ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 578 
 
 
 
Vol. 1983/0 218 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
C 0 M C 8 3 ) 578 final
Brussels, 29 September 1 983
C O M M U N I T Y  M E A S U R E S  T O  I M P R O V E  T H E
IN T E R N A T IO N A L  C O M P E T IT IV E N E S S  O F  E U R O P E A N  F I R M S
(Communication from  the C om m ission to the Council)
C 0 M C 8 3 ) 578 final

COMMUNITY MEASURES TO IMPROVE THE
INTERNATIONAL COMPETITIVENESS OF EUROPEAN FIRMS
After examining a  wide range of C om m u n ity  measures that might help to restore 
the international competitiveness of European firms, the special Council 
meeting agreed that a num ber of key areas for action should be put to the 
European Council for a decision.
It asked the Com m ission to draw  up a  list; and this docum ent is in response 
to that request. Four key areas for action are proposed:
improving the economic and monetary context
dynamic use of the internal market
scientific research and the development of advanced technologies 
energy policy.
In each of these areas, the C om m ission has identified a  num ber of essential 
priorities, selected not only b y  virtue of their intrinsic importance, but 
also because the European Council w ould be setting an example b y  taking a  
decision demonstrating its political will to advance C om m unity action or to 
develop it in n e w  directions.
Clearly, therefore, this docum ent is not to be regarded as exhaustive. T h e  
selection m ad e by the C om m ission in n o  w a y  casts doubt on the importance it 
attaches to other proposals for C om m unity measures w hose link with the 
objective of improving Europe's international competitiveness is less 
direct, but which are nevertheless essential to the Community's future 
development.
I. Improving the economic and monetary context
W ithout wishing to restate all the general econom ic conditions w hich are 
necessary for a  recovery in productive investment, discussed in its previous 
documents, the Com m ission w ould stress tw o major objectives w hich require 
specific measures on the part of the C om m unity:
improving the quality and predictability of the econom ic and monetary 
context by further developing the European M onetary System  and by an active 
C om m unity contribution to m ore effective international organization;

- 2 -
-, using the scale of the C om m unity (m aking a  full reality of the internal 
market in goods and services) and the Community's credit worthiness 
(borrowing and lending policy) to facilitate the necessary industrial change.
In a.idition to recent decisions setting a w elcom e example (in the borrowing 
ard 'ending field/ for instance, which is being developed largely with 
small and mediui.i-sized firms in mind), the European Council at its Athens 
meeting should adopt decisions in three areas w hich the Com m ission regards as 
of oaramount importance:
1. T h e development of the area of monetary stability as established under 
the E M S
O n  2 4  M a y  1983, the Com m ission asked the Council to take an initial major 
step, even before Athens, towards promoting the increased public and private 
use of the E C U  (C 0M (83) 274). It proposed that M e m b e r States and the 
authorities concerned be asked to take the necessary measures to accord the E C U  
a  status identical to that of any other major convertible currency and to 
create the conditions under which operations denominated in this unit, in 
particular loans floated by C om m unity institutions, could develop.
T h e Com m ission n o w  calls on the European Council to confirm its com m itm ent 
to:
extending the exchange-rate m echanism  to all M e m b e r States, 
strengthening this mechanism, and
- applying the instruments of convergence m ore widely and effectively.
2. T h e creation of a  large C om m unity financial market enabling European 
savings - which, though substantial, are insufficiently channelled towards 
the development of productive activities - to m ak e a  greater contribution 
to sound economic growth.
Allowing that the Council m a y  well adopt prior to the Athens meeting so m e of 
the practical measures proposed in its communication of 18 April 1983, the 
C om m ission calls on the European Council to com m it itself to revitalizing 
the process of financial integration, at present deadlocked, by reaffirming 
its determination to promote a  C om m unity financial area that will serve 
the economic development of Europe and reinforce its structures. This 
area m ust be as hom ogeneous as possible and m ust be given effective m eans 
of mobilizing and channelling savings towards productive investment.

- 3 -
3. T h e Community's participation and Leading role in defining a stable and 
credible international economic and monetary structure.
T h e Com m ission requests that an initial report o n  the discussions w hich the 
Ministers of Finance have already held on this subject be given in Athens.
q r r ?

- 4 -
I I .  T h e role : > f  t he internal market
O n  3-4 D ecem ber 1932 the European Council agreed to m ak e the strengthening of 
the internal, market a  priority goal. T h e Council w as to take the necessary 
decisions before the end of April 1983. This deadline has n o w  been 
postonned to 26 October. For the Commission, it is essential that these 
dec-s ons oe ti.-< e n ., especially to enable it to start up w ork again on the 
rero' al of barr ers to trade, the simplification of frontier controls 
ana ihe ib e>  a :  z  it ion of services (insurance). T hen there are the vital 
p  xpcoals for the develooment of the transport policy. These decisions m ust 
be ta-.en without further delay as the credibility of the Community's future 
com m itm ents obviously depends on fulfilling those it has taken in the past.
O n ce they have been taken, efforts m ust be continued to at last use the 
possibilities offered by the internal market in a  dynam ic and stimulating w a y  
so that tneCommunity industries can benefit from  its scale.
H ere the C om m ission proposes to concentrate on tw o priority fields of action: 
standards and cooperation between European companies.
In both cases, precise guidelines and com m itm ents by the European Council are 
essential to clear the w a y  for the technical w ork and lay d o w n  deadlines and 
the results to be obtained.
1. Standardization
H ere a  significant step w as taken w h en  the Council adopted the Directive 
(83/189/EEC) laying d o w n  a  procedure for the provision of information in the 
field of technical standards and regulations. B y  so doing, it wished to 
prevent any increased walling-off of national markets in future as a  result 
of the multiplication of national technical standards and regulations.
This effort m ust be continued and therefore the Com m ission requests the 
European Council to confirm its com m itm ents by extending them  in three 
directions.
(a) T h e first concerns action by the M e m b e r States themselves; they m ust 
undertake to carry out by mid-1984 a  critical review of the reasons for the 
existence of technical standards and regulations within their competence in 
order to do aw ay  with any provisions that are no longer justified.
This critical review, the results of which will be communicated to the 
Com m ission, is an essential condition to allow the Com m unity, in a second stage, 
to m o v e  towards the recognition by all M e m b e r States of the equivalence of 
their standardization and regulatory activities designed to protect the 
health and safety of their citizens.
It is obvious, however, that this recognition of equivalence will not settle 
all problems, partly because it is still m ore in the w a y  of an effort to 
break d o w n  the barriers between national markets rather than to forestall 
their fragmentation.
(b) T h e Com m ission therefore invites the European Council to recognize the 
need for C om m unity action in the field of standardization in order to m eet 
three types of requirements:

- 5 -
.  to provide a  c o m m o n  base of standards for n e w  products that will allow 
the companies concerned to take full advantage of the European dimension 
and to use it as a  springboard to increase their share of the world market; 
this applies for example to the definition of standards for the reception 
of television broadcasts via satellite or for the cordless telephone,
. to rem ove obstacles to trade (the precedent of the Directive o n  
electrical equipment could be repeated, for exam ple in the case of the 
num erous draft directives concerning the safety of machinery such as 
machine tools, powered industrial trucks and lifts),
. to define c o m m o n  specifications as a  w a y  of opening up access to public 
contracts.
In addition to the com m itm ent in principle b y  the European Council o n  the 
need for C om m unity action on standardization in the three types of situation 
defined above, the Com m ission requests the European Council to lay d o w n  
a  deadline (for example 30 June 1984) for the formulation of the precise 
objectives of and methods to be used for this C om m unity action.
(c) Finally, the C om m ission requests the European Council to recognize 
the obligation for all M e m b e r States to seek C om m u n ity  arbitration at 
once w h en  there is a  risk of conflict between the desire to take action at 
national level by w a y  of technical standards and regulations in order to 
protect health or public safety and the need to avoid splitting the 
C om m unity market.
This is the current situation in respect of lead in petrol; despite the 
fact that C om m unity procedures are being actively pursued following a  
specific request from  the Council, this issue still threatens to divide 
the C om m unity automobile market.
A  political com m itm ent by the European Council o n  all these points is essential 
to prevent subsequent discussions on specific proposals from  becom ing bogged 
d o w n  in apparently technical difficulties w hich in fact result from  the 
lack of any clear definition of the Com m unity's role and objectives.
T h e Commission, for its part, will continue to help collect the necessary 
data for this definition.

- 6 -
(2) Cooperation between firms O '*
T h e present fram ework of legislation, tax provisions and other rules 
discourages cross-border cooperation between European firms. There is no 
legal instrument encouraging such cooperation.
T h e opening u p  of public contracts is essential here, since the preferences 
w hich n o w  exist discourage cooperation. T h e Com m ission is therefore 
insisting once again on the necessity of opening up public contracts in 
its docum ent on telecommunications, an industry in which such cooperation 
is vital. Obviously, the opening up of public contracts is a  question
w hich goes beyond this particular aspect. T h e Com m ission will be 
returning to it.
The Commission takes the view that the obstacles to cooperation would be 
largely removed by a three-pronged attack in the legal, taxation and 
industrial spheres.
In the legal sphere, the European Cooperation G roup (C 0 M C 7 3 ) 2046, 
21.12.1973), w hich w ould be a  versatile tool for cooperation, can be legislated for
quickly: the Council could set the end of the first half of 1984 as a
deadline. B ut this would not resolve the problem of mergers: to do that
the Council w ould have to decide before 1  July 1984 to resum e w ork on the ; · *
European C o m p a n y  (C 0 M C 7 0 ) 600, 30.6.1970), or on the M erger Convention.
In the tax field, the Com m ission has put forward a series of 
proposals w hich m ust be adopted if cooperation is to be possible: o n
tax system applying to various cooperative arrangements between firms,
C 0M (69)5 final, 15.1.1969: proposal for a  Directive concerning the
c o m m o n  system of taxation applicable to mergers, divisions and 
contributions of assets between companies of different M e m b er States, and
C 0M (69)6 final, 15.1.1969: proposal for a  Directive concerning the
c o m m o n  system of taxation applicable to parent companies and subsidiaries 
of different M e m b e r States. *

- 7 -
on double taxation and on the creation of a  European capital market , c the 
mainspring of genuine cooperation.
T h e European Council m ust accept the overriding necessity of tax harmonization 
for this purpose and urge that existing difficulties be rem oved by the end of 
the first half of 1984.
T h e factors m aking for closer relationships between C om m unity firms m ust 
be reinforced by restoring the right environment. T h e Council m ust approve:
. the development of joint ESPRIT-type operations which, because of the 
financial element involved, create a  climate conducive to cooperation;
. the establishment of data banks as proposed in the multiannual informatics 
program me.
Lastly, in the field of competition, the C om m ission will as soon as 
possible draw  up an exempting regulation b y  category with regard to 
inter-enterprise R & D  cooperation in order to facilitate industrial cooperation 
within the C om m unity in this area.
T h e Com m ission will also prepare a  code governing official aid to 
the R & D  activities of enterprises. This code will be part of the sam e 
process of strengthening the Com m unity's industrial base.
C O M /7 6 /6 1 1  final of 24 N ovem ber 1976: Proposal for a  Council Directive o n
the elimination of double taxation in connection with the adjustment of 
transfers of profits between associated enterprises (arbitration procedure).
i
C O M /75/392 of 2 3  July 1975: Proposal for a  Directive of the Council
concerning the harmonization of systems of com pany taxation and of 
withholding taxes on dividends.
C O M /76/152 final of 1 4  April 1976: Proposal for a  Council Directive for
the coordination of laws, regulations and administrative provisions 
regarding collective investment undertakings for transferable securities.
C0M /80/893 final of 3 1  D ecem ber 1980: Proposal for a  Council Directive
coordinating the requirements for the drawing up, scrutiny and distribution 
of the prospectus to be publisned w h en  securities are offered for 
subscription or sale to the public.

- 8 -
III. Scientific research and the development of advanced technologies
Oerta-n concrete decisions have already been taken in this area by the Council 
or w5 J. be taker before the Athens European Council meeting; in particular:
. the franewarl' jrcgram m e for the Community's scientific and technical 
activities during tie period '984-87 w as approved by the Council in its 
resolution of 2 . 8  lune 1983;
. E S P R IT  and the continuation of this program m e on a  multiannual basis 
will be approved as soon as the Council formally m arks its agreement on the 
program m e proposals put forward by the Commission. T h e Com m ission takes 
the view that this can and should be done before Athens; the sam e applies 
to the program m e of basic technological research.
-*
tq
T h e only w a y  that these initial decisions can be given full political 
weight, given the prospects for the development of the Com m unity, is by the 
European Council m aking a com m itm ent concerning the scope, continuity and 
financing of these schemes, in line with the Commission's proposal.
T h e C om m ission therefore invites the European Council to:
(1) acknowledge the priority to be assigned to the science and technology 
policy over other C om m unity policies in view of the decisive role it has 
to play in improving the Community's international competitiveness, and 
accordingly approve the financial estimates put forward by the Com m ission in 
respect of the objectives selected (3 750 million E C U  at 1982 prices for the 
period 1984-87), and in particular those relating to the E S P R IT  programme;
(2) confirm, in particular, the importance it attaches to. the E S P R IT  
program m e as a  first step towards the creation by the C om m unity of the 
climate necessary for the development of advanced technologies in Europe, 
the action taken in the research field needing to be reflected in:
.  incentives to cooperation between European undertakings;
. the creation of favourable conditions for defining joint advanced standards;

- 9 -
. the setting-up of information exchange networks to facilitate the 
dissemination of knowledge and the application of n e w  developments;
.  *
. the creation of the proper climate for the development of a  n e w  
industrial base for future economic growth in Europe;
(3) m ak e a  sufficiently clear com m itm ent so that the lines of action in 
the telecommunications and biotechnology fields proposed by the C om m ission 
in its communications of 2 8  September 1983 can be rapidly implemented at 
C om m unity level, given the crucial importance of such matters for the 
future of European industry and its competitive position in the world;
(4) approve the Commission's proposal on the financing of innovation, in 
view of the progress the Council bodies have m a d e  so far in discussing it. 
T h e aim  of this proposal is to enable innovation loans to be granted to 
small and medium-sized firms, w hose role in the industrial innovation 
process is absolutely essential. T h e adoption of this proposal w ould be 
a significant step towards exploiting the Com m unity's innovation potential 
to the full.

- 10 -
IV. E nergy policy
On numerous occasions in the past the Commission has underlined the  
importance for the European economy of a more diversified pattern of  
energy supoly and a  more efficient pattern of energy use. The Commission  
has already made a large number of specific proposals for action at  
Community level which are under examination by the competent Council  
bodies. The rôle of the Athens meeting should not be to focus on those  
specific proposals as such but to pronounce upon the more general  
question of she rôle of the Community 1n the energy sector so as to  
set the clearest possible framework for the more detailed decisions  
required elsewhere.
A key role for the C om m unity is fce ensure more rapid progress towards  
consistency between the energy policies of Member States. Clear energy  
objectives have been set at Community level covering the period up  
'i to 1 9 9 C  .  The time has come to look some years further forward. But  
the setting of objectives is only the beginning. If Member States are  
'  to m o v e  in harmony towards them they must do so in growing mutual
confidence. To encourage that process the monitoring activity of the  
Commission must be made more searching/ the Council must draw clear  
conclusions from it and Member States must commit themselves more explicitly  
to carry out any necessary remedial measures.
In the second place/ however/ there 1s a rôle for the Community as such  
and for its own specific instruments in a number of areas of energy  
policy s
1Council Resolution/ OJ C149/ 18.06.80
./il

- 11 -
<i) in stimulating the technological Innovation that will help  
to achieve the Community's energy objectives. Here the  
Community has the dual task of devising and executing a  
basic programme at its level and of coordinating its  
programme and those of Member States;
(i 1) in bringing about increased investment. This applies to both.the demand  
side/ where much more can be done in the interests of more  
efficient use of energy/ and the supply side where it is  
a Community Interest to secure rapid development of  
indigenous energy resources on an economic basis and/  
as necessary/ to accelerate or to coordinate the development  
of infrastructure (Including interconnection of electricity  
and gas grids);
(iii) in pricing policy, where principles reflecting the Community's  
objectives have been agreed which must now be applied equitably  
throughout the Community. Pricing policy is all the more  
important because of its relationship to investment, enabling  
proper judgements to be made about the effectiveness of energy  
saving measures and the economics of alternatives to oil;
<1v) on the environment, where in many cases effective solutions to  
the problems which arise in developing a new energy economy  
can only be found at Community level. Key examples are  
emission standards for power stations and other industrial
plants and disposal of nuclear waste;/
(v) in stimulating and harmonising energy legislation in  
order to encourage more efficient energy use (eg common  
labelling of electrical appliances. Directives to ‘  limit  
the use of oil and gas 1n power stations), or to remove barriers  
to trade in energy products or equipment (a case in point is the  
definition of a Community policy on lead in petrol);
./12

- 12 -
vi) in organising the m ost effective dissemination of information and 
exDerience gained through national energy programmes and the 
Comrrurity's o w n  activities;
(vi i ) in mechanisms to ensure solidarity of M e m b er States in the face of 
instability on the energy markets.
T he successful development of the C om m unity role is not possible if decisions
have to be taken every year cn · the continuation of each C om m unity activity. T he
Com m ission has therefore proposed a  pluriannual program m e of energy and
1energy research as a  m ore satisfactory framework for action . N or can 
the C om m unity role be developed successfully without the com m itm ent of the C o m ­
munity's financial resources to the energy sector on a  cost effective basis. This 
also applies to the structural funds where, as the Com m ission has already 
proposed, their specific missions can be better articulated with the ob­
jectives and priorities of the C om m unity.
1C0M(83)315 final of 15 June 1983