17.11.  75 Official  Journal  of the  European  Communities No C 263/69 
absence  of an obligation  to mark  tableware  and 
kitchen  ware  must  not be allowed  to result  in misuse 
of these  articles  by consumers.  And  marking  should 
not be considered  as in itself  providing  consumer 
protection  — the  crucial  point  is that  compliance 
with  the proposed  stipulations  should  be checked  at 
the manufacturing  stage.  Special  markings  could, 
therefore,  be dispensed  with  if the  products  in 
question  satisfy  the  new  provisions.  As packaging 
made  of ceramic  material  is very  little  used,  the 
'packaging'  category  should  be dropped  or the term 
'storage  vessel'  should  be prescribed. 
4.4. The  Committee  believes  that  it would  be 
asking  too  much  to expect  consumers  to know  the 
differences  between  the  various  types  of marking 
proposed  in the directives,  and  it insists  that  objects 
which  by  their  form  are  obviously  suitable  for 
contact  with  food  should  be safe  to use  for  this 
purpose,  unless  they  are  clearly  marked  to  the 
contrary. 
4.5. The  Committee  is aware  that  effective 
consumer  protection  in this  field  poses  serious 
problems.  It urges  that  a major  campaign  be 
mounted  at all levels  to familiarize  consumers  with 
the meaning  and  implications  of the  particulars 
which  are to appear  on ceramic  articles. 
5. Method  of analysis 
5.1. The  Committe  considers  that,  in the  present 
state  of scientific  knowledge,  the  reference  method proposed  by the  Commission  guarantees  that  the 
desirable  levels  of reliability  and  accuracy  will  be 
achieved. 
5.2. It  would,  however,  point  out  that  other 
methods,  such  as differential  pulse  polarography, 
have  similar  advantages  plus  greater  sensitivity. 
5.3. It  is desirable  to gain  a greater  insight  into 
the correlations  between  (a) the  quantities  of lead 
and cadmium  extracted  by the  solvent  used  in the 
tests and  (b) the quantities  extracted  by foods  and  by 
certain  detergents  used  for  cleaning  crockery  in 
dishwashers.  The  Committee  asks  the Commission  to 
carry  out a careful  examination  of these  correlations 
since  the studies  which  have  already  been  initiated 
have  produced  substantially  different  results.  A 
higher  level  of knowledge  in this  field  might  lead  to 
a revision  of the  limit  values  and  the  methods  of 
testing  and  analysis. 
5.4. The  Committee  also  thinks  that 
representatives  of interested  socio-economic  circles 
should  be involved  in an appropriate  manner  in 
preparatory  work  on  adapting  the  Directive  to 
technical  progress. 
Done  at Brussels,  25 June  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the development  of the social  situation  in the Community  in 1974 
The text  referred  to the Committee  has not been  published  in the Official  Journal  of the 
European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 9 April  1975,  the Commission  referred  the abovementioned  subject  to the Economic 
and Social  Committee  under  Article  198  of the  Treaty  establishing  the  European 
Economic  Community. 
No C 263/70 Official  Journal  of the  European  Communities 17.11.  75 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 131st  plenary  session, 
held in Brussels  on 25 and  26 June  1975. 
The Opinion  is published  below. 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  Article  198  of  the  Treaty 
establishing  the European  Economic  Community; 
Having  regard  to the  request  for an Opinion  made 
by the  Commission  of the  European  Communities 
on 9 April  1975; 
Having  regard  to the decision  taken  by its Bureau  on 
22 April  1975,  instructing  the  Section  for  Social 
Questions  to draw  up an Opinion  on the matter; 
Having  regard  to the  Opinion  adopted  by  the 
Section  for Social  Questions  on 12 June  1975  and  the 
oral report  made  by the Rapporteur,  Mr Noddings; 
Having  regard  to the  discussions  at its meeting  on 
25 June  1975  (131st  plenary  session  of 25 and 
26 June  1975); 
Considering  the Opinions  adopted  by the Economic 
and Social  Committee  on the updating  of the Social 
Action  Programme  and  on equal  pay  for  men  and 
women; 
Considering  the work  in progress  on the situation  of 
women,  equality  of treatment  of male  and  female 
workers,  migrant  workers  and  the  European  Social 
Fund, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 56 votes  to 29, and with  6 abstentions: 
1. Summary  of community  action  in the social  field 
in 1974 
1.01.  In  preparing  this  summary,  the  Committee 
referred,  inter  alia,  to the comments  made  last  year 
in its Opinion  on the  Development  of the  Social 
Situation.  This  Opinion  focused  on  three  main 
points: 
— Problems  of employment 
— Social  protection 
— The  European  Social  Fund. 
1.02.  As  is pointed  out  in the outline  of activities 
by the  Commission  in the  social  field  in 1974, measures  have  been  taken  in a number  of these 
areas,  in  particular  under  the  Social  Action 
Programme. 
1.03.  Some  of the  measures  adopted  by  the 
Council  or proposed  by the Commission  respond  to 
the anxieties  expressed  by  the  Committee  in its 
Opinion  of 27 June  1974,  but a number  of problems 
brought  up  in that  Opinion  have  not  yet  been 
tackled,  while  the action  taken  on certain  others  has 
been  incomplete  and  has  not  heeded  sufficiently  the 
observations  made  by the Committee. 
1.1. Problems  of employment 
1.1.1.  Generally  speaking,  one  can  only  note  a 
worsening  of  the  situation  described  by  the 
Committee  in its Opinion  of 27 June  1974,  in which 
it expressed  its deep  concern  over  both  the  cyclical 
and the structural  aspects  of employment  problems. 
1.1.2.  In  view  of this  deterioration  — coupled 
with  the emergence  of a new  situation  in which  high 
unemployment  is combined  with  a disquieting  rate 
of inflation  — the Committee  cannot  but deplore  the 
failure  of the  Community  authorities,  during  the 
previous  period  of prosperity,  to impress  sufficiently 
on the Member  States  the need  for concerted  action 
with  respect  to employment  problems.  It is true  of 
course  that  situations  vary  from  one  Member  State 
to the other,  but this  makes  concerted  action  all the 
more  necessary. 
1.1.3.  Among  the fields  where  Community  action 
is still  insufficient,  and which  the Committee  singled 
out in 1974,  is the problem  of handicapped  workers 
(where  the need  is for training  which  is adapted  to 
the aspirations  of  these  workers  and  to  the 
requirements  of the economy). 
1.1.4.  The  Commission  has  not  carried  out  an 
overall  study  of women's  employment  and  all its 
implications,  particularly  with  regard  to women's 
family  activities,  but  the Committee  will  not  take  a 
stand  on this  matter  for the moment,  in view  of the 
work  which  is currently  in progress  on equality  of 
treatment  of male  and  female  workers  and  on the 
more  general  problems  of the situation  of women. 
17.11.  75 Official  Journal  of the  European  Communities No C 263/71 
1.1.5.  In  addition,  Community  action  in certain 
important  sectors  has  been  clearly  unsatisfactory. 
These  include: 
— Self-employed  persons:  in its Opinion  of 1974  the 
Committee  drew  attention  once  more  to the 
social  protection  problems  of  self-employed 
persons  and  called,  among  other  things,  for the 
setting-up  of mutual  aid  services  to ensure  the 
continued  operation  of such  persons'  businesses 
should  they  fall  sick  or wish  to take  a holiday, 
and for the allocation  of Community  aid towards 
retraining.  It should  be stated  here  that  this 
subject  is still  topical,  especially  for  farmers, 
although  facilities  have  already  been  made 
available  to them  by the three  Council  Directives 
of 17  April  1972  (1). The  Committee  would, 
however,  point  out that,  from  a practical  point  of 
view  these  provisions  have  not  had  the 
anticipated  effects.  Furthermore,  under  the 
provisions  governing  the  Social  Fund,  it is not 
possible  for the Fund  to deal  in an identical  way 
with  persons  being  retrained  as employees  and 
those  being  retrained  as  self-employed 
workers  (2). 
— Temporary  workers:  the  Committee's  call  for an 
early,  comprehensive  review  has  not  yet  been 
heeded. 
1.2. Social  protection  — housing  — family  policy 
1.2.1.  The  Committee  stressed  the development  of 
certain  trends  common  to all Member  States,  relating 
to reforms  in the social  security  systems: 
— the  extension  of social  security  to cover  groups 
which  previously  were  less well  protected; 
— the  working-out  of schemes  to ensure  that 
benefits  keep  pace  with  wages; 
— the  achievement  of equivalent  protection  for  all 
social  groups. 
1.2.2.  In  addition,  the  Committee  particularly 
insisted  that  family  policy,  which  does  not just  cover 
financial  compensation,  should  assume  ever-
increasing  importance  within  the  framework  of the 
Community. 
1.2.3.  Finally,  the  Committee  urged  that  the 
decentralization  of social  action  — already  practised 
in certain  States,  where  it is coupled  with  the 
participation  of local  representatives  in decisions  on 
the human  environment  — be extended  throughout 
the Community  or that  studies  at least  be undertaken 
with  this  end in view. 
(!) OJ No L 96, 23. 4. 1972. 
(2) OJ No L 249,  10. 11. 1971. 1.2.4.  In  all of these  cases  and  in the  case  of 
housing,  where  in  1974  the  Committee  drew 
attention  to the  need  for  a Community  policy  to 
combat  property  speculation,  there  has  been  a 
deplorable  lack  of  an  overall  approach;  the 
Community's  measures  have  been  essentially 
piecemeal. 
1.3. European  Social  Fund 
1.3.1.  Reference  should  be made  to the  remarks 
contained  in the  Opinion  of 27 June  1974,  and  in 
particular  those  noting  that  the  resources  at the 
disposal  of  the  Fund  either  do  not  match 
requirements  or are  insufficient  both  in absolute 
terms  and  as a percentage  of the Community  budget. 
This  remark  is even  more  valid  today  because  of the 
economic  situation  in Europe. 
1.3.2.  Last  year  the Committee  asked  what  criteria 
were  used  for  determining  priorities.  This  problem 
still remains.  However,  the Council  has requested  the 
Committee's  Opinion  on action  by the Social  Fund 
to aid  structural  adaptation.  It will  therefore  be 
possible  for the Committee  to go into  these  matters 
in greater  detail. 
2. General  comments  on the development  of the 
social  situation  in 1974 
2.01.  The  Committee  has delivered  Opinions  on: 
— the  two  Decisions  and  the  Regulation  on 
assistance  from  the  European  Social  Fund 
(Article  4) for migrant  workers  and  handicapped 
persons; 
— the  resolution  establishing  the initial  Community 
action  programme  for  the  vocational 
rehabilitation  of handicapped  persons; 
— the  two  decisions  on  the  setting  up  of an 
Advisory  Committee  on  Safety  and  Health 
Protection  at Work,  and  on the extension  of the 
responsibilities  of the  Mines  Safety  and  Health 
Commission  to all mineral-extracting  industries; 
— the  Directive  on the approximation  of the laws  of 
the Member  States  relating  to the application  of 
the principle  of equal  pay  for men  and  women, 
as outlined  in Article  119  of the EEC  Treaty; 
No C 263/72 Official  Journal  of the  European  Communities 17.11.  75 
— the  Directive  on the approximation  of the laws  of 
the Member  States  relating  to  collective 
redundancies; 
— the  regulation  establishing  a European  Centre  for 
the Development  of Vocational  Training; 
— the  Regulation  setting  up a European  Foundation 
for the  improvement  of living  and  working 
conditions. 
2.02.  The  Committee  has  furthermore  decided  to 
draw  up an Opinion  on the situation  of women  in 
the European  Economic  Community. 
2.03.  Apart  from  these  questions  — in connection 
with  some  of which  points  have  been  brought  to the 
attention  of the  Community  institutions  by  the 
Committee,  without  this  leading  to them  taking 
sufficiently  effective  action  — other  problems  left  a 
particular  mark  on the  development  of the  social 
situation  in the Community. 
2.04.  Previously,  there  was  a negative  correlation 
between  inflation  and  unemployment,  in accordance 
with  the  traditional  model  worked  out  by 
economists  — full  employment  being  associated  with 
a certain  rise  in prices,  price  stability  with  a measure 
of unemployment.  But  recently  a steep  rise  in prices 
has been  coupled  with  substantial  unemployment. 
2.05.  In  this  respect,  attention  should  be drawn  to 
the role  being  played  by the media  in creating  and 
constantly  stimulating  new  requirements,  a feature 
which  is characteristic  of the  consumer-orientated 
society.  At  the  same  time,  however,  the  basic 
requirements  of a sizeable  part  of the  population 
have  yet to be fulfilled. 
2.06.  This  type  of economic  situation  naturally 
poses  considerable  problems  as regards  employment 
policies,  living  and  working  conditions  and  the need 
to maintain  the  purchasing  power  of everyone 
concerned. 
2.1. Problems  of employment 
2.1.1.  The  Committee  has  just  given  its Opinion 
on the  updating  of the  Social  Action  Programme 
adopted  on 21 January  1974.  The  Opinion  stresses 
the seriousness  of the  employment  problem  and 
emphasizes  the  need  to adapt  the  Social  Action 
Programme  to the present  situation. 
2.1.2.  Because  of the particularly  alarming  growth 
in unemployment,  and  bearing  in  mind  the 
Committee  Opinion  on  the  present  economic situation  in the  Community  and  the  cyclical  policy 
to be pursued  (*), the Committee  again  stresses  this 
point. 
2.1.3.  Last  year  the Committee,  already  disturbed 
by the  employment  trend,  observed  that  certain 
categories  of workers  were  more  vulnerable  than 
others  to economic  fluctuations.  The  Committee  is 
now obliged  to note  that  Community  workers  as a 
whole  are feeling  the effects  of the crisis.  As a result, 
it is not  just  measures  for  ensuring  full  and  better 
employment  now  or in the  short  term  that  are 
necessary;  the  formulation  of a more  effective 
employment  policy  at Community  level  is becoming 
increasingly  urgent. 
2.1.4.  For  this  reason,  and  because  the 
Commission  has  so  far  been  unable  to secure 
sufficiently  far-reaching  action  by the Council  of the 
Communities,  the Committee  urges  the Commission 
to impress  upon  the  Council  the  gravity  of the 
situation  and  the need  for the Member  States  to take 
concerted  action  quickly. 
2.1.5.  Workers  as a whole  are suffering  from  the 
effects  of the crisis,  but it is true  to say  that  certain 
workers  who  are already  vulnerable  have  become  the 
first victims: 
2.1.5.1.  Migrant  workers:  a number  of Member 
States  have  banned  immigration  and  have  sometimes 
sent foreign  workers  back  to their  home  countries. 
Without  wishing  to prejudice  its conclusions  with 
regard  to the action  programme  in favour  of migrant 
workers  and  their  families,  the Committee  "notes  that 
these  workers  emigrated  because  of the  adverse 
employment  situation  in their  home  countries.  Their 
return  — often  forced  — not  only  means  that  their 
families  have  a difficult  struggle  to survive  but  also 
adds  to their  countries'  economic  problems  and 
swells  the  ranks  of their  unemployed.  In this 
situation  the  position  of illegal  immigrants  gives 
great  cause  for concern. 
2.1.5.2.  Handicapped  workers:  when  these 
workers  work  in an ordinary  firm,  they  often  risk 
being  the  first  to be dismissed  in the  event  of the 
firm running  into  economic  difficulties.  But  if they 
work  in special  establishments  their  situation  is not 
necessarily  any  the  more  secure  in so far as such 
establishments  are  very  often  subcontractors  of 
other  firms  and  thus  feel  the  backlash  of any 
economic  crisis. 
(!) OJ  No C 108,  15. 5. 1975,  p. 35. 
17.11.  75 Official  Journal  of the European  Communities No C 263/73 
2.1.5.3.  Women:  often  the  first  to be dismissed 
because  they  lack  adequate  qualificiations,  women 
are also  the  workers  who  find  most  difficulty  in 
obtaining  new  jobs,  even  in industries  where  many 
women  are employed,  for it is these  industries  which 
are generally  the  most  affected  by the  economic 
crisis. 
2.1.5.4.  The  young:  young  people  under  twenty-
five entering  the labour  market  for the first  time  are 
finding  it more  and  more  difficult  to obtain  a job. 
This  trend,  which  was  already  noted  in  the 
Committee's  Opinion  on the updating  of the  Social 
Action  Programme,  is quite  alarming  because, 
unfortunately,  it is not caused  solely  by the lack.of 
elasticity  of the labour  market.  The  whole  machinery 
for vocational  training  is involved  here. 
Many  young  people  arrive  on the  labour  market 
without  any  vocational  qualifications  or  with 
inadequate  qualifications  for  the  jobs  available.  It 
should  be possible,  with  suitable  continuous  training 
arrangements,  to find  a solution. 
More  and  more  young  people  with  vocational  or 
university  qualifications  are being  forced  to accept  a 
job — if they  can  find  one  — which  does  not 
correspond  to their  training.  As for the others,  the 
only way  of getting  another  job  is to follow 
vocational  training  courses  under  continuous 
training  arrangements.  However,  quite  a large 
number  are  not  sufficiently  interested  in the  jobs 
available;  young  people  should  be encouraged  to 
follow  training  courses. 
This  is a serious  problem  which  must  be tackled 
with  urgency  by the Commission.  On the one  hand, 
States  incur  wasteful  expenditure,  which  should  be 
limited  as much  as possible  in the present  economic 
circumstances,  and,  on the  other,  the  situation  is 
dangerous  socially,  in so far as young  people  feel  an 
understandable  disappointment  which  can  only 
hamper  their  integration  into  the working  world  and 
jeopardize  their  chances  of making  a success  of their 
lives.  Accordingly,  the Committee  urges  that  a study 
be made  of the  real  requirements  of the  labour 
market  and  the  provision  on  a larger  scale  of 
information  and  guidance  facilities  for young  people, 
having  regard  to the needs  of the economy. 
2.1.5.5.  Persons  who  were  involved  in the  drift 
away  from  agriculture  and  found  themselves  obliged 
to work  in the  secondary  sectors  are  now  being 
compelled  to return  to their  original  employment. 
This  situation  is particularly  alarming  in the 
Community's  economically  most  ill-favoured  regions 
and it raises  the problem  of the employment  policy 
in the agricultural  sector. 2.1.6.  All  in all,  both  as regards  these  problems 
and as regards  those  concerning  employment,  the 
Commission  must  wake  up to the fact  that  it is not 
only necessary  to take  defensive  action  —  the 
requisite  Structural  changes  mut  also  be brought 
about. 
2.2. Working  conditions  and  industrial  relations 
2.2.0.  Working  conditions:  The  economic  crisis 
besetting  most  of the  Member  States  may  have  a 
number  of effects  on working  conditions.  These  have 
attracted  the  particular  attention  of the  Committee. 
The crisis  can,  in fact,  affect: 
— working  hours; 
— working  conditions  in the strict  sense  of the term. 
2.2.1.  Working  hours:  Already,  a large  number  of 
firms  in certain  Member  States  have,  for economic 
reasons,  had  to  cut  working  hours.  These 
arrangements  have  taken  various  forms:  either  a 
shortening  of the  working  day  or week,  or a 
complete  shutdown  of the firm  at certain  periods  of 
the year  (Christmas,  Easter,  etc.). 
2.2.2.  Other  firms,  for  the  same  reasons,  have 
preferred  to introduce  early  retirement  for those  of 
their  workers  who  have  reached  a given  age. 
2.2.3.  As  the Committee  has already  recommended 
in its Opinion  on the present  economic  situation  in 
the Community  and  the  cyclical  policy  to be 
pursued,  every  effort  should  be made  systematically 
to ensure  that  workers  are  able  to work  the  full 
number  of hours  guaranteed,  even  if this  entails 
retraining;  during  retraining,  however,  the 
purchasing  power  of workers'  incomes  must  be 
safeguarded. 
2.2.4.  Working  conditions  in the strict  sense  of the 
term:  In most  Member  States,  the labour  market  is 
more  or less  governed  by the  law  of supply  and 
demand. 
2.2.5.  There  is therefore  reason  to suspect  that 
certain  workers  may  be putting  up with  conditions 
which  violate  labour  law  or do not  measure  up to 
the generally  accepted  standards,  for fear  of losing 
their  jobs  or fear  of not being  taken  on, owing  to the 
large  number  of applicants  for the same  job. 
2.2.6.  It  is important  that  the  Community  pay 
attention  to this  point,  so that  the  improvement  in 
No C 263/74 Official  Journal  of the  European  Communities 17.11.  75 
working  conditions  which  has  been  achieved  in 
recent  years  through  legislation  and  collective 
bargaining  is not  wiped  out  by a decline  in the 
standards  applied  in practice. 
2.2.7.  In  this  context,  it is worth  noting  the 
significant  rise  in the  number  of claims  of a 
qualitative  nature,  which  shows  the  growing 
importance  being  attached  to working  conditions. 
2.2.8.  Furthermore,  it would  seem  to be necessary 
to promote  measures  designed  to ensure  that  all 
workers,  whether  they  are  employees  or  self-
employed,  have  acceptable  working  conditions, 
which  includes,  inter  alia,  acceptable  working  hours. 
It will  likewise  be necessary  to carry  out research  in 
this field.  The  European  Foundation  for  the 
Improvement  of Living  and  Working  Conditions 
would  appear  to be the most  suitable  body  to carry 
out such  work. 
2.3.0.  Industrial  relations:  Efforts  by the  social 
partners  to  improve  working  conditions  are 
continuing  and,  .in this  connection,  mention  may  be 
made  of the  agreements  on working  hours,  paid 
holidays  and  the number  of working  days  per week. 
It should  be noted  that  in some  Member  States, 
government  authorities  have  played  an increasingly 
active  role  in these  talks;  this  action  has  sometimes 
created  a certain  anxiety  amongst  the social  partners 
in view  of its  effect  on the  principle  of free 
bargaining. 
2.3. Maintaining  the  purchasing  power  of incomes 
2.3.0.1.  The  Economic  and  Social  Committee  has 
already  specifically  dealt  with  the  urgent  need  to 
combat  inflation  and  the  ways  of doing  it — an 
inflation  which  has  become  a source  of worrying 
unemployment  and  underemployment  and  of the 
marked  loss  in purchasing  power. 
2.3.0.2.  In  the alarming  economic  situation  which 
is a feature  of the  European  Community  at the 
present  time,  unemployment  in its various  forms 
(short-time  working  and  total  unemployment)  brings 
about  a fall  in the incomes  of workers  who  are  its 
victims. 
2.3.0.3.  Apart  from  this  drop  in nominal  income 
— in  this  connection  the  Community  should 
recommend  some  Member  States  to pursue  an active 
unemployment-benefits  policy  — everyone,  whether 
employed,  unemployed  or not  belonging  to the 
labour  force,  is facing  a real  decline  in the 
purchasing  power  of his income  owing  to the  high 
rate of inflation  in most  Member  States. 2.3.0.4.  This  drop  in purchasing  power  has  also 
been  mentioned  briefly  by the  Committee  in its 
Opinion  on  the  updating  of the  Social  Action 
Programme,  but  it seems  worth  going  into  this 
subject  in greater  detail  in the present  Opinion  and 
looking  in turn  at earned  and  other  incomes. 
2.3.1.  Earned  incomes 
2.3.1.1.  It  would  seem  superfluous  to repeat  what 
was said  in the  Committee's  Opinion  on  the 
updating  of the  Social  Action  Programme,  which 
under  its specific  comments  recommends,  among  the 
priority  measures  to be undertaken  or expanded,  the 
protection  and  increase  of the  purchasing  power  of 
wages,  the earnings  of the  self-employed  and  social 
benefits,  and  income  guarantees  for  workers 
undergoing  retraining  or looking  for a job. 
2.3.1.2.  However,  the  Committee  would  like  to 
add a few  details. 
2.3.1.3.  Some  Member  States  have  machinery 
which  guarantees  more  or  less  effectively  the 
purchasing  power  of wages  and  an increase  in the 
lowest  wages.  Some  have  brought  in a minimum 
wage  indexed  either  automatically  or not  to growth 
and the  rise  in prices;  others  have  introduced 
threshold  arrangements  and  in one  Member  State 
wage  adjustments  are  secured  by  collective 
bargaining,  all forms  of automatic  indexing  being 
rejected.  Thus,  it can  be said  that  wage-earners  do 
have  certain  guarantees.  But  it is up  to  the 
Community  authorities  to see  that  this  machinery 
really  ensures  that  the  purchasing  power  of earned 
incomes  is maintained. 
2.3.1.4.  In  1974,  there  will  have  been  a drop  in the 
purchasing  power  of the earned  incomes  of some  of 
the self-employed,  including  farmers,  craftsmen, 
small  shopkeepers  and  professional  people,  due  to 
the lack  of adjustment  arrangements.  While  it can be 
accepted  that  some  self-employed  persons  have  seen 
their  profit  margins  follow  the rise  in prices,  the fact 
remains  that  self-employed  persons  have  been 
affected  by the economic  crisis  because  of the fall  in 
personal  consumption  or the rise  in the cost  of raw 
materials  and  energy.  They  have  been  hit  most 
severely  in  the  Member  States  where  the 
governments  have  introduced  a credit  squeeze  or a 
freeze  on certain  prices  as part  of their  anti-inflation 
policy.  Furthermore,  there  was  a rise  in the number 
of bankruptcies  and  petitions  for bankruptcy  in 1974 
and early  1975. 
17.11.  75 Official  Journal  of the  European  Communities No C 263/75 
2.3.1.5.  Adequate  solutions  —  including  those 
which  involve  structural  adjustments  — must  be 
found  for this  situation,  which  is all the more  serious 
because  the  fall  in the  purchasing  power  of these 
categories  often  triggers  the dismissal  of a significant 
number  of wage-earners,  and  because  self-employed 
persons  who  are  affected  are  often  relatively  old, 
which  makes  their  re-employment  in other  work 
difficult,  especially  at the present  time. 
2.3.1.6.  Reference  should  be made  here  to the 
Commission  document  on  the  machinery  for 
adjusting  wages  and  salaries  to the  cost  of living, 
which  bears  witness  to the  Commission's  concern 
about  this  situation. 
2.3.2.  Other  incomes 
2.3.2.1.  The  steep  rise  in prices  has  also  had  a 
considerable  impact  on income  in the form  of social 
security  benefits  and  annuities,  as well  as on the 
yield  and  capital  gains  from  investments  in 
transferable  securities  and  personal  savings. 
2.3.2.2.  The  introduction  of  machinery  to 
maintain  the  purchasing  power  of social  security 
benefits,  including  pensions,  is vital,  because  the 
people  concerned  have  relatively  small  resources, 
examples  being  families  who  are multiple  consumers, 
the sick  and  the old. 
2.3.2.4.  On  the other  hand,  the effects  of inflation 
on incomes  from  savings  may  vary  from  case  to 
case;  high-income  groups,  are  able  to withstand 
inflation  better,  whereas  low-income  groups  are  the 
hardest  hit. 
2.3.2.5.  In  this  way,  the  present  rise  in prices 
makes  for increased  income  differentials  between  the 
various  sectors  of the  population.  This  is why  it is 
particularly  urgent  for  the  Commission  to conduct 
an overall  study  of the  relevant  problems,  with  a 
view  to working  out  the  solutions  as recommended 
to safeguard  small  savers'  incomes. 2.3.2.6.  The  Committee  must  also  draw  the 
Commission's  attention  to the  possible  multiplier 
effect  of the  crisis.  Let  us take  the  case  of a low-
income  family:  the  father  has  just  lost  his job,  the 
son, who  has  just  left  school,  has  not  found  a job 
and is being  kept  by his parents.  If there  is now  a 
serious  illness  or accident,  the  family  could  very 
rapidly  sink  into  poverty  and  this  process  would  be 
difficult  to reverse.  In this  way,  a 'normal'  family 
will quickly  become  a marginal  one. 
3. On  a general  level,  the Committee  feels  that  the 
Council  and  the Commission  should  shortly  make  an 
appraisal  of the  effectiveness  of the  measures  which 
have  been  taken  since  the  Conference  on  the 
Prospects  for  Europe's  Social  Policy  was  held  on 
16 December  1974. 
4. Another  significant  fact  which  can  hardly  be 
disregarded,  and  which  the  Committee  would 
therefore  bring  to the  attention  of the  Community 
authorities,  is that  the birth  rate,  and  more  especially 
the reproduction  rate,  in the  Member  States  as a 
group  has been  falling  steadily  for the past  ten years. 
Because  of the  complexity  of this  question  and  the 
individual  circumstances  of each  of the  Member 
States,  it is impossible  to deal  with  this  issue  here.  It 
calls  for  a special  study,  which  should  be initiated 
without  delay.  The  greatest  successes  in the  social 
and economic  spheres  which  could  be obtained  by 
the EEC  might  ultimately  be  jeopardized  if the 
fundamental  vitality  of the various  nations,  on which 
such  successes  hinge,  is not  ensured  by a balanced 
population. 
Done  at Brussels,  25 June  1975. 
The Chairman 
of the  Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a Council  Regulation  on the action  to be taken  to bring 
into force  the European  Agreement  concerning  the work  of crews  of vehicles  engaged  in 
international  road  transport  (AETR) 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 123  of 3 June  1975,  page  2.