles which are their common heritage and facilitating their economic and social progress', this aim 'to be pursued . . . by discussion of questions of common concern and by agreements and common action'. The Council is specifically excluded from discussion on defence matters. While the Council agrees conventions from time to time (see W I L D L I F E ) it has no legislative jurisdiction over its members and should not be confused with the E U R O P E A N COMMUNITY.

Council of Ministers The Council of Ministers is the supreme decision-making body of the E U R O PEAN C O M M U N I T Y under the T R E A T Y O F R O M E , although its role has partly been modified by the E U R O P E A N C O U N C I L of heads of government. Each government has one representative Minister on the Council though personnel differ according to issues under discussion (eg, agriculture, finance, etc). Foreign Ministers are held to have responsibility for overall co-ordination of Community policy as well as external affairs in what is sometimes known as the 'General Council' (see E U R O P E A N P O L I T I C A L C O O P E R A T I O N ) . The Council has its own Secretariat (see Directory for membership) but it decides on PROPOSALS from the E U R O P E A N C O M M I S S I O N . Although a Commissioner attends all Council meetings he cannot vote. Under the Treaty of Rome, Article 148, the Council can take decisions unanimously, by absolute majority or by qualified majority voting. In the latter case, the UK, France, Germany and Italy have 10 votes each, Spain eight votes, Belgium, Holland, Greece and Portugal five votes each, Denmark and Ireland three, and Luxembourg two. Where a majority vote is required by the Treaty, the Council will require at least (i) 54 votes (out of the total of 76) in favour of a Commission proposal, or (ii) 54 votes in favour cast by at least eight members in certain other cases. The S I N G L E E U R O P E A N A C T of 1986 extended the application of weighted qualified majority voting in the Council to cover all internal trade matters, emphasising the priority given to completing the internal market by the end of 1992. Some areas such as fiscal harmonisation, including V A T and excise duties, will continue to require unanimity. The right of veto in matters of vital national interest, which individual member states enjoy under the 'Luxembourg Compromise' of 1966, is not laid down in the Treaty, and so the use of veto is unaffected. The Presidency of the Council rotates every six months among the member governments, in alphabetical order (according to the name of the country in its own language), and applies to all Council meetings and those of subsidiary bodies during the period. Increasingly the President of the Council speaks for all Community members in external relations, for example at the United Nations. The Council is assisted by a large number of working parties and by the

COMMITTEE OF PERMANENT

REPRESENTATIVES,

the ambassadors of the member states to the Communities. Council meetings are private, but

Community Issues: Customs union

there are press conferences and press releases after meetings. At the Dublin European Council in June 1990 the heads of government agreed to convene two intergovernmental conferences of all member states to run in parallel - one to prepare for E C O N O M I C A N D M O N E T A R Y UNION and a second on political union. The latter would discuss a series of options for closer European unity, including: (i) more majority voting, ending the right of member states to veto policies; (ii) increased powers for the European Parliament in the legislative process; (iii) a common foreign policy; (iv) giving the Court of Justice real powers of enforcement of Community laws. The two conferences were scheduled to get underway on the eve of the European Council in Rome in December 1990. The finance and foreign ministers were asked to ensure that negotiations on both monetary and political union could begin 'on a concrete basis as soon as the conferences open'. See

also

EUROPEAN

COMMUNITY,

BUDGET,

EXTERNAL TRADE, LEGISLATIVE PREPARATION.

Enquiries: the Council of Ministers has its own Secretariat, separate from that of the European Commission; see C O U N C I L O F M I N I S T E R S S E C R E T A R IAT. Responsibility for the Council within the Commission rest with the Secretariat-General of the Commission. Council of Ministers Secretariat

See Directory.

Court of Auditors Established by amendment to the T R E A T Y O F R O M E in 1975 (Articles 206-206a) the Court consists of 12 members (one from each Community country) appointed for a six-year term by the C O U N C I L O F M I N I S T E R S in consultation with the E U R O P E A N P A R L I A M E N T . Members must be qualified in external audit and their task is to examine all revenue and expenditure accounts of the Community. The Court can comment on the accounts of all Community institutions and if requested can issue advisory opinions. Internal auditing, as before the Court was set up, continues to be carried out by each institution's financial controller. The Court's annual report drawn up at the end of the financial year is published in the O F F I C I A L J O U R N A L , as are its special reports which can be submitted at any time, covering such topics as mountain and hill farming, F O O D A I D a n d t h e FARM FUND.

See also

FINANCE.

Court of First Instance

See

39

E U R O P E A N C O U R T OF

JUSTICE.

Cuba

member of the C O U N C I L FOR M U T U A L A S S I S T A N C E since 1974. The EC in September 1988 established diplomatic relations with Cuba. Cuba is eligible for tariff reductions for its exports under the G E N E R A L I S E D SYSTEM O F A

ECONOMIC

PREFERENCES.

See E X T E R N A L T R A D E , Table 6:6. Inquiries: Chancellerie Diplomatique, 77 rue Robert Jones, B-1180 Brussels. Commission responsibility: D-G I (External relations) Directorate 1(1); D-G VIII (Development). Customs duties The Community is a C U S T O M S UNION and all imports into the Community are charged at a uniform rate whichever country they enter. The C O M M O N C U S T O M S T A R I F F (CCT) averages about 5.5 per cent, although under the G E N E R A L I S E D S Y S T E M O F P R E F E R E N C E S and other agreements exports from many developing countries enter the Community market at special reduced rates. Customs duties (as well as L E V I E S ) are imposed on some agricultural products: 16 per cent on live cattle and 20 per cent on B E E F A N D V E A L , and mutton and lamb (see S H E E P M E A T A N D G O A T M E A T ) . Various rates apply to F R U I T A N D V E G E T A B L E S . Duties may be reduced or suspended by the Council of Ministers. See also F I N A N C E . Commission responsibility: D-G XXI (Customs union and indirect taxation) Directorate A. Customs union The Community is a customs union. This is an arrangement whereby countries agree to do away with customs barriers between themselves and apply a common tariff to countries outside the union so that the level of protection will be the same wherever a product enters the union. Once a product has entered the territory and the C O M M O N CUSTOMS T A R I F F has been paid, no further duties are payable whatever the destination of the goods. This distinguishes a customs union from a free-trade area where, though there are no internal barriers, members are free to follow an independent customs policy and apply their own tariffs vis-à-vis non-members. The Community customs union was established by the six Community founder members in 1968 and extended to include the UK, Ireland and

40

Community Issues: Cyprus

Denmark in July 1977 and Greece in January 1986. Spain and Portugal will be fully included in the union after a seven-year transitional period. Nevertheless, HARMONISATION of customs procedures is slow: passports are still required within the Community, for nationals of member states that do not issue identity cards, and NONT A R I F F B A R R I E R S T O T R A D E remain. In February 1990 the Commission proposed a regulation to create a Community Customs Code which aims to consolidate the huge body of customs legislation and associated measures into one text. In its White Paper of June 1985 on Completing the Internal Market (Com (85) 310) the Commission laid out a timetable and over 300 proposals for achieving an 'area without internal frontiers' by January 1993. See

HARMONISATION;

FREE ALLOWANCES;

CUSTOMS

DUTIES;

EXTERNAL TRADE,

DUTY-

EUROPEAN

PASSPORTS.

Commission responsibility: D-G XXI (Customs union and indirect taxation) Directorate A & B.

Cyprus See E X T E R N A L T R A D E , Table 6:2. Inquiries: Chancellerie Diplomatique, 83-85 rue de la Loi, B-1040 Brussels. Commission responsibility: D-G I (External relations) Directorate H(2). Czechoslovakia

founder member of the C O U N C I L The Council of Ministers in March 1990 adopted the negotiating directives which gave the Commission a mandate to begin negotiations towards a new trade, commerce and economic co-operation agreement with Czechoslovakia. On signature, it will replace the existing agreement on trade in industrial products. A

FOR M U T U A L E C O N O M I C A S S I S T A N C E .

See E X T E R N A L T R A D E , Table 6:3. Commission responsibility: D-G relations) Directorate E ( l ) .

I

(External

D Dairy products

See

BUTTER;

MILK

AND

Commission responsibility: D-G III (Internal Markets and Industrial Affairs) Directorate A; D-G XI (Environment, Consumer Protection and Nuclear Safety).

MILK

PRODUCTS.

Dangerous substances All Community countries are expected to adopt common procedures in packaging and labelling poisonous or dangerous substances, under Directive 67/548/EEC (OJ L 196 1967, as last amended by Directive 88/490/EEC OJ L 259 1988). The Directive also provides for the appropriate authorities to be informed when new substances are placed on the market so that they can be commonly listed. Restrictions have also been introduced on the marketing and use of certain dangerous substances and preparations, including PCBs, PCTs, benzene, carbon tetrachloride for products ranging from toys to nuclear reactors (Directive 76/769/EEC, OJ L 262, 1976 as last amended by Directive 85/610/EEC, OJ L 395,1985). The Community took additional steps to prevent major accidents and to limit their consequences after the accident at Seveso, in Italy; clouds of dioxin were released as drums containing waste were being transported within the Community without any safety precautions. Manufacturers in all member states are now obliged to inform the authorities about substances, plant and locations where there is a possible risk of major accidents, under Directive 82/501/EEC (OJ L 230 1982) amended in 1987 (OJ L 85 1987). Other measures include Directive 84/631/ E E C (OJ L 326 1984) on transfrontier shipment of dangerous waste, which supplements Directive 78/ 319/EEC (OJ L 84 1978) on toxic and dangerous wastes by regulating their shipment across national frontiers from collection to disposal, both within and outside the Community. It also sets out conditions governing packaging, labelling and instructions in the event of danger or accident. Other directives cover specific dangerous substances such as agricultural chemicals, solvents, household products, detergents and pesticides. Directive 87/217/EEC (OJ L 85 87) on the prevention and reduction of pollution by asbestos is the first 'substance-oriented' directive announced under the Fourth Environmental Action programme. See also

ENVIRONMENT; CONSUMER

Decisions

Community

COUNCIL OF MINISTERS EUROPEAN

COMMISSION

laws, adopted by the on a P R O P O S A L from the which, when published in

t h e OFFICIAL JOURNAL OF THE EUROPEAN

COMMIS-

(Series L) are directly binding on those to whom the decisions are addressed (governments, firms or individuals). They are, therefore, selective in application. SION

See

also

COMMUNITY

LAW;

LEGISLATIVE

PREPARATION.

Delta The Delta (Developing European Learning through Technological Advance) research programme (OJ L 206 1988) currently in a two-year exploratory phase from 1989, is concerned with the application of new technologies to learning systems, particularly open and distance learning. See also R E S E A R C H . Commission responsibility; Delta Control Office, T R E V 00/1. Tel. (02) 236 2392. Denmark

former member of the E U R O P E A N Denmark joined the Community in January 1973. FREE

A

TRADE

ASSOCIATION;

Inquiries: Permanent representative (Coreper), 73 rue d'Arlon, B-1040 Brussels. Tel. 02 233 08 11. Dental practitioners Since 1980 dentists and dental surgeons have been free to practise their profession anywhere in the Community subject to the minimum training requirements and mutual recognition of qualifications set out in Directives 76/686/EEC and 76/687/EEC (OJ L 233 1978) except in Italy where dentistry is practised by doctors and more time has been required to create a separate profession. An Advisory Committee on the Training of Dental Practitioners (Decision 78/688/EEC, OJ L 233 1978) consisting of three experts from each member state - one from the profession, one from the training institutions and one government representative advises on comparable training levels throughout

PROTECTION;

PESTICIDES.

41

42

Community Issues: Development Fund

the Community. The Committee of Senior Officials on Public Health, set up to ensure the smooth application of the legislation for D O C T O R S , had its remit extended to cover dental practitioners (Decision 78/688/EEC, OJ L 233, 1978). See also

SELF-EMPLOYED;

WORK

AND

EMPLOY-

Commission, Brussels for registration application forms. See

also

EXTERNAL

TRADE;

FINANCE;

NON-

ASSOCIATED STATES.

Commission responsibility: D-G VIII (Development).

MENT.

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D(2). Development Fund (EDF) The first European Development Fund was created in 1958 to provide aid funds for dependencies of the six founder Community members, and was renewed for two further five-year periods under the Y A O U N D E A G R E E M E N T S . It has been renewed again under the fourth L O M É C O N V E N T I O N until 2000. Under Lomé IV the overall financial assistance for the initial five years of its 10year duration is Ecu 12bn (compared with Ecu 8.5bn for Lomé III). The Fund is administered by the European Commission (D-G VIII, Development) subject to supervision by the joint EEC-ACP Council and Committee of Ambassadors, and an E D F Committee, consisting of representatives of Community countries and chaired by the Commission. The Committee must approve all projects financed by the Fund. Projects must be part of development projects drawn up by the A C P STATES signatory to the Lomé Conventions, and then evaluated by the Commission as to their merit. If a feasibility study is required the Commission may suggest a shortlist of consultants drawn from an index of consultants registered in the member countries, from which the A C P state makes its choice. If approved the project may be financed in a variety of ways ranging from non-repayable grants, soft loans and loans at market rate, to subscription of equity capital and joint funding with private enterprise. The A C P state must then draw up specifications and ask for tenders. This is normally limited to competition within the Community and the ACP state, although competition can be wider in the case of joint projects, such as with the World Bank. The Commission has a resident delegate in most A C P states to assist in solving any problems. Details of projects, contracts and calls for tender under the E D F are published in the O F F I C I A L J O U R N A L O F T H E E U R O P E A N C O M M U N I T I E S Supplement ( O J S series). Consultants wishing to have their company included on the register should contact the E D F Finance Department (Consultancy Register), European

Diane (Direct Information Access Network for Europe) A Community-supported project for panEuropean information services aiming to establish a common market for information, facilitate data utilisation in the Community and make European information services more competitive. Diane Guide is an on-line data bank giving detailed information on database producers, databases and databanks and host services available on Diane. Established in 1982 it contains details of more than 600 databases and is available through E C H O (European Community Host Organisation). All subject areas are covered including business management, medicine, law, the environment, engineering, chemistry and the social sciences. Inquiries: European Information Market Development Group, 177 route d'Esch, L-1471 Luxembourg. Directives

Community

laws, adopted by the on a P R O P O S A L from the E U R O P E A N C O M M I S S I O N , which are binding on member governments. It is left to the national authorities to introduce legislation conforming to the intention of the directive and the legislation does not come into force until this is done; directives usually set a time limit for national governments to comply. They are published in the O F F I C I A L J O U R NAL O F T H E E U R O P E A N C O M M I S S I O N (Series L). COUNCIL OF MINISTERS

See

also

COMMUNITY

LAW;

LEGISLATIVE

A C P STATES

and a signatory

PREPARATION.

Djibouti

One of the

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 24 avenue Franklin Roosevelt, B-1050 Brussels. Commission responsibility: D-G VIII (Development) Directorate C(l). Doctors Since 1976 doctors who are nationals of Community countries and hold an appropriate diploma or degree, as set out in Directive 75/362/

Community Issues: Driving hours

E E C (OJ L 167 1975 last amended by Directive 82/ 76/EEC, OJ L 43 1982) have been able to practise their profession anywhere in the Community. The legislation does not apply to non-nationals even if they were trained in a Community institution. A second Directive (75/363/EEC, OJ L 167 1975) provides for the co-ordination of laws, regulations and administrative practice in regard to the profession, and also lays down minimum rules for training, and for its duration, guaranteeing a total of at least six years study or 5500 hours of theoretical and practical teaching. Methods of training are a matter for each country. A third directive adopted in 1982 (82/76/EEC, OJ L 43 1982), amending previous directives, deals mainly with the part-time training of medical specialists, amending the conditions applicable to their training so as to produce the same results as full-time training. Directive 86/457/EEC (OJ L 267 1986) relating to training for general practitioners will come into force between January 1990 and January 1997. An Advisory Committee on Medical training (Decision 75/364/EEC, OJ L 167 1975) consisting of three experts from each member state - one from the profession, one from the training institutions and one government representative - advises on comparable training levels throughout the Community. The Committee of Senior Officials on Public Health (amended Decision 75/365/EEC) ensures the application of the legislation and recommends any new directives that may be necessary. See also

SELF-EMPLOYED;

WORK

AND

EMPLOY-

MENT.

Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D(2). Dominica

One of the

A C P STATES

and a signatory

t o t h e L O M É CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 1 Collingham Gardens, London SW5 OHW. Commission responsibility: D-G VIII (Development) Directorate B (4). Dominican Republic Signed L O M É C O N V E N T I O N IV in December 1989, thus becoming one of the ACP

STATES.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, Box 19, 160a avenue Louise, B-1050 Brussels.

43

Commission responsibility: D-G VIII (Development) Directorate B(4). Dried fodder The common organisation of the market in dried fodder is set out by Regulation (EEC) 1117/78 (OJ L 142 1978 as last amended by Regulation (EEC) 2275/89, OJ L 218 1989). Flat rate aid is fixed yearly in order to improve Community supplies of vegetable proteins (Regulation (EEC) 1417/78, OJ L 171 1978 as last amended by Regulation (EEC) 1110/89, OJ L 118 1989; and Regulation (EEC) 1528/78, OJ L 179 1978, as last amended by Regulation (EEC) 2293/89, OJ L 218 1989). A G U I D E P R I C E is fixed annually, and aid is equal to the difference between the guide price and the market price, if lower, under certain conditions. Supplementary aid for processing fodder may be given, as may aid for storage. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture) Directorate C. Drive The Drive (Dedicated Road Infrastructure for Vehicle Safety in Europe) research programme (OJ L 206 1988) is a three-year programme starting in 1989 with three main objectives: to improve road safety, to improve road transport efficiency and to reduce environmental pollution caused by road traffic. See also R E S E A R C H . Commission responsibility; Drive Control Office, TR 61 1/31 D-G VII & D-G VIII. Tel. 010 322 236 1130/2481. Driving hours To encourage road safety and protect the well-being of long-distance coach and lorry drivers, the Community has laid down rules regarding working hours and conditions of drivers, under Regulation (EEC) 543/69 (OJ L 77 1977 as last amended by Regulation (EEC) 3820/85, OJ L 370 1985). This stipulates: (i) the minimum age of drivers of commercial vehicles; (ii) that the daily driving period may not exceed 10 hours in any one day and the longest permitted continuous spell at the wheel may not exceed fourand-a-half hours; (iii) that the driving period may not exceed 56 hours in any one week and must be interspersed with defined rest periods;

44

Community Issues: Driving licences

(iv) that payments to drivers in the form of performance-related bonuses and wage supplements are forbidden if they are of such a kind as to endanger road safety. Commercial vehicles over a certain weight and larger passenger vehicles, seating more than nine persons including the driver, must be fitted with a T A C H O G R A P H or recording instrument. See also T R A N S P O R T . Commission responsibility: D-G VII (Transport). Driving licences The mutual recognition and exchange of driving licences when a Community national changes residence from one member state to another is allowed for under Directive 80/1263/ E E C (OJ L 375 1980). Since January 1983 any Community national has been allowed to change his private driving licence for that of the new country without the need to take another driving test. Countries which insist on special tests for drivers of heavy goods vehicles have waived tests and issued licences to migrants from other Community countries on proof of relevant experience. A proposed directive will require member states to introduce a national driving licence based on the Community model, according to minimum conditions set out in the annex to the directive (OJ C 48 1989). Special provision is made for drivers who are physically handicapped. See also T R A N S P O R T . Commission responsibility: D-G VII (Transport). Dumping The selling abroad of goods at prices below those which the exporter charges for comparable sales in his own country, usually involving a subsidy. A subsidy includes most financial benefits granted to overseas countries on the production or export of goods (but not rebates of C U S T O M S D U T I E S or internal sales taxes such as V A L U E A D D E D T A X , granted when goods are exported). The Community legislation governing anti-dumping was updated in 1988 to clarify the definitions of 'normal value' and 'export price' and the relationship between the two, as well as the percentage values for components of Community origin for assembly of goods in the Community, so-called 'screwdriver operations' (Regulation (EEC) 2423/88, OJ L 209 1988). The Community in December 1989 submitted proposals to

the

GENERAL

AGREEMENT

ON

TARIFFS

AND

(GATT) in the context of the Uruguay Round, with the aims of establishing minimum

TRADE

standards for intervention by authorities and more workable procedures. Responsibility for applying the provisions of the G A T T anti-dumping code, which established procedures for dealing with dumped imports, rests with the European Commission which supervises and operates the relevant Community legislation with help from member states. The Commission provides guidance to industries confronted by dumped or subsidised imports. Generally applications against dumping should be submitted by a European trade association or by one company acting as the co-ordinator for Community producers or a major proportion of them, to the Commission direct or the national government department for trade, which will inform the Commission immediately. Applications can be accepted from individual companies or national trade associations but additional information about production, trade and consumption elsewhere in the Community may be necessary before the application can be taken further. Anti-dumping or countervailing action against subsidies is not undertaken lightly and grounds for taking action in most countries are governed by law and open to challenge in the courts. To assist industry in formulating a well-founded complaint, the Commission has prepared a standard questionnaire (available from the Commission or national departments of trade). Industries are required to provide prima facie evidence of dumping or subsidisation and of material injury to their industry or the threat of it. After initial verification and co-ordination at Community level, the Commission will decide whether any investigation is warranted in consultation with the EC Anti-dumping Committee, an advisory body consisting of representatives of the member states. If the Commission does investigate, and its results are positive, the normal remedy is the imposition of anti-dumping or countervailing duties, applicable in all the member states, but waived if the foreign exporter ceases dumping or exporting the product. To contain damage to an industry before the full investigation is complete, the Commission may introduce a provisional duty for a limited period. In 1987 the Commission initiated 39 investigations as a result of complaints received alleging dumping injury. See also E X T E R N A L T R A D E . Commission responsibility: D-G relations) Directorate C(1 & 2).

I

(External

Community Issues: Table 2: Duty Free Allowances

Durum wheat Producers of this hard-grain wheat, used for making pasta, are entitled to aid from the F A R M F U N D per hectare sown and harvested (Regulation (EEC) 3103/76, OJ L 351 1976 as last amended by Regulation (EEC) 1216/89, OJ L 128 1989). The regulation is applicable only to certain qualities of wheat in certain areas of Italy, France and Greece, and aid is granted only where this crop constitutes a traditional and important part of agricultural production. There is however special provision for regions producing durum wheat in Spain, under Regulation (EEC) 3796/85 (OJ L 376 1985). See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY; CEREALS.

Commission responsibility: D-G VI (Agriculture) Directorate C.

Duty free allowances As the Community progresses towards a single market by 1993, the Commission has proposed a directive (OJ C 245 1989) to make graduated increases up to January 1992 in the travellers' allowances provided for in Directive 69/169/ E E C (OJ L 133 1969), as amended, in respect of goods bought tax-paid in a Community member state. The proposal is to increase the value of the tax relief applicable to goods subject to VAT to Ecu 1200 in January 1991 and Ecu 1600 in January 1992, and to double the quantities laid down for products subject to excise duties. The quantity of goods which may be imported under these allowances is given in the table. There are no duty free allowances for tobacco products or alcoholic beverages for travellers under the age of 17. See also H A R M O N I S A T I O N , Fig. 1 0 ; T R A N S P O R T , Fig. 1 6 . Commission responsibility: D-G XXI (Customs Union and Indirect Taxation).

TABLE 2 DUTY FREE ALLOWANCES

For goods in each band, you may bring in either the Duty Free or the Duty Paid allowances a) Alcohol and alcoholic beverages Spirits, strong liqueurs over 22 per cent volume. -

Fortified or sparkling wine, some liqueurs Still table wine b) Perfume Toilet Water c) Gifts souvenirs other goods

d) Tobacco products Cigarettes Cigarillos Cigars Tobacco

Duty Free

Duty Paid

Goods obtained anywhere outside the E E C or duty and tax free within the E E C eg from a duty free shop.

Goods obtained duty and tax paid in the E E C (ie from shops and supermarkets).

1 litre OR 2 litres 2 litres 60 cc/ml 250 cc/ml £32 worth but not more than 50 litres of beer 25 mechanical lighters 200 or 100 or 50 or 250 grammes

45

OR OR OR OR OR

OR

OR

1.5 litres OR 3 litres 5 litres 90 cc/ml 375 cc/ml £250 worth But not more than 50 litres of beer 25 mechanical lighters 300 or 150 or 75 or 400 grammes

E Eastern Europe In the aftermath of events across central and eastern Europe, in 1989, the Community has had to rethink its relationship with the countries concerned. A communication presented by the Commission in February 1990 provides the basis for discussion for all parties involved in the decisionmaking process. The P H A R E programme for assistance to Poland and Hungary is likely to be extended to the German Democratic Republic, Bulgaria, Czechoslovakia, Romania and Yugoslavia, provided that they meet the criteria required for participation, namely commitments regarding: (i) the rule of law; (ii) respect for human rights; (iii) the establishment of multi-party systems; (iv) the holding of free and fair elections during 1990; (v) economic liberalisation leading to the eventual introduction of market economies. The Strasbourg European Council (8-9 December, 1989) stated that the Community will 'continue its examination of the appropriate forms of association with the countries which are pursuing the path of economic and political reform'. While it is too early yet to say what specific criteria will be required for the co-operation agreements in force or under negotiation to become agreements of association, the principal subjects would include: (i) trade - free trade being the ultimate goal; (ii) co-operation - the lines established in the original co-operation agreements being developed and new areas explored; (iii) technical assistance and financial support according to the economic profile, requirements and absorption capacity of each country; (iv) joint projects such as infrastructure; (v) political dialogue; (vi) information exchange and cultural co-operation. The needs and capacities of individual countries will decide how this framework is adapted to their circumstances. In any event, two points should be noted: (i) to qualify for any such agreement it must be shown that the country concerned has made decisive steps towards political and economic liberty; (ii) the type of association agreement foreseen is one

disassociated from any commitment of accession to the Community. Two other new initiatives adopted in May 1990 concern education and vocational training. The Tempus initiative (Trans European Mobility Scheme for University Studies) will be a companion programme to existing Community initiatives such as L I N G U A , C O M E T T , and E R A S M U S , but adapted to the needs of the central and eastern European countries. A European Training Foundation will contribute to the adaptation of the training systems of Poland and Hungary (with other eastern European countries to participate in the future) to the changing market conditions. The foundation will be open to participation from non-EC countries (public or private sector). The location of the Foundation is undecided. The Commission favours shared accommodation with Cedefop (the E U R O P E A N C E N T R E FOR T H E D E V E L O P M E N T O F V O C A T I O N A L T R A I N I N G ) in Berlin but the Council has been unable to reach agreement on this matter. See tries.

EXTERNAL TRADE,

Table

6:3;

individual coun-

E U R O P E A N B A N K FOR RECONSTRUCTION

AND

DEVELOPMENT.

Commission responsibility: D-G I (External Relations) Directorate E ( l ) . Echo (European Commission Host Organisation) This service was set up in 1980 to encourage and support the use of on-line information in Europe. With more than 5000, registered users, it offers access to a range of unique databases on-line either wholly or partly sponsored by the Commission, which are not available on any other on-line host service. The databases offered by Echo are mainly of a European nature and range from information on research projects, reports, research organisations to User Guidance files which are of interest to the whole DiANE-user community - eg, on-line directories to help find correct software and hardware to suit organisations' needs. Databases of wider interest include T E N D E R S ELECTRONIC DAILY, Ecdin - the environment chemicals data and information network, Eurodicautom - a multilingual terminology databank, and EABS containing references to published results 46

Community Issues: Economic and Social Committee

of scientific and technical research programmes. Echo News, a bi-monthly publication, is available free of charge, and gives details of developments within the Echo service, new databases, staff activities and conference or exhibition participation. A customer support team is available to deal with any questions or problems and to supply information about the service and databases, and Echo offers a range of training classes designed to meet all levels of user needs. Echo, PO Box 2373, L-1023 Luxembourg. Commission responsibility: D-G XIII (Information Market and Innovation). Eclair (European Collaborative Linkage of Agriculture and Industry through Research) A fiveyear programme (1988-1993) concerned with agroindustrial technologies (OJ L 60 1989) with the medium- to long-term aim of improving the links between the agricultural and industrial sectors of the economy through the exploitation of biological resources. It complements the F L A I R research programme on the food sector. Commission responsibility: D-G XII (Science, Research and Development). Economic and Monetary Union (EMU) The meeting of the European Council in June 1988 gave new impetus to thinking on monetary union. A committee composed of central bankers (acting in a personal capacity) and monetary experts, chaired by the Commission's president Jacques Delors, was instructed to study and propose concrete steps that would lead towards economic and monetary union as provided for in the S I N G L E E U R O P E A N A C T and as seen in the light of the establishment of the free movement of goods, services and capital by 1992. The report of the Committee for the Study of Economic and Monetary Union ('The Delors Report') was produced in April 1989; it envisages a three-stage approach to full economic and monetary union. Stage One. Member states whose currencies are still floating - Greece, Portugal and the UK would bring them into the E U R O P E A N M O N E T A R Y S Y S T E M (EMS) exchange rate mechanism (ERM). All obstacles to the private use of the E U R O P E A N C U R R E N C Y U N I T (ECU) would be removed and coordination of economic and monetary policies strengthened. This was to take effect by June 1990, coinciding with the entry into force of the capital liberalisation directive (88/361/EEC, see F I N A N C I A L

47

S E R V I C E S ) but this deadline was passed without any new date being set. Stage Two could not begin until a new treaty laying down the basic operational and institutional rules necessary for the realisation of EMU had entered into force. The Strasbourg European Council in December 1989 decided to convene a conference by the end of 1990 to consider the terms of such a treaty. This was confirmed by the European Council in Dublin in June 1990: two intergovernmental Conferences (IGC) of all the member states will run in parallel, one on economic and monetary union and the other on political union, both held in Rome in December 1990. The IGC on economic and monetary union focuses on the controversial issues of how and when to proceed towards full E M U for the Community, in particular Stages Two and Three of the Delors proposals, to which no time frame had been attached.

Stage Two. The creation of a new federal type of monetary institution - the Eurofed or European System of Central Banks (ESCB) - would absorb the Community's existing co-operative monetary arrangements and start the transition from coordinated national monetary policies to a common monetary policy. During this stage the margins of fluctuation in the EMS exchange rate mechanism would be narrowed. Stage Three. In the third and final stage the Community currencies' exchange rates would be irrevocably fixed, allowing the creation of a single currency. The ESCB would take over responsibility for formulating and implementing monetary policy in the Community. On Stage One of the Delors report, the finance ministers adopted two Council Decisions in March 1990 (OJ L 78 1990) concerning co-operation between Community central banks and convergence of member states' economic performance. The Decisions incorporate a number of amendments suggested by the European Parliament including some designed to enhance the role of the Parliament in the Community's decision-making process. See also F I N A N C E . Commission responsibility: D-G II (Economic and Financial Affairs). Economic and Social Committee (ESC; Eco Sco) A committee established under the T R E A T Y O F R O M E (Articles 193-198), divided into three groups representing employers, trade unions, and general interests, which include professional, consumer, agricultural

48

Community Issues: Ecuador

and commercial interests. The ESC is a purely consultative body and in its advisory role it must be consulted in cases laid down by the Treaty of Rome - eg, cases concerning the free movement of workers, freedom of establishment, freedom to supply services - and in all cases where the approximation of provisions laid down by national laws, regulations or administrative action entail amendments to national legislation. In 1986 the S I N G L E E U R O P E A N A C T confirmed the role of the ESC in the closer co-operation procedure set up for much draft legislation, by which Commission proposals must usually be referred to the ESC for opinion before the Council of Ministers decides on the adoption of legislation (see L E G I S L A T I V E P R E P A R A T I O N ) . The Committee has 189 members (Belgium 12, Denmark 9, France 24, Germany 24, Greece 12, Ireland 9, Italy 24, Luxembourg 6, the Netherlands 12, Portugal 12, Spain 21, and the UK 24) nominated by governments and appointed by the C O U N C I L O F M I N I S T E R S for a four-year renewable term. Its chairman and officers are elected by the ESC for a twoyear period from among its own members. Each national delegation to the ESC must reflect the tripartite interests, but members are appointed in a personal capacity and not as delegates. The Committee is organised in specialist sub-committees covering: agriculture and fisheries; economic, financial and monetary questions; social, family, educational and cultural affairs; industry, commerce, crafts and services; transport and communications; external relations, trade and development policy; regional development and town and country planning; protection of the environment, public health and consumer affairs. Its opinions are published in the

OFFICIAL

MUNITIES

JOURNAL

OF THE

EUROPEAN

COM-

(Series C) and in the Bulletin of the ESC.

Ecuador A member of the A N D E A N signatory to the Cartagena Agreement.

PACT

and

See E X T E R N A L T R A D E , Table 6:6 Inquiries: Chancellerie Diplomatique, 70 chausée de Charleroi, B-1060 Brussels. Commission responsibility: D-G I (External Relations) Directorate 1(2); D-G VIII (Development). Education The aims of the Community education policy are: (i) to make Community citizens more aware of the part which it plays in their everyday life;

(ii) to contribute to mutual understanding among the peoples of Europe and to give the training of students, teachers and workers a European dimension; (iii) to provide the Community with the means to make its presence felt in all sectors of research, technology and teaching. A 1976 resolution (OJ C 38 1976) set out the guidelines for a programme of educational cooperation, since which time education has been monitored by an Education Committee composed of national representatives and the European Commission. The main priorities of the programme are: (i) the education of M I G R A N T W O R K E R S and their families; (ii) to establish closer relations between the various educational systems, particularly in higher education; (iii) to improve the teaching of foreign languages; (iv) to encourage the mobility of pupils, students and researchers, the mutual recognition of diplomas, and periods of study in Community countries; (v) to provide equal opportunity for all to all forms of education. Since 1980 the Council of Ministers and ministers of education have met regularly and have adopted resolutions on a wide range of issues including: (i) school provision for gypsy and traveller children and for children of occupational travellers (OJ C 153 1989); (ii) measures to combat failure at school; (iii) the E U R Y D I C E network - an information network on education in the Community; (iv) technical and vocational education. Most significant is an important resolution on cooperation and Community policy in the field of education in the run up to 1993 (OJ C 277 1989). Building on the achievements resulting from the 1976 resolution, it establishes the principal objectives for the next five years: (i) a multicultural Europe, strengthening the European dimension in education and promoting foreignlanguage teaching in school, university and vocational training systems (the L I N G U A programme); (ii) a mobile Europe, ensured by the recognition of diplomas and equivalence of professional qualifications (see W O R K A N D E M P L O Y M E N T ) , E X C H A N G E VISITS of Y O U N G W O R K E R S , and training periods abroad for teachers, pupils and students (see ERASMUS);

(iii) a Europe of training for all. In May 1990 the Council of Ministers adopted the Force (Formation

Community Issues: Education grants

FIG.4 EDUCATION POLICY EDUCATION ACTION P R O G R A M M E FOR:

49

programmes and to set up a European Vocational Training Foundation. The community has established two important further education institutions - the E U R O P E A N UNIVERSITY INSTITUTE a n d t h e E U R O P E A N

CENTRE

FOR THE DEVELOPMENT OF VOCATIONAL TRAINING.

See also E D U C A T I O N G R A N T S . Commission responsibility: D-G V (Employment, Social Affairs and Education) Task Force for Human Resources, Education, Training and Youth.

European University Institute (Florence) European Centre for the Development of Vocational Training {see Social policy) European schools

Information - the EURVDICE network

Continuée en Europe) programme which deals with the development of continuous professional training. Its aims are to encourage further investment in continued professional education, to encourage innovation in this field, and to develop ways of keeping abreast of changes in the European labour market. The four-year programme begins in 1991 and the budget allocation for the first two years is Ecu 24m; (iv) a Europe of skills, providing young people with better preparation for working life and adopting methods of training to take account of technological change (see C O M E T T , the Community action programme in education and training for technology); (v) a Europe open to the world, intensifying cooperation with international organisations and other states. Training was included in 1989 among the priorities for assistance to Poland and Hungary under Operation P H A R E . In addition, the European Council meeting in Strasbourg in December 1989 requested the Council of Ministers to adopt the appropriate decisions to enable nationals of E A S T E R N E U R O P E to participate in certain education and training programmes similar to Community

Education grants Europe's businesses and universities need qualified specialists who are familiar with the conditions and opportunities across national borders and who are capable of working on an international level. To this end, the Community is supporting three main programmes in the field of education and training and further education. (i) The E R A S M U S programme promotes the mobility of students in the Community and greater co-operation between universities. Support is given to university co-operation programmes (mobility of students and teachers, common curricula, etc), study visits by lecturers and administrative personnel, exchange schemes for lecturers and exchange study schemes for students, and recognition of diplomas and study periods. (ii) L I N G U A is for the promotion of foreign language knowledge in the Community and funds are available for teachers, students and universities and other institutions involved in language tuition. (iii) C O M E T T is the Community action programme in education and training for technology. It involves co-operation between universities and industry for training in advanced technology, particularly in response to technological change. The programme is aimed at those who have completed their initial training and those in active employment. Financial support is available for the cross-border interchange of students and graduates, scientists and specialists, as well as for projects to promote continuing training in the technology sector and multi-media distance education. In addition, scholarships are awarded by the Commission in science and technology to enable young scientists and engineers to complete their education, to specialise or to take over a research task in another member state. Students, young scientists and recognised researchers who are citizens of a member state are eligible to apply for scholarships which may last from one to three years,

50

Community Issues: Eggs

depending on the type of study. Applications can be made at any time and decisions on the award of scholarships are usually taken twice yearly. See also

E D U C A T I O N ; E X C H A N G E VISITS; F I N A N C E ;

RESEARCH.

Commission responsibility: Erasmus Office, 15 rue d'Arlon, B-1049 Brussels. Tel. (02) 233 01 11. Lingua Office of the Commission. Tel. (02) 235 72 60.

Comett Technical Assistance Unit, 71 avenue de Cortenberg, B-1040 Brussels. Tel. (02) 733 97 55. D-G XII (Science, Research and Development) Directorate H ( l ) Sectoral grants. Tel. (02) 235 40 67. Eggs Eggs in the shells sold for eating must conform to standards laid down in Regulation (EEC) 1619/69 (implemented by (Regulation (EEC) 95/69, OJ L 13 1969) which covers grading, packaging, freshness, quality and weight. Eggs and P O U L T R Y meat are also subject to Common Agricultural Policy price and import controls, but there is no support or I N T E R V E N T I O N PRICE (Regulation (EEC) 2771/75, OJ L 282 1975 as amended by Regulation (EEC) 3643/81, OJ L 364 1981). Imports enter the Community at S L U I C E G A T E P R I C E S and an element allowing for the higher cost of F E E D I N G S T U F F S in the EC (Regulation (EEC) 2773/75, OJ L 282 1975 as last amended by Regulation (EEC) 4155/87, OJ L 392 1987). E X P O R T R E S T I T U T I O N P A Y M E N T S can be made to allow exporters to sell on world markets. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY; CONSUMER PROTECTION.

Commission responsibility: D-G VI (Agriculture) Directorate D. Egypt

Egypt is a party to the agreement establish-

ing t h e A R A B CO-OPERATION COUNCIL.

See

EXTERNAL

TRADE,

Table 6:4,

MEDITER-

RANEAN COUNTRIES.

Inquiries: Chancellerie Diplomatique, 44 avenue Leo Errera, B-1180 Brussels. Commission responsibility: D-G I (External Relations) Directorate H(2); D-G VIII (Development). Electricity

See

See

EXTERNAL

TRADE,

Table

6:6,

CENTRAL

AMERICA.

Inquiries: Chancellerie Diplomatique, 3 boulevard St Michel, B-1040 Brussels. Commission responsibility: D - G I (External Relations) Directorate 1(2); D-G VIII (Development). Emergency aid Originating in the Y A O U N D E I I Convention and by virtue of a budget provision created in 1971, emergency aid was created to provide rapid allocation of funds to help mainly (but not exclusively) developing countries suffering from natural disasters or armed conflict. The funding is provided jointly from the Community budget and the European D E V E L O P M E N T F U N D (EDF) and in 1988 amounted to Ecu 71.8 million (compared with Ecu 27.3 million in 1978). The aid is typically used for the purchase of medicines, to finance medical teams, tents for temporary shelter, as well as food and other essentials. See also F I N A N C E ; A I D T O D E V E L O P I N G C O U N T R I E S . Commission responsibility: D - G VIII (Development). Employee information The most recent text of the draft proposal for a directive on procedures for informing and consulting employees (OJ C 217 1983; Bull EC Supp 2/83) lays down that employee representatives would have to be given, once a year, substantial general information on the business of the undertaking as a whole and some specific information on their own subsidiary or establishment. They would be able to approach their head office direct, in writing, should local management fail to communicate this information. Management would also have to consult employee representatives on decisions liable to have serious consequences for employees' interests with a view to attempting to reach agreement. The proposal was discussed at the June 1986 Labour and Social Affairs Council which invited the Commission to continue its work in this field (see the Council conclusions in OJ C 203 1986). As yet no timetable for the resumption of discussions has been announced. Commission responsibility: D-G XV (Financial institutions and company law) Directorate B.

ENERGY.

El Salvador A member country of the General Treaty on Central American Economic Integration.

Employee protection The Community has adopted a number of directives with the aim of improving employees' working conditions and their legal position

Community Issues: Energy

and security in undertakings. Among the most important are measures on: (i) collective or mass redundancies, under which an employer contemplating collective redundancies must begin negotiations with the workers and inform the public authorities (Directive 75/129/EEC, OJ L 48 1975); (ii) safeguarding of employees' rights in the event of transfer of ownership of undertakings, businesses or parts of businesses (Directive 77/187/EEC, OJ L 61 1977); (iii) protection of employees in the event of an employer's insolvency (Directive 80/987/EEC, OJ L 283 1980). See also

SOCIAL CHARTER; M E R G E R S ;

EMPLOYEE

INFORMATION; W O R K E R PARTICIPATION; INDUSTRIAL HEALTH AND SAFETY.

Commission responsibility: D-G V (Employment, Social Affairs and Education) Directorate A. Energy The 1973 oil crisis sharpened awareness in the Community of the need to reduce dependence on external energy supplies by policies for conservation and for exploiting alternative sources. Despite continual pressure from the European Commission the emergence of a common approach to energy questions among the member states has taken time. In 1985 the Commission devised a series of horizontal energy objectives to 1995 common to all energy sectors, confirmed in a Council Resolution of September 1986 (OJ C 241 1986). (i) To develop external energy relations through a co-ordinated approach by using Community cohesion to transform the handicap of continuing extensive energy dependence into the potential for improved relations. (ii) To promote greater integration of the common energy market; the Commission considers that there is room for improving the security of supplies and of using competition and lower costs to boost the Community's economic competitiveness through inter-connection between electricity and gas grids. (iii) Improved security of supply, which could be achieved by stepping up energy production, where economic, and by allowing suitable flexibility in the conditions of the use of the energy (eg, interruptible supply contracts for natural gas). (iv) To establish realistic energy-pricing policies, an essential basis for an efficient energy supply system, both for avoiding waste and financing necessary investments.

51

(v) To take account of environmental protection considerations. (vi) To support less-favoured regions by acting within the R E G I O N A L F U N D to promote specific Community programmes in these regions and to encourage specific energy investment that will have a favourable impact. (vii) To promote innovative technology, in the form of R E S E A R C H , development and demonstration programmes (specifically, efficient uses of energy, new and renewable sources of energy, new oil and gas technologies, and nuclear power). The Commission has also set objectives in separate sectors of energy activity. (i) Efficient use of energy: by 1995 the ratio between final energy demand and G D P should be reduced by 25 per cent. This improvement could be achieved mainly by reducing consumption in the building sector, although improvement could also be possible in industry and transport. (ii) OIL import dependence: in 1983 imported oil covered less than 32 per cent of total energy requirements compared with 62 per cent 10 years earlier. The proposal was to maintain net oil imports at less than a third of the Community's energy consumption by encouraging production and continuing with a policy of substituting other fuels for oil. (iii) Natural GAS: subject to achieving a sufficiently secure and diversified supply pattern, the proportion of natural gas in the energy balance (some 18 per cent of primary energy consumption) should be maintained and could be increased if the trend for gas prices not to follow oil develops further. (iv) Solid fuels: the aim is to maintain and if possible to increase the present market share. (v) Electricity: by 1995 the proportion of electricity generated with hydrocarbons (oil and natural gas) should be reduced from 22 to 10 per cent. Solid fuels and N U C L E A R E N E R G Y should continue to be given priority and this field could account for some 40 per cent of electricity production by 1995. (vi) New and renewable sources of energy (solar energy, geothermal energy etc; see A L T E R N A T I V E ENERGY): these should be given constant further attention in view of their various advantages (the E N V I R O N M E N T , local impact, new technologies which could also be of value exported to developing countries). By the end of the century the replacement of conventional fuels by new sources of energy could triple. In 1988 the Commission sent the Council a working paper containing an exhaustive inventory of obstacles

52

Community Issues: Energy

to the completion of the internal energy market, as part of the drive towards a frontier-free market by 1992 (Com (88) 238). Lower energy costs are the highest prize at stake, but completion of the internal energy market should also be a big boost to the Community's security of supply and economic competitiveness. The Commission proposes priorities for the five chief energy sources. (i) Stricter application of Community rules in the solid fuels sector. (ii) Approximation of taxation in the oil sector. (iii) Further expansion and inter-connection of the pipeline grids and greater price transparency for natural gas. (iv) Several priorities are set for electricity ranging from tax treatment to access to the money markets, measures to resolve the problems caused by national standards plus action on monopolies, exclusive rights, prices, costs and infrastructure. (v) Top priorities for nuclear energy are to decompartmentalise the equipment and components markets and harmonise power station construction standards. In 1989 the Commission proposed a Council Regulation on the promotion of energy technology in Europe, the Thermie programme (Com (89) 121). This proposal will replace and continue the existing Regulations 3639/85 and 3640/85 (OJ L 350 1985) covering the hydrocarbons and energy demonstration programmes. The Thermie budget for 1990-92 will be Ecu 350m. Between 1978 and 1987 Ecu 764m was committed by the Commission in the following areas: alternative energy (31.5% of total); energy saving (28.3%); hydrocarbon substitution (14.9%); and liquefaction/gasification (25.3%). The Thermie programme's objective would be to encourage reduced consumption rather than increased production of energy. It covers the following sectors, (i) Rational use of energy - ie, the reduction of unnecessary energy consumption and environmental pollution caused by energy production, through action in: • buildings: energy savings in construction and heating • industry: computerised control and metering of energy, recycling of waste heat and environmentally cleaner processes • transport: alternative fuels and better traffic circulation • electricity and heat: C H P (combined heat and power) for district heating, alternative electricity production, night storage etc.

(ii) Renewable, non-nuclear energies: • solar: thermal and photovoltaic • biomass and agricultural waste: energy crops and bioethanol • hydroelectric: small, low-level hydro • wind energy: electricity production (iii) Coal and other solid fuels: • clean technologies of combustion to meet future environmental needs • effluents • Integrated Gasification Combined Cycle to improve cost and environmental impact of electricity production from coal (iv) Hydrocarbons: • new technologies for exploration, production, storage and transportation of oil and gas • less wasteful extraction of oil, and less environmental damage (eg, CH 4 leakages) • increased safety • increased security of indigenous supply. Commission responsibility: D - G XVII (Energy) Directorate E3; D-G XII (Science, Research and Development) Directorate E.

FIG 5 ENERGY POLICY A I M S : to achieve greater energy efficiency, reduce oil import dependence, achieve secure and diversified gas supply, maintain solid fuel usage, maintain nuclear power generation, and develop new and renewable energy sources

Co-ordinated external energy relations

I Integration of common energy market

I

* Interconnections among electricity grids • Interconnections among gas grids

Financial measures • Hydrocarbons substitution • Member nation oil and gas production Security of supply

• Diversified external sources of gas • Increased solid fuel (Coal) usage • Nuclear energy generation ~ European Atomic Energy Community (Euratom)

Energy investments in less-favoured

•

regions via the Regional Fund

• Alternative energy sources

Hydro-electricity

• Energy efficiency • New and renewable sources leg, geothermal energy, solar energy, wind power; see alternative energy) • New oil and gas technologies • Nuclear energy (fission and fusion) • Gasification and liquefaction of solid fuels

• Realistic pricing • Rational use

Community Issues: Table 3.1: Guidelines for a Basic Energy Saving Programme

TABLE 3:1

53

TABLE 3 ENERGY GUIDELINES FOR A BASIC ENERGY SAVING PROGRAMME RECOMMENDED TO EVER Y MEMBER STATE

A: ENERGY PRICING 1 Energy pricing should be based on the following principles: (i) consumer prices should reflect representative conditions on the world market taking account of longer-term trends (ii) one of the factors determining consumer prices should be the cost of replacing and developing energy resources (iii) energy prices on the market should be characterised by the greatest possible degree of transparency 2 Publicity about energy prices and the cost to the consumer of energy used by appliances and installations should be as widespread as possible. 3 From the point of view of the rational use of energy, energy should be priced with due regard for the market and costs. 4 Effective energy pricing in the context of the rational use of energy must seek to ensure that prices are not being maintained artificially below the real market level.

B: MEASURES TO ENCOURAGE THE RATIONAL USE OF ENERGY The following measures are recommended: 1 Energy saving in the home (i) a substantial upward revision of compulsory minimum performance requirements for new housing and heating systems (ii) regulations to ensure individual metering, billing and control of heating systems in multi-occupied residential buildings (iii) performance standards and control of servicing of heating systems (iv) publicity campaigns and advice centres for energy saving in the home (v) financial aids for necessary improvements to existing houses (vi) an exemplary programme for dwellings in public ownership (vii) labelling to indicate the energy consumption of domestic appliances 2 Energy saving in industry (i) energy auditing, especially in industries consuming large volumes of energy (ii) financial aids for small and medium-sized businesses (iii) financial and tax aids to encourage investment to save energy (iv) financial aids for the commercial promotion of new energy-saving technologies, equipment or methods (demonstration projects) (v) recommendations stressing the advantage of planning new investments also with a view to the efficient use of energy on an economic basis 3 Energy saving in agriculture (i) promotion of the use of energy-saving agricultural equipment for the transport and processing of crops, informing users of the scope for making better use of existing equipment and of the use of energy-saving techniques of cultivation and training them accordingly (ii) rational use of chemical fertilisers (iii) better use of locally-available energy sources to heat farm buildings and glass houses 4 Energy saving in the building sector (i) application of appropriate construction codes taking into account general and specific energy circumstances and requirements (ii) elaboration, where justified technically and economically, of efficient performance and operation standards for heating systems and boilers (iii) development of means to enable the consumer better to regulate his own use of energy (individual meters in residential and tertiary buildings; selection of more reliable and economical meters) (iv) development of effective standards for ventilation and air-conditioning, with particular respect to heat recovery 5 Energy saving in offices and in commerce (i) an exemplary public-sector programme (ii) compulsory minimum performance standards for new offices (iii) performance standards and control of servicing of heating, cooling and ventilation systems 6 Energy saving in transport (i) information and publicity campaigns (ii) implementation of a standard method of measuring fuel consumption of vehicles (iii) implementation of measures to ensure that new vehicles sold within the Community comply with voluntary targets for lower fuel consumption announced by car manufacturers within the Community (iv) collecting such available national data as will enable progress towards these voluntary targets to be examined at Community level (v) monitoring adequacy of regulations and standards relating to specific fuel consumption (vi) improvements in means of transport and in particular public transport, in their use and in traffic patterns (eg where appropriate: to speed limits, design and servicing of road networks, synchronisation of traffic lights, traffic lanes reserved for public transport, limiting of tolls and frontier controls) 7 Energy production Measures to encourage the rational use of heat resulting from the generation of electrical energy and from industrial processes, as well as the development of heat distribution networks

54

Community Issues: Table 3.2: Financial Measures for the Energy Sector

Table

3.1—continued

8 Information and consultation (i) sustained publicity drives on energy saving (ii) inclusion of energy efficiency aspects in the teaching curricula of schools and universities, as well as in vocational training and driving schools (iii) information programmes with a view to stimulating public awareness on the efficient use of energy by advertising campaigns based on specific topics (iv) accompanying measures in the form of concrete advice and practical proposals (v) technical consultation measures, such as diagnostic measures (including, where appropriate, the idea of the energy bus) (vi) development of possibilities for the consumer to obtain useful advice at regional and local level on energy efficiency (vii) encouragement to associations for the efficient use of energy in order to stimulate exchanges of experience between energy managers (particularly in industry) and energy-saving advisers (viii) taking account in information and consultation measures of the fact that there are still differing degrees of awareness of the problems of energy efficiency, and research into the most effective means of remedying this (ix) means to ensure that consultants and persons selling and installing energy consuming equipment have adequate professional competence (eg membership of associations which apply appropriate professional standards of competence) (x) information, in addition to that dealing with heating, on making better use of electricity in all its forms (xi) encouraging the commitment of management to the efficient use of energy 9 Sustained efforts in research, development and demonstration 10 Financial incentives (i) recourse to financial incentives inasmuch as the obstacles to investment for more efficient use of energy are financial (ii) introduction of such incentives for a specific objective and a limited period of time such that any extension or adaptation can be conditional upon an evaluation of their effectiveness (iii) when devising financial incentives, taking account of the restraints on energy efficiency, especially in small and medium-sized undertakings, posed by the restricted availability of capital (iv) particular attention to the rented accommodation sector (v) evaluation of energy efficiency before and after the granting of the financial incentive to the investment (vi) use of all suitable means of information and consultation to ensure that the financial incentive measure has a favourable cost/ effectiveness ratio, also taking into account certain non-financial factors likely to play a significant role in investment decisions 11 Regulations and standards (i) use of standards where the forces obtaining on the market and its transparency are not sufficient to guarantee efficient use of energy (ii) taking into consideration, when drawing up these measures, their economic consequences and the experience acquired in other states (iii) clear definition of the standard to be prescribed, or, of the best standard to be attained which it is proposed to introduce after a suitable period of time (iv) introduction of adequate control or use of recommendations rather than binding regulations (v) periodic revision of the regulations and standards in the light of possible changes in the conditions which obtained when they were drawn up

Table 3.2 FINANCIAL MEASURES FOR THE ENERGY SECTOR Description of measure Euratom investment loans to promote the use of nuclear energy in order to reduce the Community's overdependence on external energy supplies (Decision 77/270/Euratom, OJ L 88 1977, amended by Decision 82/170/Euratom, OJ L 78 1982 and 85/537/Euratom, OJ L 334 1985) 1 The Commission is empowered to issue loans on behalf of Euratom, the proceeds of which are lent for the purpose of financing investment projects relating to the industrial production of electricity in nuclear power stations and to industrial fuel cycle installations

Eligibility and selection criteria Investment projects eligible are those relating to the industrial production of electricity in nuclear power stations and to industrial fuel cycle installations Preference is given to projects which ensure the most profitable conditions and which relate to installations of optimum size

Financial provisions Loans normally cover not more than 20% of the total investment cost The Commission finances its loans by means of funds borrowed on the basis of loan applications it receives The Commission administers the borrowed funds, while the loans are administered by the Commission in collaboration with the European Investment Bank Terms of loans depend on those ruling the financial markets Borrowing transactions and lending transactions related thereto are expressed in the same currency

Procedures Applications should be sent to D-G XVII (Credit and Investments)

Community Issues: Table 3.2: Financial Measures for the Energy Sector

Table

55

3.2—continued Eligibility and selection criteria

Description of measure The Euratom borrowing and lending mechanism provides credit facilities for electricity producers facing a substantial increase in their investment and operating expenditure

Financial 6

7

Technological development in the hydrocarbons sector (Regulation ( E E C ) 3639/85, OJ L 350 1985) 1 To promote projects of technological development directly associated with prospecting for, extracting, storing or transporting oil and gas which are likely to improve the Community's availability of supplies

1

Demonstration projects and industrial pilot projects in the energy field (Regulation ( E E C ) 3640/85, OJ L 350 1985) 1 Financial support for innovatory demonstration projects aimed at energy efficiency and making use of alternatives to hydrocarbons as energy sources

1

Community projects considered of prime importance in securing supplies of oil and natural gas

1 2

3 4

2

3

4

5

Financial support is granted for demonstration and industrial pilot projects in: (i) alternative energy sources; projects to exploit any potential energy source except nuclear energy; (ii) energy saving: projects for significant improvements in energy efficiency; (iii) hydrocarbons substitution; (iv) liquefaction and gasification of solid fuels For alternative energy sources, fields of application are: (i) biomass and energy from waste; (ii) wind energy; (iii) geothermal energy; (iv) hydro-electric power; (v) solar energy For energy saving, fields of application are: (i) buildings; (ii) supply and use of process heat and of electricity in industry and in agriculture; (iii) energy industry; (iv) transport For hydrocarbons substitution, fields of application are: (i) solid fuels; (ii) use of electric power; (iii) heat transmission, distribution and storage Demonstration projects must: (i) relate to the creation of full-size installations for exploitation of alternative sources or energy conservation or hydrocarbons substitution in significant quantities; (ii) exploit innovatory techniques, processes or products or a new application

1

2

provisions

Procedures

Costs incurred by the Community in concluding and carrying out each transaction are borne by the beneficiary undertakings Loans are guaranteed in the manner customary in banking practice Aids are repayable under certain conditions Community aid has been given mainly in the form of grants, amounting to 25-40% of total costs Loans or loan guarantees for projects The type and volume of aid is fixed with regard to its effect in improving hydrocarbon supply conditions Community financial support may not exceed 49% of the eligible cost of the project Level of support is determined for each project individually

1

2

3

1

2

Any natural or legal person (firm or group of firms) may be granted aid The Commission publishes invitations for the submission of projects in the OJ (Series C) Applications should be sent to D-G XVII (Energy)

Projects and applications should be sent direct to the Commission in answer to invitations to submit projects published in the OJ (Series C) The Commission decides whether to grant or refuse aid for each project submitted and then negotiates and concludes contracts with persons responsible for executing the projects

56

Table

Community Issues: Engineers

3.2—continued Description

of measure

Eligibility and selection criteria

Financial provisions

Procedures

of existing techniques, processes or products; (iii) be based on completed research and development work; (iv) encourage and promote the commercial development of the technique, process or product; (v) offer promising prospects of industrial and commercial viability as shown by prior studies and research; (vi) present difficulties with regard to finance because of considerable technical and economic risks involved, to the extent that they would not be carried out without public and/or Community financial support; (vii) be carried out within the Community

Engineers The Commission has decided not to make specific proposals for engineers while there is still disagreement between the representative bodies in the m e m b e r states. Directive 89/48/EEC (OJ L 19 1989) on a system for the mutual recognition of higher-education diplomas awarded on completion of professional education and training of at least three years' duration, will apply to engineers (eg, structural, civil, mining, electrical, mechanical, production). This will enable qualified engineers from one member state to become a member of the equivalent profession in another m e m b e r state without having to requalify. If their education and training differ substantially from that required by the host member state they may be required to take an aptitude test or undergo a period of supervised practice not exceeding three years. Details of how the directive will be implemented in the member states have yet to be finalised but it is due to be implemented by 4 January 1991. See also W O R K A N D E M P L O Y M E N T . Commission responsibility: D - G III (Internal Market and Industrial Affairs) Directorate D(2). Environment The need for a Community environment policy was formally recognised by heads of government at a summit meeting in 1972 and became a legal Treaty requirement under the S I N G L E E U R O P E A N A C T of 1 9 8 6 . The distinguishing features of the

environmental protection provisions (contained in Articles 130r to 130t) are the principles that protective action should be taken, that environmental damage should be rectified at source, that the polluter should pay and that environmental protection requirements should be a component of the Community's other policies. More than 100 items of Community legislation in the area of the environment have been enacted. The framework for this legislation is provided by the different European Community action programmes, the fourth of which is currently operative (OJ C 328 1987). This programme which runs from 1987-1991 retains the preventive strategy of the previous programmes but also reflects the fundamental improvement in the status of environmental policy under the S I N G L E E U R O P E A N A C T by calling for the protection of the environment to become an integral part of the economic and social policies, in particular the C O M M O N A G R I C U L T U R A L POLICY and regional, social and development policies. Four areas are given top priority. (i) Implementation of E C legislation to ensure that m e m b e r states apply directives fully. (ii) 'Substance-' and 'source-oriented' pollution control. (iii) Information about environmental issues to be more widely available. (iv) Job creation, with a five-year programme of demonstration projects to examine the job-creation potential of environmental investment.

Community Issues: Engineers

FIG I ENVIRONMENT POLICY ENVIRONMENTAL ACTION PROGRAMMES AIMS: to improve the quality of life and the living conditions of the people of the European Community

Reduce and prevent pollution

Ftositive improvement of the environment

Specific directives for: • Air pollution hirmissible emission levels for automobiles, chemical content of fuels (see patrol; see also harmonisation), monitoring of air pollution levels

Research and cooperation with international organisations concerned with the environment

•

Neisa Permissible noise levels for vehicles, construction equipment, aircraft

(see also harmanisation)

• Discharge of taxic aflluent including waste ails - Harmonisation of laws governing the production of detergents - Marina pollution, including the qualifications for Channel pilots, and safety standards for tankers using the English Channel • Waste prevention, processing and recycling [see also toxic affluenti Recycling grants towards the cost of experimental contracts for paper, tyres and drink containers (see recycling! • Water - drinking and bathing - beaches - the Rhino (see also toxic effluent) • Wildlife and animal welfare • Control of dangereus substances

In 1987, 'European Year of Environment', the Community gave support to 150 Community projects and campaigns and more than 600 national projects as part of its efforts to enhance public awareness of the importance of protecting the environment. Some activities have continued since 1987, including the establishment of the Network for Environmental Technology Transfer ( N E T T ) and the 'Blue Flag' operation for the cleanest beaches in the Community. The Community's objective is to prevent environmental damage arising in the first place and a directive on the assessment of the effect of certain public and private projects on the environment was adopted to help achieve this (Directive 85/337/EEC, O J L 195 1985). The purpose of this directive is to ensure that when approving procedures for major projects due account must be taken of environmental considerations. Development projects subject to this assessment procedure because of their nature, size or location include: (i) crude-oil refineries and installations for the gasification and liquefaction of 500 tonnes or more of coal or bituminous shale per day; (ii) thermal power stations and other combustion

57

installations with a heat output of 300 megawatts or more and nuclear power stations and other nuclear reactors; (iii) installations designed for permanent storage or disposal of radioactive waste; (iv) integrated works for initial melting of cast iron and steel; (v) installations for the extraction of asbestos and for the processing and transformation of asbestos and products containing asbestos, and for other uses of asbestos above certain limits; (vi) integrated chemical installations; (vii) construction of motorways, express roads and lines for long-distance railway traffic, and of airports with a basic runway length of 2100m or more; (viii) trading ports, and inland waterways and ports for vessels of more than 1350 tonnes; (ix) waste-disposal installations for the incineration, chemical treatment or land fill of toxic and dangerous wastes. In 1975 the Council adopted the 'polluter pays' principle (Recommendation 75/436/Euratom, ECSC, E E C , O J L 194 1975) which means that costs incurred by the prevention and elimination of environmental nuisances should be met by the polluter. A later Recommendation deals with the methods of evaluating the cost of pollution to industry (Recommendation 79/3/EEC, O J L 5 1979). Other important Directives have been passed to control WATER and atmospheric pollution, the problems of NOISE, DANGEROUS chemical SUBSTANCES, WASTE management, including treatment and RECYCLING, and the protection of nature. Of particular note are measures: (i) on emissions of sulphur dioxide, dust and nitrogen oxide from large combustion plants (Directive 88/609/EEC, O J L 336 1988); (ii) defining quality standards for water (Directive 76/160/EEC, O J L 31 1976); (iii) resulting from the Seveso dioxin disaster - on control of certain industrial activities against major accident hazards (Directive 82/501/EEC, O J L 230 1982 as amended in O J L 85 1987), and on the supervision and control within the European Community of the transfrontier shipment of hazardous waste (Directive 84/631/EEC, O J L 326 1984). In 1989 the Commission proposed the establishment of a European Environment Agency which, because of the international dimension of the problems to be dealt with, would be open to nonCommunity European and bordering countries. A final decision on the establishment of the Agency

58

Community Issues: Table 4: Environmental Directives

was expected to be adopted at the Dublin European Council in June 1990. See also Checklist of environmental directives and proposals of interest to industry; A I R P O L L U T I O N ,

B E A C H E S , B I R D S , FERTILISERS, M A R I N E POLLUTION, T O X I C EFFLUENT, WILDLIFE A N D ANIMAL WELFARE.

Commission responsibility: D-G XI (Environment, Consumer Protection and Nuclear Safety).

TABLE 4 ENVIRONMENT CHECKLIST OF ENVIRONMENTAL DIRECTIVES AND PROPOSALS OF INTEREST TO INDUSTRY Subject

Reference

Date of

adoption

Status

OJ reference

15.10.1979

Decision

Bull. E C 12-1984

82/884/EEC 78/889/EEC

3.12.1982 9.10.1978

Directive Decision

O J L 378, 31.12.1982 O J L 311, 4.11.1978

80/779/EEC

15.7.1980

Directive

OJ L 2 2 9 , 30.8.1980

R/341/77 80/372/EEC 84/360/EEC 85/203/EEC 85/210/EEC ( E E C ) 3528/86

30.5.1978 26.3.1980 28.6.1984 7.3.1985 20.3.1985 17.11.86

Resolution Decision Directive Directive Directive Regulation

OJ OJ OJ OJ OJ OJ

( E E C ) 3529/86 87/217/EEC 88/77/EEC 88/609/EEC ( E E C ) 3322/88

17.11.86 19.3.1987 3.12.1987 24.11.1988 14.10.1988

Regulation Directive Directive Directive Regulation

OJ L 3 2 6 , 31.11.1986 O J L 85, 28.3.1987 O J L 36, 9.2.1988 O J L 336, 7.12.1988 O J L 297, 31.10.1988

Rec/89/349

13.4.1989

Recommendation

OJ L 144, 27.5.1989

75/440/EEC

16.6.1975

Directive

OJ L 194, 25.7.1975

76/160/EEC 76/464/EEC

8.12.1975 4.5.1976

Directive Directive

OJ L 31, 5.2.1976 OJ L 129, 18.5.1976

77/795/EEC

12.12.1977

Decision

OJ L 334, 24.12.1977

78/659/EEC

18.7.1978

Directive

OJ L 222, 14.8.1978

78/869/EEC

9.10.1979

Directive

OJ L 271, 29.10.1979

79/923/EEC 80/778/EEC R/210/75 E N V 5

30.10.1979 15.7.1980

Directive Directive proposal for directive Directive

OJ L 281, 10.11.1979 OJ L 229, 30.8.1980 OJ C 99, 2.5.1975

AIR POLLUTION Community signature of the Convention on Longrange Trans-boundary Air Pollution Limit value for lead in the air Concerted action project in the field of physicochemical behaviour of atmospheric pollutants Health protection standards for S 0 2 and particulates in urban atmospheres Chlorofluorocarbons in the environment Combating air pollution from industrial plants Air quality standards for nitrogen dioxide Lead content in petrol Protection of forests against atmospheric pollution (acid rain) Protection of forests against fire Environmental pollution by asbestos Gaseous pollutants from diesel engines Emissions from large combustion plants Chlorofluorocarbons and halons which deplete ozone layer Chlorofluorocarbons by the aerosol industry

C 133, 7.6.1978 L 9 0 , 3.4.1980 L 188, 16.7.1984 L 3 7 2 , 31.12.1985 L 9 6 , 3.4.1985 L 3 2 6 , 31.11.1986

WATER POLLUTION Quality of surface water intended for abstraction of drinking water Quality of sea and fresh water for bathing Pollution caused by certain dangerous substances discharged into the aquatic environment Common procedure for the exchange of information on the quality of surface fresh water Quality of fresh water needing protection or improvement to support fish life Methods of measurement and frequencies of sampling and analysis of surface water intended for abstraction of drinking water Quality required of shellfish waters Quality of water for human consumption Reduction of water pollution caused by wood pulp mills Limit values of aldrin, dieldrin and endrin into the aquatic environment Limit values applicable to discharges of mercury into the aquatic environment by the chloralkali electrolysis industry Limit values and quality objectives for cadmium discharges into the aquatic environment Limit values applicable to discharges of mercury into the aquatic environment other than by the chloralkali electrolysis industry Limit values and quality objectives for discharges of hexachlorocyclohexane into the aquatic environment Information system for control of pollution caused by spillage of hydrocarbons and other harmful substances at sea Limit values and quality objectives for discharges of certain dangerous substances (included in List 1 of Annex to Directive 76/464/EEC)

82/176/EEC

OJ L 81, 27.3.1982

82/176/EEC

22.3.1982

Directive

OJ L 81, 27.3.1982

83/513/EEC

26.9.1983

Directive

OJ L 291, 24.10.1983

84/156/EEC

8.3.1984

Directive

OJ L 74, 17.3.1984

84/491/EEC

9.10.1984

Directive

OJ L 274, 17.10.1984

D/86/85/EEC

6.3.1986

Decision

OJ L 77, 22.3.1986

86/280/EEC

12.6.1986

Directive

OJ L 181, 4.7.1986

Community Issues: Table 4: Environmental Directives

Table

59

4—continued

Subject

Reference

Date of adoption

Status

O J reference

75/439/EEC 75/442/EEC 76/403/EEC

16.6.1975 15.7.1975 21.4.1976

Directive Directive Decision

OJ L 194, 25.7.1975 OJ L 194, 25.7.1975 OJ L 115, 1.1.1976

78/176/EEC 78/319/EEC 81/972/EEC 82/833/EEC

20.2.1978 20.3.1976 3.12.1981 3.12.1982

Directive Directive Recommendation Directive

OJ OJ OJ OJ

84/631/EEC

6.12.1984

Directive

OJ L 326, 13.12.1984

85/339/EEC 86/278/EEC

27.6.1985 12.6.1986

Directive Directive

OJ L 176, 6.7.1985 OJ L 181, 4.7.1986

78/618/EEC

18.6.1978

Directive

OJ L 198, 22.7.1978

85/501/EEC

24.6.1982

Directive

OJ L 230, 5.8.1982

87/18/EEC 87/217/EEC (EEC) 1734/88

18.12.1986 19.3.1987 16.6.1988

Directive Directive Regulation

OJ L 15, 17.1.1987 OJ L 85, 28.3.1987 OJ L 155, 22.6.1988

—

25.1.1988

Resolution

OJ C 30, 4.2.1988

WASTE Disposal for waste oils Waste (framework Directive) Disposal of polychlorinated biphenyls and terphenyls (PCBs and PCTs) Waste from the titanium dioxide industry Toxic and dangerous wastes Recovery and re-use of waste paper and board Monitoring of environments concerned by waste from the titanium dioxide industry Measures to supervise and control transfrontier shipment of hazardous wastes inside, entering or leaving the Community Containers of liquids for human consumption Use of sewage sludge in agriculture

L L L L

54, 25.2.1978 84, 31.3.1978 355, 10.12.1981 378, 31.12.1982

D A N G E R O U S SUBSTANCES Setting up an advisory committee to examine the toxicity and eco-toxicity of chemical compounds Control of certain industrial activities against major accident hazards ('Seveso') Laboratory practice for tests on chemical substances Pollution by asbestos Export from and import into the Community of certain dangerous chemicals Action programme to combat environmental pollution by cadmium

P R O T E C T I O N A N D M A N A G E M E N T O F T H E E N V I R O N M E N T , L A N D USE A N D N A T U R A L R E S O U R C E S Protection of the architectural and natural heritage A Community concerted research project on the growth of large urban concentrations Biological screening of the population for lead Methods of evaluating the costs of pollution control to industry Environmental assessment of public and private projects Common rules for imports of whale products Implementation in the Community of the Convention in International Trade in Endangered Species of Wild Fauna and Flora (CITES) Importation of skins of seal pups and products derived therefrom

75/65/EEC 78/150/EEC

20.12.1974 7.2.1978

Recommendation Decision

OJ L 21, 28.1.1975 OJ L 45, 16.2.1978

77/312/EEC 79/3/EEC

29.3.1977 9.12.1978

Directive Recommendation

OJ L 105, 28.4.1977 OJ L 5, 9.1.1979

Directive

OJ C 175, 5.7.1985

85/337/EEC (EEC) 348/81 (EEC) 3626/82

12.12.1980 3.12.1982

Regulation Regulation

OJ L 39, 12.2.1981 OJ L 384, 31.12.1982

83/129/EEC

28.3.1983

Directive

OJ L 91, 9.4.1983

86/85/EEC

6.3.1986

Decision

OJ L 77,22.3.1986

84/358/EEC

28.6.1984

Decision

OJ L 188, 16.7.1984

77/651/EEC

27.9.1977

agreement

OJ L 267, 19.10.1977

80/177/EEC

18.12.1979

agreement

OJ L 39, 15.2.1980

85/199/Euratom

12.3.1985

Decision

OJ L 83, 25.3.1985

86/234/EEC

10.6.1986

Decision

OJ L 159, 14.6.1986

88/615/EEC

8.12.1988

Decision

OJ L 344 13.12.1988

MARINE POLLUTION Establishment of a Community information system for control and reduction of pollution caused by spillage of hydrocarbons and other harmful substances at sea Agreement for co-operation in dealing with pollution of the North Sea by oil and other harmful substances RESEARCH PROJECTS Community concerted action on the treatment and utilisation of sewage sludge Community concerted action on the physicochemical behaviour of atmospheric pollutants Research and development on the management and storage of radio-active waste (1985 to 1989) Research and development programme in the field of the environment (1986 to 1990) Seven concerted action projects in the field of the environment

60

Community Issues: Equality

Equality The European Community has enacted a body of legislation to ensure that men and women are treated equally in their working lives, especially in respect of opportunities for, and terms and conditions of work. The principle of equal pay is contained in the T R E A T Y O F R O M E (Article 119), and the E U R O P E A N C O U R T O F J U S T I C E has given several important rulings. Directive 75/117/EEC (OJ L 45 1975): (i) expressly forbids discrimination based on sex. (ii) provides for legal appeal for those who feel themselves discriminated against; (iii) gives protection against dismissal to workers who complain. Directive 76/207/EEC (OJ L 39 1976) requires equal treatment with respect to work, vocational training, promotion and working conditions. It stresses that equal treatment without prejudice to special protection measures for women regarding pregnancy and maternity, means that there shall be no discrimination on grounds of sex by reference to marital or family status (see also P A R E N T A L L E A V E ) . Directive 79/7/EEC (OJ L 6 1979) requires the implementation of equal treatment in matters of social security. It covers equality in entitlement to personal benefits (unemployment, sickness, family allowances) but excludes benefits which pensioners can receive for their spouses, and wider pension issues (such as retirement age). However, the European Court on 17 May 1990 - the 'Barber Judgement' - ruled that the principle of equal pay did include equal pensions treatment. There is doubt over how far-reaching the judgement is and the pensions industry and employers' organisations are trying to get the Court's decision clarified. The directive entered into force at the end of 1984. In 1986 the Council adopted Directive 86/378/EEC (OJ L 225 1986) on the implementation of equal treatment for men and women in occupational social security schemes, and a directive on equal treatment for men and women engaged in a self-employed capacity, including agriculture (OJ L 359 1986). See also S O C I A L P O L I C Y , Fig. 1 5 . Commission responsibility: D-G V (Employment, Social Affairs and Education) Directorate A(4). Equatorial Guinea One of the A C P signatory to the L O M É C O N V E N T I O N S .

STATES

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique,

6

and a

rue

Alfred de Vigny, F-75008 Paris. Commission responsibility: D-G VIII (Development) Directorate B. Erasmus (European Action Scheme for the Mobility of University Students) A scheme adopted by the Council in 1987 (Decision 87/327/EEC, OJ L 166 1987) to encourage the mobility of students, designed to create a new type of exchange and increase interuniversity co-operation. It aims to enable 10 per cent of E C students to spend some time in another European country. The main areas covered by Commission funding, and the funds for 1990, are as follows: (i) inter-university co-operation programmes - Ecu 15.95m for 1507 programmes; (ii) mobility grants for students - Ecu 26m; (iii) grants for higher education teaching staff - Ecu 3.2m for 1913 grants; (iv) projects proposed by university associations/ publications - Ecu 0.5m for 51 projects. The programme has proved popular, the number of participating students rising from 4000 in 1987/88 to 28,000 in 1989/90. The Council Decision on the second phase of Erasmus, taken in December 1989, aims to increase further the number of students able to benefit from the scheme. An Erasmus Information Bulletin is published three times a year by the O F F I C E FOR OFFICIAL PUBLICATIONS.

See also E D U C A T I O N ; E D U C A T I O N G R A N T S . Eramus Office, 15 rue d'Arlon, B-1049 Brussels. Tel. (02) 233 01 11. Commission responsibility: D - G V (Employment, Social Affairs and Education) Task Force for Human Resources, Education, Training and Youth. Esprit (European Strategic Programme for Research and Development in Information Technology) A 10-year programme (1984-1993) of collaborative research co-funded by the Community and organised in liaison with industry, national governments and the research community. Its main aim is to help provide the European information technology industry with the key components of the technology it needs to be competitive on world markets (especially Japan and the US) within a decade. After a successful pilot phase in 1983, the main programme 1984-87 (OJ L 67 1984) had a budget of Ecu 750m on a 50 per cent cost-sharing basis with companies, universities and research centres. The major aims are to provide the IT industry with the basic technologies to meet the competitive require-

Community Issues: Eureka

ments in the 1990s, to reinforce technological cooperation and to pave the way to internationally accepted standards. The second phase of the Esprit programme (OJ L 118 1988) was brought forward to 1987 because the Ecu 750m allocated for the first phase had been almost completely committed. Basic research is included for the first time: more than 50 proposals were accepted with funding initially for two and a half years. The areas covered include high-temperature superconductivity, optical computing, verification and specification of complex software systems, robotics and speech and vision processing. More than 150 projects for the main Esprit II programme have been selected in the following areas: (i) microelectronics and peripheral technologies; (ii) information processing systems, computer-aided manufacturing and integrated information systems (including office and domestic environments). A number of the projects selected build on work already carried out under Esprit I which has already yielded industrial successes, such as in computerintegrated manufacturing. Other proposals relate to new areas such as the 'electronic home' - the use of computers to control electrical appliances in the home. Ecu 600m was originally earmarked for these projects but in view of the number and quality of proposals selected this figure is to be increased. Ecu 65m has been allocated for the section on basic research. Calls for proposals are published in the O F F I C I A L J O U R N A L O F T H E E U R O P E A N C O M M U N I T I E S . These calls are based on a work programme published in advance which sets out the detailed project requirements. Esprit is open to companies, academic institutions and research bodies irrespective of size or whether they are public or private. A substantial part of the Esprit II budget has already been allocated but smaller calls are likely in 1990. Esprit is run by a management committee comprised of government representatives from the member states, with a 'Round Table' advisory board of 12 leading European IT firms (GEC, ICL, Plessey (UK), Bull, C G E , Thomson (France), A E G , Nixdorf, Siemens (Germany) Olivetti and Stet (Italy), and Philips (Netherlands)). Commission responsibility: D-G XIII (Telecommunications, Information Industries and Innovation), Esprit Operations Office. Tel. (02) 235 0655.

Ethiopia

One of the

A C P STATES

61

and a signatory

t o t h e LOMÉ CONVENTIONS.

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, 32 boulevard St Michel, B-1040 Brussels. Commission responsibility: D-G VIII (Development) Directorate B. Euratom

(EAEC)

See

EUROPEAN ATOMIC ENERGY

COMMUNITY.

Euratom Supply Agency (ESA) An organisation established under Chapter VI of the T R E A T Y O F R O M E in 1958 with capital subscribed by the Community and member countries, and staffed and supervised by the European Commission. The Treaty gives the ESA: (i) the right of option on ores, source materials and special fissible materials produced in the Community; (ii) an exclusive right to conclude contracts on materials coming from within or outside the Community (to ensure non-discriminatory access of supplies for all member states). In practice (i) has never been put into effect, but member states must notify the ESA of uranium deals, and the agency must sign all contracts with external suppliers. The Commission, through the Euratom Safeguards Division in Luxembourg, shares with the ESA the responsibility for ensuring that nuclear materials for peaceful purposes are not diverted to ends other than those declared by the users. See also E N E R G Y , Fig. 5; N U C L E A R E N E R G Y . Commission responsibility: Euratom Supply Agency; D - G XVII (Energy) Directorate F. Eureka Eureka encourages industry-led European collaborative projects aimed at producing high-tech goods and services to compete successfully worldwide. It covers the whole spectrum of research and development in high technology, pursuing the same goals as the Community's framework research and technology programme, but it is not a Community measure. The 20 participants are the 12 EC member states, Austria, Finland, Iceland, Norway, Sweden, Switzerland, Turkey and the Commission. It has a permanent secretariat based in Brussels. Projects are proposed and run by firms and research institutes and bureaucracy is kept to a minimum with governments providing a 'matchmaking' network. Public funding is at the discretion

62

Community Issues: Euro Abstracts

of national governments, with most providing up to 50 per cent of the project costs. In the first five years following its launch in July 1985 Eureka has been responsible for Ecu 7.8bn of agreed projects. Over 380 projects have now been launched, including high-definition television, robotics, BIOTECHN O L O G Y , lasers and advanced manufacturing. See also R E S E A R C H . Eureka Secretariat, 19h Avenue des Arts, Bte 3, B-1040 Brussels. Tel. (02) 217 0030. Euro Abstracts A monthly European Commission publication. The Euro Abstracts journal is an important element in the Commission's attempt to disseminate to a greater extent the results of Community-supported research and development to potential users. The publication presents analyses in summarised form of reports, Commission documents, scientific articles, conference papers, technical publications and patents. Bibliographic information published in Euro Abstracts since 1968, together with similar information on research and development findings, can also be consulted through the EABS database that is available through E C H O (European Commission Host Organisation). Euro Abstracts, Bâtiment Jean Monnet, Plateau du Kirchberg, Luxembourg. Eurobases The Commission's database office has five databases of Community information available to the public. Celex is the official database of European Community law, which contains legislative proposals, adopted legislation and Court of Justice material. Scad (Système Communautaire d'Accès à la Documentation) contains Community secondary legislation, official Community publications, journal articles and other commercially produced publications. Info 92 covers progress towards the completion of the single market by 1992. Eclas, the bibliographic database of the Central Library of the European Commission, became available for public access in April 1990. Rapid, the database containing each day's publications by the Commission's Spokesman's Service, was also opened to the public in April 1990. Eurobases, 200 rue de la Loi, B-1049 Brussels. Tel. (02) 235 0001.

Euroguichets

See

C E N T R E S FOR E U R O P E A N

BUSI-

NESS I N F O R M A T I O N .

Euronet Diane Euronet Diane was the first Europe-wide dedicated data communications network implemented and operated by the individual European posts and telecommunications administrations (PTTs) under contract with the European Commission. It was launched in 1979 and by 1985 this infrastructure was replaced by inter-connected national data-communications networks developed by the PTTs. See also D I A N E ; E C H O (European Commission Host Organisation); I M P A C T (Information Market Policy Actions).

European Atomic Energy Community (Euratom; EAEC) Established in 1958 under the T R E A T Y O F R O M E , Euratom was intended to encourage the development of a civil nuclear industry in Europe. Its main concerns are the promotion of technical, environmental and safety developments in the industry. It has responsibility for ensuring that Community nuclear industries are regularly supplied with fuels and ores, and that nuclear materials are not used for other than civil purposes, nor diverted to ends other than those declared by the users. Following the merger of the Communities in 1965, the European Commission became responsible for all Euratom activities, and takes part in discussions and negotiations with international agencies on behalf of member states. Euratom is able to offer loans to promote the use of nuclear energy in order to reduce Community over-dependence on external energy supplies. The Commission is empowered to offer loans on behalf of Euratom, the proceeds of which are lent for the purpose of financing investment projects relating to industrial production of electricity in nuclear power stations and to industrial fuel cycle installations. The Euratom borrowing and lending mechanism provides credit facilities for operating expenditure. Preference is given to projects which ensure the most profitable conditions and which relate to installations of the optimum size. See also

ENERGY;

EURATOM

SUPPLY

AGENCY;

NUCLEAR ENERGY; JOINT EUROPEAN TORUS;

JOINT

RESEARCH CENTRE; RESEARCH.

Commission responsibility: D-G XVII (Energy) Directorate F.

Community Issues: European Coal and Steel Community Consultative Committee

European Bank for Reconstruction and Development (EBRD); (Berd) Set up to provide aid to the countries of central and eastern Europe, the negotiations on the articles of agreement for the E B R D were concluded in April 1990. While 34 countries are to be involved in the project the European Community is the prime mover, putting up more than half the capital for the Bank, which will have its headquarters in London. The Bank's capital has been fixed at Ecu lObn, with 40 per cent of its lending directed to the public sector and 60 per cent to the private. Ministers were expected to sign the EBRD's statutes in mid-1990, prior to ratification by national parliaments. See also European

EASTERN EUROPE.

Business

Information

Centres

See

C E N T R E S FOR E U R O P E A N BUSINESS INFORMATION.

European Centre for the Development of Vocational Training (Cedefop) A centre opened in Berlin as part of the social action programme (see S O C I A L P O L I C Y ) to assist the European Commission in encouraging, at Community level, the promotion and development of vocational and further education training (Decision 75/643/EEC, OJ L 279 1975). The centre compiles relevant documentation, disseminates information and contributes to the latest research and developments in the field. Apart from training, the centre's areas of activity include the problems of particular groups such as women, migrant workers and youth, and particular sectors such as technological developments. See also E D U C A T I O N . Commission responsibility: D-G V (Employment, Social Affairs and Education). European Centre for the Development of Vocational Training, Burdesallee 22, D-1000 Berlin 15. The European Coal and Steel Community (ECSC) first European Community established by the T R E A T Y O F P A R I S in 1 9 5 1 signed by the six founder members - Belgium, France, Germany, Italy, Luxembourg and the Netherlands. Its aim was to transfer the basic materials of war - coal and steel away from individual governments to common institutions, and to plan the economic expansion, rational distribution and production, and safeguarding of employment in the industries. The Treaty sought to abolish duties and quantitative restrictions on trade between member states and to eliminate

63

restrictive practices. While control of the industries remained in national hands the ECSC was given wide powers affecting investment, production and pricing, not all of which have been allowed complete implementation by governments. The ECSC may make loans towards investment in industrial and conversion projects, towards low-cost housing in connection with the coal and steel industries, and to help workers affected by technological or economic changes, and make grants towards research. The ECSC institutions - a High Authority, Common Assembly, Council of Ministers, and Court of Justice - were combined under the M E R G E R T R E A T Y ( 1 9 6 5 ) with E U R A T O M and the E U R O P E A N E C O N O M I C C O M M U N I T Y to form the E U R O P E A N C O M M U N I T Y . The European Commission replaced the High Authority; the E U R O P E A N COAL

AND

STEEL

COMMUNITY

CONSULTATIVE

remained in being to advise the Commission. The ECSC is financed by a levy on production of the coal and steel industries, supplemented by grants from the Community budget. COMMITTEE

See also

ENERGY;

COAL

AND

STEEL:

ECSC

FINANCIAL AID; R E S E A R C H .

Commission responsibility: D-G XVII (Energy) Directorate F; D-G IV (Competition) Directorate F. European Coal and Steel Community Consultative Committee A committee established under the T R E A T Y O F P A R I S , Article 1 8 ( O J C 3 2 1 9 7 4 ) , its function is to advise the European Commission on general objectives and programmes for the coal and steel industries. The Committee consists of not less than 60 and not more than 84 members appointed by the Council of Ministers, and comprises equal numbers of producers, workers, consumers and dealers. In the case of producers and workers the Council designates R E P R E S E N T A T I V E ORGANISATIONS of employers and trade unions from which it allocates the seats to be filled; each organisation must draw up a list with twice as many names as there are seats allotted to it, from which the Council makes its appointments. Members act in their personal capacity and are appointed for a two-year term; the chairman and officers are elected from among members for a one-year term. See also

E U R O P E A N C O A L AND STEEL COMMUNITY;

EUROPEAN COMMUNITY.

Commission responsibility: Secretariat of the ECSC Consultative Committee, Bâtiment Jean

64

Community Issues: European Commission

Monnet, rue Alcide de Gasperi, L-2920 Luxembourg. European Commission The European Commission is one of the major Community institutions with the particular remit of initiating and implementing Community policy. Established by the 1 9 5 7 T R E A T Y O F R O M E and the 1 9 6 5 M E R G E R T R E A T Y , it consists of 17 commissioners assisted by a multi-national staff divided into 22 directorates-general (D-G) and several specialised departments with information offices in 14 countries. Commissioners are appointed by governments (two each from France, Germany, Italy, Spain and the UK, and one each from Belgium, Denmark, Greece, Ireland, Luxembourg, the Netherlands and Portugal) for a four-year renewable term, with the presidency (agreed by member governments) renewable after two years. Once appointed, commissioners are pledged to act as an independent collegiate body, with decisions taken by simple majority. Each commissioner has his own portfolio, heading relevant D-Gs. The Commission's powers include: (i) the initiation of policy (see

LEGISLATIVE

PREP-

ARATION, PROPOSALS); FIG 7 EUROPEAN INSTITUTIONS Belgium. Fiance Federal Republic ol Germany. Italy. Luiemtourg. the Neiherlands Itoundei members). Denmark. Ireland. United Kingdom 11973). Greece I19B1). Fbrlugal. Spain (1986) lunder Treaty of Accessioni I I

_± EUROPEAN COMMUNITY IECI lormed by Merger Treaty Irom:

EUROPEAN ECONOMIC COMMUNITY IEEC) set op onder Treaty of Route with substantial amendments by the Single European Act AIM: to create a common trading area and the loundalion tor a political union among the peo[ries ol

European Council bi-annual meeting European heads ol government General Council ot Foreign Ministers ot member slates co oidmates overall Commodity policy and eiternal allairs (see European Political Co operation) Council ef Min inert decides Community poky under Treaty ol Rome and direction ol European Council

Cemminee of Permanent Representatives ICOREPERI officials Irom member states acting in support of the Ca unci 1 of Ministers

Eu rope*ftCommission mi nate s propouls io Council of Ministers, implements Community Itw. and monitors Community obligations, bringing cases to European Court of Justice as necessary

Management com min ees can approve proposals Irom the Commission presented under delegated poweis

European Parliament nt directly elected Furopeao Members, with right to be consulted on most Commission proposals belore Ihe Council of Ministen takes a Final decision Isee European Parliament:

European Court ot Justice interprets and applies Community law. arbitrates disputes between member stales and lodges comptamts tram individuals or corporations about Iheellectsol CcHnmumty legislation

EUROPEAN COAL AMO ST E El COMMUNITY IECSCI established by Treaty of Paris to plan development ol coal *nd steel industry EUROPEAN ATOMIC ENERGY COMMUNITY lEuratorol established under Treaty of Rome to encourage civil nuclear industry COUNCIL Of EUROPE

Committee ol Foreign Ministers Consultative Assembly

ORGANISATION FOR ECONOMIC CO OPERATION AND DEVELOPMENT FOE CD)

Other official consultative bodies: Economic and Social Committee (ESCI Tnpartie Conference Standing Committee on Employment -Multinational representative organisations established independently to monitor and infloence Commomty policy

European Investment Rank an independent body to encourage development ol the conrmovi market through investment loans for certain types ol protect Now administered by EEC institutions, with ECSC Consultative Committee representing producers, consumers, workers and dealers, with whom the European Commission must consult

European Commission ol Homan Rights European Court ol Human Rights

(ii) implementation of policy (see C O M M U N I T Y L A W ) ; (iii) acting as the watchdog or 'conscience' of the Community to ensure that Community obligations are honoured. The Commission influences but does not normally decide policy, which is the function of the C O U N C I L O F M I N I S T E R S . Attached to the Commission are association committees which are responsible for countries, or groups of countries, with which ASSOCIATION A G R E E M E N T S exist. The task of these committees is to prepare the work of the association councils. See also

A N N U A L REPORT; B U D G E T ;

OF PERMANENT REPRESENTATIVES; SOCIAL

COMMITTEE;

EUROPEAN

COMMITTEE

ECONOMIC

AND

COMMUNITY;

EUROPEAN COUNCIL; EUROPEAN C O U R T OF JUSTICE; EUROPEAN PARLIAMENT; EXTERNAL TRADE;

LEGIS-

LATIVE P R E P A R A T I O N ; M A N A G E M E N T C O M M I T T E E S .

European Committee for Electro-technical Standardisation (Cenelec) [Comité Européen de Normalisation Electrotechnique] A European Committee for electro-technical standardisation with a membership consisting of the S T A N D A R D S institutions of the Community and the countries of the E U R O P E A N F R E E T R A D E A S S O C I A T I O N (Efta). Together with the

EUROPEAN

COMMITTEE FOR

STANDARDISATION

it forms the joint European Standards Institutions with common rules of procedure and common facilities in Brussels. See also H A R M O N I S A T I O N . Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate B. Cenelec, rue de Brederode, B-1000 Brussels. Tel. 519 68 71. European Committee for Standardisation (Cen) [Comité Européen de Normalisation] A European Committee for standardisation with a membership consisting of the S T A N D A R D S institutions of the Community and the countries of the E U R O P E A N FREE TRADE ASSOCIATION (Efta). Together with the E U R O P E A N C O M M I T T E E FOR E L E C T R O T E C H N I C A L S T A N D A R D I S A T I O N it forms the joint European Standards Institutions with common rules of procedure and common facilities in Brussels. See also H A R M O N I S A T I O N . Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate B. Cen, rue de Brederode, B-1000 Brussels. Tel. 519 68 11.

Community Issues: European Council European Community The European Community aims to break down trade barriers within a common market and to create a political union among the peoples of Europe. It was formed by the merger in 1965 of the three European Communities set up under the T R E A T Y O F P A R I S and T R E A T Y O F R O M E -

the

EUROPEAN

COAL

AND

STEEL

COMMUNITY

(ECSC),

EUROPEAN ECONOMIC COMMUNITY

and

EUROPEAN

the

ATOMIC ENERGY

(EEC)

COMMUNITY

(Euratom). In 1973 the six founder members, (Belgium, France, Italy, Luxembourg, the Netherlands and Germany) were joined by Denmark, Ireland and the UK. Greece became a full member on 1 January 1981 and Portugal and Spain on 1 January 1986. Community institutions are those established under the Treaty of Rome and the M E R G E R T R E A T Y : the

EUROPEAN

MINISTERS,

the

COMMISSION, EUROPEAN

the

COUNCIL

PARLIAMENT

and

OF the

aided or advised by other organisations such as the E C O N O M I C A N D EUROPEAN C O U R T OF JUSTICE, SOCIAL

COMMITTEE

(ESC),

PERMANENT REPRESENTATIVES C O U R T OF AUDITORS. T h e

the

COMMITTEE

OF

(Coreper) and the

SINGLE E U R O P E A N

ACT

which entered into force on 1 July 1987 extended the Community's field of competence and brought about changes in relations between the institutions. It also gave formal legal status to E U R O P E A N P O L I T I C A L C O - O P E R A T I O N . The meeting of heads of state and governments in the E U R O P E A N C O U N C I L (formerly triannual but biannual since 1986), although not provided for in the Treaty of Rome, was formally instituted in 1974. Community legislation affects national legislation according to whether it is a R E G U L A T I O N , D I R E C T I V E , DECISION or R E S O L U T I O N . The Community has its own B U D G E T raised from OWN R E S O U R C E S ( C U S T O M S D U T I E S , agricultural L E V I E S and a proportion of V A L U E A D D E D TAX). The Community offers loans, subsidies or grants through a variety of financial instruments, including the E U R O P E A N I N V E S T M E N T BANK ( E I B ) , t h e FARM FUND, t h e REGIONAL FUND, the

SOCIAL

FUND,

the

EUROPEAN

MONETARY

SYSTEM ( E M S ) a n d t h e D E V E L O P M E N T F U N D .

European company statute As part of its efforts in the H A R M O N I S A T I O N of C O M P A N Y LAW, the European Commission in the last 20 years has made several proposals for a European company statute, with the aim of providing an optional system of

65

company law, alternative to national law, for European companies operating in two or more member states. The project was revived as part of the drive towards completing the internal market and in June 1987 the Commission submitted a memorandum describing the main difficulties and sketching solutions (Com (88) 320). In August 1989 the Commission published its formal proposals (Com (89) 268). The text now proposed is in two parts. It brings together in one regulation all the rules necessary for the creation and operation of the European company (SE, from the Latin, Societas Europaea) except those dealing with the involvement of employees in the SE. The latter rules form the subject of a complementary directive. In order to make the measure attractive to small businesses, the minimum capital requirement has been lowered from Ecu 250,000 to Ecu 100,000. An SE may be set up by merger, by the formation of a holding company or by the formation of a joint subsidiary. The structure of the SE envisages the option of either a one-tier board system or a two-tier system with a management board and a supervisory board. The SE will be treated in the same way as other companies governed by the legislation of the member state in which they have their registered office. Winding-up and liquidation are matters which have not yet been harmonised. The proposed regulation restricts the grounds on which an SE may be wound up, and settles only the questions which are essential for the protection of the shareholders. As far as tax arrangements are concerned the SE will be subject to the tax law of the country in which it has its registered office. Employee participation in the SE is dealt with in a directive which provides for employees to play a part in the supervision and in the definition of strategy. A choice of three models of participation is laid down: participation in determining the membership of the supervisory board, participation through a separate staff representative body, or a form of participation to be established through collective bargaining. Commission responsibility: D-G XV (Financial Institutions and Company Law) Directorate B. European Council A conference of heads of state or of governments of member states which has met two or three times a year since December 1974. Meetings since 1986 have been restricted to two a year. Originally these meetings had no formal Treaty status, but the Council's existence has been

66

Community Issues: European Court of Human Rights

formally recognised with the S I N G L E E U R O P E A N A C T of 1986. The principal function of the Council is to stimulate and co-ordinate Community activities. The Council often recommends new fields of activity for the Community, which must then be referred to the E U R O P E A N C O M M I S S I O N and other Community institutions for action. Council meetings are largely informal and private. Heads of government are accompanied only by their foreign ministers; the president and one vice-president of the Commission and the president of the European Parliament attend the discussions. The presidency of the Council rotates every six months. The president issues a press statement at the end of each meeting. At the Dublin European Council in June 1990 the heads of government agreed to convene two intergovernmental conferences of all member states to run in parallel - one to prepare for E C O N O M I C A N D M O N E T A R Y UNION and a second on political union. The latter would discuss a series of options for closer European unity, including: (i) more majority voting, ending the right of member states to veto policies; (ii) increased powers for the European Parliament in the legislative process; (iii) a common foreign policy; (iv) giving the Court of Justice real powers of enforcement of Community laws. The two conferences were scheduled to get underway on the eve of the European Council in Rome in December 1990. The finance and foreign ministers were asked to ensure that negotiations on both monetary and political union could begin 'on a concrete basis as soon as the conferences open'.

must first have exhausted all effective local remedies for redressing their grievance. It then examines the facts and tries to persuade the parties to reach an amicable settlement. If there is no settlement, the Commission sends a report to the Committee of Ministers of the Council of Europe, or to the Court, which decides whether a violation of human rights has taken place. The Court may only deal with a case where the Commission has failed to find a settlement, and where signatory governments have accepted its compulsory jurisdiction or failing that, with governmental consent. In the event of a dispute as to whether the Court has jurisdiction, the matter is settled by the decision of the Court. The judgement of the Court is final. Both the European Commission of Human Rights and the European Court of Human Rights were established by the Council of Europe. They are quite separate from the European Community and from the European Commission and the European Court of Justice.

See also E U R O P E A N C O M M U N I T Y . Commission responsibility: Council Secretariat, Secretariat-General, 13 rue de la Loi, B-1040 Brussels.

European Court of Justice The European Court of Justice has the task of ensuring that the interpretation and application of C O M M U N I T Y L A W is observed. It consists of 13 judges and six advocates-general appointed for six-year renewable terms, nominated by member governments. The president is elected from among the judges for a three-year term. The Court's judgements are final and cannot be referred to any other court. The Court arbitrates on disputes between member states solely on Community matters and on infringements of Community law brought to its attention by the E U R O P E A N C O M M I S SION ; it acts as a tribunal on complaints by individuals or bodies directly affected by Community legislation, and in cases between the Community and its employees. National courts also often refer to the Court for an interpretation of Community law.

European Court of Human Rights The C O U N C I L O F E U R O P E in 1 9 5 0 adopted the European Convention on Human Rights establishing the European Commission of Human Rights and the European Court of Human Rights. The Commission examines complaints made either by a member government signatory to the convention or, in certain cases, by an individual, non-governmental organisation, or group of individuals, to the effect that the Convention on Human Rights has been violated by one or more of the signatories. The Commission first decides whether to admit the application; parties

When there is a breach of the law by member states, the T R E A T Y O F R O M E , Articles 169 and 170, requires the Commission to play an important role: if the Commission considers that a government has failed to fulfil its obligations under a treaty it must deliver a reasoned opinion on the matter after giving the state concerned the opportunity to submit its observations. If the state does not comply with the opinion within a given period, the Commission may bring the matter before the Court. If one government considers that another has failed to fulfil its obligations under a treaty, the accusing state can also bring the matter before the Court, but it must

Community Issues: European Currency Unit first refer the matter to the Commission which, after considering both sides of the case, should deliver a reasoned opinion within three months. If the Commission has not given its opinion by then, the case may go the Court - but in practice governments often prefer to leave it to the Commission to follow up infringements of the law. In all cases, member states are expected to comply with the Court's rulings. Firms or other bodies can appeal to the Court only in reaction to a decision by the C O U N C I L O F M I N I S T E R S or the Commission, or to Community legislation which directly affects them. Much of the Court's work is concerned with complaints arising from C O M P E T I T I O N POLICY Or N O N - T A R I F F B A R R I E R S TO T R A D E . The Court can also arbitrate in cases of individuals claiming their rights where governments fail to fulfil their obligations under Community social and non-discriminatory law. In such cases the individual must go through the national courts or tribunals which, if in doubt, will usually (or in some cases must) refer the matter to the Court of Justice for an opinion or interpretation of the Community legislation (Article 177). It is not possible, however, for an individual to appear in the European Court without leave from the appropriate national high court. When entitled to plead before the Court (where proceedings are free) member states and Community institutions are represented by agents, usually members of their legal departments, who are entitled to the assistance of an adviser or lawyer. In other cases lawyers practising in national courts may appear before the European Court. When a country recognises their right to do so (as in Germany) university teachers of law may also appear before the Court. In September 1989 a new Court of First Instance began operation. Designed to ease the workload of the main Court, it deals with cases involving competition law and also staff cases involving European Community officials. The Court publishes booklets on its work available from Commission Information Offices. Court business is published in the O F F I C I A L J O U R N A L (Series C). At the Dublin European Council in June 1990 the heads of government agreed to convene two intergovernmental conferences of all member states to run in parallel - one to prepare for E C O N O M I C A N D M O N E T A R Y UNION and a second on political union. The latter would discuss a series of options for closer European unity, including: (i) More majority voting, ending the right of member states to veto policies;

67

(ii) increased powers for the European Parliament in the legislative process; (iii) a common foreign policy; (iv) giving the Court of Justice real powers of enforcement of Community laws. The two conferences were scheduled to get underway on the eve of the European Council in Rome in December 1990. The finance and foreign ministers were asked to ensure that negotiations on both monetary and political union could begin 'on a concrete basis as soon as the conferences open'. See also

EUROPEAN

COMMUNITY;

LEGISLATIVE

PREPARATION.

European Currency Unit (Ecu) The Ecu was created by the European Community in December 1978 to serve as a basis for determining exchange rate parities and as a reserve asset and means of settlement in the

EUROPEAN

MONETARY

SYSTEM

(EMS)

(OJ

C

225 1978). It is a composite or 'basket' currency made up of fixed amounts of the national currencies of the 12 member states. The composition of the basket reflects the relative economic importance of each member state, and the amounts are subject to review every five years or, on request, if the weight of any currency has changed by 25 per cent. An adjustment to the weightings of the currencies making up the Ecu was made in 1989 (Regulation (EEC) 1971/89, OJ L 189 1989) in response to the request from the Spanish and Portuguese governments to include the peseta and the escudo in the Ecu. As from September 1989 the value of the Ecu was equal to the sum of the following weighting of member states' currencies: • Deutschmark 30.1% • French franc 19.0% • Pound sterling 13.0% • Italian lire 10.15% • Dutch guilder 9.4% • Belgian franc 7.6% • Spanish peseta 5.3% • Danish krone 2.45% • Irish pound 1.1% • Greek drachma 0.8% • Portuguese escudo 0.8% • Luxembourg franc 0.3% Although not a currency in the legal sense no central bank is responsible for its issue) it is treated as such in most member states and recognised in most non-EC industrialised countries, meaning that companies can invoice a significant

68

Community Issues: European Documentation Centres

proportion of foreign transactions in Ecu. The Ecu is widely traded on foreign exchange markets and there is a growing Ecu bond market. Individual use currently is largely restricted to investment - savings accounts, unit trusts, mortgages, life assurance policies, etc - but Ecu bank cards and travellers' cheques are available, which are accepted in all E C banks. The conversion rates between member states' currencies, or internationally-traded currencies, and the Ecu are determined on the basis of market rates and are published daily in the O F F I C I A L J O U R N A L O F THE EUROPEAN COMMUNITIES.

The Ecu was adopted as the E U R O P E A N I N V E S T unit of account from January 1 9 8 1 ; the Bank's balance sheet and financial statements are denominated in Ecu as are the statistics concerning its activities. MENT B A N K ' S

See also F I N A N C E . Commission responsibility: D-G II (Economic and Financial Affairs). European Documentation Centres (EDCs) Major collections of European Community documentation housed mainly in university or polytechnic libraries or elsewhere in academic institutions. In addition to serving the academic community many EDCs also provide an information service to the public and business users. As well as in the member states, there are EDCs and other official depository libraries of E C material in the United States, Australia, New Zealand, Japan and China. European Economic Community (EEC) One of the three European Communities established in 1 9 5 8 under the T R E A T Y O F R O M E by the six founder members (Belgium, France, Italy, Luxembourg, the Netherlands and Germany). The aims were: (i) to lay the foundations for a closer union among the peoples of Europe; (ii) to establish a common market by eliminating trade barriers; (iii) to work for the constant improvement of working and living conditions. To govern the E E C the Treaty provided four major institutions: the E U R O P E A N C O M M I S S I O N , the COUNCIL

OF

MINISTERS,

the

EUROPEAN

PARLIA-

MENT a n d t h e E U R O P E A N C O U R T OF JUSTICE. I n

1965

the E E C merged with the E U R O P E A N C O A L A N D S T E E L C O M M U N I T Y (ECSC), and the E U R O P E A N A T O M I C E N E R G Y C O M M U N I T Y (Euratom) to form t h e EUROPEAN COMMUNITY (see M E R G E R TREATY).

European Economic Interest Grouping (EEIG) The European Economic Interest Grouping is a new legal instrument created by Regulation (EEC) 2137/ 85 (OJ L 199 1985) which came into effect in July 1989. Any businesses, whether companies, partnerships, or sole traders, can set up an E E I G together, provided they are based in the European Community and that they include businesses from at least two member states. Businesses can use an E E I G to pool common support activities, such as research and development or marketing or to co-operate on individual projects. The E E I G ' s purpose must not be to make profits in its own right. An E E I G need not have any capital and it does not have to file annual reports or accounts. Commission responsibility: D-G XV (Financial Institutions and Company Law) Directorate B. European Foundation for the Improvement of Living and Working Conditions An organisation founded in Dublin in 1975 to study ways of improving living and working conditions in the Community (Regulation E E C 1365/75, OJ L 139 1975). It is administered by a director and deputy director, and a 33-member administrative board composed of members from government, employers' organisations and trade unions and three members of the European Commission. A committee of 12 experts appointed by the Council of Ministers on a recommendation from the Commission advises the board on scientific and other matters. From the beginning, the Foundation decided to subsidise studies and research elsewhere rather than engage in them itself. Work is done by contract through universities or other appropriate institutions. The four-year programme 1989-1992 identified six areas for action: social dialogue and industrial relations; restructuring working life; health and safety; protecting the environment, the worker and the public; raising the quality of life; and assessing technologies of the future. The Foundation publishes the results of it studies and submits an annual report. Commission responsibility: D-G V (Employment, Social Affairs and Education). European Foundation for the Improvement of Living and Working Conditions, Loughlinstown House, Shankill, Co Dublin. European Flag A circle of 12 golden stars on a blue background, the European flag represents the union of the peoples of Europe. The number of stars

Community Issues: European Investment Bank

is invariable, 12 being seen as the symbol of perfection. It has been the official emblem of the Council of Europe since 1955 and was also adopted by the European Community in 1986. European Free Trade Association (Efta) A European institution established under the Stockholm Treaty, in 1959, in part as a counter-institution to the European Community. The members are Austria, Iceland, Norway, Sweden and Switzerland; Finland is an associate member. It is governed by a council assisted by a small secretariat in Geneva. Efta has three objectives: (i) to achieve free trade in industrial products among the member countries; (ii) to assist in the creation of a single market embracing the countries of Western Europe; (iii) to contribute to the expansion of world trade in general. The Efta countries have a number of agreements with the Community. Tariff concessions apply to industrial products of Efta origin. Agricultural products do not come under the provisions of free trade; neither is there a common customs tariff, as with the EC. Efta members can impose their own rates of duty on products coming from outside the Efta area. Following the Luxembourg declaration of 1984 (in which the EC and Efta ministers declared their wish for co-operation beyond the existing free trade agreements) the Commission proposed, in January 1989, a more 'structured' relationship with the Efta countries. A joint Efta/EC ministers' meeting in December 1989 decided to hold negotiations, during the first half of 1990, towards the creation of a 'European economic space' comprising the EC, Efta and Liechtenstein. The objectives of the EES would be: (i) the free circulation of goods, services, capital and people, based on the relevant Community legal provisions (negotiations would aim to identify jointly possible derogations justifiable under the safeguarding of fundamental interests, as well as transitional arrangements and fair conditions of competition); (ii) to increase and broaden co-operation within the frameworks of Community actions, such as R & D , the environment, education, working conditions and social protection, consumer protection, SME programmes and tourism; (iii) to reduce social and economic disparities between regions. The negotiations between the Community and

69

Efta will try to reach a global agreement on the fundamental aspects, both legal and institutional, necessary for the creation of the EES. See E X T E R N A L T R A D E , Table 6:1; C U S T O M S U N I O N . Commission responsibility: D-G I (External Relations) Directorate G ( l ) . Efta, 9-11 rue de Varenne, CH-1211 Geneva.

European Investment Bank (EIB) The EIB is owned by the member states of the European Community. It was established in 1958 under the T R E A T Y O F R O M E at the same time as the E U R O P E A N E C O N O M I C C O M M U N I T Y (EEC). The bank's task is to finance capital investment that promotes the balanced development of the Community. The EIB's financial structure is based on capital subscribed by the member states: this stands at Ecu 28.8bn, of which Ecu 2.6bn is paid in, while the balance is uncalled and acts as guarantee capital. The bank raises most of its funds on capital markets and finances, on a non-profit basis, public and private sector investment projects meeting Community priorities. Loans or guarantees are provided for a wide range of projects across all economic sectors, dictated solely by demand, the viability of projects put forward and their consistency with the Community's policies. Borrowers include large-scale industry, SMALL A N D M E D I U M - S I Z E D E N T E R P R I S E S (SMEs), public bodies (eg, utilities, port or airport authorities) and local authorities. In practice the EIB finances projects that: (i) assist development in the Community's poorest regions - those defined as 'assisted' : Ireland, Northern Ireland, Greece, the Italian Mezzogiorno, Portugal and large parts of Spain - eg, for industry and related services, tourism and infrastructure; (ii) improve communications serving the Community's interests - eg, telecommunications, and transport such as major road and rail links, ports, airports, aircraft and aerospace; (iii) protect and improve the environment - eg, reduction of pollution, ensuring the quality and security of water supplies, safeguarding Europe's cultural heritage; (iv) help urban renewal - part of a well defined development programme; (v) strengthen the international competitive position of Community industry - eg, introduction of advanced technology in products or production

70

Community Issues: Table 5: European Investment Bank

TABLE 5 EUROPEAN INVESTMENT BANK Description of measure

Eligibility and selection criteria

1. Financing of projects for developing less-developed regions (Article 130(a), EEC Treaty) 2. Financing of projects for modernising or converting undertakings or for developing fresh activities (Article 130(b), EEC Treaty) 3. Financing of projects of common interest to several member states or benefiting the Community as a whole (Article 130(c), EEC Treaty)

1. Investment projects in the production, infrastructure and energy sectors which contribute to the economic development of less-developed regions 2. Investment projects of common interest to several member states or the Community as a whole 3. The Bank may grant loans only for investments which contribute to an increase in general economic productivity; great importance is attached to economic merits of the projects and to the likely effect on employment 4. EIB loans are not conditional on the nationality or legal status of the borrower, but projects eligible for financing must normally be carried out in territories of member states 5. Loans may be granted for projects outside the Community with special permission of the Board of Governors; permission is given on an ad hoc basis for individual loans for investment projects outside European territories of the member states that are of particular interest to the Community (eg energy supply); permission is given on a comprehensive basis for a stated amount of lending in respect of a given country or group of countries under association or co-operation agreements between the Community and certain nonmember or applicant countries

Financial

provisions

1. The EIB is authorised to finance only part of the cost of a project complementing the borrower's own funds and credit from other sources 2. The EIB does not normally lend more than the equivalent of 50% of a project's fixed asset cost 3. The EIB prefers to grant loans of more than Ecu 2m per project, although it does finance smallerscale projects by means of global loans to promote investment by small businesses 4. The EIB grants a loan to a bank or financial institution; on a proposal from the latter, and with the agreement of the EIB, the amount is then on-lent to assist schemes which satisfy EIB criteria 5. Individual loans under the global loan system range between Ecu 20,000 and Ecu 7.5m; they help to finance investments of a total unit cost that must not exeed Ecu 15m. 6. Loans are granted for terms set in accordance with the nature of the project and with the depreciation period for the investment to be financed; the term is generally between 7-12 years, but may be increased to 20 years for infrastructure projects; the grace period may be from 2-5 years 7. Loans may be disbursed: (i) in several currencies, either in standard mixes, with make-up, term and interest rate all fixed in advance, or in varying mixes tailored to the borrower's preferences and EIB holdings, (ii) in a single currency; or (Hi) in Ecu, either wholly or as part of a mix of currencies 8. EIB interest rates are determined by borrowing rates for each of the currencies of disbursement and by the maturity; lending rates closely follow fluctuations in interest rates on the financial markets where it obtains the bulk of its funds; rate or rates charged on each loan are generally those in force on the day when the contract is concluded or on the date of disbursement; loans are disbursed at par 9. Capital reimbursements and interest payments are made in the currencies originally received, usually in equal 6-monthly instalments; granting of loans is conditional upon the guarantee of a member state or other first-class security

Procedures Application should be made directly to the head office or to external offices: European Investment Bank, 100 boulevard Konrad Adenauer, L2950 Luxembourg Representative office in Brussels: 227 rue de la Loi, B-1040 Brussels Office for operations in Italy: Via Sardegna 38, 1-00187 Rome Liaison office for the UK: 68 Pall Mall, London SW1Y 5ES Representative office in Athens: Ypsilantou 13-15 Kolonaki, 10675 Athens: 12 Amalias GR-10557 Lisbon: Avenida de la Liberdade 144-156, 8, P-1200 Madrid: Callé Jusé Ortega y Gasset 29, E28006

Community Issues: European Monetary System

processes, technical and economic integration of industry through co-operation between companies from different member states; (vi) support the activities of SMALL A N D M E D I U M S I Z E D E N T E R P R I S E S (SMEs); (vii) secure the Community's energy supplies - eg, reduce dependence on oil imports, oil or gas field developments, development and use of non-oil resources, energy production and transmission, rational energy use. The EIB also acts as agent for the Community in appraising and administering Euratom loans (see E N E R G Y ) and in granting loans from the resources of t h e N E W COMMUNITY INSTRUMENT FOR B O R R O W I N G AND L E N D I N G .

The amount of an EIB loan can be for up to half the gross investment cost of a project. Loans negotiated directly with the EIB normally begin at about Ecu 10m, with loans to SMEs being handled by EIB intermediary institutions and banks. There is no absolute maximum. Borrowers can draw down loans in one or several instalments. As the EIB operates on a non-profit basis, its lending rates are close to its cost of borrowing and reflect market conditions. Interest rates are not influenced by the type or location of the project, the nationality of the borrower or the size of the loan. Maximum terms of loans are set in relation to the asset life of the proposed investment, with maturities usually from four to 12 years in industry and up to 20 years or more for infrastructure or energy projects. Loans can be in single currencies, such as the Ecu or the promoter's own currency, or in a mix of currencies. No particular formalities are required and initial contacts can be made by letter or telephone directly to the head office in Luxembourg or one of the EIB's other offices. See also F I N A N C E ; I N D U S T R I A L P O L I C Y . EIB, 100 boulevard Konrad Adenauer, L-2950 Luxembourg. Tel. (0352) 43791. European Monetary System (EMS) The principle of establishing the EMS was adopted by the European Council in July 1978, and the system formally adopted in March 1979. The purpose of the EMS is to create a zone of monetary stability in Europe, through the implementation of certain exchange rate, credit and resource transfer policies. This is to ensure that monetary instability does not jeopardise the process of genuine integration within the Community. Central to the EMS are the E U R O P E A N

71

and the European Monetary Co-operation Fund (EMCF) to manage operations under the system. The EMS comprises three mechanisms: the exchange rate and intervention mechanism, the accounting and settlement mechanism, and the credit mechanism. In addition the EMS incorporates measures designed to strengthen the economies of the less prosperous participating members. Any European country with particularly close economic and financial ties with the Community may take part in the exchange rate and intervention mechanisms. The 1 Exchange rate and intervention mechanism exchange rate and intervention mechanism is in two parts: (i) the maintenance of bilateral limits of fluctuation, or cross rates, between participating currencies, by unlimited compulsory intervention on the exchanges; (ii) a presumption to take action on the part of the authorities responsible or a currency whose rate is identified by the 'divergence indicator' as exceeding certain limits which are fixed in terms of the Ecu and which will generally be reached before the bilateral margins of fluctuation. Bilateral intervention obligations All Community currencies have an Ecu-related central rate, expressed as a certain quantity of currency per Ecu. By linking together the Ecu-related central rates, each EMS currency has a series of cross rates with the other participating currencies. The bilateral intervention limits are calculated by applying to each of the bilateral cross rates the maximum margin of fluctuation plus or minus 2.25 per cent. Participating countries are obliged to keep the rates of the currencies within these bilateral limits. Divergence intervention obligations The divergence indicator identifies the currency showing the greatest divergence from the average; it is intended to prove an objective basis for triggering consultations between the relevant authorities and, by pinpointing responsibilities more clearly, aims for a fairer allocation of the burden of adjustment. The indicator calculates for each currency the relationship between (a) the appreciation or depreciation in the market rate of the Ecu against the Ecu-related central rate for the currency and (b) the maximum percentage appreciation or depreciation which the rate of the Ecu expressed in the currency may show against its Ecu-related rate. When the appreciation (premium) or depreciation (discount) in the market rate of the Ecu in terms of a given currency reaches 75 per cent of this maximum spread, that currency is CURRENCY UNIT (ECU)

72

Community Issues: European Monetary System

said to have reached its divergence threshold. The action available to the issuing country of a diverging currency includes diversified intervention, measures of domestic monetary policy, changes in central rates, or other economic policy measures. If a currency remains above its divergence threshold, consultations take place in appropriate Community institutions, including the Council of Ministers. 2 Accounting and settlement mechanisms In the EMS Ecu are created by the E M C F against contributions of dollars and of gold by the participating central banks. These contributions - which take the form of three-month revolving swaps under national control - represent 20 per cent of the central banks' gold holding and 20 per cent of their gross dollar reserves. In return the central banks are credited by the E M C F with an aggregate amount of Ecu. Quarterly adjustments are made to ensure that each central bank's contribution is maintained at that level and to take account of any price or rate changes that may have occurred in the reserves deposited. Purchases of Community currencies by a central bank represent for that bank an accumulation of claims on the EMCF, while sales of Community currencies on its foreign exchange market represent an accumulation of debts with the EMCF. These are recorded by the E M C F in the form of debits or credits in accounts denominated in Ecu; the conversion of Community rates into Ecu is made at the market rate on the day of intervention. This accumulation of debts and claims represents very short-term financing facilities granted between the central banks. By denominating the debts and claims in Ecu, the system has introduced the concept of Community burden sharing in respect of the exchange rate risk. The credit mechanisms incor3 Credit mechanisms porated in the EMS are: (i) very short-term financing and short-term monetary support (STMS), both of which are the responsibility of central banks; (ii) medium-term financial assistance (MTFA), which is granted by the Council. Very short-term financing is granted by the participating central banks to each other through the E M C F in order to permit interventions in Community currencies. Such operations are denominated in Ecu and are unlimited in amount. STMS helps to meet financing needs arising from temporary balanceof-payments deficits caused by unforeseen difficulties or cyclical divergences. The mechanism is based on a

system of debtor and creditor quotas which determine each Community central bank's borrowing entitlement and financing obligations. MTFA is mutual assistance within the meaning of the T R E A T Y O F R O M E , Article 108. It is granted by the Council to any member state experiencing difficulties or seriously threatened with difficulties as regards its balance of payments. Each member state is required to grant credits up to a specific commitment ceiling, the total amount of these ceilings being Ecu 14.1bn. Assistance is conditional, with a borrower country having to agree to certain economic and monetary conditions. It is denominated in Ecu and repayable within a period of between two and five years. 4 Measures to strengthen the economies of less prosperous member states These measures are conditional upon their full and effective participation in the exchange rate and intervention mechanism. Such measures include the granting of 3 per cent interest rate subsidies for loans made available to less prosperous countries by the Community institutions, which are required to use the new financial facility and by the E U R O P E A N I N V E S T M E N T B A N K . These loans may amount to Ecu lbn per year for a period of five years, the interest rate subsidies amounting to Ecu 200m per year for five years. The funds provided are concentrated on the financing of selected infrastructure projects and programmes on the understanding that any direct or indirect distortion of the competitive position of specific industries must be avoided. To mark the tenth anniversary of the EMS, the Commission presented to the Council a communication reviewing the achievements to date (Bull EC no3 1989). Main successes have been in promoting lower inflation and more stable exchange rates, thereby fostering healthy economic growth. A first set of changes to the EMS rules was agreed in 1985 and the Basle/Nyborg agreement of 1987 (Bull EC no9 1987) provided for a more balanced implementation of the exchange rate commitment in order to spread the burden of protecting monetary stability against external shocks more evenly among the member states. At the same time the EMS intervention and credit mechanisms were refined. By the end of 1987 all 12 member states were participating in the system of swaps used to create official Ecus. The announcement in June 1989 by the Spanish government that it had joined the exchange rate mechanism of the EMS (see (i) above) brought to nine the number of member states participating, leaving only the UK, Greece and Portugal outside

Community Issues: European Parliament: committees

the E R M . For the time being the peseta will move within a wider fluctuation margin of 6 per cent in either direction, rather than 2.5 per cent. See also F I N A N C E . Commission responsibility: D-G II (Economic and Financial Affairs). European Parliament One of the four major institutions in the European Community. Originally called the European Assembly under the T R E A T Y O F R O M E , Articles 137-144, its name was officially recognised as European Parliament by the S I N G L E E U R O P E A N A C T of 1986. Initially it consisted of 198 members nominated by national parliaments. The Treaty laid down (Article 138) that the eventual aim should be a parliament directly elected in accordance with a uniform procedure in all member states, which led eventually to the 1976 Direct Elections Act (OJ L 278 1976). Under this Act, direct elections are held every five years - the first being in June 1979, the second in June 1984 and the most recent in June 1989. The Parliament consists of 518 members: • 81 representatives each from France, Germany, Italy and the UK; • 60 from Spain; • 25 from the Netherlands; • 24 each from Belgium, Greece and Portugal; • 15 from Denmark; • 14 from Ireland; • 6 from Luxembourg. Members take their seats in Parliament according to political persuasion rather than nationality. The parties are (excluding independents): • Socialist Group; • European People's Party (Christian-Democratic Group); • Liberal and Democratic Reformist Group; • European Democratic Group; • Green Group; • European Unitarian Left; • European Democratic Alliance; • European Right; • Left Unity; • Rainbow. The Parliament is run by a bureau comprising the president and 12 vice-presidents who are elected by secret ballot to serve for two and a half years. For some purposes the bureau is enlarged to include the chairmen of the political groups. One of the main tasks of the enlarged bureau is to draw up the agenda for each of the Parliament's plenary sessions

73

held 12 times a year for a week at a time, together with occasional extraordinary sessions of two days' duration. Under the Treaty of Rome, Article 139, the Parliament must hold an annual session, and must meet without requiring to be convened on the second Tuesday in March. The basic work of the Parliament is done through 18 specialised committees (see E U R O P E A N P A R L I A M E N T : C O M M I T T E E S ) . All business is conducted in the official languages of the Community with simultaneous interpretation, and all documents are published in the official languages. The powers of the parliament are laid down in the Treaty of Rome (see E U R O P E A N P A R L I A M E N T : P O W E R S ) but are continually evolving in relation to the European Commission and the Council of Ministers. European Members of Parliament (MEPs) are elected for a term of five years; while entitled to common Community allowances, their salaries vary in accordance with national parliament decisions. The Parliament has its own Secretariat based in Luxembourg (see E U R O P E A N P A R L I A M E N T : SECRETARIAT).

See

also

BUDGET;

EUROPEAN

COMMUNITY;

LEGISLATIVE PREPARATION.

European Parliament: committees Under the Treaty of Rome the Parliament has the right to be consulted on most E U R O P E A N C O M M I S S I O N P R O P OSALS (draft legislation) before the C O U N C I L O F M I N I S T E R S makes a final decision (see E U R O P E A N P A R L I A M E N T : P O W E R S ) . On the first day of each plenary session, legislative proposals received by the president are sent to one or more of the 18 specialised standing committees concerned with particular areas of Community activity: • Political Affairs; • Agriculture, Fisheries and Rural Development; • Budgets; • Economic and Monetary Affairs and Industrial Policy; • Energy, Research and Technology; • External Economic Relations; • Legal Affairs and Citizens' Rights; • Social Affairs, Employment and the Working Environment; • Regional Policy and Regional Planning; • Transport and Tourism; • Environment, Public Health and Consumers; • Youth Affairs, Culture, Education, the Media and Sport; • (Overseas) Development and Co-operation;

74

Community Issues: European Parliament: powers

• Budgetary Control; • Institutional Affairs; • Rules of Procedure, Verification of Credentials and Immunities; • Womens' Rights; • Petitions. Each committee appoints a 'rapporteur' to draw up a draft report on the proposal including amendments (see E U R O P E A N P A R L I A M E N T : W O R K I N G M E T H O D S ) . The rapporteur is appointed by agreement among the political groups (see E U R O P E A N PARLIAMENT) represented on the committee. Committees meet between plenary sessions of the Parliament, usually in Brussels; a member of the European Commission supplies members with relevant information. Committee discussions are usually held in private, but committee reports, obtainable on subscription from the O F F I C E F O R OFFICIAL

PUBLICATIONS

OF THE

EUROPEAN

COM-

often provide background to Commission proposals. Names of committee members are published in the B U L L E T I N of the European Parliament. MUNITIES,

Secretariat of the European Parliament, Centre Européen, Plateau du Kirchkberg, L-2929 Luxembourg. European Parliament: powers The T R E A T Y O F R O M E and the T R E A T Y O F P A R I S establishing the Communities outline the role of the European Parliament. Amendments to the treaties, particularly on budgetary matters, and evolving relationships with the E U R O P E A N C O M M I S S I O N and the C O U N C I L O F M I N I S T E R S have made constant changes, particularly under the S I N G L E E U R O P E A N A C T of 1 9 8 6 which introduced a new co-operation procedure with the Council in many legislative discussions, especially those proposals relating to the internal market programme (see E U R O P E A N P A R L I A M E N T : W O R K I N G M E T H O D S ) . In 1 9 7 5 the Treaty of Rome was amended (Article 203 et seq.) to give Parliament more extensive control over the budget (see B U D G E T A R Y P R O C E D U R E S ) , including not only the power to amend, but in certain circumstances to reject the budget. It also has the responsibility to check whether the budget, once passed, is put into effect. The Parliament has the power (Article 144 of the Treaty of Rome) to dismiss all 17 Commissioners, providing that a motion of censure is carried by a two-thirds majority of votes cast and representing a

majority of the European MPs (MEPs). It is open to MEPs to question both the Commission and the Council about any aspect of the Community's business, particularly where the interests of those that they represent are likely to be directly affected. Questions to the Commission or Council may be in writing or they may be put down for oral reply during a Parliamentary sitting. Questions and answers are published in the O F F I C I A L J O U R N A L O F T H E E U R O P E A N C O M M U N I T I E S (Series C ) . The Parliament accepts petitions relating to Community activity. When received these are referred to the relevant Parliament committee (see E U R O P E A N PARLIAMENT: COMMITTEES) for examination. The committee subsequently reports to Parliament and may ask for the petition to be forwarded to the Council of Ministers or to the Commission or to a government. The Single Act gave Parliament the new right of veto on the accession to the Community of any European state and also to the terms of trade agreements between the Community and third parties. Only if 260 of Parliament's 518 members vote in favour of such agreements can they be implemented. Parliament's advisory role in the field of E U R O was strengthened by the Single European Act, which explicitly states that the Foreign Ministers must give due consideration to its views. The Parliament also receives an annual report from the current Chairman of the Conference of Foreign Ministers on what has been achieved. Under Article 143 of the Treaty, the Commission must submit its annual report to the Parliament for open discussion. At the Dublin European Council in June 1990 the heads of government agreed to convene two intergovernmental conferences of all member states to run in parallel - one to prepare for E C O N O M I C A N D M O N E T A R Y UNION and a second on political union. The latter would discuss a series of options for closer European unity, including: (i) more majority voting, ending the right of member states to veto policies; (ii) increased powers for the European Parliament in the legislative process; (iii) a common foreign policy; (iv) giving the Court of Justice real powers of enforcement of Community laws. The two conferences were scheduled to get underway on the eve of the European Council in Rome in December 1990. The finance and foreign ministers were asked to ensure that negotiations on both PEAN P O L I T I C A L C O - O P E R A T I O N

Community Issues: European passport

monetary and political union could begin 'on a concrete basis as soon as the conferences open'. Secretariat of the European Parliament, Centre Européen, Plateau du Kirchkberg, L-2929 Luxembourg. European Parliament: Secretariat

See Directory.

European Parliament: working methods Under the T R E A T Y O F R O M E , Article 1 4 2 , Parliament has the power to adopt its own rules of procedure. Except where otherwise stated in the treaty, Parliament acts by an absolute majority of votes cast (Article 141). Under normal procedure, legislative P R O P O S A L S received by the President of the Parliament from the European Commission are referred immediately to one of the 18 specialised committees (see E U R O P E A N P A R L I A M E N T : C O M M I T T E E S ) where following the appointment of a rapporteur, the draft report is discussed with the responsible Commissioner and/or his representatives participating. A final text is adopted comprising the R E S O L U T I O N (Section A), an explanatory statement (Section B) and possibly the opinions of other committees consulted. The report is presented to the full Parliament by the rapporteur and debated, with the Commissioner and sometimes a representative of the Council of Ministers replying. It is then adopted, and possibly amended, by a simple majority of those present. This procedure is followed for proposals requiring a single reading by the Parliament - therefore not subject to the S I N G L E E U R O P E A N A C T co-operation procedure - and also for the first reading of those proposals (mainly relating to the internal market) that are tabled subject to the co-operation procedure. Under this procedure the Council draws up a 'common position' on draft legislation, taking into account any amendments to it arising from Parliament's consideration on first reading of the Commission proposal. Parliament may reject the Council's common position by a majority of its members (260 votes). In that case the proposal falls unless the Council unanimously decides within three months to overrule Parliament. Parliament may approve the Council's common position, or use its new second reading powers to insist on those of its own amendments which the Council may have seen fit to reject in coming to its common position. If the Parliament does so insist the Commission will reexamine the proposal and the Council thereafter has three months to adopt the re-examined proposal.

75

Overall, since the inception of the co-operation procedure, quite a high proportion of Parliament's amendments have been incorporated in whole or in part in Community laws. In order to accelerate decisions on uncontroversial matters, the Parliament may adopt proposals without report (Rule 116) or without debate (Rule 38). The Parliament also draws up reports on matters it considers important, and holds emergency debates on issues of major topical interest. Under the Treaty, Article 140, the Commission is entitled to attend all Parliamentary meetings and be heard; it is also required to reply orally or in writing to questions put to it by MEPs. The proceedings of parliament and answers to questions are published in

the

OFFICIAL

JOURNAL

OF

THE

EUROPEAN

(Series C and Annex - debates). Committee reports of the European Parliament (Session Documents Series A) contain the official reports of the individual committees and are obtainable on subscription from the O F F I C E F O R O F F I C I A L

COMMUNITIES

PUBLICATIONS

OF

THE

EUROPEAN

COMMUNITIES.

The Parliament also produces a Bulletin intended for MEPs with such information as the agenda for future sittings, lists of Parliamentary session documents, questions for written reply and lists of committees and their membership. Also available is the Briefing and The Week giving a detailed summary of reports and debates in the plenary session. Details of these and other publications, including the Rules of Procedure is available from Parliament Information Offices. Secretariat of the European Parliament, Centre Européen, Plateau du Kirchkberg, L-2929 Luxembourg. European passport The European Council in 1975 agreed in principle to the introduction of a uniform (Community) passport, with the aim eventually of doing away with passport checks at internal frontiers for Community citizens. In June 1981 the Council of Ministers adopted a resolution for the introduction of a European passport with a uniform format (OJ C 241 1981): it is to be wine-red in colour, carrying the name of the issuing state and the words 'European Community' and 'passport'. Since January 1985 member states have been issuing the European Community passport slowly as national passports are eventually replaced. The UK and Germany were the last two states to start issuing the passport, the UK starting in August 1988. A draft Commission

76

Community Issues: European Political Co-operation

proposal for a Council directive to ease controls and formalities applying to member states' citizens at Community frontiers (Com (84) 749 and Com (85) 224) is still under discussion as part of the aim for a complete internal market by 1992. See also H A R M O N ISATION. Commission responsibility: D-G III (Internal Market and Industrial Affairs) Directorate D. European Political Co-operation (EPC) The S I N G L E E U R O P E A N A C T of February 1 9 8 6 gave formal legal status to European Political Co-operation, whereby member states must endeavour jointly to formulate and implement a European foreign policy. This is to be achieved by mutual consultation for joint action on foreign policy, on the basis of common principles and objectives. Informal political co-operation procedures had been established after the Luxembourg Report of 1 9 7 0 (Bull EC 1 1 - 1 9 7 0 ) . These arrangements were modified in the light of experience after a second report, in 1973 (Bull EC 121974, Section 1104) and again in 1981, following in part proposals made by the E U R O P E A N P A R L I A M E N T for better consultation on, and reporting of, ministerial discussions on foreign policy issues. The system works through the Conference of Foreign Ministers, serviced by a Political Committee composed of senior foreign ministry officials. A permanent EPC Secretariat was set up in Brussels in 1987, staffed by officials recruited in rotation from the foreign ministries of the country currently holding the presidency of the C O U N C I L O F M I N I S T E R S , and its predecessor and successor in office to ensure consistency and continuity of policies. The foreign ministers hold at least four formal meetings a year, with further meetings as necessary - for example when member states are attending the UN or international conferences. Working parties deal ad hoc or on a longer-term basis with special areas of policy. A member of the E U R O P E A N C O M M I S S I O N is present at all the ministerial meetings and the COMMITTEE

OF

PERMANENT

REPRESENTATIVES

works in close collaboration with the political committee. Since the Single European Act, the European Parliament has been closely associated with EPC, in particular through questions and debate on the floor of the House and within committee meetings. An annual oral report is presented to the Parliament by the president-in-office of the foreign ministers, who also meets the EP's Political Affairs Committee for full briefings four times a year.

At the Dublin European Council in June 1990 the heads of government agreed to convene two intergovernmental conferences of all member states to run in parallel - one to prepare for E C O N O M I C A N D M O N E T A R Y UNION and a second on political union. The latter would discuss a series of options for closer European unity, including: (i) more majority voting, ending the right of member states to veto policies; (ii) increased powers for the European Parliament in the legislative process; (iii) a common foreign policy; (iv) giving the Court of Justice real powers of enforcement of Community laws. The two conferences were scheduled to get underway on the eve of the European Council in Rome in December 1990. The finance and foreign ministers were asked to ensure that negotiations on both monetary and political union could begin 'on a concrete basis as soon as the conferences open'. Commission responsibility: Secretariat-General of the Commission. European schools Schools started in 1957 for children of parents working for the Community. While studying their mother tongue and the literature and history of their native country with teachers of their own nationality, children benefit from contact with pupils from other Community countries. There are schools in Brussels (two), Luxembourg, Varese, Karlsruhe, Mol, Mons, Munich and Culham. The schools are independent organisations, run under the aegis of an inter-governmental board of governors, and are open only to children of parents working for the Community. See also

EDUCATION.

European Trade Union Confederation (ETUC) Founded in 1973, E T U C is a confederation of 35 trade union organisations in 20 Western European countries, representing some 43 million trade union members. ETUC's principal aim is to influence European policies in the interests of working people and their families through the European Community, the

EUROPEAN F R E E T R A D E ASSOCIATION a n d

COUNCIL OF E U R O P E .

the

It has direct representation on

the Community C O N S U M E R S ' C O N S U L T A T I V E C O M M I T T E E . On matters which extend beyond Europe, E T U C works closely with the International Confederation of Free Trade Unions, the World Confeder-

Community Issues: Eurydice

ation of Labour and the Trade Union Advisory Committee to the O E C D . See also

EUROPEAN

TRADE

UNION

INSTITUTE;

REPRESENTATIVE ORGANISATIONS.

European Trade Union Institute ( E T U I ) The research, information, documentation and education instrument of the European trade union movement. It was established in 1978 on the initiative of the EUROPEAN T R A D E UNION CONFEDERATION (ETUC) to deal with European aspects of economic, social and political developments of particular importance to workers and unions. Trade union organisations of E T U C are also members of E T U I and as such constitute the governing bodies, consisting of a general assembly and a management committee. E T U I publishes reports relevant to European trade union matters, organises conferences, and maintains close contact with the European Commission, the European Parliament, the E U R O P E A N C E N T R E F O R THE D E V E L O P M E N T OF V O C A T I O N A L TRAINING

and

t h e E U R O P E A N F O U N D A T I O N FOR THE IMPROVEMENT OF LIVING AND W O R K I N G CONDITIONS.

European University Institute Inaugurated in 1976 in Florence, the university has two aims: (i) to help outstanding research students in preparing a doctoral thesis or in doing advanced research in the fields of history and civilisation, economics, law, and political and social sciences; (ii) to co-operate with other centres of learning in fostering knowledge and understanding of current problems, with special reference to the Community. All candidates must have the equivalent of an honours degree, should be able to speak at least two Community languages, and their post-graduate work must be relevant to the aims of the institute. Scholarships are available from the appropriate national institutions for those accepted. European University Institute, Badia Fiesolana, 5 via del Roccettini, 1-50016 San Domenico di Fiesole, Florence. Eurostat The Statistical Office of the European Communities provides a wide range of statistical data on all the economic and social activities of the member states and its trading partners. Increasingly the information is being made available in electronic format (on-line, magnetic tape, diskettes etc). Eurostat, bourg.

Information Office, L-2920

Luxem-

77

Eurotech Capital A pilot scheme adopted by the Commission in December 1988, Eurotech Capital was designed to promote the financing of transnational high-technology projects. The Eurotech Capital label would be attached to any business or agency meeting specific requirements (investment capacity of at least Ecu 50m, with 20 per cent of the total reserved for transnational high-technology projects), which would then qualify for financial and other support from the Commission. Eurotecnet Eurotecnet I was a research programme between 1985-1988 which aimed to encourage the interchange of information and experience relating to training in information technology. One of the first proposals for an individual research programme within the third framework programme for research and technological development 1990-1994 is Eurotecnet II, for an action programme in the field of vocational training and technological change (Com (89) 355). Eurotecnet II will aim to build links between individual projects from several member states and should help to transfer good training practices to regions in need of modernisation. It has a proposed budget of Ecu 29m, most of which will come from the S O C I A L FUND.

See also R E S E A R C H . Commission responsibility: D - G XIII (Telecommunications, Information Industries and Innovation). Eurotra A seven-year research programme (19831989) launched by a Council decision aiming to create a prototype translation system of advanced design which can handle all the official languages of the Community (OJ L 317 1982). A Council decision on a specific programme for the completion of the Eurotra system was taken in June 1989 (OJ L 200 1989). See also R E S E A R C H . Commission responsibility: D - G XIII (Telecommunications, Information Industries and Innovation). Eurydice The education information network in the European Community established in 1980. Experiments began in 1988 with computerised information exchanges. Eurydice, rue Archimède 17, Box 17, 1040 Brussels. Tel. 010 322 230 0398/82.

78

Community Issues: Exchange visits

Exchange visits The T R E A T Y O F R O M E , Article 50, requires member states, within the framework of a joint programme to encourage the exchange of Y O U N G W O R K E R S . In December 1984 a Council Decision (84/ 636/EEC, OJ L 331 1984) established a third joint programme to encourage the exchange of young workers within the Community. To qualify for such visits young workers must be between 18 and 28 years old, have begun their working life before the age of 20, received basic vocational training and have practical work experience. Exchanges are organised by approved agencies operating at Community level based on an agreement between them and the European Commission. Training periods may be of a long duration of 4-16 months with an employer in the host country or for short periods of three weeks to three months - the latter mainly intended to allow the trainees to become familiar with working life in the host country. The Commission can allow grant aid, not exceeding 75 per cent of the expenses incurred towards the cost of the return journey from home to the place of employment, a flat-rate weekly contribution per trainee, and supplementary aid per trainee and per week of language tuition/instruction for training periods of long duration. A Commission report covering the first three years of implementation of the third programme (Com (88) 382) highlights the success of this initiative. More than 7700 young people took part, approximately half of whom were women, in all sectors of employment with the services sector accounting for more than half the exchanges. The current action programme to promote youth exchanges, known as 'YES for Europe', was adopted by Council Decision 88/348/EEC (OJ L 158 1988) in June 1988. See also

W O R K AND EMPLOYMENT,

Fig.

17; EDUCA-

TION G R A N T S ; F I N A N C E F i g . 9 ; J O B I N F O R M A T I O N .

Commission responsibility: D-G V (Employment, Social Affairs and Education) Directorate C. Export restitution payments These are subsidies paid on export of certain agricultural products from the Community to bridge the gap between Community price levels and lower world prices. The subsidies are usually paid on commodities which are also subject to LEVIES when imported into

the Community; but the rate of export restitution is lower than the rate of import levy as the export subsidy is the minimum required for the Community produce to compete on the world market. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY; FINANCE.

Commission responsibility: D - G VI (Agriculture) Directorate G. External trade Community commercial trade policy is based on uniformly established principles regarding tariff and trade agreements, liberalisation, export policy and protective measures (including those taken in the case of D U M P I N G and subsidies); policy stems from the T R E A T Y O F R O M E , Article 113. Goods imported into the Community are treated the same way no matter which country they enter (see C U S T O M S U N I O N ) and there are uniform regulations governing exports throughout the Community. Protection against sensitive import products is negotiated by the Community. Any individual national action must be approved by the Commission, by whom all external trade negotiations, since January 1975, have been conducted, subject to Council approval, and not bilaterally by member states. The Community has established a network of trading agreements with countries of all continents. These are in the form of: ( i ) ASSOCIATION A G R E E M E N T S ;

(ii) free trade agreements (see

EUROPEAN

FREE

T R A D E ASSOCIATION);

(iii) co-operation agreements (see below); (iv) t h e LOME CONVENTIONS.

The Community also has regular institutionalised consultations on trade matters with the US and Canada, Japan, Australia and New Zealand. Legislation regarding products is continually updated, and is published in the O F F I C I A L J O U R N A L O F T H E EUROPEAN COMMUNITIES.

See also TRADE;

G E N E R A L A G R E E M E N T ON T A R I F F S A N D

GENERALISED

SYSTEM

OF

PREFERENCES;

individual countries. Commission responsibility: D-G I (External relations); D-G VIII (Development).

Community Issues: Table 6 External Trade TABLE 6

79

EXTERNAL TRADE: AGREEMENTS AND OTHER BILATERAL COMMITMENTS LINKING THE COMMUNITY WITH NON-MEMBER STATES TABLE 6.1: AGREEMENTS WITH COUNTRIES IN NORTHERN EUROPE - EXTERNAL TRADE

Country

Entry into force

Duration

OJ no.

Austria

1.1.1973

unlimited

L 300,1972

Preferential trade agreement establishing an industrial free trade area for industrial products; may be denounced subject to 12 months' notice; for amendments or derogations see OJ L 298,1976; OJ L 338, 1976; OJ L 302, 1978; supplementary protocol (Protocol 6) OJ L 352,1989. Protocol 3 of the agreement concerning the definition of the concept of 'originating products' and administrative cooperation was codified to take into account multiple decisions taken in this field, by an exchange of letters: see OJ L 323, 1984

1.1.1973

unlimited

L 350, 1973

An agreement between the member states of the ECSC, the ECSC and Austria progressively to abolish customs duties on imports of certain products covered by the ECSC. A specific agreement of 26 July 1957 between the member states of the ECSC, the ECSC and Austria established through international tariffs for the carriage of ECSC products through Austria; for amendments see OJ ECSC 6, 1958; OJ ECSC 68, 1961; OJ C 338, 1985; see also supplementary protocol, OJ L 12, 1979, second supplementary protocol, OJ L 227, 1981 and third supplementary protocol OJ L 75,1989

1.1.1974

unlimited

L 294,1972

Agreement on the application of rules on Community transit; amended by exchange of letters (see OJ L 151, 1977; OJ L 155, 1980; OJ L 19, 1982; OJ L 285, 1982; OJ L 332, 1987); the Greek language version of the agreement was the subject of an agreement (see OJ L 147, 1981)

1.5.1975

unlimited

L 188, 1975

Agreement on the simplification of formalities in respect of trade in goods with Greece and Turkey when goods are forwarded from Austria; for amendments see OJ L 107, 1981

29.5.1975

unlimited

L 106. 1975

Supplementary protocol to E E C - A u s t r i a agreement; scope extended by agreement between the E E C , Switzerland and Austria (see OJ L 142, 1977). The Spanish and Portuguese language versions of the A u s t r i a - E C Switzerland agreement were subject of an agreement (see OJ L375, 1986)

28.4.1978

unlimited

not published

Exchange of letters between the Commission and Austria concerning co-operation on environmental matters

signed 11.7.1980

unlimited

not published

Exchange of letters between the Commission and Austria on recognition by the Austrian authorities of the laissezpasser issued by the Community to members and servants of the institutions

1.1.1981

unlimited

L 357,1980

Additional protocol to E E C - A u s t r i a agreement consequent on Greek accession

signed 28.11.1980

unlimited

not published

Additional protocol to ECSC-Austria agreement consequent on Greek accession

defacto 1.1.1981; signed 10.7.1981

31.3.1984; renewed

L 137, 1981

Voluntary restraint agreement on trade in mutton, lamb and goatmeat; automatically renewable unless 1 year's notice is given; see OJ L 154,1984; see also OJ L 133,1990

1.3.86

until 1.1.93

L 328, 1986

Exchange of letters between E C and Austria on nonagricultural and processed agricultural products not covered by the trade agreement

unlimited

L 328, 1986

Exchange of letters between E C and Austria on matters relating to agriculture. Agreement consequent to adhesion of Spain and Portugal to E C (see also OJ L 366, 1989)

signed 14.7.86

1.3.86 signed 14.7.86

Notes

80

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

6.1—continued

Country

Entry into force

Duration

OJ no.

Austria

14.7.86

unlimited

L 321. 1986

Additional protocol to the EC-Austria agreement consequent to accession of Spain and Portugal to E C (second additional protocol OJ L 136, 1989)

15.7.86

unlimited

L 216. 1986

Framework agreement for scientific and technical co-operation between E C and Austria. Co-operation will be achieved by specific agreements

31.7.87

unlimited (subject to one year's notice)

L 213,1987

Arrangement between E C and Austria on trade in cheeses, under Article 15 of trade agreement, and replacing previous provisions in this field

signed 1.12.87

5 years (from entry into force) renewable tacitly subject to six months' notice

L 90,1990

Agreement between the Federal Republic of Germany, the E C and Austria on co-operation on management of water resources in the Danube Basin. (The position of the F R G as an especially interested party in the co-operation is reflected in the three-party agreement.)

de facto

until 31.12.91 (renewable)

L 74, 1990

Co-operation agreement between the E C and Austria in the field of medical and health research. (Areas of research co-operation are: cancer; Aids; age-related health problems; and environment- and lifestyle-related health problems)

signed 6.10.88

For duration of 4year programme (from 1.1.86)

L 276, 1988

Co-operation agreement between EC and Austria on research materials related to advanced materials (Euram)

1.1.89

until 30.6.92 (renewable)

L 348. 1988

Agreement by exchange of letters between E C and Austria on reciprocal establishment of tariff quotas for certain quality wines

1.4.89

unlimited (subject to 1 year's notice)

L 56. 1989

Agreement between EC and Austria on the control and reciprocal protection of quality wines and 'retsina' wines. (Includes protocol on designation of geographical origin. This agreement replaces the 1981 agreement, L 389, 1987)

signed 20.4.89

unlimited

L 136, 1989

Second additional protocol between E E C and Austria consequent to accession of Spain and Portugal to Community

signed 9.6.89

unlimited

L 206, 1989

Third additional protocol to the agreement between E E C and Austria consequent to accession of Spain and Portugal to Community

de facto 1.7.89

until 31.12.92 (subject to 6 months' notice) renewable

L 50, 1990

Co-operation agreement between Austria and the E E C on a programme plan to stimulate international co-operation and interchange needed by European research scientists ('Science')

signed 7.12.89

renewable tacitly*

L 400, 1989

Agreement between E E C and Austria on Trade Electronic Data Interchange Systems (Tedis)

1.1.90 (If notification does not take place before 31.3. of any year, E.I.F. will be not before 1.1. of following year) signed 19.12.89

1.1.90-31.12.94

L 102, 1990

Agreement between E E C and Austria establishing co-operation in the field of training in the context of the implementation of Comett II (1990-94) (a range of transnational projects to strengthen and encourage co-operation between universities and industry)

defacto 1.1.1977; signed 15.3.1977

10 years renewable

L 226, 1980

Agreement on fisheries; based on the principle of reciprocal access to fisheries; special arrangements to be agreed annually determined in consultations between the parties. (Note: this agreement is between the E E C , Denmark and the Faeroes)

Faeroe Islands (Danish territory outside the Community)

1.1.88

Notes

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

81

6.1—continued

Country

Entry into

Finland

force

Duration

OJno.

Notes

1.1.1974

unlimited

L 328,1973

Preferential trade agreement establishing an industrial free trade area for industrial products; may be denounced subject to 3 months' notice and may continue to be applied up to 9 months after expiry date; for amendments o r derogations see O J L 1 6 3 , 1 9 7 4 ; O J L 298, 1976; O J L 338, 1976; O J L 302, 1978; O J L 322, 1979; O J L 371, 1980; O J L 385, 1980; O J L 2 4 7 , 1981; O J L 2 7 6 . 1981; O J L 174, 1982; O J L 174, 1983; the third protocol annexed to the original agreement was amended several times by decisions o f the Joint C o m m i t t e e or by exchanges of letters; in 1984 an exchange of letters replaced the original protocol with a new text (see O J L 3 2 3 , 1 9 8 4 )

1.1.1975

unlimited

L 3 4 8 , 1974

A g r e e m e n t between the m e m b e r states of the E C S C , the E C S C and Finland

29.5.1975

unlimited

L106,1975

Supplementary protocol to E E C - F i n l a n d agreement

1.1.1981

unlimited

L 3 5 7 . 1980

Additional protocol to E E C - F i n l a n d agreement consequent on G r e e k accession

signed 6 . 1 1 . 1 9 8 0

unlimited

not published

Additional protocol to E C S C - F i n l a n d agreement consequent on G r e e k accession

5.1.1984

10 years renewable

L 192, 1983

A g r e e m e n t on fisheries; renewable for 6-year periods unless 9 months' notice o f termination is given prior to the expiry date o f each period

L 370,1985

Mutual restraint arrangement between the E C and Finland on trade in cheese

1.1.86

4.86

unlimited

L 7 8 , 1986

F r a m e w o r k agreement for scientific and technical cooperation between E C and Finland. T h e co-operation will be achieved by specific agreements laying down the objectives for science and technology projects

signed 1 4 . 7 . 8 6

unlimited

L 3 2 1 , 1986

Additional protocol to the agreement between E C and Finland consequent on the accession o f Spain and Portugal

14.7.86

unlimited

L 3 2 8 , 1986

A g r e e m e n t by exchange o f letters between E C and Finland concerning non-agricultural and processed agricultural products not covered by the agreement. ( T a k e s into account the Iberian accession)

L 3 2 8 , 1986

A g r e e m e n t by exchange of letters between E C and Finland in the field o f agriculture. (Consists o f two letter exchanges and contains a clause concerning the Canary Islands, Ceuta and Melilla)

signed 1 4 . 7 . 8 6

1.1.87 signed 1 3 . 1 2 . 8 6

unlimited (subject to 1 year's notice)

L 3 8 3 , 1986

A g r e e m e n t by exchange o f letters between E C and Finland concerning trade in certain wines and spirits

1.1.88

4 years from 1 . 1 . 8 6 renewal by tacit agreement subject to 3 months' notice by either party

L 2 7 6 , 1988

Co-operation agreement between E C and Finland on research in the field o f wood, including cork, as a renewable raw material

defacto

1.1.8

until 3 1 . 1 2 . 9 1 (renewable)

L 7 4 , 1990

Co-operation agreement between the E E C and Finland in the field of medical and health research. (Co-operation in research regarding: Aids; medical technology development and health service research)

defacto

1.1.89

1986-1990 renewable

L 3 0 4 , 1989

Co-operation agreement between the E E C and Finland on research and development in the field o f protection o f the environment

82

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

6.1—continued

Country

Entry into force

Duration

OJ no.

Notes

Finland

13.4.89

unlimited

L136,1989

Second additional protocol to the agreement consequent to the accession of Spain and Portugal to the Community

signed 12.6.89

unlimited

L 206, 1989

Third additional protocol to the agreement between E C and Finland consequent to the accession of Spain and Portugal to the Community

de facto 1.7.89

until 31.12.92 (subject to 6 months' notice) renewable

L 50,1990

Co-operation agreement between Finland and the E E C on a programme plan to stimulate international co-operation and interchange needed by European research scientists ('Science')

signed 26.7.89

unlimited

L 295, 1989

Supplementary protocol to EEC-Finland agreement concerning the elimination of existing and prevention of new quantitative restrictions affecting exports, or measures having equivalent effect

signed 7.12.89

renewable tacitly*

L 400,1989

Agreement between E E C and Finland on Trade Electronic Data Interchange Systems (Tedis)

1.1.90 signed 19.12.89

1.1.90 to 31.12.94

L 102, 1990

Agreement between E E C and Finland establishing co-operation in the field of training in the context of implementation of Comett II (1990-94) (a range of transnational projects to strengthen and encourage cooperation between universities and industry

1.2.1985

10 years renewable

L 29,1985

Agreement on fisheries between the Community and the government of Denmark and the local government of Greenland; renewable for 6-year periods

1.2.1985

5 years

L 29, 1985

Protocol on fisheries covering annual payment to Greenland in consideration of fishing rights

initialled 30.6.89 de facto 1.1.90

5 years

L 389, 1989

Agreement by exchange of letters between the E C and government of Denmark and Greenland concerning the provisional application of the protocol to the agreement on fisheries for period January 1990 to December 1994. (Under this new protocol the quotas negotiated are increased and annual financial compensation is increased from Ecu 26.5m p.a. under the first protocol to Ecu 34.25m p.a.)

1.4.1973

unlimited

L 301, 1972

Preferential trade agreement establishing a free trade area for industrial products; agricultural concessions in force since 1.7.1976; may be denounced subject to 12 months' notice; for amendments or derogations see OJ L 298, 1976; OJ L 338, 1976; OJ L 123, 1980; last amended by L 180, 1988; the third protocol annexed to the original agreement was amended several times by decisions of the Joint Committee or by exchanges of letters; in 1984 an exchange of letters replaced the original protocol with a new text (see OJ L 323, 1984)

1.1.974

unlimited

L 350, 1973

Agreement between the member states of the ECSC and Iceland

29.5.1975

unlimited

L 106, 1975

Supplementary protocol to EEC-Iceland agreement

1.1.1981

unlimited

L 357, 1980

Additional protocol to EEC-Iceland agreement consequent on Greek accession

signed 8.11.1980

unlimited

not published

Additional protocol to ECSC-Iceland agreement consequent on Greek accession

1.1.1981

31.3.1984; renewed

L 137,1981

Voluntary restraint agreement on trade in sheepmeat and goatmeat; renewable automatically unless 1 year's notice given; see also OJ L 154, 1984

Greenland

Iceland

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

83

6.1—continued

Country

Entry into force

Duration

OJ no.

Notes

Iceland

signed 14.7.86

unlimited

L 321,1986

Additional protocol to the agreement E E C and Iceland consequent to the accession of Spain and Portugal to the Community

signed 14.7.86

unlimited

not published

Additional protocol to the ECSC-Iceland agreement consequent to the accession of Spain and Portugal to the Community

signed 14.7.86

unlimited

L 328, 1986

Agreement in the form of exchange of letters between E E C and Iceland concerning non-agricultural and processed agricultural products not covered by the agreement

signed 14.4.89

unlimited

L136,1989

Second additional protocol between E E C and Iceland consequent to accession of Spain and Portugal to the Community

signed 9.6.89

unlimited

L 206,1989

Third additional protocol etc [as above)

signed 25.7.89

unlimited

L 295, 1989

Supplementary protocol to EEC-Iceland agreement concerning the elimination of existing and prevention of new quantitative restrictions affecting exports or measures having equivalent effect (implemented by measures in OJ L 74 1990)

signed 30.10.89

unlimited (subject to 12 months* notice)

L 14, 1990

Framework agreement for scientific and technical co-operation between the European Communities and Iceland

renewable tacitly*

L 400, 1989

1.1.90 signed 19.12.89

1.1.90 to 31.12.94

L 102, 1990

1.7.1973

unlimited

L171, 1973

Preferential trade agreement establishing a free trade area for industrial products; may be denounced subject to 12 months' notice; for amendments or derogations see OJ L 357, 1973; OJ L 338, 1975; OJ L 298,1976; OJ L 338, 1976; OJ L 303, 1978; last amended by OJ L 180,1988; the third protocol annexed to the original agreement was amended several times by decisions of the Joint Committee or by exchanges of letters; in 1984 an exchange of letters replaced the original protocol with a new text (see OJ L 323, 1984)

1.1.1975

unlimited

L 348,1974

Agreement between the member states of the ECSC, the ECSC amd Norway

1.1.1981

unlimited

L 357, 1980

Additional protocol to EEC-Norway agreement consequent on Greek accession

signed 6.11.1980

unlimited

not published

Additional protocol to ECSC-Norway agreement consequent on Greek accession

signed 2.2.1981

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

16.6.1981

10 years; renewable

L 226,1980

Agreement on fisheries; renewable for 6-year periods unless 9 months' notice of termination is given prior to expiry date of each period; agreement is based on the principle of reciprocal access to fisheries

signed 21.11.1983

unlimited

not published

Exchange of letters in the field of consumer protection

signed 7.12.89

Norway

Agreement between E E C and Iceland on Trade Electronic Data Interchange Systems (Tedis) Agreement between E E C and Iceland establishing co-operation in the field of training in the context of implementation of Comett II, 1990-94 (a range of transnational projects to strengthen and encourage cooperation between universities and industry

84

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

6.1—continued

Country

Entry into force

Duration

OJ no.

Notes

Norway

signed 13.1.85

unlimited (subject to two weeks' notice)

not published

Agreement between E E C , Norway and Sweden concerning regulation of fishing in the Skagerrak and the Kattegat

L 22, 1986

Three exchanges of letters between Norway and E E C concerning reciprocal trade in cheese. (Included in this exchange are annexes on mutual information procedures, and non-application of monetary compensatory amounts to imports into the Community of cheese from Norway, adaptation of agreement as a result of enlargement of Community. For amendments see OJ L 362, 1988)

31.1.86

signed July 1987

unlimited (one year's notice)

L 78, 1986

Framework agreement for scientific and technical co-operation between E E C and Norway

14.7.86

unlimited

L 328, 1986

Agreement by exchange of letters between E E C and Norway concerning non-agricultural and processed agricultural products not covered by the agreement (in view of Iberian accession to the Community)

14.7.86

unlimited

L 328, 1986

Agreement by exchange of letters between E E C and Norway concerning agriculture and fisheries. (Two separate agreements: the second agreement contains clauses covering Canary Islands, Ceuta and Melilla.) (See also OJ L 366, 1989)

signed 14.7.86

unlimited

L 337, 1986

Additional protocol to (cont) agreement between E E C and Norway consequent to accession of Spain and Portugal to the Community

1.4.87

(lasts throughout the transitional period laid down by the accession treaty of Spain and Portugal)

L 196, 1987

Agreement by exchange of letters amending the agreement of 14.7.1986, adjusting the agreement between the E E C and Norway concerning mutual trade in cheese

signed 19.4.89

unlimited

L 136, 1989

Second additional protocol to agreement between E E C and Norway consequent to accession of Spain and Portugal to the Community

defacto

1986-1990 (renewable)

L 304, 1989

Co-operation agreement between E E C and Norway on research and development in the field of protection of the environment

signed 9.6.89

unlimited

L 206, 1989

Third additional protocol to agreement between E E C and Norway consequent to accession of Spain and Portugal to the Community

1.1.90

unlimited

L 295, 1989

Supplementary protocol to E E C - N o r w a y agreement concerning the elimination of existing, and prevention of new, quantitative restrictions affecting exports or measures having equivalent effect

1.1.89

defacto

1.1.89

until 31.12.91 (renewable)

L 74, 1990

Co-operation agreement between E E C and Norway in the field of medical and health research. (Research co-operation covers: Aids; age-related health problems; environment- and lifestyle-related health problems; health service research)

defacto

1.7.89

until 31.12.92 (subject to six months notice) renewable

L 50, 1990

Co-operation agreement between E E C and Norway on a programme plan to stimulate international co-operation and interchange needed by European research scientists (Science)

signed 7.12.89

renewable tacitly*

L 400,1989

Agreement between E E C and Norway on Trade Electronic Data Interchange Systems (Tedis)

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

85

Table 6.1 — continued Country

Entry into force

Duration

OJ no.

Notes

Norway

1.1.90

1.1.90 to 31.12.94

L 102, 1990

Agreement between E E C and Norway establishing co-operation in the field of training in the context of the implementation of Comett II, 1990-94 (a range of transnational projects to strengthen and encourage cooperation between universities and industry)

1.1.1973

unlimited

L 300, 1972

Preferential trade agreement establishing a free trade area for industrial products; may be denounced subject to 12 months' notice; for amendments or derogations see OJ L 298, 1976; OJ L 338, 1976; OJ L 210, 1978; OJ L 303, 1978; OJ L 216, 1988; the third protocol annexed to the original agreement was amended several times by decisions of the Joint Committee or by exchanges of letters; in 1984 an exchange of letters replaced the original protocol with a new text (see OJ L 323, 1984)

1.1.1973

unlimited

L 350,1973

Agreement between the member states of the ECSC and the ECSC and Sweden

29.5.1975

unlimited

L 106, 1975

Supplementary protocol to EEC-Sweden agreement

10.5.1976

unlimited

L 162, 1976

Agreement on co-operation in the field of controlled thermonuclear fusion and plasma physics; for amending protocol see OJ L 116, 1982

de facto 21.3.1977; entered into force 7.4.1981

10 years; renewable

L 226, 1980

Agreement on fisheries; renewable for 6-year periods unless denounced; based on the principle of reciprocal access to fisheries

signed 9.12.1977

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

signed 15.12.1980

unlimited

not published

Exchange of letters in the field of consumer protection

1.1.1981

unlimited

L 357,1980

Additional protocol to EEC-Sweden agreement consequent on Greek accession

signed 6.11.1980

unlimited

not published

Additional protocol to ECSC-Sweden agreement consequent on Greek accession

L 226,1980

Agreement on certain measures for the purpose of promoting the reproduction of salmon in the Baltic Sea; linked to 1977 agreement on fisheries and will remain in force as long as that agreement remains in force

Sweden

7.4.1981

signed 23.1.85

unlimited (subject to two weeks' notice)

not published

Agreement between E E C , Sweden and Norway on the regulation of fishing in the Skagerrak and the Kattegat

signed 13.1.86

unlimited

L 313, 1985

Framework agreement for scientific and technical co-operation between E C and Sweden. (Co-operation in specific areas concluded by separate agreements)

signed 14.7.86

unlimited

L 328, 1986

Agreement by exchange of letters between E E C and Sweden concerning non-agricultural and processed agricultural products not covered by agreement. (Takes into account Iberian accession)

signed 14.7.86

unlimited

L 328, 1986

Agreement by exchange of letters between E E C and Sweden concerning agriculture and fisheries. (Two separate agreements: the second includes clauses concerning the Canary Islands, Ceuta and Melilla.) (See also OJ L 366, 1989)

86

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table 6.1 —continued Country

Entry into force

Duration

OJ no.

Notes

Sweden

signed 14.7.86

unlimited

L 337, 1986

de facto 1.1.88

for duration of programme (Four years from 1.1.86)

L 276, 1988

Additional protocol to the agreement between E E C and Sweden consequent to the accession of Spain and Portugal to the Community. Co-operation agreement between E E C and Sweden on research in field of wood, including cork, as a renewable raw material. (NB. The agreement should not be deemed to have expired because there is a delay in the adoption of a future programme)

de facto 1.1.88

for duration of programme (Four years from 1.1.86)

L 276, 1988

Co-operation agreement between E E C and Sweden on research in field of recycling and utilisation of waste. (NB. The agreement should not be deemed to have expired because there is a delay in the adoption of a future programme)

signed 16.3.89

unlimited

L 136, 1989

Second additional protocol to agreement between E E C and Sweden consequent to accession of Spain and Portugal to the Community

signed 13.6.89

unlimited

L 206, 1989

Third additional protocol to agreement between E E C and Sweden consequent to accession of Spain and Portugal to the Community

signed 18.7.89

unlimited

L 295, 1989

Supplementary protocol to EEC-Sweden agreement concerning the elimination of existing, and prevention of new, quantitative restrictions affecting exports or measures having equivalent effect

de facto 1.1.88

until 31.12.91 (renewable)

L 74, 1990

Co-operation agreement between E E C and Sweden in the field of medical and health research. (Research co-operation covers: cancer; Aids; age-related health problems; environment- and lifestyle-related health problems; medical technology development)

de facto 1.7.89

until 31.12.92 (subject to six months notice) renewable

L 50, 1990

Co-operation agreement between E E C and Sweden on a programme plan to stimulate international co-operation and interchange needed by European research scientists (Science)

signed 7.12.89

renewable tacitly*

L 400, 1989

Agreement between E E C and Sweden on Trade Electronic Data Interchange Systems (Tedis)

1.1.90

1.1.90 to 31.12.94

L 102, 1990

Agreement between E E C and Sweden establishing co-operation in the field of training in the context of the implementation of Comett II, 1990-94 (a range of transnational projects to strengthen and encourage co-operation between universities and industry)

1.6.1957

unlimited

OJ E C S C 1 7 , 1957

Agreement on the introduction through international railway tariffs for the carriage of coal and steel through Swiss territory; for supplementary protocol see OJ L 12, 1979; for second supplementary protocol see OJ L 227, 1981 and OJ L 307, 1981; for third supplementary protocol see OJ L 397, 1987

1.1.1968

unlimited

not published

Agreement concerning products of the clock and watch industry; amended by new listing (see OJ L 253, 1977)

1.1.1973

unlimited

L 118. 1974

Additional agreement to the agreement concerning products of the clock and watch industry; amended by new listings (see OJ L 94, 1987)

1.1.1973

unlimited

L 300, 1972

Preferential trade agreement establishing a free trade area; may be denounced subject to 12 months' notice; amended by exchange of letters (see OJ L 303, 1978); for amendments or derogations see OJ L 298, 1976; OJ L 338,

Switzerland

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

87

6.1—continued

Country

Entry into force

Duration

OJ no.

Switzerland

Notes 1976; OJ L 116, 1978; OJ L 303, 1978; OJ L 337, 1983; supplementary protocol governed by developments affecting the EEC-Switzerland agreement (see OJ L 106,1975); the third protocol annexed to the original agreement was amended several times by decisions of the Joint Committee or by exchanges of letters; in 1984 an exchange of letters replaced the original protocol with a new text (see OJ L 323, 1984)

1.1.1974

unlimited

L 350, 1973

Agreement between the member states of the ECSC and Switzerland; additional agreement concerning the validity of the agreement for Liechtenstein

1.1.1974

unlimited

L 294, 1972

Agreement on the application of the rules on Community transit; scope extended by agreement between the E E C , Switzerland and Austria (see OJ L 142, 1977); the text in the Greek language was the subject of an agreement (see OJ L 147,1981); for amendments and derogations see OJ L 151, 1977; OJ L 155, 1980; OJ L 19, 1982; OJ L 180, 1982; OJ L 285,1982; OJ L 355, 1982; OJ L 339, 1983; OJ L 312, 1984; OJ L 226, 1987; OJ L 332, 1987

signed 5.12.1974

unlimited

not published

Exchange of letters between the Commission and Switzerland concerning recognition by Swiss authorities of laissez-passer issued by the Community to members and servants of the institutions

12.12.1975

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

30.5.1979

unlimited

L 242, 1978

Agreement on co-operation in the field of controlled thermonuclear fusion and plasma physics; for amending protocol see OJ L 116, 1982

1.1.1981

unlimited

L 357. 1980

Additional protocol to EEC-Switzerland agreement consequent on Greek accession

signed 6.11.1980

unlimited

not published

Additional protocol to ECSC-Switzerland agreement consequent on Greek accession

signed 6.11.1980

unlimited

not published

Supplementary protocol to additional agreement concerning the validity for Liechtenstein of the E C S C Switzerland agreement consequent on Greek accession

signed 10.10.89

C 154, 1983

Agreement on direct insurance other than life insurance; the purpose of the agreement is to provide reciprocal guarantees for direct insurance companies, with registered places of business in the Community or Switzerland, regarding identical conditions of access and practice on the territory of the other contracting party; this is the first agreement the E E C has signed on the right of establishment in the insurance sector

19.11.1982

not published

Exchange of letters concerning the exchange of information in the nuclear sector

21.6.1984

5 years; renewable

not published

Agreement on research and development in high-level radioactive waste management

15.10.1984

unlimited

L 187,1984

Exchange of letters concerning the direct collaboration of the services for repression of fraud in the Community and the relevant Swiss government department concerned

signed 1.1.86

unlimited

L 309, 1985

Agreement by exchange of letters between E E C and Switzerland on trade arrangements for soups, sauces and condiments

Community Issues: Table 6.1 Agreements with Countries in Northern Europe

Table

6.1—continued

Country

Entry into force

Switzerland

17.7.87

OJ no.

Notes

unlimited

L 313, 1985

F r a m e w o r k a g r e e m e n t for scientific a n d technical c o - o p e r a t i o n b e t w e e n E C a n d Switzerland

signed 14.7.8

unlimited

L 328, 1986

A g r e e m e n t by e x c h a n g e of letters b e t w e e n E E C a n d Switzerland c o n c e r n i n g non-agricultural a n d p r o c e s s e d agricultural p r o d u c t s not c o v e r e d by a g r e e m e n t . ( T a k e s into a c c o u n t I b e r i a n accession)

signed 14.7.86

unlimited

L 328. 1986

A g r e e m e n t by e x c h a n g e of letters b e t w e e n E E C a n d Switzerland c o n c e r n i n g agriculture a n d fisheries. ( T w o s e p a r a t e a g r e e m e n t s : the s e c o n d includes clauses c o n c e r n i n g the C a n a r y Islands, C e u t a a n d Melilla.) (See also O J L 366, 1989)

signed 14.7.86

unlimited

L 337, 1986

A d d i t i o n a l p r o t o c o l to the a g r e e m e n t b e t w e e n E E C a n d Switzerland c o n s e q u e n t t o accession of Spain a n d P o r t u g a l to the C o m m u n i t y

signed 14.7.86

unlimited

not p u b l i s h e d

A g r e e m e n t b e t w e e n the m e m b e r states of the E C S C a n d Switzerland c o n s e q u e n t to the accession of Spain a n d Portugal to the C o m m u n i t y

signed 25.11.87

unlimited

L 289, 1987

A g r e e m e n t by e x c h a n g e of letters a m e n d i n g t h e a g r e e m e n t b e t w e e n the E E C a n d Switzerland c o n c e r n i n g certain cheeses. (Original a g r e e m e n t was p u b l i s h e d in O J L 257, 1969)

signed 13.11.87 ( e x c h a n g e of letters)

unlimited

L 46, 1988

C o - o p e r a t i o n a g r e e m e n t c o n c e r n i n g t e c h n o l o g y , by e x c h a n g e of letters b e t w e e n Switzerland and E E C . E C S C and E u r a t o m . r e p r e s e n t e d by t h e C o m m i s s i o n of t h e European Communities

T h e d u r a t i o n of the p r o g r a m m e of the contracting party that expires first

L 195, 1988

C o - o p e r a t i o n a g r e e m e n t b e t w e e n E E C a n d Switzerland o n research a n d d e v e l o p m e n t in the field of w o o d , including c o r k , as a r e n e w a b l e raw m a t e r i a l . ( N B . T h e a g r e e m e n t should not b e d e e m e d to h a v e e x p i r e d b e c a u s e t h e r e is a delay in the a d o p t i o n of a f u t u r e p r o g r a m m e )

T h e d u r a t i o n of the p r o g r a m m e of the contracting p a r t y that expires first

L 195, 1988

C o - o p e r a t i o n a g r e e m e n t b e t w e e n E E C a n d Switzerland o n research a n d d e v e l o p m e n t in t h e field of a d v a n c e d materials ( E u r a m ) . ( N B . T h e a g r e e m e n t s h o u l d not b e d e e m e d t o h a v e e x p i r e d b e c a u s e t h e r e is a delay in the a d o p t i o n of a f u t u r e p r o g r a m m e )

signed 20.3.89

unlimited

L 136. 1989

Second a d d i t i o n a l protocol t o a g r e e m e n t b e t w e e n E E C and Switzerland c o n s e q u e n t to accession of Spain a n d Portugal t o the C o m m u n i t y

signed 23.6.89

unlimited

L 206, 1989

T h i r d additional p r o t o c o l to a g r e e m e n t b e t w e e n E E C a n d Switzerland c o n s e q u e n t to accession of Spain a n d Portugal to the C o m m u n i t y

12.7.89

unlimited

L 295, 1989

S u p p l e m e n t a r y p r o t o c o l to E E C - S w i t z e r l a n d a g r e e m e n t c o n c e r n i n g the elimination of existing, a n d p r e v e n t i o n of n e w , q u a n t i t a t i v e restrictions affecting e x p o r t s or m e a s u r e s having e q u i v a l e n t effect

until 31.12.91 (renewable)

L 7 4 , 1990

C o - o p e r a t i o n a g r e e m e n t b e t w e e n E E C a n d Switzerland in the field of medical a n d health r e s e a r c h . ( R e s e a r c h c o - o p e r a t i o n covers: c a n c e r ; A i d s ; age-related health p r o b l e m s ; e n v i r o n m e n t - a n d lifestyle-related health p r o b l e m s ; medical technology d e v e l o p m e n t ; health service research)

de facto

1.1.89

Duration

Community Issues: Table 6.2 Agreements with Countries in Southern Europe

Table

89

6.1—continued

Country

Entry into force

Duration

OJ no.

Notes

Switzerland

de facto 1.7.89

until 31.12.92 (subject to six months notice) renewable

L 50, 1990

Co-operation agreement between E E C and Switzerland on a programme plan to stimulate international co-operation and interchange needed by European research scientists (Science)

signed 7.12.!

renewable tacitly*

L 400, 1989

Agreement between E E C and Switzerland on Trade Electronic Data Interchange Systems (Tedis)

1.1.90

1.1.90 to 31.12.94

L 102, 1990

Agreement between E E C and Switzerland establishing co-operation in the field of training in the context of the implementation of Comett II, 1990-94 (a range of transnational projects to strengthen and encourage co-operation between universities and industry)

" The Tedis programme ran initially from 1.1.88 to 31.12.89. The agreement shall not be regarded as lapsed because of delay in adoption of new programme.

TABLE 6.2: AGREEMENTS WITH COUNTRIES IN SOUTHERN EUROPE Country

Entry into force

Duration

OJ no.

Notes

Cyprus

1.6.1973

unlimited

L 133, 1973

Association agreement; first stage ended 30.6.1977; subsequently extended for an unlimited period by additional protocol (OJ L 339, 1977 and OJ L 84, 1980); second stage provided for progressive establishment of customs union. A protocol laying down the conditions and procedures for implementation of the second stage of the agreement was published in OJ L 393, 1987 (entry into force 1.1.88). The completion of the second stage takes place in two phases, the first phase ending 10 years after the entry into force of this protocol the second phase being of five years' duration

1.6.1973

unlimited

L 133. 1973

Protocol laying down provisions relating to the CyprusE E C agreement consequent on accession of new member states to the Community; first stage ended 30.6.1977; subsequently extended for an unlimited period

1.8.1981

unlimited

L174,1981

Protocol to EEC-Cyprus agreement consequent on Greek accession

1.1.8

unlimited

L 393, 1987

Protocol to the association agreement between the EEC and Cyprus consequent to the accession of Spain and Portugal to the Community

1.6.90

1.1.90 to 31.12.93

1.4.1971

unlimited

L 61,1971

Association agreement; first stage twice extended by an agreement and additional protocol (see OJ L 81, 1976; OJ L 304, 1977)) trade provisions unilaterally extended by EC for six-month periods

1.6.1976

unlimited

L 111, 1976

Protocol laying down certain provisions relating to E E C Malta agreement concerning definition of the concept of 'originating products' and methods of administrative co-operation; for amendments see OJ L 143, 1984; OJ L 196, 1984; OJ L 361, 1986; OJ L 397, 1987

Malta

Third financial protocol providing Ecu 62m in grants and loans for co-operation projects to help in the restructuring and modernisation of the Cypriot economy

90

Table

Community Issues: Table 6.2 Agreements with Countries in Southern Europe

6.2—continued

Country

Entry into force

Malta

1.4.89

Turkey

Duration

OJ no.

Notes

L 81, 1989

Supplementary protocol to the agreement establishing an association between the E E C and Malta. (The first stage of the agreement is extended until 31.12.90. Twelve months prior to the expiry of stage one, negotiations will take place to define content of stage two.) Annexed to supplementary protocol is an agreement by exchange of letters regarding trade in malt beers, entry into force 1.4.89 (OJ L 81, 1989)

signed 1.4.89

unlimited

L 81,1989

Protocol to the agreement between E E C and Malta consequent to the accession of Spain and Portugal to the Community

1.8.89

until 31.10.93

L 180, 1989

Protocol on financial and technical co-operation between E E C and Malta, providing Ecu 38m in grants and loans towards the economic and social development of Malta

1.12.1964

unlimited

L 217, 1964

Association agreement providing for three stages: a preparatory stage (about five years), a transitional stage (12 years) involving establishment of a customs union, and a final stage; Provisional Protocol and Financial Protocol annexed to agreement (Supplementary Protocol OJ L 53, 1988)

17.11.1964

unlimited

L 217, 1964

Agreement on measures and procedures required for the implementation of the Association agreement and the agreement on the financial protocol

L 293, 1972

Additional protocol and financial protocol to E E C Turkey agreement establishing conditions, arrangements and timetable for the transitional stage amended by exchange of letters, OJ L 34, 1974; in September 1982 Turkey asked for deferment of application of Article 10 of the protocol; a proposal for a regulation implementing Association Council Decision 3/80 extending social security arrangements of the Community member states to Turkish workers and their families is before the Council

1.1 1973

1.1.1973

unlimited

L 2 9 3 , 1972

Agreement on products within the province of the ECSC; for supplementary protocol see OJ L 361, 1977

1.3.86

unlimited

L 361,1977

Supplementary protocol to E E C - T u r k e y agreement consequent on accession of new member states to the Community; includes supplementary protocol on products within the province of the ECSC and Supplementary Internal Financial agreement

signed 23.7.87

unlimited

not published

Protocol to the agreement between E E C and Turkey consequent to the accession of Spain and Portugal to the Community

23.7.87

unlimited

not published

Protocol to the agreement between the member states of the ECSC and Turkey regarding ECSC products consequent to the accession of Spain and Portugal to the Community

1.11.87

until 31.12.90

L 358, 1988

Agreement by exchange of letters between the E E C and Turkey fixing the additional amounts to be deducted from the levy on imports into the Community of untreated olive oil originating in Turkey

Community Issues: Table 6.2 Agreements with Countries in Southern Europe

Table

91

6.2—continued

Country

Entry into force

Duration

OJ no.

Notes

Yugoslavia

1.4.1983

unlimited

L 41, 1983

Co-operation agreement providing for co-operation in the fields of labour, industry, science and technology, energy, agriculture, transport, tourism, environment and fishing; the agreement is for an unlimited period except for the trade and financial provisions, which are for a period of five years; the agreement is accompanied by Protocol One on the products referred to in Article 15, Protocol Two on financial co-operation. Protocol Three concerning the definition of the concept of 'originating products' and methods of administrative co-operation (last amendment OJ L 392, 1989), and a Final Act. A Second Protocol on financial co-operation was published in OJ L 389, 1987, comprising a global package of Ecu 550m of loans from the EIB (until 30.6.91)

1.4.1983

unlimited

1.41,1983

Agreement between the member states of the ECSC, ECSC and Yugoslavia, established in conjunction with the EEC-Yugoslavia Co-operation agreement

de facto 1.1.1981; signed 8.5.1981

31.3.1984; renewed

L 137, 1981

Voluntary restraint agreement on trade in sheepmeat and goatmeat; renewable unless one year's notice is given; see OJ L 154, 1984; see also OJ L 83 & 95, 1990.

1.4.1981

unlimited

L 147, 1981

Exchange of letters on trade and co-operation

25.1.1983

unlimited

L 41, 1983

Exchange of letters amending EEC-Yugoslavia co-operation agreement

signed 26.7.83

unlimited

L 237, 1983

Agreement by exchange of letters between the E E C and between the member states of the ECSC and Yugoslavia establishing certain procedures for the use of the system of generalised trade preferences (covers ECSC products originating in Yugoslavia)

de facto 1.1.87

31.12.91

L 318, 1987

Additional protocol to the co-operation agreement between the E E C and Yugoslavia concerning trade in textile products (last amendment published in OJ L 396, 1989). Amendments to quantitative restrictions provisionally applicable from 1.1.88)

signed 10.12.87

some provisions apply until 31.12.91, others until 31.12.95

L 389, 1987

Additional protocol to the co-operation agreement between the E E C and Yugoslavia establishing new trade arrangements (necessary because of expiry of agreement on 30.6.85, and to take into account accession of Spain and Portugal to the Community)

signed 10.12.89

unlimited

not published

Protocol to the co-operation agreement between the E E C and Yugoslavia consequent to accession of Spain and Portugal to the Community

signed 10.12.87

unlimited

not published

Protocol to the agreement between the ECSC, the member states of the ECSC and Yugoslavia consequent to the accession of Spain and Portugal to the Community

92

Community Issues: Table 6.3: Agreements with State-Trading Countries

TABLE 6.3: AGREEMENTS WITH STATE-TRADING COUNTRIES Country

Entry into force

Duration

OJ no.

Notes

Bulgaria

1.1.1982

renewable (annually)

L 43,1982

Exchange of letters on trade in sheepmeat and goatmeat; renewable for 2-year periods unless 6 months' notice of termination is given prior to expiry date of each period (see OJ L 154, 1984); see also OJ L 83 & 95, 1990

de facto 1.1.87

until 31.12.90

L 287, 1987

Agreement between the E E C and Bulgaria on trade in textile products. Voluntary restraint agreement provisionally in force from 1.1.87

signed 8.5.90

Ten Years (renewable)

not published

Agreement between the E E C and Bulgaria concerning trade, commercial and economic co-operation. (Nonpreferential trade agreement covering industrial and agricultural products. Aim is to eliminate quantitative restrictions by the end of 1995. Economic co-operation is foreseen in a wide range of sectors)

1.10.85

Five years (renewable tacitly on a yearly basis)

L 250, 1985

Agreement on trade and economic co-operation between the E E C and China. (Regarding trade, the agreement confers the most favoured nation status on the parties economic co-operation encompasses industrial and mining sectors as well as agriculture, science and technology, energy, transport, protection of the environment and co-operation with developing countries)

de facto 1.1.89

until 31.12.92

L 380, 1988

Agreement between the E E C and China on trade in textile products

de factol.1.1982'. signed 5.11.1982

renewed

L 204, 1982

Voluntary restraint agreement on trade in sheepmeat and goatmeat; renewable unless 6 months' notice of termination is given prior to expiry date; see OJ L 154, 1984. (See also OJ L 83 & 95, 1990).

de facto 1.1.87

until 31.12.90

L 387, 1987

Agreement between the E E C and Czechoslovakia on trade in textile products. (Voluntary restraint agreement provisionally in force from 1.1.87. Contains 'anti-fraud' clause)

1.4.89

Four years (extendable year by year, subject to six months' notice)

L 88, 1989

Agreement between the E E C and Czechoslovakia on trade in industrial products. (Includes an exchange of letters concerning the combined nomenclature)

27.1.89 (date of letters)

unlimited

L 88. 1989

Agreement by exchange of letters between the E E C and Czechoslovakia concerning 'Testausschreibung'. (This is the name given to an import liberalisation scheme introduced in 1980 by West Germany. The scheme involves a number of industrial products still covered by quantitative restrictions. This exchange allows for information and prior consultation on the scheme's effect on Czech imports to West Germany)

signed 7.5.90

Ten Years (renewable)

not published

Agreement between the E E C and Czechoslovakia concerning trade, commercial and economic co-operation. (Non-preferential trade agreement covering industrial and agricultural products. It is hoped that quantitative restrictions will be eliminated by the end of 1994. Economic co-operation will cover a wide range of industrial and service sectors)

1.1.87

unlimited (subject to one year's written notice)

L 309, 1987

Agreement by exchange of letters between the E E C and G D R on trade in sheep and goats and sheepmeat and goatmeat. (Voluntary restraint agreement)

China

Czechoslovakia

German Democratic Republic

Community Issues: Table 6.3: Agreements with State-Trading Countries

Table

93

6.3—continued

Country

Entry into force

Duration

OJ no.

German Democratic Republic

signed 8.5.90

Ten years (renewable)

not published

Agreement between the E E C and G D R concerning trade. commercial and economic co-operation. (Non-preferential trade agreement covering industrial and agricultural products. Aim is to eliminate quantitative restrictions by the end of 1995. Economic co-operation is foreseen in a wide range of sectors.) This agreement provides that it shall not affect the 1957 protocol on inner-German trade

Hungary

de facto 1.1.1981 ; signed 10.7.1981

renewable (annually)

L150,1981

Voluntary restraint agreement on sheepmeat and goatmeat; renewable for 2-year periods unless 6 months' notice of termination is given prior to expiry date of each period; see OJ L 154, 1984. (See also OJ L 83 & 95, 1990)

de facto 1.1.87

until 31.12.90

L 331,1987

Agreement between the E E C and Hungary on trade in textiles. (Voluntary restraint agreement provisionally in force from 1.1.87)

1.12.!

Ten Years (renewable year by year, subject to six months' notice)

L 327 1988

Agreement on trade, commercial and economic co-operation between the E E C and Hungary. (Trade provisions cover both industrial and agricultural products. The agreement provides for the elimination, in three stages, of quantitative restrictions applied to imports of a range of Hungarian products. Hungary undertakes to improve access to its markets for Community exports. Economic co-operation will be in the fields of industry, mining, agriculture, research and development, energy, transport, tourism, and protection of the environment)

de facto 1.1.1981; signed 16.9.1981

annually renewable

L 137, 1981

Voluntary restraint agreement on trade in sheepmeat and goatmeat; renewable for 1-year periods unless 6 months' notice of termination is given prior to expiry date of each period (see also OJ L 83 & 95, 1990) DJ L 351,1989)

de facto 1.1.87

until 31.12.90

L156,1987

Agreement between the E E C and Poland on trade in textile products. (Voluntary restraint agreement provisionally in force from 1.1.87)

1.4.89 (date of letters)

Five years (renewable year by year, subject to six months' notice)

L 339, 1989

Agreement between the E E C and Poland on trade and commercial and economic co-operation. (Includes an exchange of letters concerning the combined nomenclature.) There is an exchange of letters concerning 'Testausschreibung'. (This is the name given to an import liberalisation scheme introduced in 1980 by West Germany. The scheme involves a number of industrial products still covered by quantitative restrictions)

1.1.90

For the duration of the Generalised System of Preferences regulations and any subsequent amending regulations

L 69, 1990

Agreement by exchange of lettes suspending Article 12 (1) of the agreement between the E E C and Poland on trade and commercial and economic co-operation. (The concessions given to Polish agricultural products under the GSP are wider than those agreed under the main agreement, as listed in Annexes IV and V.) (For GSP regulations see OJ L 383, 1989) products. (Voluntary restraint agreement provisionally in force from 1.1.87)

1.1.1981

Five years; renewable

L 352, 1980

Non-preferential trade agreement on trade in industrial products; renewable on annual basis; amended by subsequent exchanges of letters (see OJ L 369, 1981; OJ L 71,1983; OJ L 333,1984; OJ L 65,1987; OJ L 71,1988; OJ L 212,1989)

1.1.1981

unlimited

L 352, 1980

Agreement establishing a Joint Committee; agreement is unlimited unless 6 months' notice is given

Poland

Romania

Notes

94

Community Issues: Table 6.4: Agreements with Mashreq and Maghreb Countries and Israel

Table

6.3—continued

Country

Entry into

Romania

force

Duration

OJ no.

Notes

signed 28.4.1981

renewable

L 137, 1981

V o l u n t a r y restraint a g r e e m e n t on t r a d e in s h e e p m e a t a n d g o a t m e a t ( a m e n d m e n t s O J L 96. 1985; O J L 351, 1989; O J L 358, 1989; see also O J L 96, 1985; O J L 83 & 133, 1990)

defacto

until 31.12.90

L 318, 1987

A g r e e m e n t b e t w e e n the E E C a n d R o m a n i a o n t r a d e in textile p r o d u c t s . ( V o l u n t a r y restraint a g r e e m e n t provisionally in force f r o m 1.1.87. C o n t a i n s ' a n t i - f r a u d ' clause)

until 31.12.90 ( d u r a t i o n of design activities)

L 102, 1988

A g r e e m e n t of participation by E u r o p e a n A t o m i c E n e r g y C o m m u n i t y in t h e I n t e r n a t i o n a l T h e r m o n u c l e a r E x p e r i m e n t a l R e a c t o r ( I t e r ) c o n c e p t u a l design activities t o g e t h e r with J a p a n , U S S R a n d U n i t e d States

T e n years ( r e n e w a b l e year by y e a r subject t o six m o n t h s ' notice b e f o r e expiry)

L 68, 1990

A g r e e m e n t b e t w e e n the E E C a n d U S S R o n t r a d e a n d commercial and economic co-operation. A nonp r e f e r e n t i a l a g r e e m e n t covering all p r o d u c t s , with t h e e x c e p t i o n of t h o s e c o v e r e d by t h e E C S C t r e a t y , as well as those c o v e r e d by t h e textile a g r e e m e n t . T h e p a r t i e s accord each o t h e r t h e ' m o s t - f a v o u r e d n a t i o n ' t r e a t m e n t . T h e m a i n aim of the t r a d e provisions is the progressive elimination by the C o m m u n i t y of q u a n t i t a t i v e restrictions o n Russian g o o d s by 1995. Within the f r a m e w o r k of e c o n o m i c coo p e r a t i o n the following sectors a r e , inter alia, included: industry; mining; agriculture, including the agri-food industry; e n e r g y , including n u c l e a r safety; science a n d technology in fields of m u t u a l interest; financial services; t r a n s p o r t ; t o u r i s m ; p r o t e c t i o n of the e n v i r o n m e n t a n d n a t u r a l r e s o u r c e s ) . See also O J L 1 3 8 , 1 9 9 0

until 31.12.92 (subject ot six m o n t h s ' notice)

L 397, 1989

A g r e e m e n t b e t w e e n t h e E E C a n d U S S R o n t r a d e in textile p r o d u c t s ( ( i ) Q u a n t i t a t i v e i m p o r t restrictions f r o m U S S R of p r o d u c t s listed in A n n e x I are s u s p e n d e d ; (ii) the U S S R agrees to restrict the e x p o r t t o the C o m m u n i t y of p r o d u c t s listed in A n n e x II.) T h e r e is also an e x c h a n g e of letters which p r o v i d e s f o r consultations, u n d e r Article 18 of the a g r e e m e n t , t o e x t e n d scope t o o t h e r textile p r o d u c t s

1.1.87

U n i o n of Soviet Socialist Republics

1.4.90

defacto

1.1.90

TABLE 6.4: AGREEMENTS WITH MASHREQ AND MAGHREB COUNTRIES AND ISRAEL Country

Entry into

Algeria

force

Duration

OJ no.

Notes

signed 26.4.1976; e n t e r e d into f o r c e 1.11.1978 with effect from 1.1.1979

unlimited

L 263, 1978

C o - o p e r a t i o n a g r e e m e n t ; t r a d e provisions i m p l e m e n t e d f r o m 1.7.1976 by interim a g r e e m e n t ( O J L 141, 1976)

signed 26.4.1976; e n t e r e d into f o r c e 1.1.1978 with e f f e c t f r o m 1.1.1979

unlimited

L 263, 1978

A g r e e m e n t b e t w e e n the m e m b e r states of the E C S C a n d Algeria

1.7.1976

unlimited

L 169, 1976

Interim a g r e e m e n t c o n c e r n i n g C o m m u n i t y i m p o r t s of b r a n a n d s h a r p s originating in A l g e r i a

signed 7.11.1983

unlimited

not p u b l i s h e d

protocol to E C S C - A l g e r i a a g r e e m e n t c o n s e q u e n t o n G r e e k accession

signed 25.6.87

unlimited

L 297, 1987

A d d i t i o n a l protocol t o the c o - o p e r a t i o n a g r e e m e n t b e t w e e n t h e E E C a n d A l g e r i a . ( C o v e r s certain agricultural p r o d u c t s , c o n s e q u e n t t o t h e accession of Spain a n d Portugal t o the C o m m u n i t y )

Community Issues: Table 6.4: Agreements with Mashreq and Maghreb Countries and Israel

Table

95

6.4—continued

Country

Entry into force

Duration

OJ no.

Notes

Algeria

signed 26.10.87

until 31.10.91

L 22, 1988

Third protocol on the financial and technical co-operation between the E E C and Algeria. (Ecu 239m in grants and loans for projects such as agriculture, industry, science and technology, commerce and other services)

1.11.87

until 31.12.90 (subject to three months' notice)

L 358, 1988

Agreement by exchange of letters between the E E C and Algeria fixing the additional amount to be deducted from the levy on imports into the Community of untreated olive oil originating in Algeria

1.11.87

unlimited (denunciation before 30 September of year if required by either party)

L 358, 1988

Agreement by exchange of letters between the E E C and Algeria on import into the Community of tomato concentrates originating in Algeria (quantities not to exceed 100 tonnes in any year)

1.11.87

unlimited (denunciation before 30 September of year if required by either party)

L 358, 1988

Agreement by exchange of letters between the E E C and Algeria on import into the Community of preserved fruit salads originating in Algeria (quantities not to exceed 100 tonnes in any year)

signed 18.1.1971; entered into force 1.1.1978 with effect from 1.1.1979

unlimited

L 266, 1978

Co-operation agreement; trade provisions implemented by interim agreement (OJ L 126, 1977). A third Financial protocol (which expires on 31.10.91) allocates Ecu 449 m in grants and loans for projects in agricultural, industrial services, science and technology, and trade sectors (see OJ L 22,1988)

signed 18.1.1977; entered into force 1.1.1980

unlimited

L 316, 1979

Agreement between the member states of the ECSC and Egypt

12.12.1980

unlimited

not published

Additional protocol to EEC-Egypt agreement consequent on Greek accession

signed 12.12.80

unlimited

not published

Additional protocol to the agreement between the member states of the ECSC and Egypt, consequent to the accession of Greece to the Community

signed 22.6.87

unlimited

L 297 1987

Additional protocol to the co-operation agreement between the E E C and Egypt (covers certain agricultural products)

signed 25.6.87

unlimited

not published

Protocol to the E E C - E g y p t co-operation agreement consequent to the accession of Spain and Portugal to the Community

signed 25.6.87

unlimited

not published

protocol to the ECSC-Egypt co-operation agreement consequent to the accession of Spain and Portugal to the Community

1.7.1975

unlimited

L 1 3 6 , 1975

Free trade and co-operation agreement

1.5.78

unlimited

L 165 1975

Agreement between the member states of the ECSC and Israel

28.1.1977

unlimited

L 23, 1977

Exchange of letters concerning Community imports of tomato concentrates originating in Israel

signed 8.2.1977

unlimited

L 270, 1978

Additional protocol to EEC-Israel agreement

Egypt

Israel

96

Community Issues: Table 6.4: Agreements with Mashreq and Maghreb Countries and Israel

Table

6.4—continued

Country

Entry into force

Duration

OJno.

Notes

Israel

1.10.81

unlimited

L 102, 1981

Second additional protocol to E E C - I s r a e l a g r e e m e n t ; Protocol defers by 2 years timetable for dismantling of tariffs in respect of certain industrial products and expiry date of new industries clause

12.12.1980

unlimited

not published

Additional protocol to E E C - I s r a e l agreement consequent on G r e e k accession

signed 12.12.80

unlimited

not published

Additional protocol to the agreement between the E C S C and Israel

1.1.85

unlimited

L 332, 1984

Third additional protocol to the agreement b e t w e e n the E E C and Israel (customs duties and origin of products)

unlimited

not published

Protocols to the a g r e e m e n t s (i) between the E E C and Israel; (ii) b e t w e e n the E C S C and Israel, consequent to the accession of Spain and Portugal to the C o m m u n i t y

unlimited (review possible on examination of situation f r o m 1995 onwards)

L 327, 1988

Fourth additional protocol to the agreement between the E E C and Israel. (The objective is to maintain traditional trade flows to C o m m u n i t y of Israeli products)

1.1.89

until 31.10.91

L 327, 1988

Protocol relating to financial co-operation between the E E C and Israel. (Ecu 63m in E I B loans is available for capital projects helping to increase productivity and promotion of industrialisation of Israel)

1.1.89

unlimited (denunciation b e f o r e 30 September of year)

L 358,1988

A g r e e m e n t by exchange of letters between the E E C and Israel concerning the import into the C o m m u n i t y of preserved fruit salads originating in Israel (quantities not to exceed 220 tonnes in any year)

signed 18.1.1977; entered into force 1.11.1979; defacto 1.1.1979

unlimited

L 268, 1978

Co-operation a g r e e m e n t , t r a d e provisions i m p l e m e n t e d f r o m 1.7.1977 by interim a g r e e m e n t ( O J L 126, 1977)

1.1.1

unlimited

L 316,1979

A g r e e m e n t between the m e m b e r s of the E C S C and J o r d a n

signed 12.12.1980

unlimited

not published

Additional protocol to E E C - J o r d a n agreement consequent on G r e e k accession

signed 12.12.8

unlimited

not published

Additional protocol to the agreement b e t w e e n the E C S C and J o r d a n , consequent to the accession of G r e e c e to the Community

signed 1.1.8

unlimited

L 297, 1987

Additional protocol to the co-operation a g r e e m e n t between the E C S C and J o r d a n . (Objective is to maintain traditional exports to the C o m m u n i t y )

1.2.8

until 31.10.91

L 22,1988

Third financial protocol b e t w e e n the E E C and J o r d a n . (Provides for Ecu 100m in grants and loans is for co-operation projects in the fields of industry, training, research, technology, c o m m e r c e and services)

1.11.1978

unlimited

L 267, 1978

Co-operation a g r e e m e n t ; trade provisions i m p l e m e n t e d from 1.7.1977 by interim a g r e e m e n t (OJ L 133, 1977)

1.1.80

unlimited

L 316, 1979

A g r e e m e n t between the m e m b e r s of the E C S C and Lebanon

signed 12.12.1980

unlimited

not published

Protocol of E E C - L e b a n o n a g r e e m e n t consequent on G r e e k accession

signed 15.12.87

1.12.88

Jordan

Lebanon

Community Issues: Table 6.4: Agreements with Mashreq and Maghreb Countries and Israel

Table

97

6.4—continued

Country

Entry into force

Duration

Lebanon

signed 12.12.80

Morocco

OJ no.

Notes

unlimited

not published

Protocol to the agreement between the member states of the ECSC and Lebanon, consequent to the accession of Greece to the Community

signed 9.7.87

unlimited

not published

Protocol to the E E C - L e b a n o n co-operation agreement consequent to the accession of Spain and Portugal to the Community

signed 9.7.87

unlimited

L 297,1987

Additional protocol to the E E C - L e b a n o n agreement (object is to maintain traditional exports to the Community)

signed 9.7.87

unlimited

not published

Protocols to the ECSC-Lebanon agreement, consequent to the accession of Spain and Portugal to the Community

signed 1.3.88

until 31.10.91

L 22,1988

Third protocol on financial and technical co-operation between the E E C and Lebanon. (Ecu 73m in grants and loans is available for projects in the fields of industry, agricultural production, research, commerce and other services)

signed 27.4.1976; entered into force 1.11.1978 with effect from 1.1.1979

unlimited

L 264, 1978

Co-operation agreement; trade provisions implemented by interim agreement (OJ L 141, 1976)

1.1.1979

unlimited

L 264,1978

Agreement between ECSC and Morocco

29.6.1976

unlimited

L 1 6 9 , 1976

Exchange of letters concerning Community imports of bran and sharps originating in Morocco

initialled 22.7.1981

unlimited

initialled 25.2.88

not published

L 99,1988

Additional protocol to EEC-Morocco agreement consequent on Greek accession; additional protocol to ECSC-Morocco agreement consequent on Greek accession Agreement by exchange of letters concerning the provisional application of the agreement on relations in the seas fisheries sector between the E E C and Morocco

defacto 1.3.88 signed 26.5.88

4 years (renewable)

L 99,1988

signed 26.5.88

unlimited

L 224, 1988

Additional protocol to the E E C - M o r o c c o co-operation agreement (object is to maintain traditional trade flows)

26.5.88

until 31.10.91

L 224, 1988

Third protocol on financial and technical co-operation between the E E C and Morocco. (Ecu 324m in grants and loans is available for projects in the fields of industry, agriculture, science and technology, commerce and other services)

1.11.87

until 31.12.90

L 358, 1988

Agreement by exchange of letters between the E E C and Morocco fixing the additional amount to be deducted from the levy on imports into the Community of untreated olive oil originating in Morocco

1.11.87

unlimited (denunciation before 30 September of year if required by either party)

L 358, 1988

Agreement by exchange of letters between the E E C and Morocco on import into the Community of preserved fruit salads originating in Algeria (quantities not to exceed 100 tonnes in any year)

Agreement on relations in the seas fisheries sector between the E E C and Morocco. (Details licences required for fishing by Community vessels in Moroccan waters.) Protocol 1 sets out the fishing opportunities accorded by the Community for the duration of agreement

98

Table

Community Issues: Table 6.4: Agreements with Mashreq and Maghreb Countries and Israel

6.4—continued

Country

Entry into force

Syria

1.11.1978

Tunisia

Duration

OJ no.

Notes

unlimited

L 269, 1978

Co-operation agreement; trade provisions implemented from 1.7.1977 by interim agreement (OJ L 126, 1977). The proposed third Financial Protocol for Syria (Ecu 146m in grants and loans) has not been agreed by the Council

1.1.80

unlimited

L 316, 1979

Agreement between ECSC and Syria

initialled July 1981

unlimited

not published

Additional protocol to EEC-Syria agreement on Greek accession; additional Protocol to ECSC-Syria agreement on Greek accession

signed 16.6.i

unlimited

L 327, 1988

Additional protocol to the EEC-Syria co-operation agreement (object is to maintain traditional trade flows)

signed 25.4.1976; entered into force 1.11.1978

unlimited

L 265, 1978

Co-operation agreement; trade provisions implemented by interim agreement (OJ L 141, 1976; OJ L 185, 1976); for textile products, arrangements on limiting products to the Community negotiated annually

1.11.1978

unlimited

L 265, 1978

Agreement between ECSC and Tunisia

29.6.1976

unlimited

L 169, 1976

Exchange of letters concerning Community imports of bran and sharps originating in Tunisia

1.11.1978

unlimited

L 296, 1978

Exchange of letters concerning certain wines originating in Tunisia and entitled to designation of origin (amended by exchange of letters, OJ L 77, 1987)

signed 20.7.83

unlimited

C 115, 1983

Protocol to EEC-Tunisia agreement consequent on Greek accession

signed 20.7.83

unlimited

not published

Protocol to the agreement between the member states of the ECSC and Tunisia, consequent to the accession of Greece to the Community

signed 26.5.87

unlimited

L 297,1987

Additional protocol to the EEC-Tunisia co-operation agreement (object is to maintain traditional trade flows)

signed 1.5.88

until 31.10.91

L 22, 1988

Third protocol on financial and technical co-operation between the E E C and Tunisia. (Ecu 224m in grants and loans is available for projects in the fields of industry, agriculture, research, technology, commerce training and services)

unlimited (denunciation before 30 September of year if required by either party)

L 73,1989

Agreement by exchange of letters between the E E C and Tunisia on import into the Community of preserved fruit salads originating in Tunisia (quantities not to exceed 100 tonnes in any year)

Yemen Arab Republic

1.2.85

Five years (may be renewed tacitly for two-year periods)

L 26, 1985

Co-operation agreement between the E E C and the Yemen Arab Republic. (Trade and economic agreement. Nonpreferential trade with 'most-favoured nation' treatment. Possibility of eventual financial and technological co-operation)

Gulf Co-operation Council (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait)

1.1.90

unlimited (subject to six months' notice)

L 54, 1989

Co-operation agreement between the E E C and the countries party to the charter of co-operation of Arab states of the Gulf. (Economic and technical co-operation agreement in the fields of industry, trade and services, agriculture, fisheries, energy, science, technology and the environment. Article II of the agreement provides for expansion of trade by agreement)

Community Issues: Table 6.5 Agreements with Countries in North America

99

TABLE 6.5: AGREEMENTS WITH COUNTRIES IN NORTH AMERICA Country

Entry into force

Duration

OJ no.

Notes

Canada

18.11.1959

10 years; renewed

60, 1959

Agreement between Canada and the E A E C for co-operation in the peaceful uses of atomic energy; amended by agreement in the form of an exchange of letters of 16.1.1978 (OJ L 65,1978) and exchange of letters of 18.12.1980 (OJ L 27,1982); Amended and completed by exchange of letters signed 21.6.85 extending the agreement for another 20 years' duration (OJ L 191, 1985)

6.11.1975

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

1.10.1976

unlimited

L 260,1976

Non-preferential framework agreement for commercial and economic co-operation concluded by the Commission (Decision 76/753/EEC)

signed 26.7.1976; entered into force 1.2.1982

unlimited

L 260, 1976

Protocol concerning commercial and economic co-operation between the ECSC and Canada

1.1.1982

6 years

L 379, 1981

Framework agreement on fisheries establishing principle of reciprocal fishing rights. No new protocol has been negotiated because of Canada's refusal to allow access to Canadian waters owing to disputes over conservation in the N A F O fishing zone. (The framework agreement remains in force)

3.11.1980

5 years; renewable

not published

Agreement for co-operation with Canada in the field of nuclear waste management

signed 6.3.86

5 years (from entry into force)

L 35, 1986

Memorandum of understanding between E A E C , represented by the EC, and Canada concerning co-operation in the field of fusion research and development. (Sectors of research detailed in Annex)

signed 3.10.88

until 13.12.90 (duration of design activities)

L 291, 1988

Memorandum of understanding between E A E C and Canada on the involvement of Canada in the E A E C contribution to the International Thermonuclear Experimental Reactor (Iter) conceptual design activities co-operation in the field of fusion research and development. (Sectors of research detailed in Annex)

28.2.89

unlimited (30 days' notice)

L 71,1989

Agreement between the E E C and Canada concerning trade and commerce in alcoholic beverages. (Endeavours to ensure that measures currently in force in Canada on sales of E C products do not become more restrictive)

27.8.1958

unlimited

L 1 7 , 1959

Agreement between the E A E C and the government of the USA

18.2.1959

31.12.1995

L 1 7 , 1959

Agreement for co-operation between the USA and Euratom concerning peaceful uses of atomic energy; additional agreement signed 11.6.1960 (OJ L 31, 1961); for amendments see OJ L 72,1962; OJ L 139,1974

1.7.1974

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

June 1979

unlimited

not published

Exchange of letters on information in certain fields of safety and hygiene at work

signed 6.12.82

5 years; renewable

not published

Agreement between Euratom and the USA in the field of radioactive waste management research and development; co-operation concentrated on areas of research in the characterization of waste types and disposal in geological formations; agreement also covers exchange of scientific equipment

United States of America

100

Community Issues: Table 6.6: Agreements with Countries in Latin America

Table

6.5—continued

Country

Entry into force

Duration

OJ no.

Notes

United States of America

17.12.82

unlimited

not published

Agreement by exchange of letters on co-operation in the field of research and development concerning renewable energy

14.11.84

until 1.7.91 (as amended)

L 272, 1984

Agreement between the E E C and the US concerning fisheries off the coasts of the United States. (Amended by exchange of notes (entry into force 4.8.89 and applied from 1.7.89) OJ L 6 3 , 1989)

15.12.86

10 years

L 46, 1987

Agreement for co-operation between E A E C and United States Dept of Energy in field of controlled thermonuclear fusion. (The agreement allows for exchanges of personnel and equipment. It also contains provisions in the event of invention/discovery and intellectual property rights)

initialled 29.1.87

4 years

L 98,1987

Agreement for conclusion of negotiations between the EEC and US under Gatt Article XXIV.6 (consequent to Iberian accession to the Community)

L 62, 1987

Agreement by exchange of letters between the EEC and US on Mediterranean preferences, citrus and pasta (in the light of preferential agreements with Mediterranean countries)

signed 24.2.87

signed 20.11.89

until 31.3.92

L 368, 1989

Exchange of letters between the E E C and US on Community exports of pasta products to the US. (EEC undertakes to limit 'export refunds' on pasta products. This agreement also completes the Mediterranean preferences agreement)

defacto

until 31.12.90 (duration of design activities)

L 102, 1988

Agreement of participation by European Atomic Energy Community in the International Thermonuclear Experimental Reactor (Iter) conceptual design activities together with Japan, USSR and United States (i) Arrangement concerning trade in certain steel products; (ii) arrangement concerning trade in steel pipes and tubes; (iii) consensus. (All concern details of export restraint of EC steel products listed in Article 3(a) of the 'Arrangement Products' destined for the US. Also aims to 'vigorously pursue' the liberalisation of markets and trade in steel under the Uruguay Round of multilateral trade negotiations)

1.10.89

TABLE 6.6: AGREEMENTS WITH COUNTRIES IN LATIN AMERICA Country

Entry into force

Duration

OJno.

Notes

Argentina

20.10.1980

31.3.1984; renewed

L 275, 1980

Voluntary restraint agreement on trade in mutton and lamb; renewable unless 1 year's notice given. (Currently being renegotiated)

unlimited

L 304,1984

Agreement on trade in hand-made products and handwoven textile fabrics

31.12.91

L 156, 1987

Agreement between the E E C and Argentina on trade in textile products. (Agreement concluded in the framework of MF A IV. Establishes voluntary restraint for certain products)

defacto 1.1.87 signed 30.9.86

Community Issues: Table 6.6: Agreements with Countries in Latin America

101

Table 6.6 continued Country

Entry into force

Duration

OJ no.

Notes

Argentina

signed 16.12.87

unlimited

L 24,1988

Agreement on the conclusion of negotiations between Argentina and E E C under Gatt Article XXIV.6. (Community undertakes to ensure imports of a fixed minimum quantity of com and sorghum into Spain from non-EEC sources)

signed 16.12.87

unlimited

L 24, 1988

Exchange of letters relating to Paragraph 2 of Annex 1 of the agreement on the conclusion of negotiations between Argentina and E E C under Gatt Article XXIV.6, and concerning the import into the Community of bran and sharps originating in Argentina

signed 2.4.90

5 years (renewable year by year subject to six months' notice)

not published

Framework agreement between the E E C and Argentina on trade and economic co-operation. (Parties accord each other the most-favoured nation treatment. A clause is included by which, by common agreement, the parties may enlarge the scope and degree of co-operation and allow for other sectoral agreements)

Bolivia!

1.1.1976

unlimited

L 313,1979

Agreement on trade in hand-made products

Brazil

signed 18.9.1980; entered into force 1.10.1982

5 years

L 281,1982

Non-preferential framework co-operation agreement. Includes protocol on commercial and economic co-operation between ECSC and Brazil

1982

1986 (renewed tacitly for threeyear periods)

L 219,1982

Exchange of letters concerning imports of manioc from Brazil and other supplier countries which are members of GATT

signed 14.10.83

For duration of main agreement

L 150, 1983

Agreement by exchange of letters concerning Article 10 of the framework agreement for co-operation between the E E C and Brazil

signed 14.10.83

for duration of main agreement

L 150, 1983

Additional protocol annexed following the accession of Greece to the European Community, to protocol concerning co-operation between the ECSC and Brazil. (Text of ECSC protocol in Greek)

defacto 1.1.87 initialled 12.9.86

until 31.12.91

L 263, 1987

Agreement between the E E C and Brazil on trade in textile products

Chile

1.1.1978

unlimited

L 313, 1979

Agreement on trade in hand-made products

Colombiat

defacto 1.1.87 initialled 3.6.86

until 31.12.91

L 292,1987

Agreement between the E E C and Colombia on trade in textile products

Ecuadort

1.1.1976

unlimited

L 313, 1979

Agreement on trade in hand-made products

El Salvador*

1.1.1978

unlimited

L 313,1979

Agreement on trade in hand-made products and handwoven textile fabrics

unlimited

L 304, 1984

Agreement on trade in hand-made products and handwoven textile fabrics

de facto 1.1.87 signed 3.12.87

until 31.12.91

L 292, 1987

Agreement between the E E C and Guatemala on trade in textile products

Haiti

defacto 1.1.87 signed 6.8.86

until 31.12.91

L 292, 1987

Agreement between the E E C and Haiti on trade in textile products

Honduras*

1.1.1977

unlimited

L 313, 1979

Agreement on trade in hand-made products and handwoven textile fabrics

Mexico

1.11.1975

5 years; renewed

L 247, 1975

Non-preferential agreement for commercial and economic co-operation; renewed automatically on annual basis unless 6 months' notice given

Guatemala*

102

Community Issues: Table 6.7: Agreements with Countries in Asia

Table

6.6—continued

Country

Entry into force

Duration

OJ no.

Notes

Mexico

defacto 1.1.87 signed 3.12.87

until 31.12.91

L 2 9 2 , 1987

Agreement between the E E C and Mexico on trade in textile products

Panamat

1.1.1976

unlimited

L 313, 1979

Agreement on trade in hand-made products

Paraguay

1.6.1976

unlimited

L 313,1979

Agreement on trade in hand-made products

Perut

defacto 1.1.87 initialled 13.6.86

until 31.12.91

L 263,1987

Agreement between the E E C and Peru on trade in textile products

Uruguay

1.8.1974

3 years; renewed

L 333, 1973

Non-preferential trade agreement; renewable automatically on annual basis unless 3 months' notice given prior to expiry date of each period

20.10.1980

31.3.1984; renewed

L 275, 1980

Voluntary restraint agreement on trade in mutton and lamb; renewable unless 1 years' notice of termination is given (Amendment OJ L 154, 1984)

1.1.1975

unlimited

L 313, 1979

Agreement on trade in hand-made products

defacto 1.1.87 initialled 10.11.86

until 31.12.91

L 263, 1987

Agreement between the E E C and Uruguay on trade in textile products

Cartagena Agreement (Bolivia, Peru, Colombia, Venezuela, Ecuador) [Also known as the Andean Pact]

1.2.87

5 years (renewable for two-year periods)

L 153,1984

Co-operation agreement between the E E C and the Cartagena Agreement and the member countries thereof. (Non-preferential agreement. Both parties confer on each other the most-favoured nation treatment. Includes a protocol concerning the ECSC, its members and the Andean Pact group)

Central American Agreement (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, as well as Panama)

1.3.87

5 years (renewable for two-year periods)

L172,1986

Co-operation agreement between the E E C and the parties to the General Treaty on Central American Economic Integration, as well as Panama. (Covers co-operation in the economic, commercial and development fields. Includes declarations on Generalised System of Preferences, maritime transport and co-operation and development)

Notes t See Cartagena Agreement. Ì See Central American Agreement.

TABLE 6.7: AGREEMENTS WITH COUNTRIES IN ASIA Country

Entry into force

Duration

OJ no.

Notes

Bangladesh

1.12.1976

renewable

L 3 1 9 , 1976

Non-preferential commercial co-operation agreement; renewable on annual basis unless 6 months' notice given prior to expiry

1.11.1974

L 313,1979

unlimited

Agreement on trade in hand-made products and handwoven textile fabrics

defacto 1.1.87 initialled 16.7.86

until 31.12.90

L 233,1987

Agreement between the E E C and Bangladesh on trade in textile products

defacto

until 31.12.91

L 97, 1988

Agreement between the E E C and Hong Kong on trade in textile products. (For amendments see OJ L 382,1988)

Hong Kong

1.1.87

Community Issues: Table 6.7: Agreements with Countries in Asia

Table 6.6

103

continued

Country

Entry into force

Duration

OJ no.

Notes

India

18.7.1975

unlimited

L190,1975

Agreement on trade in cane sugar (last amendment OJ L 72, 1989)

1.12.1981

5 years; renewable

L 328, 1981

Non-preferential economic and commercial co-operation agreement

1.9.1969

unlimited

L 313,1979

Agreement on trade in hand-made products and handwoven textile fabrics

signed 23.6.81

Duration of co-operation agreement

L 352,1981

Protocol concerning commercial and economic co-operation between ECSC and India

defacto 1.1.87 initialled 31.10.86

until 31.12.91

L 267,1987

Agreement between the E E C and India on trade in textile products. (See also amendment in OJ L 95, 1989)

1982

1986 (renewable tacitly for threeyear periods)

L 219,1982

Exchange of letters concerning imports of manioc from Indonesia and other supplier countries which are members of G A T T

1.9.1971

unlimited

L 313, 1979

Agreement on trade in hand-made products and handwoven textile fabrics

defacto 1.1.87 initialled 28.6.86

until 31.12.90

L 233, 1987

Agreement between the E E C and Indonesia on trade in textile products

Iran

1.9.1971

unlimited

L 313, 1979

Agreement on trade in hand-made products

Japan

1.6.1977

unlimited

not published

Exchange of letters concerning co-operation on environmental matters

until 31.12.90 (duration of design activities)

L 102,1988

Agreement of participation by European Atomic Energy Community in the International Thermonuclear Experimental Reactor (Iter) conceptual design activities together with Japan, USSR and United States

20.2.88

3 years renewable

L 57, 1989

Agreement for co-operation between E A E C and Japan in field of controlled thermonuclear fusion

Korea

defacto 1.1.87 initialled 8.8.86

until 31.12.91

L 263, 1987

Agreement between the E E C and the Korean Republic on trade in textile products. (Voluntary restraint agreement)

Laos

1.6.1975

unlimited

L 313, 1979

Agreement on trade in hand-made products

Macao

defacto 1.1.87 initialled 19.7.86

until 31.12.90

L 287, 1987

Agreement between the E E C and Macao on trade in textile products. (Voluntary restraint agreement)

Malaysia

1.1.1976

unlimited

L 313, 1979

Agreement on trade in hand-made products

defacto 1.1.87 initialled 26.8.86

until 31.12.90

L 233, 1987

Agreement between the E E C and Malaysia on trade in textile products. (Voluntary restraint agreement)

1.9.1969

unlimited

L176,1970

Agreement on trade in hand-made products and handwoven textile fabrics

1.5.86

5 years (renewable tacitly year by year)

L 1 0 8 , 1986

Agreement between the E E C and Pakistan for commercial, economic and development co-operation

defacto 1.1.87 initialled 12.9.86

until 31.12.91

L 255, 1987

Agreement between the E E C and Pakistan on trade in textile products. (Voluntary restraint agreement)

1.9.1971

unlimited

L 313, 1979

Agreement on trade in hand-made products

defacto 1.1.87 initialled 26.8.86

until 31.12.91

L 255, 1987

Agreement between the E E C and the Philippines on trade in textile products. (Voluntary restraint agreement.) (See also amendment in OJ L 95, 1989)

Indonesia

Pakistan

Philippines

104

Community Issues: Table 6.8: Convention with ACP States

Table

6.7—continued

Country

Entry into force

Duration

OJ no.

Notes

Singapore

defacto 1.1.87 initialled 26.8.86

until 31.12.91

L 156, 1987

Agreement between the E E C and Singapore on trade in textile products. (Voluntary restraint agreement)

Sri Lanka

1.1.1975

unlimited

not published

Exchange of letters on trade in coir products

1.12.1975

5 years; renewable

L 247, 1975

Non-preferential commercial co-operation agreement; renewable on annual basis unless 6 months' notice given prior to expiry

1.9.1971

unlimited

L 328,1982

Agreement on trade in hand-made products and handwoven textile fabrics

defacto 1.1.87 initialled 31.5.86

until 31.12.90

L 255, 1987

Agreement between the E E C and Sri Lanka on trade in textile products

1.1.1975

Thailand

ASEAN

unlimited

not published

Exchange of letters on trade in jute products

defacto 1.1.1982 signed 3.9.1982

5 years; renewable

L 219,1982

Co-operation agreement on manioc production, marketing and trade; lays down voluntary restraint arrangements for different export quantities for 5 years; in return Community agrees to supply technical and financial assistance for rural development and crop diversification projects. A protocol renewing the agreement from 1.1.87 until 3.12.90 was signed 23.5.86 (see OJ L 155, 1986)

1.9.1971

unlimited

L 313, 1979

Agreement on trade in hand-made products and handwoven textile fabrics

defacto 1.1.87 initialled 26.8.86

until 31.12.90 (as amended)

L 255, 1987

Agreement between the E E C and Thailand on trade in textile products. (Modified in OJ L 95,1989)

1.10.1980

5 years; renewable

L 144, 1980

Framework co-operation agreement; renewable for 2-year periods. A protocol, signed 15.11.84 (see OJ L 81, 1985) provides for the accession of Brunei-Darussalam to the agreement

TABLE 6.8: CONVENTION WITH AFRICAN, CARIBBEAN AND PACIFIC STATES (ACP STATES) Country

Entry into force

Duration

Notes

Angola, Antigua and Barbuda, Bahamas, Barbados, Belize, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad. Comoros, Congo, Djibouti, Dominica, Dominican Republic, Equatorial Guinea, Ethiopia, Fiji. Gabon, Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Haiti, Ivory Coast, Jamaica, Kenya, Kiribati, Lesotho, Liberia. Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Papua-New Guinea, Rwanda, St Christopher-Nevis, St Lucia, St Vincent and the Grenadines, Sâo Tomé e Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Vanuatu, Western Samoa, Zaïre, Zambia, Zimbabwe

defacto

Ten years

Comprehensive agreement providing for (i) trade co-operation; (ii) stabilization of export earnings (Stabex); (Hi) industrial, technical and financial co-operation; and (iv) respect for human dignity; (v) support for structural adjustment (taking into account social dimension and the constraints of political stability in each country); (vi) recognition of debt problems; (vii) re-inforcement of environmental measures vis-à-vis previous agreement (see L O M É C O N V E N T I O N S ) .

1.3.90

Community Issues: Table 6.8: Convention with A C P States

Table

105

6.8—continued

Country

Entry into force

Duration

OJ no.

Notes

Angola

initialled 30.4.87 prov applic from 3.5.87

Three years (renewable for twoyear periods)

L 341, 1987

Agreement between the E E C and Angola on fishing off Angola

3.5.89

One year

L 341, 1987

Protocol defining the fishing opportunities and financial compensation provided for in the agreement

Comoros

initialled 23.10.87

Three years (renewable for twoyear periods)

L 137, 1988

Agreement between the E E C and Comoros on fishing off Comoros. (Protocol attached gives details of the fishing opportunities and financial compensation provided by Community vessels)

Equatorial Guinea

initialled 3.12.84

Three years (renewable)

L 137, 1988

Agreement between the E E C and Equatorial Guinea on fishing off coast of Equatorial Guinea. (Amended by new agreement to take into account Iberian accession, OJ L 29, 1987)

de facto 27.6.89

Three years

L 125, 1990

Protocol establishing the fishing rights and financial compensation provided for in the main fishing agreement

Gambia

1.7.87

Three years (renewable for twoyear periods)

L 146, 1987

Agreement between the E E C and Gambia on fishing off Gambia. (Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Guinea

19.2.86

Three years (renewable)

L 111, 1983

Agreement between the E E C and Guinea on fishing off coast of Guinea. (Amended by new agreement to take into account Iberian accession, OJ L 29, 1987. Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Guinea Bissau

17.12.81

Renewable

L 226, 1980

Agreement between the E E C and Guinea Bissau on fishing off coast of Guinea Bissau. (Amended by a new agreement to take into account Iberian accession, OJ L 261, 1986)

de facto 16.6.89

Two years

L 125, 1990

Protocol establishing the fishing rights and financial compensation provided for in the main fishing agreement

Madagascar

21.5.86

Three years (renewable)

L 73, 1986

Agreement between the E E C and Madagascar on fishing off the coast of Madagascar. (Amended by agreement in OJ L 98, 1987 and protocol in OJ L 341, 1989)

Mauritania

initialled 14.5.87

Three years (renewable for twoyear periods)

L 388,1987

Agreement between the the coast of Mauritania. the fishing opportunities provided by Community

Mozambique

initialled 14.5.87 de facto 1.1.87

Five years (renewable for twoyear periods)

L 201, 1987

Agreement between the E E C and Mozambique on fishing off the coast of Mozambique. (Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Sao Tomé and Principe

18.4.85

Three years (renewable)

L 54, 1984

Agreement between the E E C and Sao Tomé on fishing off the coast of Sao Tomé. (Amended by new agreement to take into account Iberian accession, OJ L 337, 1987. Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Senegal

signed

Renewable

L 226, 1980

Agreement between the E E C and Senegal on fishing off the coast of Senegal. (Amended by agreement in OJ L 361, 1985 and by exchange of letters and protocol in OJ L 127, 1988)

E E C and Mauritania on fishing off (Protocol attached gives details of and financial compensation to be vessels)

106

Community Issues: Table 6.9: Agreements with Oceanic Countries

Table

6.8—continued

Country

Entry into force

Duration

OJ no.

Notes

Seychelles

signed 28.10.87

Three years

L160,1987

Agreement between the E E C and Seychelles on fishing off the coast of Seychelles. (Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Two years

L 1 2 5 , 1990

Agreement between the E E C and Sierra Leone on fishing off the coast of Sierra Leone. (Protocol attached gives details of the fishing opportunities and financial compensation to be provided by Community vessels)

Sierra Leone

TABLE 6.9: AGREEMENT WITH OCEANIC COUNTRIES Country

Entry into force

Duration

OJ no.

Notes

Auslralia

de facto 20.10.1980; signed 14.11.1980

31.3.1984; renewable

L 275, 1980

Voluntary restraint agreement on trade in mutton, lamb and goatmeat; renewable unless 1 year's notice of termination given

15.1.1982

30 years

L 281, 1982

Agreement between Euratom and Australia on nuclear transfers from Australia to Euratom

signed 12.11.86

unlimiLed

noL published

Arrangement between European Commission and Australia concerning co-operation in the field of science and technology

20.10.1980

31.3.1984; renewable

L 275, 1980

Voluntary restraint agreement on trade in mutton, lamb and goatmeat; renewable unless 1 year's notice of termination given. Two exchanges of letters amending the 1980 agreement were published in OJ L 318, 1989. (The first letter deals with overall quantities to be imported into the Community from 1989-1992; the second deals with quantities that may be imported into France and Ireland (both sensitive markets) in 1989 and 1990)

New Zealand

FIG. 8 EXTERNAL TRADE POLICY

F Faeroe Islands A self-governing region of Denmark, covered by Protocol 2 of the UK, Ireland and Denmark Accession Treaty, 1972. See E X T E R N A L T R A D E , Table 6:1. Commission responsibility: D-G I (External relations) Directorate G. Falkland Islands A dependent territory of the U K , covered by Part I V of the T R E A T Y O F R O M E and having O V E R S E A S C O U N T R Y / T E R R I T O R Y status, coming under Decision 86/283/EEC (OJ L 175 1986). Inquiries: UK Foreign and Commonwealth Office, Downing St, London SW1A 2AL. Commission responsibility: D - G VIII (Development). Farm accountancy data network This body collects accountancy data from a sample of agricultural holdings in the Community selected by the 12 member states. The F A D N survey relates to about 55,000 commercial farms ie, farms which market most of their production and which exceed a minimum level of economic activity. A large number of economic analyses have been based on F A D N data, notably on S E T - A S I D E and direct income aids. Farm Fund [European Agricultural Guidance and Guarantee Fund ( E A G G F ) ] A fund set up in 1962 which finances the Common Agricultural Policy (see A G R I C U L T U R E : CAP). The Farm Fund consists of two sections: (i) the Guarantee Section, which deals with the expenditure required for the operation of the markets and guarantees the I N T E R V E N T I O N P R I C E or support price system of the CAP; (ii) the Guidance Section, which dates from 1964 and deals mainly with socio-structural measures in the agricultural sector. The Guarantee Section developed very quickly and eventually accounted for 75 per cent of the Community budget. In recent years steps have been taken to reduce this percentage with the introduction of a more cautious price policy, the adoption of economy measures and greater emphasis on structural improvements, and Guarantee Section expenditure is now growing at a slower rate than

budget expenditure as a whole, although expenditure on markets still represented about two-thirds of the entire budget. The Guidance Section represents the structural part of the CAP and follows its general objectives (as laid down in the T R E A T Y O F R O M E , Article 39). Its activities are divided into direct and indirect measures. In the case of direct measures, aid is granted for private or public investment projects; in the case of indirect measures the fund reimburses member states for expenditure incurred for certain measures. Since it was set up, the Guidance Section has concentrated on the following fields: (i) structural improvement of farms; (ii) improvement of rural infrastructure; (iii) improvement of marketing and processing of agricultural and fishery products. The tables contain a list of the direct and indirect financial aid measures for private and public investors; information on the eligibility and selection criteria; and the financing rules, including the rate of Community participation, and procedures, including the submission of applications. Indirect measures are carried out on the Community's initiative and with its financial help (ranging from 25 per cent to 65 per cent) but they are executed by the member states concerned; these measures are listed in Table 2. The current rules governing the Community's S T R U C T U R A L F U N D S , including the Farm Fund, R E G I O N A L F U N D and S O C I A L F U N D , came into effect on 1 January 1989 and are based on a requirement of the S I N G L E E U R O P E A N A C T calling for 'a revision of the structure and operational rules of the existing structural funds in order to clarify their tasks so as to increase their efficiency and co-ordinate their activities'. Following this review the Council of Ministers adopted Regulation (EEC) 2052/88 (OJ L 185 1988) which laid down the broad framework for the reformed funds, Regulation (EEC) 4253/88 (OJ L 374 1988) which covered the co-ordination of the three structural funds, and Regulation (EEC) 4256/ 88 (OJ L 374 1988) covering the Farm Fund. As a result of this reorganisation, increased financial support will be available for restructuring of agricultural production and for the development of rural areas. The main change in the administra-

107

108

Community Issues: Table 7.1: Direct Measures

tion of the Guidance Section is the replacement of Regulation (EEC) 355/77 (OJ L 51 1977) by new regulations to encourage the processing and marketing of agricultural products, forestry products, and fishery and aquaculture products. See also

A G R I C U L T U R E : PROCESSING A N D M A R K E T -

ING; A G R I C U L T U R E : INFORMATION

AND

PRODUCTION GROUPING; TRAINING

SERVICES;

FARM

FARMING

MARGINAL TERRAIN; F A R M MODERNISATION;

FARM

RETIREMENT; F I N A N C E ; FORESTRY.

Commission responsibility: D-G VI (Agriculture) Directorate G.

TABLE 7 FARM FUND TABLE 7.1: DIRECT MEASURES Measure Improving the processing and marketing condition for agricultural products (Regulation ( E E C ) 866/ 90, O J L 91 1990) (in force 1.1.1990)

Eligibility Investment projects relating to: (1) rationalising or developing the preparation, treatment and processing of agricultural products* or recycling of by-products or manufacturing waste (2) improving market channels, including transparency of pricing (3) applying new processing techniques, including development of new products and by-products, or opening new markets and innovative investments. (4) improving product quality Eligible expenditure may include: (1) Construction and acquisition of immovable property, excluding land purchase (2) new machinery and equipment, including computer software and programs (3) fees for architects, engineers, consultants and costs of feasibility studies; up to 12% of the costs of building and machinery referred to in (1) and (2) above *

Improving the processing and marketing conditions for forestry products (Regulation ( E E C ) 867/90, O J L 91 1990) (in force 1.1.1990)

Improving the processing and marketing conditions for fishery and agriculture products (Regulation

Financial

provisions

Aid may be: (1) up to 50% of the investment costs in Objective 1 regions as defined in Regulation ( E E C ) 2052/88, OJ L 185 1988 or (2) U p to 30% in other regions. Aid will usually be in the form of capital grants. M e m b e r States will be required to finance at least 5% of the eligible costs. Beneficiaries of aid must finance at least 25% in areas covered by Objective 1, or 45% in other areas.

Procedures Aid maybe granted to natural or legal persons (or groups thereof) responsible for the cost of the investment. Proposed projects must be part of a sectoral plan drawn up by the Member State and approved by the Commission. Aid will be paid through the authority designated under Regulation ( E E C ) 4253/88, OJ L 374 1988.

Agricultural products are in general those listed in Annex II to the Treaty of Rome.

Investment projects for developing or rationalising the marketing and processing of forestry products. Projects must relate to felling, dismembering, stripping, cutting up, storage, protective treatment and drying of indigenous woods or any working operations before industrial sawing of wood at a sawmill. Preference will be given to small and medium-sized undertakings where the project may contribute to the improvement of the agricultural and rural environment.

Public, semi-public or private investment projects relating to fishery and agriculture products; covering: (1) premises and/or equipment for

Aid may be: (1) Up to 50% of the investment costs in Objective 1 regions as defined in Regulation ( E E C ) 2052/88, O J L 185 1988 or (2) U p to 30% in other regions. Aid will usually be in the form of capital grants. M e m b e r States will be required to finance at least 5% of the eligible costs. Beneficiaries of aid must finance at least 25% in areas covered by Objective 1, or 45% in other areas. Aid may be: (1) up to 50% of the investment costs in Objective 1 regions as defined in Regulation

Aid may be granted to natural or legal persons (or groups thereof) responsible for the cost of the investment. Proposed projects must be part of a sectoral plan drawn up by the M e m b e r State and approved by the Commission. Aid will be paid through the authority designated under Regulation ( E E C ) 4253/88, OJ L 374 1988.

Aid may be granted to natural or legal persons (or groups) responsible for the cost of the investment.

Community Issues: Table 7.2: Indirect Measures

Table

109

7.1—continued Measure

Eligibility

( E E C ) 4042/89, OJ L 388 1989) (in force 1.1.1990)

extension or rationalisation of facilities for cutting, filleting, salting, drying, smoking, removal of heads, evisceration and skinning for sousing, cooking and canning or other forms of packaging bulk packaging of products and packaging for retail sale auction markets and facilities for first-hand sale storage, cold-storage and deep freezing facilities (2) investments for new processing techniques (3) facilities for improved quality and hygiene of production and marketing conditions, particularly those for molluscs and shellfish, and water filtration (4) all equipment for processing and marketing from the time of landing from fishing vessels in ports to the final product.

Financial

Procedures

provisions

( E E C ) 2052/88, OJ L 185 1988

Proposed projects must be part of a sectoral plan drawn up by the Member State and approved by the Commission. Projects may be submitted under Regulation ( E E C ) 355/77 until 31 December 1990; and will be considered under that Regulation until 30 June 1991. Aid will be paid through the authority designated under Regulation (EEC) 4253/88, OJ L 374 1988.

or (2) up to 30% in other regions. Aid will be in the form of capital grants. Member states will be required to finance at least 5% of the eligible costs. Beneficiaries must finance at least 25% in areas covered by Objective 1, or 45% in other areas.

TABLE 7.2: INDIRECT MEASURES lab = last amended by Subject

Measure

References

SOCIO-STRUCTURAL MEASURES

lab also

Dir 72/159/EEC Reg ( E E C ) 3768/85 Dir 72/160/EEC Reg ( E E C ) 797/85 Reg ( E E C ) 1096/88

OJ OJ OJ OJ OJ

Socio-economic guidance and acquisition of occupational skills by persons engaged in agriculture

lab

Dir 72/161/EEC Reg ( E E C ) 797/85

OJ L 96 1972 OJ L 93 1985

Mountain and hill farming and farming in less-favoured areas

lab

Dir 75/268/EEC Reg ( E E C ) 797/85

OJ L 128 1975 OJ L 93 1985

lab

Dir 75/269/EEC Dec 77/456/EEC

OJ L 128 1975 OJ L 179 1977

lab

Dir 75/271/EEC Dec 89/565/EEC

OJ L 128 1975 OJ L 308 1989

lab

Dir 75/273/EEC Dec 89/252/EEC

OJ L 128 1975 OJ L 105 1989

Luxembourg:

Dir 75/274/EEC

OJ L 128 1975

Netherlands: lab

Dir 75/275/EEC Dir 88/403/EEC

OJ L 128 1975 OJ L 195 1988

lab

Reg ( E E C ) 1760/87 Reg ( E E C ) 1094/88

OJ L 167 1987 OJ L 106 1988

Reg ( E E C ) 1094/88 Reg ( E E C ) 1272/88 Reg ( E E C ) 1273/88

OJ L 106 1988 OJ L 121 1988 OJ L 1 2 1 1 9 8 8

Farm modernisation lab Cessation of farming and reallocation of agricultural areas for structural improvement

L L L L L

96 1972 362 1985 96 1972 93 1985 110 1988

Community list of less favoured areas within the meaning of Directive 75/268/EEC: Belgium: France: Italy:

Agricultural structures, the adjustment of agriculture to the new market situation and the preservation of the countryside Setaside of arable land and the extensification and conversion of production

110

Community Issues: Table 7.2: Indirect Measures

Table

7.2—continued Subject

Measure

References

Reg ( E E C ) 768/89 Reg ( E E C ) 1545/89

OJ L 84 1989 OJ L 1 5 1 1 9 8 9

Earthquake damage in Friuli-Venezia Giulia

Reg ( E E C ) 1505/76 Reg ( E E C ) 1677/76 Reg ( E E C ) 3108/76

OJ L 168 1976 OJ L 186 1976 OJ L 351 1976

Drainage operations in West of Ireland

Dec 79/423/EEC Dec 80/1507/EEC

OJ L 105 1979 OJ L 125 1980

French overseas departments damaged by hurricanes

Reg ( E E C ) 2395/79

OJ L 275 1979

Projects to improve public amenities in certain rural areas

Reg ( E E C ) 2467/79 Reg ( E E C ) 3397/82 Reg ( E E C ) 2650/80

OJ L 286 1979 OJ L 357 1982 OJ L 273 1980

Restructuring and conversion of vineyards in Mediterranean regions in France

Dec 80/505/EEC Dec 80/506/EEC

OJ L 125 1980 OJ L 125 1986

Acceleration and guidance of collective irrigation works in Corsica

Dec 80/1072/EEC

OJ L 318 1980

Reg ( E E C ) 692/80 Reg ( E E C ) 3397/82 Reg ( E E C ) 3135/80

OJ L 80 1980 OJ L 357 1982 OJ L 329 1980

Aid for forestry programmes in Mediterranean regions

Reg ( E E C ) 2416/80

OJ L 249 1980

Agricultural development in West of Ireland

Dec 81/917/EEC Dec 82/323/EEC

OJ L 342 1981 OJ L 144 1982

Development of agricultural advisory services in Italy

Dec 81/1067/EEC

OJ L 391 1981

Agricultural development in French overseas departments

Dec 82/441/EEC Dec 82/819/EEC

OJ L 198 1982 OJ L 344 1982

Development of beef cattle production in Ireland and Northern Ireland

Dec 82/442/EEC

OJ L 198 1982

Integrated development programme for Lozere

Dec 82/715/EEC

OJ L 301 1982

Development of sheep farming in Greenland

Dec 82/738/EEC

OJ L 3 1 1 1982

Reg ( E E C ) 289/82 Reg ( E E C ) 3397/82 Reg ( E E C ) 3123/82

OJ L 36 1982 OJ L 357 1982 OJ L 329 1982

Agricultural development in Northern Ireland

Dec 83/319/EEC

OJ L 174 1983

Integrated development programme for the Western Isles of Scotland (Outer Hebrides)

Dec 83/412/EEC

OJ L 235 1983

Promoting drainage in catchment areas on the border between Ireland and Northern Ireland

Dec 83/557/EEC

OJ L 323 1983

Agricultural development in regions of Greece

Dec 83/644/EEC

OJ L 359 1983

Flood protection programme in the Hérault valley

Dec 85/63/EEC

OJ L 24 1985

Integrated development in regions of Belgium

Reg ( E E C ) 304/85

OJ L 37 1985

Re-establishment of olive groves damaged by frost in regions of Greece

Reg ( E E C ) 3222/88

OJ L 288 1988

Agricultural development in northern Italy Emergency aid for agricultural regions of Valencia and Murcia

Dec 88/489 Reg ( E E C ) 3224/88

OJ L 249 1988 OJ L 288 1988

Emergency aid for regions of Portugal

Reg ( E E C ) 503/89

OJ L 58 1989

Direct aids to agricultural income lab LESS F A V O U R E D R E G I O N S

lab

Collective irrigation works in the Mezzogiorno lab

Improvement of public amenities in the Federal Republic of Germany

lab

COMMON ORGANISATION OF MARKETS Reimbursement of aid to organisations of fruit and vegetable producers

lab

Reg ( E E C ) 2264/69 Reg ( E E C ) 2589/85

OJ L 287 1969 OJ L 247 1985

Reimbursement of aid to groups of hop producers

lab

Reg ( E E C ) 1460/73 Reg ( E E C ) 1084/79

OJ L 145 1973 OJ L 135 1979

Community Issues: Table 7.2: Indirect Measures

Table 7.2—continued Measure

References

Reg (EEC) 2051/75 Reg (EEC) 363/85

OJ L 213 1975 OJ L 47 1985

Reimbursement of aid for grubbing apple and pear trees

Dec 77/490/EEC

OJ L 200 1977

Reimbursement of a conversion premium for wine

Dec 77/491/EEC

OJ L 200 1977

Reimbursement of aid to producer groups and associations thereof

Dec 81/524/EEC

OJ L 196 1981

Dec Dec Dec Reg Reg Dec Dec Dec

OJ OJ OJ OJ OJ OJ OJ OJ

Subject Reimbursement of aid for production and marketing of citrus fruit

lab

Restructuring of vineyards lab lab

81/525/EEC 86/271/EEC 81/625/EEC (EEC) 1679/81 (EEC) 3397/82 86/273/EEC 89/188/EEC 89/513/EEC

L 196 1981 L 171 1986 L 229 1981 L 171 1981 L 357 1982 L 171 1986 L 70 1989 L 253 1989

Reimbursement of aid to producer groups and associations in the cotton sector

Dec 83/465/EEC

Adaptation and modernisation of the production of beef and veal, sheep meat and goat meat in Italy

Dec 83/556/EEC

Aid to improve the wine sector in Greece

Dec 87/220/EEC

OJ L 92 1987

Dec Dec Dec Dec

OJ OJ OJ OJ

OJ L 255 1983 OJ L 323 1983

VETERINARY MEASURES Foot-and-mouth disease in south-east Europe lab

75/768/EEC 79/511/EEC 83/73/EEC 88/308/EEC

L L L L

321 1975 133 1979 47 1983 136 1988

Dec 79/324/EEC Dec 89/292/EEC

OJ L 77 1979 OJ L 114 1989

Dec 79/509/EEC Reg (EEC) 3768/85 Dec 86/650/EEC

OJ L 133 1979 OJ L 362 1985 OJ L 382 1986

Dec 79/510/EEC Dec 81/477/EEC

OJ L 133 1979 OJ L 186 1981

lab

Dec Reg Dec Dec

OJ OJ OJ OJ

lab

Dec 80/1096/EEC Dec 87/488/EEC Dec 82/690/EEC

OJ L 325 1980 OJ L 280 1987 OJ L 289 1982

lab

Dec 80/1097/EEC Reg (EEC) 3768/85 Dec 83/464/EEC

OJ L 325 1980 OJ L 362 1985 OJ L 255 1983

Contagious bovine pleuropneumonia in France

Dec 83/236/EEC Dec 84/494/EEC

OJ L 129 1983 OJ L 275 1984

Exotic foot-and-mouth disease in Greece

Dec 84/494/EEC

OJ L 275 1984

Blue tongue disease in Greece

Dec 85/34/EEC

OJ L 16 1985

Foot-and-mouth disease in the Federal Republic of Germany

Dec 89/492/EEC

OJ L 238 1989

Foot-and-mouth disease in Italy

Dec 89/493/EEC

OJ L 238 1989

Reg (EEC) 2572/78 Reg (EEC) 1898/80

OJ L 308 1978 OJ L 187 1980

Brucellosis, tuberculosis and leucosis in cattle African swine fever in Spain lab African swine fever in Malta lab African swine fever in Portugal lab

Eradication of classical swine fever

African swine fever in Sardinia

80/877/EEC (EEC) 3768/85 86/649/EEC 89/577/EEC

L 250 L 362 L 382 L 322

1980 1985 1986 1989

FISHERY MEASURES Aid for the inshore fishing industry lab Investment projects in fisheries and agriculture

Reg (EEC) 3166/83

OJ L 316 1983

Measures to adjust capacity in the fisheries sector

Dec 85/474/EEC

OJ L 284 1985

Projects to improve the conditions for processing and marketing agricultural and fish products

Reg (EEC) 2515/85

OJ L 243 1985

111

112

Community Issues: Farm information and training services

Farm information and training services Aid for farm guidance and information was until 1987 available from the F A R M F U N D , together with training schemes for farmers. The scheme was replaced by provisions of Regulation (EEC) 797/85 (OJ L 93 1985, as last amended by Regulation (EEC) 3803/89, OJ L 371 1989), and subsequently taken over by the reorganisation of the S O C I A L F U N D . See also

See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY; F I N A N C E ; STRUCTURAL FUNDS.

Commission responsibility: D - G VI (Agriculture) Directorate G.

AGRICULTURE: COMMON AGRICULTURAL

POLICY; FINANCE; STRUCTURAL FUNDS.

Commission responsibility: D-G VI (Agriculture) Directorate G(3). Farming: direct income aid The reforms to the Common Agricultural Policy (see A G R I C U L T U R E : CAP) have led to some inevitable cuts in the income of farmers, particularly in the small hill farms which are common in the less developed regions of the Community. In order to counteract this problem certain forms of aid are available to small farmers, including the special premium for male cattle to offset any loss of income from the market reorganisation in B E E F A N D V E A L . In 1987 the Commission proposed that those farmers hardest hit should be offered direct income support. The proposal was controversial, seen by some as a form of indefinite support for inefficient farms, and it was not until 1989 that the aid was agreed (Regulation (EEC) 768/ 89, OJ L 371 1989). The aid will run until 1993, and is not linked to production or to market prices; it is determined solely on the income of the farmer and family. It is up to the discretion of member states to make the scheme available to farmers. Commission responsibility: D-G VI (Agriculture) Directorate G. Farming marginal terrain Hill farms and others in difficult regions of climate or terrain may be helped by direct payments, depending on the scale of the farm (eg, headage payments on cattle and sheep) and by capital grant interest rebates for farm improvement or equipment. Aid was formerly from the F A R M F U N D then taken under the requirements of Regulation (EEC) 797/85 (OJ L 93 1985, as last amended by Regulation (EEC) 3808/89, OJ L 371 1989). See also

Farm modernisation Financial aid for the modernisation of farms is governed by Regulation (EEC) 797/85 (OJ L 93 1985, as last amended by Regulation (EEC) 3808/89, OJ L 371 1989).

AGRICULTURE: COMMON AGRICULTURAL

POLICY; FINANCE.

Commission responsibility: D-G VI (Agriculture) Directorate G(3).

Farm retirement In order to reduce the difficulties experienced by elderly farmers in adapting to changed agricultural markets, and being in an occupation where it is particularly hard to find alternative work, the Commission has introduced a scheme of early retirement for farmers aged over 55 (Regulation (EEC) 1096/88, OJ L 110 1988). The regulation is optional ie, it is at the discretion of member states whether or not it is available. The level of retirement pension is fixed by the member state in the light of current income and pension levels, but is not to exceed Ecu 3000 per farm per year. If early retirement is accompanied by SETA S I D E , the early retirement pension is supplemented by a premium per hectare. If the land is leased or sold to expanding farms, an undertaking must be given by the leaseholder not to increase his output of surplus products. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture) Directorate G(3). Fats, oils and oilseeds These products were brought under the rules of the Common Agricultural Policy in 1966 (Regulation (EEC) 136/66, OJ L 172 1966) mainly to avoid undercutting O L I V E OIL production. Legislation covers C A S T O R B E A N S , C O L Z A , R A P E S E E D A N D S U N F L O W E R S E E D , C O T T O N seeds, linseed, PEAS A N D F I E L D B E A N S , SOYA B E A N S , fats of vegetable origin (margarine) or extracts from fish. Seasonal G U I D E PRICES and I N T E R V E N T I O N PRICES are fixed by the Council of Ministers for these products, differing according to locality. Producers may also qualify for deficiency payments designed to cover the gap between the Community guide price and lower import world prices. While CUSTOMS D U T I E S are imposed on some lower-priced imports, there is no other control as these imports are protected by the rules of the G E N E R A L A G R E E M E N T ON

TARIFFS

PAYMENTS

AND

TRADE.

EXPORT

RESTITUTION

are available to exporters to bridge the

Community Issues: Fertilisers gap between Community guide prices and world prices. See also

AGRICULTURE: COMMON AGRICULTURAL

POLICY.

Commission responsibility: D-G VI (Agriculture) Directorate C.

See

CONSUMER

PROTECTION;

113

HARMONISATION;

AGRICULTURE: COMMON AGRICULTURAL POLICY.

Commission responsibility: D-G VI (Agriculture) Directorate B. Fiji

One of the

A C P STATES

and a signatory to the

LOMÉ CONVENTIONS.

Feedingstuffs Community methods of sampling and analysis for the official control of animal feedingstuffs were introduced in 1970 (Directive 70/373/ E E C , OJ L 1970, as last amended by Regulation (EEC) 3768/85, OJ L 362 1985; see also Directives 76/371/EEC, OJ L 102 1976 and 84/425/EEC, OJ L 238 1984). These provisions were subsequently extended to include: (i) the fixing of maximum permissible levels for harmful substances and products in feedingstuffs (Directive 74/63/EEC, OJ L 38 1974, as last amended by Directive 87/519/EEC, OJ L 304 1987); (ii) the marketing of straight feedingstuffs and trade in compound (Directive 77/101/EEC, OJ L 32 1977, as last amended by Directive 87/234/EEC, OJ L 102 1987; see also OJ L 56 1983); (iii) the marketing of compound feedingstuffs (Directive 79/373/EEC, OJ L 86 1979, as last amended by Directive 87/235/EEC, OJ L 102 1987); (iv) a list of permitted additives (Directive 70/524/ E E C , OJ L 270 1970, as last amended by Directive 89/583/EEC, OJ L 325 1989); (v) the admission of certain products used in animal nutrition (Directive 82/471/EEC, OJ L 213 1982 as last amended by Directive 89/520/EEC, OJ L 270 1989). See also POLICY;

AGRICULTURE: COMMON AGRICULTURAL

ANIMAL

HEALTH,

MEAT

INSPECTION

AND

HYGIENE.

Commission responsibility: D-G VI (Agriculture) Directorate D(3). Fertilisers The laws of Community countries regarding the composition, labelling, denomination and packaging of simple and compound fertilisers are harmonised under Directive 76/116/EEC (OJ L 24 1976). Those conforming with the directive may be sold as ' E E C fertilisers'. An expert committee also advises the European Commission on technical changes in fertilisers that should be brought within the scope of the directive. Other directives relate to ammonium nitrate fertilisers of high nitrate content (Directive 80/876/EEC, OJ L 250,1980 and Directive 87/846/EEC, OJ L 38, 1987).

See E X T E R N A L T R A D E , Table 6:8. Inquiries: Chancellerie Diplomatique, PO Box 7, 66 avenue de Cortenberg, B-1040 Brussels. Commission responsibility: D-G VIII (Development) Directorate C(4). Finance Community instruments affecting finance are the E U R O P E A N M O N E T A R Y S Y S T E M , designed to stabilise fluctuations in exchange rates among participating states and support those less prosperous participants; T A X A T I O N policies to encourage trade and capital movement; investment policies for the free movement of capital, investor protection and Community investment itself (see F I N A N C I A L S E R VICES); and the income and expenditure associated with the Community B U D G E T . Community income derives from the C O M M O N C U S T O M S T A R I F F , LEVIES and up to 1.4 per cent of V A L U E A D D E D T A X , which are the Community's OWN R E S O U R C E S . Community expenditure supports the main policies by a variety of grants and loans, as shown in Fig. 9. These include trade preferences for developing countries, and aid for agriculture in the form of price support as adjusted M O N E T A R Y C O M P E N S A T O R Y A M O U N T S for exchange rate fluctuations. Commission responsibility: see specific entries shown in Fig. 9. Financial mechanism The financial mechanism was adopted in principle by the Dublin E U R O P E A N C O U N C I L in 1975 and translated into Community legislation in 1976 (OJ L 131 1976). It was designed to meet British concern about future UK contributions to the Community B U D G E T and involved a complicated formula relating to the gross contribution by member states to the budget. The mechanism was amended in 1980 to enable the UK to benefit from high budgetary reimbursements as a means of reducing net contributions to the Community budget (Regulation (EEC) 2743/80, OJ L 284 1980). The need for reimbursements to member states who were contributing an unfairly large amount to the

114

Community Issues: Fiji

FIG.9 COMMUNITY FINANCE POLICIES ECONOMIC AND MONETARY UNION AIM: to create a zone of monetary stability

GRANTS AND LOANS IN: • Europeen Monetary System is an initial scheme of co-operation between participating member states in keeping fluctuations of exchange rates against each other within narrow limits • Medium-term loans for economic assistance to less prosperous participating states

• Measured in European Currency Unite (Ecu} • Financed by intervention by member states with support from a reserve pool intended to become a European Monetary Fund

• Agriculture: common agricultural policy (SM fig.1 ) from the Farm Fund via - price support - see intervention price, export restitution payments - monetary compensatory amounts for exchange rate fluctuations in green currencies - direct grants and loans for farm modernisation, farm retirement, agriculture: production grouping (cotton, fish, fruit and vegatebles, honey, hops, silkworms), ferm information and training services, farming marginal terrein. agriculture: processing and marketing, ferestry, olive groves {see olive oil}, fish, milk end milk products • Aid to developing countries, mainly via external trade preferences ( s w below), but also via the European Development Fund, via bilateral aid between member states and recipients, and directly in food eid. and in special aid to non-associated states • Educetion ( * w f i g . 4 ; see J/JO education grants}, specifically for teacher and student exchanges, study visits, language teaching exchange research on European integration and school milk

TAX POLICIES AIM: has been expressed as harmonisation of member states' taxetion especially those affecting trade and capital movements, (see Financial services) European Community budget (see fig.2)

• Some harmonisation of the structure and basis of assessment for value added tax (VAT), customs duties end lavies, but rates of tax remain a national prerogative • Financed by the Community's own resources derived from Common customs tariff, levies, and up to 1.4% of value added tex • Determined by Council of Ministers end European Parliament (webudgetary procedures; budget: net effects on member stetes) • Audited by European Court of Auditors • Community investment financed by New Community Instrument for Borrowing and Landing in co-operation with the European Investment Bank • European Investment Bank loans for projects lor underdeveloped regions, for those of common interest to several member states, or for those called for by the progressive development of the common market • Encouragement for tree movement of capital ( * «

FINANCIAL SERVICES company capitalisation, company

law), and protection of investors (we stock exchange listing and INVESTMENT, mergers, company accounts, company (group) accounts, unit trusts, auditors) • To assist start-up and development of new technologybased firms through the European Venture Capital Association. • Promotion of high-technology projects through EUROTECH

Energy (see fig.5; see also Table 2: Financial Measures for the Energy Sector), for oil liquefaction and • gasification, for energy research programmes (nucleer energy, energy-saving projects, and energy exploitation, including AITIRNATIVE ENERGY, eg geothermal, solar) and for coal stocking and coal usage in electricity generation • Environment (»«fig.6). for experimental contracts for recycling ( ; * * recycling) • Externel trede {see fig.8). for developing countries via Generalised System of Preferences including Lomé Conventions and snaix (stabilisation of export earnings), for exports to Japan, and indirectly for sensitive products (ag. textiles) • Industrial policy