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DOCUMENTS "COM"
COM(76)199
Vol.1976/0061

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(76)199final
Brussels.10Fay197o»
^• ■
REPORTFROMTHECOMMISSION TOTHECOUNCIL
ONTHEIMPLEMENTATION OFTHEINDUSTRIAL
POLICYPROGRAMME(Resolutionof17December1973)
CCM(76)199final

REPORTOFTHEIMPLEMENTATION OFTHEHTHJSTRIALPOLICYPROGRAMME
(Resolutionof17December1973)»'
I.Removaloftechnicalbarrierstotrad.einfoodstuffs "ndindustrial
products
A.Pcôistuffs
Resultsinthisfieldsofarhavebeenmeagre.Onlythree,out23,
directiveswhichshouldhavebeenadoptedbytheCouncilupto
1January1916,undertheResolutiononindustrialpolicyh~ve
beenagreed.
Thedelayisduechieflytothefactthat,sincetheenlargement
oftheCommunities andinviewoftheneedtoadaptmethodsof
harmonization inrespectoftheseproducts,thelasttwoyerrs
havebeenspentonpreparatory workatCommissionletvel,also
involvinggovernment"!experts,whichwillnotbeginshowresults
until1976onwards.Furthermore,theCommissionfeltitbetter
nottosubmitmodifiedfirstproposalstooquicklyandinisolation.
Itattachesimportancetoproposalsbeingconsistentwitheach
otherasprrtofanoverallapproach.
B.Industrialproducts
HeretheProgrammeprovidedfor30directivestobeadoptedin
1974thesamenumberin1975*Italsocalledforsome45pro­
posalstobesenttotheCouncilbytheCommissionoverthesame
period.TheCouncilhasadopted25directivesinthepasttwo
years,althoughtheCommissionhassentit49proposals(see
AnnexI).
Thefirstpointthatmustbemadeisthatthedifferencebetween
therateatwhichproposalsaresenttotheCouncilandtherate
atwhichtheyareadoptedisdisquieting .3?ytheendof1975a
tota-1of66proposalsfordirectiveshadbeensenttotheCouncil
butnotyetadopted;giventhattheCouncilhassofar.

adopteddirectivesatarateof12or13ayear,thiswouldproduce
anrveragelegoffiveyears "betweentheCouncilreceivingrnd
adoptingaproposal,whichistoolonginviewofthespeedof
technological advance;forproposalsfromtheCommissionrrenot
uncommonlyovertakenlayeventsbythetimetheycomebeforethe
Councilforexamination .
Inenrttempttoremedythisseveralchangesarepossibleinthe
mannerinWhichthebusinessofCouncilandCommissionisorganized.
AsfarasCouncilbusinessisconcerned,thedelegationsshouldnot
getlostinthemazeoftechnicaldetailinproposalswhenthey
approvetheprinciple.Sincenotalldirectivesareequally
beneficialtoallMemberStates,itwould.'ppearrdvisablethat
whentheWorkingPartyoneconomicquestionshascompletedits
examination ofanumberofdraftsonwhichonlyoneortwo
delegationshaveexpressedreservations ,theCouncilshouldadopt
"bundles"ofdirectives,.asitiscurrentlyattemptingfodowhile
Luxembourgisinthechair.Inthiswayitwillbeersierto
balancetheadvantrgesaccruingtoeachMemberStateasthe
programmerdvances.
Withsuchapproachitshouldbepossibletom?kesubstantial
inroadsintothenumberofproposalsnowawaitingadoption.
WithregardtotheCommission's'^bjectives ,itwuldseemless
thansensibletocontinuesendingtotheCouncil,attherate
requiredbytheindustrialpolicyprogramme,proposalswhich
wouldthenbeheldupf6rseveralyearspendingexamination.
Inthesecircumstancesitispossibletoenvisageseveralsolu-.
tionswhicharemoreover,notmutuallyexclusive.

ThefirstsolutionwouldconsistintheCommission-while
retainingitsfreedomtosendtotheCouncilwhenappropriatethe
proposalsneededtoremovethemostblatanttechnicalbarriers
totrade-adapting -itsrateofworkinginnewsectorsmdconcen­
tratingonthefollowingpoints:
a)adaptationofdirectivestotechnicalprogress.Overthepast
twoye./rsthreeCommissiondirectiveshavebeenad.optedforthis
purposerndeffortsalongtheselinesaretobesteppedupto
avoidCommunitylegislationbeingleftbehindbytechnological
progress.
b)MonitoringoftheMemberStates"implementation ofCouncil
directives.TheCommissionhashadnohesitationinusingthe
procedurelaiddownintheTreatytorequirelaggardlyMember
StatestocomeintolinewithCouncildecisions.Itwilltake
thesaneattitudewherevernecessary.
Althoughwiththismethodfewerproposalsanddirectiveswillbe
helduppendingexamination bytheCouncil,itisclearlynot
fullysatisfactory fromthepracticalanglebecauseit"mounts
toaslowdowninprogressontheremovaloftechnicalbrrriersto
trade.
AnotherpossibilitywasputforwardbytheEuropeanParliament^,
whichproposedthattheremovaloftechnicalbarrierstotrade
couldbespeededupbyuseofactionprogrammesoflega.llybinding
formwithoutlinedirectivesforeachsectorandimplementing
provisionsbroughtinbytheCommissionunderArticle155of
theTreaty.
MrMitterdorfer *sreport,16June1975fDoc.135/75(PR30005/
def.,p.7).

Thismethodwouldhavetheadvrnt.geofrelievingtheEuropean
Parliamentrnd-subjecttoclearrequirements-theCouncilof
theburdenofexaminingwhatintheMemberStatesareusually
mattersforregulatory,ifnotadministrative ,potion.
Anotheradvent?gewouldbeaconsiderable speeding-up ofbusiness
byobviatingthetwofoldexamination ofthesametextbothby
theCommissionrndtheCouncil.Thusalcrgenumberofurgent
decisions(severalproposalsfortheremovaloftechnicalbarriers
totradealsofellwithintheCouncilprogrammeforenvironmental
protectionmdtheconsumerprotectionprogramme)canbeadoptedin
considerably shortertimesth?nrrenownecessary.
TheCommissionreceivedthissuggestionfromtheEuropean
Prrliamentwithinterestandisstudyingitslegalrndpractical
impliestions.

-5-
II.Gradualandeffectiveliberalization ofpubliccontracts
In1974r*id1975theCouncil "bodiesconcernedcontinuedtheirexami­
nationofthedraftdirectiveof15March1971concerningthecoordi­
nationofproceduresfortheawardofpublicsupplycontracts *
TheCouncilisexpectedtodecideonthedraftdirectivebymid-1976.
III.Abolitionoftaxbarrierstocloserrelationsbetweenundertakings
1.TheCouncilwastohavevoted-before1January1975»if
possible-ontheproposalforadirectiveonthecommonsystem
oftaxation'pplic^.bletoparentcomprniesrndtheirsubsidiaries
basedindifferent MemberStates.Butexamination ofthis
proposal-whichdatesfromJanuary19°9-h;snotbeenresumed
sincetheindustrialpolicyprogrammewasapprovedandthedate
of1January1975WFSn°tmet.TheCommissionisstillofthe
opinionthatworlcshouldberesumedinordertosecurea
decisionwithoutdelry,
2.TheCouncilwastohavevotedbefore1Janurry1976onthepropo­
salfora.directiveonthecommonsystemoftaxationapplicable
inthecaseofmergers,divisionsendcontributions ofassets
takingplacebetweencompaniesofdifferentMemberStates.
,Itdidnotmeetthetime-limiteither*
.Examination ofthismattershouldbercstimcdsothatthe
matteroftheEuropeanCompanycanbeadvanced,sinceamerger
isoneofthethreewaysinwhichsuchacompanycanbeformed.
Discussions withtaxexpertsshouldthereforeberesumedassoon
aspossible,moreespeciallysincediscussionofthecommonsystem
.oftaxationapplicabletomergerswassuspendedsomeyearsago-
moreprecisely :duringtheperiodpriortotheaccessionofthe
threenewMemberStates.Consequentlyitisnotyetpossibleto
forecastthedf%eof-?decisiononthismatter.
-/-

r6T
f
ι
IV.Removaloflegalbarrierstocloserrelationsbetweenundertakings .
1*TheEuropeanP-rlirmentdelivereditsopiniononthepropose!for
a.RegulationontheStatuteforEuropeancompanieson11July1974*
Inthelightoftheopinionsdelivered "bytheEuropeanP.rli?ment
rndtheESC,theCommissionsenta.revisedproposaltotheCouncil
on13May1975*Inthesecondhalfof1975thiswasgivenits
firstexamination "byandadhocworkingp?rtybriefedtoidentify
thechiefpolitioalproblemsflowingfromtheproposals.
Theworkingparty'sfindingsarenowunderreviewinthePermanent
Representatives Committee.
2*.TheEuropeanPrrlianienth;snotyetdelivereditsopiniononthe
proposalforadirectiveonthestructureofsocietessnonymes.
On11November1975theCommissionpublishedaGreenPaperon
employeeparticipation ?ndcompanystructuresasastimulusto
generaldiscussionofthesesubjects,especiallyintheEuropean
Parliament.
AproposalfromtheCommissionrevisedinthelightoftheopinions
oftheEuropeanPTliPment ?ndESCcannotbesenttotheCouncil
before1977*
3.Theproposalforadirectiveconcerningtheformationandthe
capitalofsocietesanonymeswasnotadoptedbytheCouncil.th?t
I
istoerythetime-limitsetbytheResolution wasnotmet.
Itmightbeadoptedbeforethe.endof1976,however.
4.1heCommissionsenttotheCouncilon8December1975thesecond
proposalforamendingthedirectiveconcerninginternalmergers
ofsocietesrnonymes.Examination ofthisproposalbytheCouncil
isnotcontemplateduntilthebusinessmentionedintheprevious
paragraphiscompleted.

5.Inlate 1974 theCouncil began it'sexamination oftheproposal
foradirective concerning theannual ccounts ofsocietes de
capitsux intheMember States .Itmight beadopted inlate 1976/
early 1977 *
6.On21December 1973 theCommission sent totheCouncil aproposal
foraregulation instituting aEuropean Cooperation Group .
TheESCdelivered itsopinion on27February 1975 jtheopinion
oftheEuropean Parliament isstill awrited .
Thesituation regarding thecommitments oftheRepresentatives ofthe
Governments oftheMember States onCommunity Conventions isas
follows :
1.Work onadapting thedraft convention ontransnrtional aergers
subsequent totheenlargement oftheCommunities isactively inhand .
2.Work onthe convention ontheeffects ofbankruptcies could be
completed bylate 1977 *
3.TheConvention fortheEuropean Prtent fortheCommon Marked was
signed atLuxembourg on15December 1975 *TheEuropean Patent Office
will commence tofunction in1977 •

European-scale promotionofcompetitive advancedtechnologyunder-
t."kings
1*TheCouncilshouldhaveacted "by1July1974onthedraftRegu­
lationsonthesetting-upofjointundertakings withinthefield
ofapplication oftheEECTreatyrndontheimplementation of
Communityindustrialdevelopmentcontractswhichweresubmitted
bytheCommission on17September1971"nd24July1972respec­
tively.
Thisresulthasnotbeenachievedowingtothelackofcooperation
onthep-rtofsomeMemberStates,andtherehasbeennoprogress
forseveralmonths.DiscussionsintheCouncilwillonlyberesumed
ifthereissomesignofasofteningofpresentattitudes.
2.AsregardstheaircraftindustrytheResolutionforwardedbythe
CommissioninJuly1972wasadoptedbytheCouncilon4March'
1975*OnthisbasistheCommissionpresentedtotheCouncilon
3October1975ActionProgrammefortheEuropeanaircraftand
aeroengineindustrywhichcallsfortheintroduction ofacommon
policyinthecivilaircraftsectorandenvisagestheestablish-.
mentofaEuropeanAgencyforthepurchaseofmilitaryaircraft
rndtheopeningoftalkswiththeUnitedStatesonrrmsments
srlesandcooperation .Discussions onthisprogrammeinthe
Councilshouldbeheldassoonaspossiblesoasnottohold
backthepractical ."rrangementsforit3implementation .

-9-
3.Asregardsthedat'-processing sector,theorigin .1timet'ble
h?sbeenadheredto,andon15July1974"theCouncilapproved
theResolutionwhichhadbeenforwardedbytheCommission.
Theinitialproposalsforimplementing thisResolutionconcerning
thevariousapplication ofdata^-processing shouldbeapprovedby
theCouncilinthenearfuture.
OthermoregeneralproposalswereputtotheCouncilon
22September1975pnditishopedthataawiftdecisionwillbe
t'ken.
VI.Conversion andmodernization ofcertainindustries
1.TheCouncilshouldhaveactedby1July1974ontheproposals
containedintheCommunication onshipyrrdswhichtheCommission
submittedinOctober1973•Noagreementontheseproposalshas
beenreachedajadtheCouncil,havingextendedtheprevious
systemofState'iduntil30June1975>adoptedanewDirective
on10Julysettingouttheconditionsunderwhichridandinter­
ventionmeasurescanbeconsideredcompatiblewiththecommon
market;theDirectivealsoprovidesfortheCommissiontobe
notified,tvhenappropriate ,ofdecisionstakenbytheMember
Statesconcerningthegrantingofinvestmentaidtoshipyrrdsand
ofanyurgentmeasurestakeninsupportofailingshipyrrds.
ThisDireotiveisvaliduntil31December1977*
2.On1April1974"theCommissionforwardedtotheCouncilthe
promisedCommunication ontheprperindustry,onwhichtheCouncil
hadundertakentoactwithinninemonths.Thistimelimitwas
notadheredto,sincetheEuropeanParliamentandtheEconomic
andSocialCommitteedidnotdelivertheiropinionuntilOctober
1974andJanuary1975respectively .

?10-
I■!;
3*On3October1975"thePermanentRepresentatives Committee
endorsedtheCommissionsurveyofthissector "butfailedto
agreeonwhatspecificmeasuresshouldbetaken.
VII•Preparation ofmeasurestoguaranteethtmergersaffectingCommunity
firmsrreinkeepingwiththeCommunity'seconomicandsocialobjec­
tives,andthemintenanceoffaircompetition bothintheCommon
Marketandonoutsidemarketsinaccordancewiththeprovisionsof
theTreaties.
1,TheCouncilshouldhaveactedby1January1975onthepropose!
foramergercontrolRegulation.AftertheEuropeanParliament
votedtheResolutionon12February1974andtheEconomicand
SocialCommitteedelivereditsopinionon28February1974»the
WorkingPartyonEconomicQuestionsmetonthefollowingdates:
14Juneend25July1974|18February,25June,23September
and10-11November1975*Basicissueswerediscussed,mainly
concerningthescopeoftherules,thedetermination ofthe
criteriaforintervention andthecollaboration ofMemberStates
inthedecision-making process.
2.ThedebatewhichtheCouncilhadundertakentoholdbefore
1May1974ontheCommunication forwardedbytheCommissionon
8November1973concerningmultinational companiesdidnot
takeplace.TheEconomicandSocialCommitteeandtheEuropean
ParliamentdeliveredtheiropinionsonthisCommunication on
27Juneand12December1974respectively .
-/-

-11
VIII•Measuresconcerningexports'and,inprrticulrr,creditinsurance.
TheCouncilResolutionstipulatedthat,~sseveralproposrlsfor
Regulations endDirectivessubmitted "bytheCommissionrelatingto
"boththecommercialrndindustrialpoliciesoftheCommunitywere
stillunderconsideration ,theCouncilwould,by1July1974,
drawupalistofprioritiesrndatimetrblefordecisions.To
date,theCouncilhasnotadoptedtheproposrlsplacedbefore.
InthemeantimetheCommissiondecidedon23April1975"to
withdrawtheproposrlsonthecommonprinciplesunderlying
exchangerateguarantees andguaranteesagainstincreasesinthe
costsofexportstonon-membercountries.TheCommissionf.lso
decidedon22December1975"toputaproposrltotheCouncil
contriningvdraftrecommendation authorizingtheCommissionto
negotiateaninternetionrl"gentlemen'sagreement"onexport
credits.On17February1976itlsoforwardedtotheCouncil
aproposrlconcerningthesetting-upofaEuropeanExportBank.
Theproblemsraisedbytheharmonization ofexportcreditsand
creditinsurancerrestillunderconsideration intheCommunity
institutions .
-/-

τ12-
IX.Suppliesofrawmaterials,particularly ofnon-ferrous metals
TheCommissionundertooktoplaceproposalsbeforetheCouncilin
thefirstsixmonthsof1974concerningCommunitysuppliesofraw
materials,andinparticularofnon-ferrous met?ls.Itsoonbecame
clear,however,itw?sperhapsnotsoimachinthefieldofnonferrous
metalsthrtthem'jorproblemsarose;thishassettheCommission
backinthepresentation ofitsproposals.
Itwasnotuntil5February1975infactthataCommunicrtion was
forwardedtotheCouncildealingwithbothmineral,vegetable :nd
animalproducts.
Inviewoftheurgencyofcertainproblemsraisede.tinternational
level(SeventhSessionoftheUU,FourthSessionofUITCTAD,CIEC),
theCouncildevotedmostofitsattentionduring1975"totheexterns-1
policyoftheCommunityandhisnotbeenabletodeliveranopinion
ontheCommission Communication *

AïïliEXI
REMOVALOFTECHNICAL BARRIERS TOTRADE
INDUSTRIAL PRODUCTS
(a)ProposalsforDirectivesforwarded "bytheCommissionforadoption
bytheCotmcil "by1July1974(Annex2(a)ofCouncilResolutionof
17December1973concerningindustrialpolicy).
Motorvehicles
-interiorfittings(lproposai):rdopted
-safetyglass:underconsideration bytheCouncil
-electrical connections fortrailers:heldovss?untilalaterdate
whichdependsonworkbeingcarriedoutelsewhere.
Measuringinstruments
-clinicalthermometers :underconsideration bytheCouncil
-precisionweights:adopted
-making-upofcertainpre-packedliquids:adopted
-cylindersusedrsmeasuringcontainers :adopted •:
Electricalequiproent
-interference causedbyhajndtools:underconsideration bythe
Council '
-interference causedbyfluorescentlighting:underconsideration by
theCouncil
-electricalequipmentusedinexplosiveatmospheres :■adopted
Fertilizers;adopted
Cosmeticproducts:underconsideration bytheCouncil

ANNEXI(pg.2)
Wheeledagricultural andforestrytractors
–specifications rodcomponentsalreadydealtwithinproposrIs,
particularly rearviewmirrorsandsteeringsystems:adopted.
Reinforcedplastictrnksintendedforthec?rri?geofdangerous
substances
heldoveruntilclaterdate,whichdependsontheworkbeingdone
elsewhere
Aerosols:adopted
ProposalsforDirectivesforwardedbytheCommissionforadoptionby
theCouncilbefore1January1975(Annex2(b)oftheResolution).
Motorvehicles
-interiorfittings(strengthofseatsandoftheiranchorages):
adopted
Mopeaà"
-outlineDirective:underconsideration bytheCouncil
Measuringinstruments
-electricity meters:underconsideration bytheCouncil
-watermeters:adopted
-weighingmachinesofthecontinuously integratedtype:adopted
-prepackaging ofcertainsolidsandliquids:adopted
Electricalequipment
-interference fromradioandtelevisionreceivers :underconside­
rationbytheCouncil.

ANNEXI(p.3)
Pressurevesels
-outlineDirective:underconsideration "bytheCouncil
-Seemlerscylinders :underconsideration "bytheCouncil
ProposalsforaDirectiveto"beforwarded "bytheCommissionby
1January1974foradoptionbytheCouncilby1Jnu'ry1975
(Annex2(c)oftheResolution).
■Motorvehicles
-lighting(systems-firstspecialDirectives)(includingthe
Directiveondirectionindicators onwhichagreementinprinciple
has'1readybeenrea,ched):underconsideration bytheCouncil
-reflexreflectors :underconsideration bytheCouncil
-foglamps:underconsideration bytheCouncil
-externalprojections :adopted
Fuels
-maximumleadcontentofmotorfuels:underconsideration bythe
Council
-maximumsulphurcontentofdomesticfueloils:adopted
ProposalsforDirectivestobeforwsrdedby theCommissionby
1Janurry1975foradoptionbytheCouncilby1January197&
(Annex2(d)oftheResolution).
Motorvehicles
-safetybelts:forwardedbytheCommissiontotheCouncil
-anchoragesforsafetybelts:forwardedbytheCommissiontothe
Council
-headrestraints :forwardedbytheCommissiontotheCouncil
-reversegears,speedometers endst~tutorymarkingsïadopted.

AOTEXI(p.4)
-tyres:notyetsentforward.
Tractors
-braking:forwarded "bytheCommissiontotheCouncil
-lighting:forwardedbytheCommissiontotheCouncil
-typeapprovaloftractorswith-?mxiraumspeedexceeding25km/h:
notyetforwarded
-driver-perceived noiselevel:forwardedbytheCommissiontothe
Council
Mopeds
-permissiblenoiselevel:notyetforwarded
-engine:notyetforwarded
Motorcycles ,
-"or'f'."bio .
-typeapproval:forwardedbytheCommissiontotheCouncil
-permissiblenoiselevel:forwardedbytheCommissiontothe
Council
Civilengineeringpl;-ntmdequipment
-typeapproval:forwardedbytheCommissiontotheCouncil
–permissiblenoiselevel:forwardedbytheCommissiontothe
Council
-towicity;cancelled
Measuringinstruments
-clcoholometry and"lcoholmeters :forwardedbytheCommissionto
theCouncil
-rordandrailtrnkers:forwardedbytheCommissiontotheCouncil

•<VTfFXI(">.S)
Dngeroussubstancesandpréparations
-pesticides :forwardedbytheCommissiontotheCouncil
-printsandvarnishes :forwardedbytheCommissiontotheCouncil
-"restriction ontheuseofcertrindangeroussubstrncesand
preparations :forwardedbytheCommissiontotheCouncil
Pressurevessels
-aluminiumcylinders;forwardedbytheCommissiontotheCouncil
-weldedcylinders:forwardedbytheCommissiontotheCouncil
Non-electric?1equipmentforcooking,heatingandhot-w-terproduction
-outlineDirective:forwardedbytheCommissiontotheCouncil
-specialDirective :forwardedbytheCommissiontotheCouncil
Liftingequipment
-liftsandhoists:forwardedbytheCommissiontotheCouncil
Trblewaremdkitchenustensils
-maximumleadandcadmiumcontentoftableware:forwardedby"the–.
CommissiontotheCouncil
Electncalequipment
-interference causedbyscientificequipment:notyetforwarded
-electricalmedicalandradiological equipment:forwardedbythe
CommissiontotheCouncil.
Fertilizers
-ammoniumnitrate:forwardedbytheCommissiontotheCouncil.