NoC19/74 OfficialJournaloftheEuropeanCommunities 25.1.93
4.Furtherconsideration portcostsespeciallyfortheweakerandsmallerfirms
ofperipheralcountriesislikelytoadverselyaffecttheir
competitiveness '.
4.2.Thisishardlyintheinterestof'cohesion'and
seriousattentionshouldbegivenbytheCommission
andCounciltomeasurestohelptheperipheralregions
offsettheseeffects.4.1.TheCommitteefindsitalarmingthattheCom­
missionstatesinits'ImpactAssessmentForm'that'the
applicationofthisdirectiveislikelytoleadtoan
increaseofthetransportcostsespeciallyfortheperiph­
eralcountriesoftheCommunity'and'Increasedtrans­
DoneatBrussels,24November1992.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN
OpiniononECRelationswiththeCountriesofCentralandEasternEurope
BulgariaandRomania
(93/C19/23)
On30June1992theEconomicandSocialCommittee,actingunderthethirdparagraphof
Article20oftheRulesofProcedure,decidedtodrawupaOpiniononECRelationswith
theCountriesofCentralandEasternEurope.
TheSectionforExternalRelations,TradeandDevelopment Policy,whichwasaskedto
preparetheCommittee'sworkonthesubject,adopteditsOpinionon5November1992.
TheRapporteurwasMrPetersen.
Atits301stPlenarySession(meetingof25November1992)theEconomicandSocial
CommitteeadoptedthefollowingOpinionbyalargemajoritywithtwovotesagainst.
Summary
TheblueprintforAssociationAgreementspresentedby
theECCommissionatthebeginningof1990embraces
notonlythestep-by-stepcreationofafreetradearea,
thefreemovementofworkers,theliberalization of
services,theapproximation oflegislationandtheinten­
sificationofeconomic,socialandfinancialcooperation ,
butalsotheinstitutionalization ofpoliticaldialogue
andculturalcooperation (point1.8).
Thesepreferentialagreements,termedEuropeAgree­
mentsbecauseoftheinclusionofpoliticaldialogue,
mayinprinciplebeconcludedwithallcountriesof
EasternEuropeforanindefiniteperiodoftime.Inthe
caseoftheCommonwealth ofIndependentStates(CIS)andGeorgia,however,aseparateapproachneedstobe
adoptedonthebasisoftheEuropeanCommunity's
blueprintforpartnershipandcooperationagreements .
ThecrucialpreconditionfortheconclusionofEurope
Agreementsisthat(a)realprogressisbeingmadein
thepolitical,socialandeconomictransformations now
underwaythere,andthat(b)thepointofnoreturn
fordemocracyandthemarketeconomyhasalready
beenreached.TheCommitteehasappealedtotheEC
Commissiononseveraloccasionstomonitorpolitical
andeconomicreformsineachcasebeforelaunching
intospecificassociationdiscussions (point1.9).
InitsOpinionontheEuropeAgreementsconcluded
withtheVisegradcountries (Poland,Hungaryandthe
CSFR)theEconomicandSocialCommitteemadean
in-depthanalysisoftheEuropeanCommunity'sassoci­
ationblueprintandfounditcouldofferitssupport.

NoC19/75 25.1.93 OfficialJournaloftheEuropeanCommunities
TheCommitteeispleasedthattheECCommissionhas
nowalsobegunassociationnegotiationswithBulgaria
andRomania.Theaimofthenegotiationsistocon­
cludeEuropeAgreementswhicharelargelysimilarin
contenttothosesignedon16December1991with
Poland,HungaryandtheCSFR.TheCommittee'scriti­
calcommentsandrecommendations concerningthe
agreementswiththeVisegradtriangleremainequally
validasfarasonecanmakeoutforthecurrentDraft
AgreementswithBulgariaandRomania(points2.1and
2.2).EuropeAgreementswherebytheAssociationCouncil
guaranteesthateconomicandsocialinterestgroups
willbeinvolvedinthepoliticaldialogueduringthefirst
stageofthetransitionalperiod.Fromthesecondstage
thisdialoguewouldtakeplacewithintheframework
ofaConsultativeAssociationCommitteerepresenting
economicandsocialinterestgroups.Suchcooperation
wouldformpartofawide-rangingdialoguebetween
theeconomicandsocialinterestgroupsoftheEuropean
CommunityandthoseofcountriesinCentralandEast­
ernEurope(points2.7and2.8).
TheCommitteeapprovestheinclusionofaprovision
intheAgreementswherebyrespectfordemocraticprin­
ciplesandhumanrights,aswellasadherencetofree
marketprinciples,areregardedasvitalelementsof
Association .AtthesametimetheCommitteealsorec­
ommendsthatthesafeguardingofbasicsocialrights
andtherightsofminoritiesshouldberegardedasa
'vitalelementofAssociation'.Appropriatemeasures
couldbetakeniftheseobligationsarenotmet(point
2.9).TheCommitteeemphaticallyapprovesthecommitment
ofthecontractingpartiestostrengtheningpoliticaland
economicfreedoms,whichconstitutetheverybasisof
Association .Italsostronglysupportstheirdeclared
intentiontoactinunisoninorderto(a)carryforward
theconstructionofanewpoliticalandeconomicorder
basedontheruleoflaw,respectforhumanrightsand
therightsofminorities,(b)guaranteeamulti-party
systemwithfree,democraticandsecretelectionsand
(c)speedupthepaceofeconomicliberalization in
accordancewiththeprinciplesofamarketeconomy
(point2.3).
Withregardtothefreemovementofgoods,theCom­
mitteewelcomestheasymmetricalapproach,whichwill
helptopropupthedifficultrestructuringprocesses
inBulgariaandRomania.Inviewofthedramatic
deteriorationinthesecountries'overalleconomicper­
formances,theCommunityshouldmakeaserious
attempttoshortenthesix-yearperiodbeforeitremoves
allitscustomsdutiesonindustrialgoods,andshould
trytocompletetheinevitableliberalizationofthemar­
ketsbyanearlierdate.Article110oftheRome
Treaty—whichshouldalsobeborneinmindfromtime
totime—expresslyobligestheCommunitytopressfor
aliberaltradepolicyinthecommoninterest.The
Committeethinksthatthisobligationistoofrequently
neglected(point2.12).TheCommitteehasrepeatedlyemphasizedthat,given
thesocialandculturalconditionsprevailinginEurope
today,an'economicarea'whichisnotatthesametime
a'socialarea'isunthinkable .TheCommitteetherefore
oncemorecallsupontheCounciltoreferinthepre­
amblesoftheEuropeAgreementstothesocialdimen­
sionofEuropeanunificationandtomentiontheCom­
munityCharteroftheFundamental SocialRightsof
Workersadopted,albeitnotunanimously ,bytheHeads
ofStateorofGovernmentoftheCommunityin
December1989.TheCommitteefurthernoteswith
concernthatalthoughadvocacyoftheprincipleof
'socialjustice'remainsa'Fundamental Elementof
Association'andisunderlinedassuchintheEurope
AgreementswithPoland,HungaryandtheCSFR,the
concepthasbeendroppedinthepreamblesofthenew
Agreements (point2.4).Asfarassensitivesectors—textiles,ECSCproductsand
agriculture—areconcerned,theCommitteewouldrefer
oncemoretotherelevantprovisionsoftheGeneral
AgreementonTariffsandTrade(GATT)andthe
materialconditionsneededforthecreationoffreetrade
areas.Themainconditionisthatcustomsdutiesand
othertraderestrictionsonbilateraltradeareeliminated
'onsubstantiallyallthetrade'.Becauseoftheneedto
complywithGATT,itwillnotbepossibleinthelong
runtoexcludeanyarea—notevenagriculture—from
marketliberalization (point2.15).WithregardtotheECmembershipoptionincorporated
inthepreamblesofthenewEuropeAgreements ,itwill
havetobeassumedthatanyfutureenlargementofthe
EECwilltakeplaceundervastlydifferentcircum­
stances—achievementoftheSingleMarket,Economic
andMonetaryUnion,ForeignandSecurityPolicy,the
AcquisCommunautaire .Thesewillallplaceconsider­
abledemandsonpotentialmembers—demandswhich
cannotbefulfilledbyallapplicantcountrieswithin
ashortperiodoftime.TheECCommissionshould
thereforeassoonaspossibletestandfleshoutnew
formsandoptionsforacoherentECmembershipblue­
print(point2.5).InordernottoperturbtheCommunity'sagricultural
marketsanyfurtherthroughexcessiveimportsofpar­
ticularlysensitiveproducts,theCommitteewould
reiterateitsproposalthatmuchoftheagricultural
surplusfromBulgariaandRomaniashouldbeexported
tootherneighbouringEasternEuropeancountriesfor
hardcurrency.Atthesametimetheagriculturaland
industrialcapacityofEasternEuropeancountries
shouldalsobechannelledintofindingindustrialandInitsOpinionontheEuropeAgreementswiththe
Visegradstates,theCommitteehasalreadycalledon
thecontractingpartiestoinvolveeconomicandsocial
interestgroupsinthepoliticaldialogue.Ittherefore
proposestheincorporation ofprovisionsinthenew

NoC19/76 OfficialJournaloftheEuropeanCommunities 25.1.93
energyoutletsforagriculturalproducts(point2.27totheCommunityorinBulgariaandRomania(points
2.29). 2.25and2.47).
TheCommitteeconsiderstheproposedconsultation
procedureinestablishedcasesofdumpingtobeparticu­
larlyimportant.ItassumesthattheGATTcodeswill
befullyobserved.Itisacceptableonpoliticalgrounds
totreattheassociatedcountiesfromtheveryoutsetas
countrieswithfunctioningmarketeconomies .Objec­
tively,itwillnotbeatalleasyfortheCommissionin
futureyearstomakeafaircomparison—withinthe
meaningoftheECanti-dumpingRegulation—between
theexportpriceand'normalvalue'(point2.32).AlignmentofthelawsofBulgariaandRomaniaon
thoseoftheCommunityisanimportantconditionfor
theeconomicandsocialintegrationofbothcountries
intotheEuropeanCommunity .TheCommitteeregrets,
however,thatnoprioritieshavebeenset.Whatfirms
onbothsidesneedmorethananythingelseisareliable
climateforactionandmorescopeforreorganizing
themselvesinordertostrengthentheircompetitiveness ,
findaflexibleresponsetothegrowingpressuresfrom
internationalfirmsbasedoutsidetheCommunity ,and
createandpermanentlysafeguardjobs(points2.48to
2.50).
WithregardtoeconomiccooperationtheCommittee
feelsthatitwouldhavebeenmuchmoresensibleto
haveconcentratedinitiallyonjustoneortwokey
areaswhereurgentactionisneeded.TheCommittee
primarilyhasinmindpolicyareassuchasinfrastruc­
ture,educationandtraining,andnuclearpower(point
2.53).Freetradearrangementscanonlybeenjoyedifthereis
concreteproofoftheoriginofproducts.TheCom­
mitteehasfrequentlysupportedthecalloftheEastern
Europeancontractingpartnersformultilateralcumu­
lation.TheCommissiondidnotacceptthiscall,with
theresultthattheextremelyrestrictiverulesoforigin
laiddownintheInterimAgreementswiththeVisegrad
stateshaveprovedtobeamajorobstacletoincreased
trade.Sinceonlyauniformsystemforthedetermi­
nationoforigincanservetofurtherthedivisionof
labourwithinEurope,theCommitteecallsfortheEC­
EuropeanFreeTradeAssociation (EFTA)rulesofori­
gincurrentlyinforce,orthefuturerulesofEuropean
EconomicArea(EEA)withanalternativepercentage
criterion,tobeinsertedintoalltheEuropeAgreements
withthecountriesofCentralandEasternEurope('pan­
European'cumulation )(points2.33to2.35).Inthefieldoffinancialcooperation,thecontracting
partieswillinevitablyneedtocloselycoordinateavail­
ablefunds.Thismeansthatitwillbenecessaryforall
spendingby,andfundingof,BulgariaandRomaniato
becontinuouslymonitoredandcoordinatedwithinthe
AssociationCommittee ;bothsideswillalsohaveto
monitorthesituationtoensurethatthefundsareused
efficiently.TheAssociationCouncilwillalsohaveto
beregularlyinformedofthefindings,(point2.62).
1.IntroductionTheCommitteewelcomestheagreementsonthefree
movementofworkers,butwouldstillliketoseeagree­
mentscoveringworkersfromEasternpartnerstates
whoareemployedillegallyintheCommunity .The
CommitteelikewiseregretsoncemorethattheCom­
missionhasnotevenreferredinaprotocoltothe
Community'slimitedscopeforactiononfreedomof
movementinthemediumterm.IntheCommittee's
viewitishightimetoponderindepththecomplex
andmany-layered issueoffreedomofmovementfor
workersbetweentheEuropeanCommunityandassoci­
atedpartnerstatesandworkoutdurablesolutions,
withintheframeworkofacoherentimmigrationpolicy,
whichdonotarousegreatexpectationstodayonlyto
dashthembytomorrowatthelatest(points2.37to
2.39).1.1.TwentyyearsagotheHeadsofStateandof
Government oftheECMemberStatesaffirmedtheir
intentionofpursuingacommontradepolicyvis-a-vis
theEasternBloccountriesfrom1January1973onwards
andMemberStatesvoicedtheirdetermination topro­
moteapolicyofcooperationwiththesecountriesbased
ontheprincipleofreciprocity .1January1973wasan
importantdatesincefromthistimeonwardsindividual
MemberStateswerenotallowedtoeithernegotiateor
concludebilateraltradeagreementswiththecountries
ofCentralandEasternEurope.Whenthebilateraltrade
agreementssignedbefore1973ranoutattheendof
1974,theEuropeanCommunityproposedtomembers
oftheCouncilforMutualEconomicAidthatbilateral
tradeagreementsbehenceforthconcludedwiththe
Communityasawhole.WiththeexceptionofRomania
therewasnoimmediatereactionfromtheCouncilfor
MutualEconomicAssistance (CMEA)states.Atthe
beginningof1976theCMEAinsteadsubmittedadraft
frameworkagreementbetweentheCouncilforMutualTheCommitteewarmlywelcomestheArrangement
wherebyallstateaidgrantedinBulgariaandRomania
istobescrutinizedintermsoftherelevantprovisions
oftheEECTreaty.Inaddition,ECaidmonitoring
instrumentsshouldbeincorporated intheAgreements
inordertoeffectivelyprotectcompetitionagainstdis­
tortionscausedbystateaid,beitgrantedanywherein

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/77
EconomicAidandtheEuropeanCommunityonthe
principlesofmutualrelations.Inacountermovethe
Commissionpresentedapaperwhichclearlyreflected
theCommunity'stwin-trackapproach,i.e.apolicy
whichencouragedtheconclusionofbilateraltrade
agreementsbetweentheCommunityandindividual
membersoftheCouncilforMutualEconomicAidto
improvetheframeworkfortheexpansionoftradein
visiblesandservices.Theideawasalsotoforgeworking
linksbetweenthetwobodiesinordertodiscussgeneral
matters.1.4.Sincethetradeagreementof1980wasrelatively
limited,theCommunityrecommended inthemid1980s
thatitstradepolicysectionbeexpanded,e.g.by
improvingtheaccessofRomanianagriculturalproducts
toCommunitymarketsandbyintensifyingindustrial
andscientificcooperation .Negotiationsbeganin1987
buthadtobesuspendedinApril1989whenwidespread
humanrightsabusesinRomaniahittheheadlinesand
Securitatewasturningintoapropofthepolitical
absolutismofthedictatorCeaucescu .Eventheobli­
gationsstemmingfromthetradeagreementof1980
werenolongerrespected.Finally,theCommunity
decidedon20December1989,undertheinfluenceof
thebloodymassacreinTemesvar,totemporarilyfreeze
thetradeagreement.Onlytwodayslaterthecollapse
oftheCeaucescudictatorshipopenedthewaytofree­
domfortheRomanianpeople.Diplomaticrelations
withtheCommunitywereresumedattheendofMarch
1990andtheCouncilchargedtheECCommission
withthetaskofnegotiatingatradeandcooperation
agreement .Thiswassignedon22October1990.Fur­
therhumanrightsabusesneverthelessdelayedthe
approvaloftheEuropeanParliamentsothattheagree­
mentonlycameintoforceon1May1991.1.2.InadoptingthisapproachtheEuropeanCom­
munitycouldbecertainofthesupportofthesmaller
CentralandEasternEuropeancountrieswhich,through
bilateralagreementswiththeCommunity,werethus
giventheopportunitytoescapeatleastpartlyfromthe
dominantpoliticalandeconomicinfluenceoftheSoviet
Union.However,Romaniawastheonlycountrywhich
wasabletoseizethisopportunity .Attheendof1980
theCommunitysignedtwoagreementswithRomania
whichnotonlyfacilitatedtheaccessofalargenumber
ofRomanian „productstotheCommonMarket,but
alsoprovidedfortheestablishmentofaJointCom­
mitteewiththetaskofcontinuouslymonitoringtrade
developmentsandthesmoothfunctioningofexisting
agreements .
1.5.ThesigningoftheJointDeclarationonthe
establishment ofofficialrelationsbetweentheEuro­
peanCommunityandtheCouncilforMutualEconomic
Aidwasamilestoneinthelong-overduenormalization
ofrelationsbetweentheEECandotherCMEA
countries,includingBulgaria.InthisDeclarationboth
negotiatingpartnerscommittedthemselvesto
developingcooperationinareasofmutualinterestand
withintheirrespectivetermsofreference.Thisfinally
putanendtotheCMEA'srepeatedcallforanEC/
CMEAumbrella.UnderthetermsoftheJointDeclar­
ationeachCMEAcountrydecidesindividuallyonthe
establishment ofdiplomaticrelationsandtradetalks
withtheCommunity .AtitsmeetinginRhodes
(December1988)theEuropeanCouncilsaidthatit
welcomedthereadinessoftheEuropeanmembersof
theCMEAtodeveloprelationswiththeEuropean
Communityandreaffirmeditswillingnesstofurther
economicrelationsandcooperationwiththem,taking
intoaccounteachcountry'sspecificsituation,inorder
tobeabletousetheopportunities inamutuallyben­
eficialway.1.3.Manyattemptshavebeenmadetoexplainwhy
Romaniawasabletogoitaloneinrelationswith
theEuropeanCommunity .However,whatcannotbe
deniedisthatinforeignpolicyareasRomaniadidnot
gobeyondthelimitssetbytheSovietUnion.Itis
equallytruetosaythatforhistoricalandpolitical
reasonsRomaniawasoncemoreplayingitsowndis­
tinctroleinthecommunityofEasternEuropeanstates.
Bymid-1958Soviettroopshadwithdrawnwhilstthe
firmlyestablishedregimeofcommunistterrorwasturn­
ingRomaniaintooneofthemostreliablefraternal
countriesoftheSovietUnion.Thiswasalsooneofthe
mainreasonswhyRomaniawasabletointroducesome
temporaryliberalizationunderthecloakofsocialism,
whereasprogressinthisareawasunknowntoother
membersoftheCMEA(H.Vastag,G.Mandicsand
M.Engelmann :Temesvar,SymbolofFreedom,
Vienna/Munich1992).Themanyandvariedcontacts
withWesterngovernmentswerealsoafactor,aswas
theliberalization whichtendedtomanifestitselfin
theRomanianeconomy.Thedecisiontakenbythe
GovernmentinBucharestnottotakepartinthecrush­
ingofthePraguespringwasanaspectofforeignpolicy
whichshouldnotbeunderestimated .Thistemporary
liberalization—whichwaspresumablyalsoapolitical
manoeuvreforthebenefitoftheWest—wasimmedi­
atelyrewardedbytheWesternworld.In1972Romania
wasthesoleCMEAstateallowedtobecomeamember
oftheInternationalMonetaryFund(IMF)andthe
WorldBank.Furthermore ,atthebeginningof1974,
Romaniawasincludedamongthecountriesgranted
unilateralpreferentialtreatmentbytheEuropeanEcon­
omicCommunityinitsschemetohelpdeveloping
countries .1.6.OnlyafewweeksafterthesigningoftheJoint
Declaration,theEuropeanCommunityestablished
diplomaticrelationswithsixoftheEuropeanMember
StatesoftheCMEA.On24September1990aten-year
agreementwassignedwithBulgariaontradeaswell
asoncommercialandeconomiccooperation .This
agreementcameintoforceon1November1990.In

NoC19/78 OfficialJournaloftheEuropeanCommunities 25.1.93
thegroundsthatitislikely,byvirtueoftheprinciples
setouttherein,tosecureandfurthertheestablishment
ofwiderpolitical,economicandsocialrelations
betweentheEuropeanCommunityandtheEC'sneigh­
boursinEasternEurope(1).Onlyanactiveassociation
policycangraduallyremovetheeconomicandsocial
imbalancesbetweentheCommunityanditsnegotiating
partners.Thistaskhasbecomeallthemoreurgentas
themoralenergyofpeoplewhofirstpavedthewayfor
democracyinthoseEasternEuropeancountriesnow
undergoingreformislikely—giventheconditions
experiencedinevery-daylifeinthepost-communist
era—toberapidlyerodedby(a)half-heartedreforms,
(b)thecollapseofexistingforeigntraderelations,(c)
economiccontraction,(d)highinflation,and(e)grow­
ingunemployment .[K.A.Koerberin:Aftersocialism.
HowarethenewdemocraciesinEuropetoproceedin
thefuture?(Minutesofthe93rdBergedorfDiscussion
Grouponquestionsrelatingtoafreeindustrialsociety).
Berlin,13/14July1991.]TheEuropeanCommunityis
urgedtoofferthesecountriesrealisticprospectsand
alsoconvincethemthattheycannotaffordtostandon
thesidelines.addition,theCommunityextendeditsGeneralizedSys­
temofPreferencestoincludeBulgariafrom1January
1991,andquotasonimportsfromBulgariawereeither
abolishedorsuspended .
1.7.TheCommitteeisconvincedthattheestablish­
mentofdiplomaticrelationsandtheconclusionoftrade
andcooperationagreementsarethecornerstoneofthe
processofpoliticalandeconomicintegration,strength­
eninginter-statedialogueanddeepeningEuropeanpol­
iticalcooperation .WiththeseagreementstheCom­
munitypossessesausefulinstrumentwhichnotonly
permitsmanydifferenttypesofshort-termaidtoEast­
ernEuropeancountriesbutalsocontributes,inthe
mediumterm,totheeconomicunderpinningofthe
processoftransformation andrenewalnowunderway
inthesecountries .
1.8.Thereisnodoubtthatfirstgenerationagree­
mentshavealsobeenimportantmilestonesinpaving
thewayforthenextstageintheprocessofpan­
Europeanrapprochement ,namelytheraisingofcooper­
ationwithCentralandEasternEuropeancountriesto
anevenhigherqualitativelevel.Inreality,whatisat
stakeisthetransitionfromcooperationtoassociation .
TheblueprintforAssociationAgreementspresentedby
theECCommissionatthebeginningof1990embraces
notonlythestep-by-stepcreationofafreetradearea,
thefreemovementofworkers,theliberalization of
services,theapproximation oflegislationandtheinten­
sificationofeconomic,socialandfinancialcooperation ,
butalsotheinstitutionalization ofpoliticaldialogue
andculturalcooperation .
1.9.Thesepreferentialagreements,termedEurope
Agreementsbecauseoftheinclusionofpoliticaldia­
logue,mayinprinciplebeconcludedwithallcountries
ofEasternEuropeforanindefiniteperiodoftime.In
thecaseoftheCommonwealth ofIndependentStates
(CIS)andGeorgia,however,aseparateapproachneeds
tobeadoptedonthebasisoftheEuropeanCom­
munity'sblueprintforpartnershipandcooperation
agreements .Thecrucialpreconditionfortheconclusion
ofEuropeAgreementswiththesecountries,however,
isthat(a)realprogressisbeingmadeinthepolitical,
socialandeconomictransformations nowunderway
there,andthat(b)thepointofnoreturnfordemocracy
andthemarketeconomyhasalreadybeenreached.The
CommitteehasappealedtotheECCommissionon
severaloccasionstomonitorpoliticalandeconomic
reformsineachcasebeforelaunchingintospecific
association discussions .TheCommittee likewise
assumesthatitsEasternEuropeannegotiatingpartners
willhavestable,democraticandlegitimategovern­
ments.2.2.TheCommitteeispleasedthatinMayofthis
yeartheECCommissionbeganassociationnegotiations
withBulgariaandRomania.Theaimofthenego­
tiationsistoconcludeEuropeAgreementswhichare
largelysimilarincontenttothosesignedon16Decemb­
er1991withPoland,HungaryandtheCSFR.The
Committee'scriticalcommentsandrecommendations
concerningtheagreementswiththeVisegradtriangle
remainequallyvalidasfarasonecanmakeoutforthe
DraftAgreementswithBulgariaandRomania.Since,
pendingtheentryintoforceoftheAgreements,pro­
visionsontradeandtrade-related matterswillbe
implementedfirstunderInterimAgreements ,theCom­
mitteewillalsocommentontheexperienceswithsuch
InterimAgreementsattheappropriatetime.
Preamble
2.3.TheCommitteeemphaticallyapprovesthewill­
ingnessofthecontractingpartiestocontributetothe
strengthening ofpoliticalandeconomicfreedoms,
whichconstitutetheverybasisofAssociation .Itstrong­
lysupportstheirdeclaredintentiontoactinunisonin
orderto(a)carryforwardtheconstructionofanew
politicalandeconomicorderbasedontheruleoflaw,
respectforhumanrightsandtherightsofminorities,
(b)guaranteeamulti-partysystemwithfree,democratic
(andsecret)elections,and(c)speedupthepaceof
economicliberalization inaccordancewiththeprin­
ciplesofamarketeconomy.Particularlyworthnoticing
istheexplicitundertakingofthecontractingpartiesto
abidebytheirCSCEcommitments ,moreespeciallyin2.EuropeAgreementswithBulgariaandRomania
2.1.InitsOpinionontheEuropeAgreementswith
theVisegradcountries,theEconomicandSocialCom­
mitteemakesanin-depthanalysisoftheEuropean
Community'sassociationblueprintandwelcomesiton(J)OJNoC339,31.12.1991,p.12.

25.1.93 NoC19/79 OfficialJournaloftheEuropeanCommunities
respectofthefullimplementation oftheprinciplesand
provisionscontainedintheFinalActoftheHelsinki
Conference,theconcludingdocumentsofsubsequent
meetingsinViennaandMadrid,theCharterofParis
foranewEurope,andtheEuropeanEnergyCharter.thewayforentry.Atthesametimeitmustbeassumed
thatanyfutureenlargementoftheEECwill,astheEC
CommissionmakesclearinitsreportonEuropeand
theProblemsofEnlargement ,takeplaceundervastly
differentcircumstances—achievementoftheSingle
Market,EconomicandMonetaryUnion,Foreignand
SecurityPolicy,theAcquisCommunautaire .Thesewill
allplaceconsiderabledemandsonpotentialmem­
bers—demandswhichcannotbefulfilledbyallappli­
cantcountrieswithinashortperiodoftime.TheEC
Commissionshouldthereforedrawupasrapidlyas
possibleacoherentECmembershipblueprint,testing
andfleshingoutnewformsandoptionswhichare(a)
basedontheexistingarchitectureofEuropeanorganiz­
ationsand(b)createaEuropeanpoliticalarea.[Report
oftheECCommission'EuropeandtheProblemsof
Enlargement'(AppendedtotheconclusionsoftheEuro­
peanCouncilof26/27June1992)].2.4.TheCommitteehasrepeatedlyemphasizedthat,
giventhesocialandculturalconditionsprevailingin
Europetoday,an'economicarea'whichisnotatthe
sametimea'socialarea'isunthinkable .TheCommittee
thereforeoncemorecallsupontheCounciltoreferin
thepreamblesoftheEuropeAgreementstothesocial
dimensionofEuropeanunificationandtomentionthe
CommunityCharteroftheFundamentalSocialRights
ofWorkersadopted,albeitnotunanimously ,bythe
HeadsofStateorofGovernmentoftheCommunityin
December1989.Whatisthepoint—theCommittee
wonders—ofhavingadetailedprotocolonsocialpolicy
intheDraftTreatyonEuropeanUnion,includinga
statementthatelevenMemberStates'wishtocontinue
alongthepathlaiddowninthe1989SocialCharter',
ifthepreamblesofEuropeAgreementsdonoteven
mentiontheCommunityCharteroftheFundamental
SocialRightsofWorkers?TheCommitteefurthernotes
withconcernthatalthoughadvocacyoftheprinciple
of'socialjustice'remainsa'fundamentalelementof
association'andisunderlinedassuchintheEurope
AgreementswithPoland,HungaryandtheCSFR,the
concepthasbeendroppedinthepreamblesofthenew
Agreements .HastheEuropeanCommunitynotcome
recentlyincreasinglyundertheinfluenceofadvisors
whohavelongbeendisturbedbythefactthat'Western
economicsystemshavehadtomakeconcessionsto
socialneeds—theestablishmentofawelfarestate,help
forthepoor,theprovisionofpublicservices,cooper­
ationwithtradeunions,attemptstodistributeincomes
fairly,andtheeconomic,financialandsocialresponsi­
bilityofthestateforthefunctioningoftheeconomic
systemasawhole'[J.K.Galbraith,EinRezeptnamens
Kapitalismus (Arecipebythenameofcapitalism).In
DieZeit,No44of26October1990]viathecreation
ofanappropriateframeworkandasoundgeneralcli­
mate?AclarificationbytheCouncilonthispoint
wouldseemtobecalledfor,notleastbecausethe
EuropeanCouncilemphasizedattheendofitsmeeting
inJune1991'theneedtostrengthentheCommunity
socialdimensioninthecontextofpoliticalunionand
economicandmonetaryunion'.Politicaldialogue
2.6.TheEuropeAgreementsformtheinstitutional
frameworkforapoliticaldialoguewhichisintended
toaccompanyandconsolidatetherapprochement
betweentheEuropeanCommunityandtheassociated
partners.Asaplatformforanexchangeofviewson
urgentbilateralandmultilateralproblemsitestablishes
newrelationsbasedonsolidarityandcreatesnewforms
ofcooperationbetweenthecontractingparties.Atmin­
isteriallevelthepoliticaldialoguetakesplaceinthe
AssociationCouncil,atparliamentary levelinthePar­
liamentaryAssociationCommittee .
2.7.TheESChasalwaysseenpoliticaldialogueas
pointingthewaytowardspan-European integration .In
thepresentphaseofwiderEuropeanandmultilateral
cooperationandincreasinglycomplexpoliticaland
economicprocesses,reciprocalinformationandconsul­
tationplayadecisiveroleforbothpoliticaldecision­
makersandsocialgroups.InitsOpinionontheEurope
AgreementswithPoland,HungaryandtheCSFR,the
Committeecalledonthecontractingpartiestoinvolve
theeconomicandsocialinterestgroupsinthepolitical
dialogue.Thesegroupsareavitalelementinaplural­
isticsocietyandpillarsofEurope'ssocialandpolitical
life.Themorethesocialgroupsspeaktoeachother,the
morefruitfulwillbetheircontributiontothepolitical
dialogue.
2.8.TheCommitteethereforeproposesthattwofur­
therArticlesbeinsertedintheEuropeAgreements
underTitleI('PoliticalDialogue'),readingasfollows:
'Article...
TheAssociationCouncilshallguaranteethatecon­
omicandsocialinterestgroupswillbeinvolvedin
thepoliticaldialogueduringthefirststageofthe
transitionalperiod.Fromthesecondstagethisdia­
loguewilltakeplacewithintheframeworkofa
ConsultativeAssociationCommitteerepresenting
economicandsocialinterestgroups.2.5.AtsomefuturetimeBulgariaandRomaniawill
seek,liketheVisegradcountries,tojointheEuropean
Community .TheCommitteesupportsthecontracting
partiesofEasternEuropeintheirdesiretoincorporate
inthepreamblesoftheirEuropeAgreementstheEC
membershipoption.AtthesametimetheCommittee
sharestheviewoftheCouncilandECCommission
thatthedynamicandevolutivestructuresofEurope
Agreementsshouldbeusedtoachievecloserpartner­
shipwiththesecountriesandsosystematicallyprepare

NoC19/80 OfficialJournaloftheEuropeanCommunities 25.1.93
Article...
ProtocolNo.1concernsthecooperationofthe
economicandsocialinterestgroups.'(Protocol
No1concerningthecooperationoftheeconomic
andsocialinterestgroups.Thecontractingparties
areagreedthatthisdialogueshallformpartofa
morewide-reaching dialogueembracingtheecon­
omicandsocialinterestgroupsoftheEuropean
CommunityandthoseoftheCentralandEastern
Europeancountries.)years.AswasalreadythecasewiththeVisegradstates,
theEuropeanCommunitywillintroducefreetrade
beforeBulgariaandRomaniado.TheCommunityis
toabolishcustomsdutiesandquotarestrictionson
industrialgoodswithinsixyears.Specialrulesareto
applyonceagainfortextiles,EuropeanCoalandSteel
Community (ECSC)productsandagriculturalprod­
ucts.BulgariaandRomaniawillprobablyneedtouse
thewholeoftheten-yeartransitionalperiodtolib­
eralizetradeattheirend.However,iftheoverallecon­
omicsituationanddevelopments inparticularsectors
allow,customsdutiesaffectingtradewiththeEuropean
Communitywillbeloweredbeforetheagreeddate.
Generalprinciples
2.12.TheCommitteewelcomesthisasymmetrical
approach,whichwillhelptopropupthedifficult
restructuringprocessesinBulgariaandRomania.In
viewofthedramaticdeterioration inthesecountries'
overalleconomicperformances ,theCommunityshould
makeaseriousattempttoshortenthesix-yearperiod
beforeitremovesallitscustomsdutiesonimported
industrialgoods,andshouldtrytospeeduptheinevi­
tableliberalization ofthemarkets.Article110ofthe
RomeTreaty—whichshouldalsobeborneinmind
fromtimetotime—expresslyobligestheCommunity
topressforaliberaltradepolicyinthecommoninter­
est.TheCommitteethinksthatthisobligationistoo
frequentlyneglected.Wheneverthishappens,the
necessaryrestructuring failstomaterializeandthe
Communitylosespoliticalcredibility.2.9.Thetreatiesnowincludetheprovisionthat
respectfordemocraticprinciplesandhumanrights,as
enshrinedintheHelsinkiFinalActsandtheCharterof
ParisforaNewEurope,aswellasadherencetofree
marketprinciples,arevitalelementsofAssociation .In
consequence ,appropriatemeasurescouldbetakenif
theseobligationsarenotmet.TheCommitteeregrets,
however,thatthereisnolongeranypossibilityof
resortingtoArticle60oftheViennaAgreementon
TreatyLaw,asoriginallyprovidedfor.TheCommittee
urgesatthesametimethattheprotectionofbasicsocial
rightsberegardedasan'elementofassociation'.The
sameholdsgoodfortherightsofminorities :inthe
viewoftheCommitteetheseareinalienablerights
andlikewiseconstituteavitalelementofAssociation .
Finally,itshouldnotbeforgottenthatminoritiesare
humanbeingsandnotexpendableby-productsofthe
vicissitudesofhistory(F.Elbein:ZwischenIntegration
undnationerEigenstandigkeit :wiefindetEuropazus­
atnmen?Minutesofthe93rdBergedorferDiscussion
Grouponquestionsrelatingtoafreeindustrialsociety.
Tallium,30/31May1992).TheCommitteefurthermore
assumesthatthisnewprovision—theresultofrecent
experiencewithYugoslavia—willalsoapplytofuture
EuropeAgreements .2.13.BulgariaandRomaniawillbeabletointroduce
temporaryderogationsintheformofhighercustoms
dutiesforfledglingindustriesandsectorsinthethroes
ofrestructuringorfacingotherdifficulties,e.g.serious
socialproblems.TheCommitteeendorsesthesedero­
gations,buttruststhattheywillnotbecometherule;
thewaytheyarewordedleavesthemopentointerpret­
ation.TheAssociationCouncilshouldalsomakesure
thatthefive-yearlimitisstrictlyobservedineachindi­
vidualcaseandthatallderogationswillceasetoapply
bytheendofthetransitionalperiodatthelatest.2.10.TheCommitteeseesproblemsinthatpartof
thedraftAgreementaccordingtowhichtheAssociation
Councilwillmeetinthecourseofthetwelvemonths
beforeexpiryofthefirststagetodiscuss—againstthe
backgroundoftheexperienceacquiredsincetheentry
intoforceoftheAgreement—thetransitiontothe
secondstageandanyamendments tocurrent
implementingprovisions .Theintentionisunreservedly
welcomed,butthepassageiswordedtoogenerallyand
couldactasablockondecisionsregardingtrans­
frontiercooperationbetweenfirms.Necessaryinvest­
mentdecisionsmightthenbedeferreduntiltheoverall
economicclimatehadsettleddown.2.14.OnceagaintheCommitteewouldurgethatthe
Community'spartnersinEasternEuropebeobligedto
takeovertheCombinedNomenclature infullbya
specificdatesothattradecanflowsmoothly.The
customsandforeigntradeauthoritiesinBulgariaand
Romaniamustalsobereorganized .Thetechnicalassist­
ancewhichtheCommunityhaspromisedshouldbe
providedforthwith.Inaddition,theCommunityshould
takeadvantageofthevastexperienceofCommunity
tradeassociationsandfirmsandaskfortheiractive
support.Freemovementofgoods
2.11.Theaiminthefieldoftradepolicyistophase
inafree-tradeareaoveraperiodofnomorethanten

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/81
welcomed .However,theCommissionconsidersthat
freedomfromcustomsdutiesistoapplyonlytoout­
wardprocessingtrafficsubjecttoquotas,andthisisto
becriticized.Theoutwardprocessingofquota-free
clothingproducts,ontheotherhand,willbesubjectto
thephasingoutofcustomsduties.Thereisnoconvinc­
ingreason,theCommitteebelieves,whyproductssub­
jecttoquotasshouldbetreatedanydifferentlyfrom
productsnotsubjecttoquotas.Itwouldbemorecorrect
toextendthefreedomfromcustomsduties,assoonas
thetextileprotocolsenterintoforce,toalloutwardly
processedknittedandwovenclothingproducts.2.15.Sensitivesectors—textiles,ECSCproductsand
agriculture—aredealtwithseparatelyinadditionalpro­
tocols;thecontentoftheseprotocolswasnotknown
withcertaintyatthetimeofthisOpinion'sdrafting.It
istobeassumedthattheprovisionsarebasedinpart
ontheprovisionscontainedintheEuropeagreements
withPoland,HungaryandtheCSFR.TheCommittee
wouldreferoncemoreatthispointtotherelevant
GATTprovisionsandthematerialconditionsneeded
forthecreationoffreetradeareas.Themaincondition
isthatcustomsdutiesandothertraderestrictionson
bilateraltradeareeliminatedinbothdirections'on
substantiallyallthetrade'(GATTArticleXXIV8b).
BecauseoftheneedtocomplywithGATT,itwillnot
bepossibleinthelongruntoexcludeanyarea—not
evenagriculture—frommarketliberalization .
2.19.ThestepstobetakentoliberalizeECSCprod­
uctswillbedealtwithinasecondadditionalprotocol.
2.16.TheCommunity'scustomsdutiesontextile
productsaretobephasedoutinthesamewayasin
theotherEuropeAgreements .Thismeansthatthere
willbecompletefreedomfromcustomsdutiesinthe
seventhyearafterthepreferentialagreementscomeinto
force.BulgariaandRomaniawillabolishtheircustoms
dutiesbytheendoftheten-yeartransitionalperiodin
accordancewithatimetablewhichhasstilltobelaid
down.Aspecialsafeguardclausehasbeenagreedstat­
ingthataccountwillbetakenofthetransitional
arrangements stilltobenegotiatedintheGATTUrug­
uayRoundfortextilesandclothing.2.20.Inthesteelsectorthepartiesarealsotoapply
astep-by-stepapproach.TheCommunitywillprobably
abolishcustomsdutiescompletelywithinfiveyears.
BulgariaandRomaniawillrequiretheten-yeartran­
sitionalperiodtoabolishtheircustomsduties,with
thetimetablesadoptedfortheirphasing-outlikelyto
dependonthesensitivityofECSCsteelproducts.The
quotarestrictionsonECSCsteelimportsandmeasures
ofsimilareffectwillbelifted—asinthecaseofthe
agreements withPoland,Hungaryandthe
CSFR—whenthesteelprotocolscomeintoforce.Judg­
ingfromwhattheCommissionsaysinitsindustrial
policyblueprint,'anopenapproachrequiresthatthe
rulesofthegameberespectedbyalltradingpartners
sincetheCommunity'seconomywillbecomemore
sensitivetosuchpracticesinlinewithitsevengreater
openness .
2.17.TheCommitteewouldurgetheECCom­
missiontobearinmindthattheGeneralizedTariff
PreferencesalreadygrantedtoBulgariaandRomania
aretobeterminatedbeforetheentryintoforceofthe
InterimAgreements .Theremovalofthesepreferences
mustnot,however,putthesecountriesinaworse
positionretroactively (ashappenedwiththeVisegrad
states).TheCommitteebelievesthatitwouldbeapiece
oftradingnonsenseifBulgarianandRomaniantextile
andclothingexportstotheCommunity ,forexample,
wereinfuturesubjecttotheplannedphasedreduction
ofcustomsdutieswhereaspreviouslytheyweretotally
exempt.Suchactionwouldclearlyimpedeboth
countries'exportsandwouldhardlybecommensurate
withtheCommunity'smuchvauntedmarketliberaliza­
tionpolicy.NorwoulditaccordwiththeCommission's
originalassurancethattheConclusionofEuropeAgree­
mentswouldundernocircumstances leadtoadeterio­
rationofthestatusquo.2.21.InviewofourtwoEasternEuropeanpartners'
crudesteelcapacities—15milliontonnesperyearinthe
caseofRomaniaand5milliontonnesperyearinthe
caseofBulgaria—theCommitteeendorsestheCom­
mission'splantomakeitclearduringnegotiationsthat
bothcountries'steelexportstotheCommunitymust
developsmoothlyandnotupsettheCommunitymar­
ket.ThesteelindustriesinthecountriesofEastern
Europehaveconsiderableproblemssellingproducts
becauseofthecollapseoftheirdomesticmarketsand
othermarketsinEasternEurope.Theywilltherefore
attempttooffsetthisatallcostbyincreasingtheir
exportselsewhereandespeciallytotheCommunity .
2.22.Theremovalofnationalimportquotaswith
theentryintoforceoftheInterimAgreementshasin
thecaseofPolandandtheCSFRalreadyproduced
seriousdisturbancesontheCommunitymarket.Inthe
firsthalfof1992,forexample,theCSFRmorethan
doubleditsexportsofECSCrolledsteelproductsto
theFederalRepublicofGermanycomparedwiththe2.18.Theoutwardprocessingofknittedandwoven
clothingproductsistobefreefromcustomsdutiesonce
thetradingagreementscomeintoforce.Thisistobe

NoC19/82 OfficialJournaloftheEuropeanCommunities 25.1.93
Romaniathemselveswillonceagainhaveonlylifted
theirquotarestrictionsattheendoftheten-yeartran­
sitionalperiod.sameperiodthepreviousyear.InPoland'scasethere
wasanapproximately 90%increase.ItistheECsteel
industry'sviewthatthesegrowthratescanonlybe
achievedbyfixinglowpriceswhichundercutthemar­
ketpricesbyalmost25%(weightedaverage).The
exportsofsomesteelproductstotheCommunityhave
takenonsuchproportionsthat,attheinsistenceof
France,ItalyandtheFederalRepublicofGermany,the
Commission hasbeenforcedtointroducemeasuresto
protectagainstimportsofhot-rolledwidestrip,light
sheetandwirerodfromtheCSFR(1).Furtherprotective
measuresarebeingadvocatedbytheECsteelindustry
inthemeantime .2.25.TheCommitteeconsidersthejointprotocol
provisionsforECSCproductstobeparticularly
important.Theobligationsherearesimilartothose
containedintheTreatieswithPoland,Hungaryand
theCSFR.TheCommittee'smainconcernisthestate
aidquestion.Becauseitisharmfultotradebetweenthe
Communityanditsassociatedpartners,stateaidis
incompatiblewiththeorderlyfunctioningoftheagree­
ments.TheCommitteecallsontheCommission to
makefulluseofavailablemachineryintheAssociation
Councilinordertoeffectivelyprotectcompetition
againstdistortionscausedbystateaid,beitgranted
anywhereintheCommunityorinBulgariaandRom­
ania.2.23.Inordertoavoidtherecurrenceofserious
disturbancesonthesteelmarketoncetheagreements
aresignedwithBulgariaandRomania,theECsteel
industry—withthebackingoftheSpanishGovern­
ment—hassuggestedthatCommunitysteelimports
frombothcountriesberestrictedduringatransitional
periodtopastlevels.Thetransitionalperiodisdefined
inthisinstanceastheperiodduringwhichtheBulgarian
andRomaniansteelindustriescontinuetoreceive
restructuringaidfromthestate.Oncerestructuringhas
beencompleted,thesteelfirmshavebeenprivatized
andabanonstateaidhasbeenintroducedinaccord­
ancewithECSClaw,themarketsshouldbecompletely
liberalized .SofartheEuropeanCommunityhasappar­
entlynotbeenwillingtotakeupthisproposal.Instead,
itiscontemplating a'safeguardclause'whichwill
remaininforceaslongasBulgaria'sandRomania's
ironandsteelindustriesreceiverestructuringaidfrom
thestate.Thepurposeofthisprovisionistoensurethat
BulgariaandRomaniarespectthespecialsensitivityof
theCommunity'ssteelmarket.TheCommitteesup­
portstheCommission'sproposalbecauseitsatisfies
theCommunity'smultilateralobligationsbetterthana
voluntaryrestraintclause.However,itisassumedthat,
intheeventoftheagreedrulesoncompetitionbeing
violatedandthemarketsbeingseriouslydisturbed,
theCommission willbefreetointroduceandenforce
suitablequotarestrictionsstraightaway .2.26.Tradeinprocessedagriculturalproductswhich
donotcomeunderAnnexIItotheEECTreatywillbe
dealtwithinathirdadditionalprotocol.Notmuch
wasknownaboutthesearrangementswhenthisOpin­
ionwasdrafted,buttheywillcontainprovisionsonthe
dismantlingofcustomsdutiesandchargesofequivalent
effect,plusprovisionsaboutquotarestrictions .Con­
cessionsbasedonbalanceandreciprocitywillbe
grantedfortradeinagriculturalproducts,andinpar­
ticulargoodscomingunderChapters1to24ofthe
CombinedNomenclature andthecustomstariffofthe
associatedcountries.However,theseconcessionswill
applyonlytoproductsinwhichtherehasbeenregular
large-scaletradeinrecentyears.
2.24.InthecoalsectorCommunitycustomsduties
aresettofallmorerapidlythaninthesteelsector.The
phasingoutofthesedutiesisinfacttobecompleted
fouryearsaftertheagreements'entryintoforce.Bulgar­
iaandRomaniawillabolishtheirdutiesbytheendof
thetransitionalperiod.Quotarestrictionsonimports
areinprincipletobeliftedbytheCommunitywithin
oneyear.Thereare,however,tobefour-yeardero­
gationsforcertainproductsandregions.Bulgariaand2.27.BulgariaandRomaniahavehugepotentialin
thefieldofagriculturalproductionandthispotential
willincreaseconsiderablyoncethereformsstarttotake
effectinagriculture,too.Bothcountrieswillmakea
greatefforttosubstantiallyboosttheiragricultural
exportstotheCommunity ,eveninthecaseofthose
productswhichcomeunderECagriculturalmarket
regimes.TheCommitteeagreeswiththeCommission
thattheAssociationCouncilshouldcontinuallyexam­
inethepossibilitiesforfurtherconcessionsonallgoods
onthebasisofreciprocity .Theseconcessionsshould
dependontheparticularsensitivityofproducts,the
Community'sCommonAgriculturalPolicy(CAP)pro­
visions,theimportanceofagriculturefortheassociated
countriesandthelikelyoutcomeoftheGATTUruguay
Round.FormanyyearsnowtheCommunityhashad
tocontendwithstructuralsurplusesinagricultural
marketsand,despitethestep-by-stepreformagreed
oninMay1992,itisdoubtfulwhethertheseserious
difficultiescanbeeliminatedforthemoment.Itwould
thereforebedisastroustoexacerbatethesituationon
theCommunity'sagriculturalmarketbyexcessive
importsofparticularlysensitiveproducts.Atthetime
ofdrawingupthisOpiniontherearedifferencesof
opinionbetweenthecontractingpartiesonimportquo­ HOJNoL238,21.8.1992,p.26.

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/83
tasforbeefandsheepmeatjustasthereareapparently
majorproblemsinfixingpreferentialquotasforplums
andcherries,wineandtobacco.Preferentialrulesoforiginaresetoutinanadditional
protocol;afurtherprotocollaysdownspecialarrange­
mentsfortradebetweentheassociatedcountriesand
SpainandPortugal.TheCommitteewelcomesthepack­
ageofmeasureswhichwillhelp,aboveallduringthe
transitionalperiod,toeliminatedisturbancestotradein
goodsbetweentheCommunityandthetwoassociated
countries .2.28.Inviewofthistensesituation,theCommittee
wouldreiterateaproposalmadeinitsOpinionon
theEuropeagreementswithPoland,Hungaryandthe
CSFR,namelythatmuchoftheagriculturalsurplus
shouldbeexportedtootherneighbouringEasternEuro­
peancountriesforhardcurrency.Therewillbeaheavy
demandforagriculturalimportsinthesecountries—in­
cludingmostcertainlytheCommonwealth ofIndepen­
dentStates(CIS)—forsometimeyet.TheCommunity
andthe'Groupof24'shouldprovidefundsspecifically
forthispurposeintheiraidprogrammesforBulgaria
andRomania.Thisaid,whichshouldalsohelpto
supporteconomicreforminbothcountries,shouldbe
grantedoveraperiodofseveralyears.2.32.TheCommitteeconsiderstheproposedconsul­
tationprocedureinestablishedcasesofdumpingtobe
particularlyrelevant.ItassumesthattheGATTanti­
dumpingandanti-subsidycodeswillbefullyobserved.
AtthesametimetheassociatedcountriesofEastern
Europeshouldgiveanassuranceatasuitablepointin
theAgreementsthattheyintendtocomplyuncon­
ditionallywithECsubsidydiscipline,subjecttothe
agreedderogations .Treatingtheassociatedcountries
fromtheoutsetascountrieswithfunctioningmarket
economiesis—inspiteofthelackofclarification—ac­
ceptableonpoliticalgroundsandconstitutesavaluable
incentiveforrapidprogresswiththeeconomicreform
process.Objectively,itwillnotbeatalleasyforthe
Commissioninfutureyearstomakeafaircompari­
son—withinthemeaningoftheECanti-dumpingRegu­
lation—betweentheexportpriceand'normalvalue'.2.29.JustovertwoyearsagotheCommitteepointed
outthattheeconomicandsocialchangesinCentral
andEasternEuropeancountrieswouldalsohavea
significantimpactontheCommunity'sagricultural
markets.HencetheCommittee'srecommendation in
itsOpinionatthetimethattheECCommissionshould
immediatelyframeproposalswhichwouldhelpto
channelEasternEurope'sagriculturalandindustrial
capacity'intobothtraditionalfoodproductionand
industrialandenergyoutletsforagriculturalprod­
ucts'(*).TheCommitteebelievesthattheEuropeAgree­
mentsprovideasuitableframeworkforsuccessfully
transformingsuchproposalsintorealityintheassoci­
atedcountries .
2.33.Freetradearrangementscanonlybeenjoyed
ifthereisconcreteproofoftheoriginofproducts
(proofofpreference).InitsOpinionontheEurope
AgreementswithPoland,HungaryandtheCSFR,the
Committeesupportedtheircallformultilateralcumu­
lation.TheCommissiondidnotacceptthiscall,with
theresultthattheextremelyrestrictiverulesoforigin
laiddownintheInterimAgreementshaveprovedto
beamajorobstacletoincreasedtrade.Thisisan
enormousqualificationoftheEuropeanCommunity's
concessionofallowingtheVisegradcountriesduty-free
accesstothemarketsofthetwelveECMemberStates
fornearlyallindustrialproductsfromtheentryinto
forceofthetradepartoftheEuropeAgreements .2.30.Furthermore ,theCommitteestillthinksit
wouldmakesensetoholdconsultationswithBulgaria
andRomaniaintheAssociationCouncilonaset-aside
andextensification programmethatwouldstabilize
agriculturalproductionandimprovetheruralenviron­
ment.Thisprogrammeshouldalsoreceivefinancial
supportfromtheCommunitywithinthelimitsofthe
fundsavailable.Theset-asideshouldprimarilybefor
heavilycontaminated landwhichhastobetakenout
ofagriculturalproductionbecausefoodcouldnotbe
grownonitanywhereinanycountry.
2.31.Tohelpcreateafree-tradearea,theEurope
Agreementscontainaseriesofflankingmeasureswhich
applytoalltradeingoods,exceptasotherwiseprovided
bytheGeneralConditionsorAdditionalProtocols
1-3.Theseincludestandstillagreements,consultations
inthecaseofdumping,safeguardclauses,Statemon­
opolies,non-discrimination anddisputesettlement.2.34.AlthoughtheProtocolonpreferentialrulesof
originappendedtotheEuropeAgreementswithBulgar­
iaandRomaniaisnotyetavailable,referencesinrelated
documentssuggestthattheCommissionhasinmind
thesamerestrictiveoriginrulesasintheotherEurope
Agreements .Foraslongasdiagonalcumulationamong
allcountriesassociatedbymeansoftheEuropeAgree­
mentscannotbeappliedtothefurtherprocessingof
goods,processingcantakeplaceinnomorethantwo
countrieswithoutlossoftheexistingoriginatingstatus.
SuchrestrictiverulesaretobefoundneitherintheEC­ (!)OJNoC124,21.5.1990,p.51.

NoC19/84 OfficialJournaloftheEuropeanCommunities 25.1.93
grationofimmigrantswithoutsignificantdelay.In
addition,conditionsshouldatlastbelaiddownunder
whichimmigrantsfromthirdcountriescanenjoyfree­
domofmovementwithintheCommunityonanequal
footingwithCommunitycitizens.TheCommittee
believesthatthisistheonlywayofremovingdiscrimi­
nation,ensuringaproperlyfunctioningSingleMarket
andachievingtheaimofcreatingaunifiedCommunity
labourmarket.EFTAfree-tradeagreementnorintherulesnegotiated
forthepurposesoftheEEAAgreement.Thesenew
rulesoforigin—whichareexpectedtoapplyfrom
1January1993—areincertainrespectsevenmore
liberalthantheEC-EFTArulesoforigincurrently
inforce,assetoutinProtocol3tothefree-trade
Agreement .
2.35.TheCommitteefindsitextremelydifficultto
understandthereasoningbehindtheCommission'spos­
ition.TheCommissionmustrealizethatonlyauniform
systemforthedetermination oforigincanservethe
divisionoflabourwithinEurope,intowhichtheassoci­
atedcountriesofEasternEuropearetobeintegrated.
TheCommitteethereforecallsfortheEC-EFTArules
oforigincurrentlyinforce,orbetterthefutureEEA
ruleswithanalternativepercentagecriterion,tobe
insertedintoalltheEuropeAgreementswiththe
countriesofCentralandEasternEurope('pan-Euro­
pean'cumulation).2.39.Inthesecondstageofthetransitionalperiod,
ifnotearlier,theAssociationCouncilwilltryandfind
furtherwaysandmeansofimprovingthe'rightsof
workers'tomovefreelyacrossborders,whilsttaking
intoconsideration theeconomicandsocialconditions
prevailingintheassociatedstatesjustasmuchasthe
employmentsituationintheCommunity .TheCom­
mitteeagainregretsthattheCommissionhasnoteven
referredinaprotocoltotheCommunity'slimitedscope
foractiononfreedomofmovementinthemedium
term.TheevidencesuggeststhattheCommunitylabour
marketwillhavenosignificantneedofadditionallab­
ourfromthirdcountriesforthetimebeingsincethe
Community'srateofunemployment isnotlikelytofall
toanyappreciableextentinthenextfewyears;onthe
otherhand,concessionsinexistingagreements (Turkey)
alreadylimitimmigrationpossibilitiesforjobseekers.
Finallyitshouldnotbeforgottenthattheprovisions
whichhavecomeinforcriticismturnupagainin
allagreements :theyaretobefoundintheEurope
AgreementwithPoland,HungaryandtheCSFR,are
nowbeinginsertedintotheagreementswithBulgaria
andRomaniaand—forreasonsofequaltreat­
ment—willalsohavetobeincludedinfutureEurope
Agreements .Inviewoftheconsiderablejobshedding
inEasternEuropeancountriesasaresultofreform,
pressureontheCommunitylabourmarketwillincrease
sharplyinthemediumterm.Whichjob-seekersfrom
whichpartnerstateswillthenbegivenprioritybythe
Community ?Evenaquotaschemeoffersnosatisfac­
torysolutionhere.Whoever'laysdownquotasfor
individualgroupsorcountrieswhichletsinsomeand
turnsawayothersdealswithbasicallyequalcircum­
stancesinanunequalway.Equaltreatmentofequal
circumstances ,however,isthefoundationofaconsti­
tutionalstateanditsguaranteeoftheruleoflaw'.
[H.Afheldt,EuropavordemAnsturmderArmen(Eur­
opebeforetheonglaughtofthepoor),Suddeutscbe
ZeitungNo234of10October1992.]IntheCom­
mittee'sviewitishightimetoponderindepththe
complexandmany-layeredissueoffreedomofmove­
mentforworkersbetweentheEuropeanCommunity
andassociatedpartnerstatesandworkoutdurable
solutions,withintheframeworkofacoherentimmi­
grationpolicy,whichdonotarousegreatexpectations
todayonlytodashthembytomorrowatthelatest.Freemovementofworkers,therightofestablishment
andfreedomtoprovideservices
2.36.Inadditiontofreemovementofgoods,the
basicfreedomspursuedbytheEuropeanunification
processareaboveallfreedomofmovementforworkers,
therightofestablishmentandfreedomtoprovideser­
vices.Thesehaveparamounteconomicimportanceand
areofgreatsymbolicvalue.
2.37.Forthecontractingpartners,freemovementof
workersconcernsprimarilytheintegrationofworkers
legallyemployedontheterritoryoftheothercon­
tractingpartyandtheirfamilymemberslegallyresident
there.Atthesametimesocialsecuritysystemsfor
thesepersonsshouldbeco-ordinated .Existingfacilities
whichtheECMemberStatesprovideunderbilateral
agreementsshouldwherepossiblebeimprovedand
extended.TheCommitteewarmlywelcomestheagree­
mentsbutwouldstillliketoseeagreementscovering
workersfromEasternEuropeancountrieswhoare
employedillegallyintheCommunity .
2.38.TheCommittee,whichhasdiscussedmigration
fromthirdcountriesinanumberofOpinions^),calls
forlegallyresidentimmigrantsintheCommunitytobe
giventheirfullplaceinthe'Citizens'Europe'.Steps
shouldbetakentoensurethatCommunityrightsand
obligationsaffectingresidence,employmentand
mobilityalsoapplywithoutrestrictiontothiscategory.
Atthesametime,theCommitteehascalleduponthe
ECMemberStatesandtheCommissiontobringabout
Community-wide harmonization oflegalprovisions,
instrumentsandmeasuresnecessaryforthesocialinte­
(1)OJNoC343,24.12.1984;OJNoC188,29.7.1985;OJNo
C159,17.6.1991;OJNoC339,31.12.1991;OJNoC40,
17.2.1992.2.40.Asregardstherightofestablishment ,theMem­
berStatesbelievethatassoonastheEuropeAgreements

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/85
visions,generallyintolinewithCommunityrulesdur­
ingtheAgreements'transitionalphase.comeintoforce,businessesandnationalsintheassoci­
atedstatesshouldbesubjecttothesameconditionsas
theEC'sownenterprisesandcitizens.Bulgariaand
Romaniawilldothisrightaway,exceptincertain
sectorswheretherewillbeequaltreatmentbythe
endoftheten-yeartransitionalperiodatthelatest.
Derogationswillbepossibleinindividualindustries
inBulgariaandRomaniainordertodealwiththe
constraintsofstructuraladjustmentorotherserious
difficulties,includingmajorsocialproblems.However,
thesemeasuresmustterminatetwoyearsaftertheend
ofthefirststage.Protectivemeasureswillalsobeposs­
ibleincaseswherebusinessesinagivenindustryor
sectoroftheeconomyareforcedtoaccepta'dramatic'
lossoftheirdomesticmarketshares.Capitalmovements,competitionandapproximation
oflaws
2.44.AstheCommitteesaidinitsOpiniononthe
EuropeAgreementswiththeVisegradstates,theadvan­
tagesofaliberalizedgoodsandservicessectorfromthe
standpointoflocationandspecializationcanonlybe
fullyexploitedifthefreemovementofcapitalacross
frontiersisguaranteed .Thefreemovementofcapital
willcreatefavourableconditionsformonetarycooper­
ationandreinforcestabilizationefforts.TheCommittee
supportsallagreementswhicharedesignedtoincrease
thefreemovementofcapitalbetweentheCommunity
anditspartnersinEasternEurope.Itispleasedthat
thecontractingpartieshaveundertakentoguarantee,
fromtheentryintoforceoftheAgreements,freemove­
mentofcapitalinconnectionwithdirectinvestments ,
theirliquidationandtherepatriationofanyprofits.In
addition,theconditionsforthegradualapplicationof
Communitylawsonfreecapitalmovementswillbe
createdduringthefirstfive-yearperiodoftheAgree­
ments;attheendofthisperiodtheAssociationCouncil
willconsiderthepossibilitiesofadoptingtherelevant
Communityprovisionsinfull.2.41.TheCommitteebroadlyendorsesthese
Arrangements .Therightofestablishmentwillfacilitate
thetransitiontoamarketsystemandhelptocreatea
modern,competitiveeconomyintheassociatedstates.
TheCommitteealsoappreciatestheneedfortemporary
protectivemeasuresinexceptionalsituations.Atthe
sametime,'dramatic'reductionsindomesticmarket
sharescanhardlyjustifyprotectionism .Suchapolicy
willnotboostthecompetitiveness ofdomesticindus­
triesandwillonlyputoffthenecessarystructural
adjustmentstoapossiblymoredifficultfuture,when
theymaycauseevenmorepain.Inaddition,theCom­
mitteestillthinksthatthispassageshouldbediscussed
oncemorewiththecontractingpartiesandwordedin
moreconcreteterms;inparticularthe'relevant'market
variablesandthenotionofmarketsharesshouldbe
definedclearly.
2.42.TheCommitteeapprovesthephasedand
reciprocalliberalizationofservices.Inviewofthe
increasingworldwidesignificanceofservicesmarkets,
theimportanceofliberalizationinthisareacanhardly
beoverestimated .TheCommitteeispleasedthatboth
contractingpartieswishtoincorporatetheresultsof
theGATTUruguayRound—whichaimstoestablisha
multilateralframeworkofprinciplesandrulesgovern­
ingservicetransactions—intotheEuropeAgreements
attheappropriatetime.2.45.TheprovisionsinthenewdraftEuropeAgree­
mentsoncompetition,publicprocurementandstate
aidaresimilartothosetobefoundintheEurope
Agreements ,alreadyconcludedwithPoland,Hungary
andtheCSFR.Thenewprovisionsneverthelessinclude
asafeguardclauseintheeventofbalance-of-payments
difficulties .TheCommitteesupportsinprinciplethese
Arrangements .Competition isacentralpillarofthe
CommonMarket:withoutcompetitiontherecanbeno
guaranteethattheadvantagesoftheSingleMarketwill
beadvantageously exploited;withoutcompetitionthe
processofpan-Europeanintegrationwouldbeseriously
flawed.FromtheveryoutsetBulgariaandRomania
shouldthereforealigntheirnationalcompetitionlaws
ascloselyaspossibleonthoseoftheEuropeanCom­
munity.TheCommitteealsowonderswhetherthe
adoptionofimplementing provisionsoncompetition
ruleswillreallyrequirethreeyearsaftertheentryinto
forceoftheAgreements . 2.43.Specialprovisionsareplannedforcross-fron­
tiertransportservices:ininternationalmaritimetraffic
theprevailingprinciplewillbeunrestrictedmarket
access.RightsanddutiesundertheUNCodeofCon­
ductforLinerConferenceswillremainunchanged .In
airandlandtransportmutualmarketaccesswillbe
regulatedintransportagreementsworkedoutbetween
thepartnerstatesaftertheEuropeAgreementscome
intoforce.AtthesametimeBulgariaandRomania
wanttobringtheirairandlandtransportlegislation,
includingadministrative ,technicalandotherpro­2.46.Wewouldunderlinethecontractingparties'
convictionthattheopeningupofpublicprocurement
onthebasisofnon-discrimination andreciprocity,par­
ticularinaGATTcontext,isanobjectivewellworth
pursuing.Theliberalizationofpublicprocurementin
allareasisacentrepieceoftheSingleMarketpro­
grammeandhasgreatimportancefromanindustrial

NoC19/86 OfficialJournaloftheEuropeanCommunities 25.1.93
policypointofview.TheEuropeaneconomy—asthe
ECCommissionandCommitteehavepointedouton
severaloccasions—willnotmoveclosertogetherunless
thetendencytofavour'nationalchampions'when
awardingpubliccontractsisabandonedonceandfor
all.andwhichwillneedthefullten-yeartransitionalperiod
beforetheycanbealignedonCommunitylegislation .
Forexample,onecologicalandcompetitiongrounds,
theCommitteeregardsitasessentialforBulgariaand
RomaniatotransposeCommunitylegislationonthe
environment ,competitionandsubsidiesduringthefirst
transitionalstage.Similarly,legislativeandadministrat­
iveprovisionsonnucleartechnologiesshouldbe
approximated rapidlyandthesafetyprovisionslaid
downintheEuratomTreatyadoptedwithoutdelay.
Finally,actionisimperativeinthefieldofworker
protectionattheworkplaceandinconnectionwith
certainconsumerprotectiondirectives(e.g.onproduct
liability).NowtheCommunityhasenteredintoan
agreementtoprovideBulgariaandRomaniawithtech­
nicalassistanceinapproximating legislation,itshould
bepossibletosetprioritiesandpushthroughmuchof
thelegislationduringthefirststage.
Economiccooperation
2.51.TheEuropeanCommunityanditstwoassoci­
atedpartnerswishtostrengthenanddeepeneconomic
cooperation,puttingitonawidebasis.Cooperation
shouldgowellbeyondthelimitslaiddownbytrade
andcooperationagreements.Itshouldalsopromote
socialdevelopment intheassociatedcountries,whilst
particularattentionshouldbepaidtomeasureswhich
furthercooperationbetweenthecountriesofCentral
andEasternEuropeintheinterestsofharmoniously
developingthewholeregion.Theaimofjointactivities
isfinallytosupporteconomicdevelopmentinBulgaria
andRomaniaandmakeiteasierforthesetwocountries
tobecomeanintegralpartoftheinternationaldivision
oflabour.2.47.TheCommitteeexpresslywelcomesthe
ArrangementwherebyallstateaidgrantedinBulgaria
andRomaniaduringthefirststageofthetransitional
periodistobescrutinizedintermsofArticle92(3)(a)
oftheEECTreaty.Itwouldalsohavebeenusefulif
thenewEuropeAgreementshadstipulatedtheneedto
reviewnationalaidinaccordancewithArticle93of
theEECTreaty.TheCommitteebelievesthatthe
requirementtoproduceanannualreportonthetotal
volumeanddistributionoftheaidgivendoesnotgo
farenough.Ashasalreadybeenmadeclearelsewhere,
theAssociationCouncilshould,inthecaseofBulgaria
andRomania,beinapositionwhereitcaneffectively
bringintoplayallECaidmonitoringinstruments .
2.48.Thecontractingpartiesrecognizethatalign­
mentofthelawsofBulgariaandRomaniaonthose
oftheCommunityisanimportantconditionforthe
economicandsocialintegrationofbothcountriesinto
theEuropeanCommunity .AstheSectionforIndustry
pointedoutinitsOpiniononEuropeanindustrialpol­
icy(J),whatfirmsonbothsidesneedmorethanany­
thingelseisa'reliableclimateforactionandmore
scopeforreorganizingthemselvesinordertostrengthen
theircompetitiveness ,findaflexibleresponsetothe
growingpressuresfrominternationalfirmsbasedout­
sidetheCommunity ,andcreateandpermanentlysafe­
guardjobs'.
2.49.TheCommitteeagreeswholeheartedly withthe
ECCommissionthatlegislativeharmonization isacol­
ossaltaskinvolvingagreatvarietyofprovisionswhich
canonlybeadjustedgradually.Theseincludecustoms
law,companylaw,bankinglaw,companyaccounts
andtaxes,intellectualproperty,protectionofworkers
attheworkplace,financialservices,rulesoncompe­
tition,protectionofthehealthandlifeofhumans,
animalsandplants,consumerprotection,indirecttax­
ation,technicalrulesandstandards,nuclearlawand
regulation,transportandtheenvironment .BothBulgar­
iaandRomaniahavealreadygivenanassurancethat
theirlegislativeprovisionswillbegraduallyalignedon
thoseoftheCommunity .
2.50.TheCommitteeregretsoncemorethefailure
ofthedraftAgreementstofixpriorities.Althoughthe
two-stageplanappliesequallytotheapproximation of
legislation,thereisnoactualindicationastowhich
provisionsaretobeapproximatedduringthefirststage2.52.ThedraftEuropeAgreementswithBulgaria
andRomania,likethoseconcludedwiththeVisegrad
states,mentionalargenumberofdifferentareaswhere
bothpartiesintendtointensifycooperationandacceler­
atedevelopment :industrialcooperation ,thepromotion
andprotectionofinvestment,industrialstandardsand
conformityassessment,cooperationinscienceandtech­
nology,vocationaltraining,agricultureandtheagro­
industrialsector,energyandnuclearsafety,theenviron­
ment,transport,telecommunications ,bankingand
insurance,monetarypolicy,moneylaundering,regional
development ,socialcooperation ,tourism,smalland
medium-sizedenterprises,customs,statistics,drugsand
publicadministration .Allareasofcooperationarefur­
therdividedintoconcretefieldsofaction.
2.53.Thesheervarietyoftheareasofcooperation
isimpressiveanddeservestobeendorsed.Nevertheless ,
theCommitteeharboursseriousdoubts(asalreadyin
thecaseoftheVisegradstates)astowhethercommon
projectscanbeexecutedinalltheseareaswithina (i)OJNoC40,17.2.1992,p.31.

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/87
alsoresolutelycarryoutitsownstudiesunderthePhare
programmesothatthefindingscanbeevaluatedas
soonaspossiblewithaviewtotheretrofittingof
nuclearpowerplantsinEasternEurope.reasonableperiodoftime.Neitherthemanpowernor
thefinancialresourcesofCommunityinstitutions
wouldseemtobesufficienttoensuresatisfactorycover­
ageofthewholerangeofactivities.Norshoulditbe
forgottenthattherearenowfiveEasternEuropean
partnerstateswithwhichwide-rangingcooperationhas
beenagreed.TheCommitteefeelsthatitwouldhave
beenmuchmoresensibletohaveconcentratedinitially
onjustoneortwokeyareaswhereurgentactionis
needed.TheCommitteeisparticularlyinterestedin
'high-cost'prioritieswithacross-borderdimension
wheretheCommunityanditsassociatedpartners,or
alsoactualfirmsofECMemberStates,needtoactas
locomotives .HeretheCommitteeprincipallyhasin
mindpolicyareassuchasinfrastructure ,educationand
training,andnuclearenergy.2.57.TheCommitteewouldunderlinetheassurance
givenbythecontractingpartnerstodevelopand
strengthencooperationinthefieldoftheenvironment .
TheCommitteeemphaticallysupportsthedeclared
intentionoffullytakingintoaccounttheenvironmental
impactofalleconomicmeasuresfromtheveryoutset.
AstheCommitteehasalreadymadeclearinanumber
ofdifferentOpinions,environmental policyshouldbe
preventiveandcooperativeinkindandshouldbecare­
fullycoordinatedwithotherpoliciessuchasregional
policyorresearchanddevelopmentpolicy.Asapan­
Europeanissue,environmental policyshouldbeseenas
across-frontierchallengewhichcannotbetackledby
individualcountriesactinginisolation.
2.54.Inthefieldofbasicpublicinfrastructure ,the
establishment anddevelopmentofaninfrastructure
networkgearedtoactualneedsisanimportantpre­
requisiteofsuccessfulstructuralreorganization .This
willrequireaninvestmentpolicycapableofmeeting
higherqualityrequirementsandthedemandsofacom­
petitive,market-oriented economy.Suchanapproach
impliesthatinfrastructureinvestmentinBulgariaand
Romaniatodayshouldbeseenandevaluatedina
European-wide context.
2.55.Thesecondpriorityforjointactionbythe
contractingpartiesshouldbeeducationandtraining
sinceworkers'trainingwillplayakeyroleinthe
economicreformandrenewalprocess.Theprincipal
shortcomingisthelackofappropriateknowledgeand
experienceregardingtheoperationofmarket-oriented
systemsandtheuseofmodernproduction,information
andcommunication techniques .Therearealsoshort­
comingsofanon-technical naturesinceautonomy,
initiativeandcreativitywerenotrequiredinacentrally­
plannedeconomy.2.58.Areasoftoppriorityinenvironmental cooper­
ationincludewatermanagementandtheprotectionof
waterquality,especiallyincaseswherewaterwayscross
frontiers.Thisiswhyaprotocolshouldbeappended
totheEuropeAgreementwithBulgariacontainingcon­
creteprovisionsdesignedtoprotectandensurethe
waterqualityofinternationalwaterways (Danube,Nes­
tos,Strimon,EvrosandtheBlackSea).TheCommittee
considersthatpriorityshouldbegiventodevelopinga
systemformonitoringandcontrollingthequalityand
quantityofcross-frontierwaterwaysandthattherel­
evantprovisionsshouldbewrittenintotheadditional
protocolwithBulgaria.Thesystemshouldinclude
appropriatemeasures :
—tolowerthepollutionlevelsofcross-frontierwater­
ways;
—toprovideearlywarningsoffloodsanddangerous
levelsofpollution;
—totacklesoilerosioncausedbyvaryingratesof
waterflow;
—topromotetherationalandfairutilizationofwater
resources ;
—toprotectfloraandfaunainthedeltasofcross­
frontierwaterways,aswellasinneighbouringareas.
Tofinancethenecessarymeasures,thecontracting
partnersshouldproposeacceptablesolutionswithinthe
frameworkoffinancialcooperation .2.56.Thethirdmajorobjectiveistoincreasenuclear
power-plantsafety.Inparticular,thefirstgeneration
ofSoviet-designed pressurizedwaterreactors(VVER
440/230)presentsserioussafetyproblems.Acallto
takethemoutofservicewasmadealongtimeago.
FourofthesereactorunitsarelocatedinKosloduj
(Bulgaria);twoofthemwereshutdownbytheBulgari­
anGovernment in1991.Severalincidentsinrecent
monthsneverthelessshowthatconsiderablesafetyrisks
arestillbeingtakeninKosloduj.Measurestoimprove
thesafetylevelsofreactorsmustthereforebetaken
immediately .TheCommitteeispleasedthattheG-24
stateshaveinthemeantimeapprovedthemultilateral
actionprogrammeoftheMunichsummitforimproving
thesafetyofnuclearpowerplantsinEasternEurope,
andhaveshowntheirwillingnesstoimplementthe
programmewithoutdelay.TheECCommissionshouldFinancialcooperation
2.59.ThechallengeofstructuraladjustmentinBul­
gariaandRomaniaandthetaskofcreatingacompeti­

NoC19/88 OfficialJournaloftheEuropeanCommunities 25.1.93
tiveeconomycannotbesuccessfullytackledwithout
effectiveoutsideassistance.Allnewdemocracies in
CentralandEasternEuroperequirefundsinhardcur­
rency;theirneedforfinancialsupporthasgrownstead­
ilysincethebeginningoftheeconomicreformmove­
ment.
2.60.Thetemporaryfinancialaidgrantedbythe
Communityconsistsofacombinationofloansand
non-repayable grants.ThedraftAgreementsstipulate
thatthePhareprogrammeistocontinueuntilthe
endof1992,operatingwithinthecontextoffinancial
cooperation .Thereafter,Communitygrantsandloans
fromtheEuropeanInvestmentBank(EIB)aretobe
providedonamulti-annualbasiswithintheframework
ofPhareorunderanewfinancingmechanism .
2.61.TheCommitteeendorsestheEC'sapproach
andagreesthatCommunityaidcanonlybereasonably
contemplatedonthebasisofaplanextendingovera
numberofyears.Initially,atleast,thisperiodshould
lastnomorethanthreetofiveyearsandshouldform
anintegralpartofthefirststageofthetransitional
periodprovidedforundertheEuropeAgreements .In
thecaseofmacroeconomic loansfromtheEIB,aid
willbedeterminedinthelightofneeds,priorities,the
absorptioncapacityoftheeconomy,theabilityto
repay,andtheprogressmadebyBulgariaandRomania
towardsamarketeconomysystem.specialcommitteesorworkinggroupsbytheAssoci­
ationCouncil.Thenewparagraphwouldreadasfol­
lows:
Article108(3)/Article111(3)
'Duringthefirsttransitionalstage(Article7)ofthe
AgreementtheEconomicandSocialCommitteeof
theEuropeanCommunityshallorganize,underthe
aegisoftheAssociationCouncil,dialogueandcoop­
erationbetweentheeconomicandsocialinterest
groupsoftheEuropeanCommunityandthoseof
Bulgaria/Romania.Regularmeetingsshallbeheld
forthatpurpose.'
AnadditionalArticlesettingoutthedutiesandcompo­
sitionoftheConsultative AssociationCommitteealso
needstobeincludedunderTitleIX.Intheviewofthe
EconomicandSocialCommitteethisArticleshould
readasfollows:
Article...
AConsultative AssociationCommitteeofecon­
omicandsocialinterestgroupsoftheEuropean
CommunityandofBulgaria/Romaniashallbeset
upatthebeginningofthesecondtransitionalstage
oftheAgreement (Article7).Itshallcomprisean
equalnumberofmembersoftheEconomicand
SocialCommitteeoftheEuropeanCommunityand
ofrepresentatives ofeconomicandsocialorganiza­
tionsinBulgaria/Romania.
TheConsultative AssociationCommitteeshallfur­
therdevelopdialogueandcooperationbetweenthe
economicandsocialinterestgroupsoftheEuropean
CommunityandthoseofBulgaria/Romania.
Withintheframeworkofthiscooperation ,funda­
mentalquestionsregardingtheparticipationof
Bulgaria/RomaniaintheprocessofEuropeaninte­
gration,theestablishment ofanewpoliticaland
economicorderinBulgaria/Romania,andother
aspectsofcooperationwithintheEuropeAgree­
ment,shallbediscussed.
TheConsultativeAssociationCommitteeshallhave
itsownRulesofProcedureandshallexpressits
viewsintheformofreportsandopinions.'
2.64.ThelatestECCommissioninformationsug­
geststhatthecontractingpartnersmightbereceptive
totheCommittee'sproposalsontheinvolvementof
socialinterestgroupsinthepoliticaldialogue.Inajoint
declarationRomaniaandtheEuropeanCommunity
haveagreedthat'theAssociationCouncilistoexamine,
inthelightofArticle111oftheAgreement,thesetting
upofaconsultativemechanismconsistingofmembers
oftheEconomicandSocialCommitteeoftheEuropean
Communities andtheircounterparts inRomania'.
Incorporating asimilarpassageintheEuropeAgree­
mentwithBulgariacannotberuledout.TheCommittee
welcomesthejointdeclarationandconsidersittobea
firststepintherightdirection.TheCommitteeat
thesametimeassumesthatsimilardeclarations can
subsequentlybeagreedandincludedintheEurope2.62.Fundswillinevitablyhavetobecloselycoordi­
nated.Thismeansthatitwillbenecessarytocoordinate
Communityfunding,includingbilateralassistance,
withfinancialaidgiventoBulgariaandRomaniaby
othercountriesoftheOrganizationforEconomicCo­
operationandDevelopment (OECD)orbyinter­
nationalfinancialinstitutions (InternationalMonetary
Fund,WorldBankandtheEuropeanBankforRecon­
structionandRedevelopment ).Allfundingandspend­
ingshouldbecontinuouslymonitoredandshouldbe
coordinatedwithintheAssociationCommittee ;both
sidesshouldalsomonitorthesituationtoensurethat
thefundsareusedefficiently.TheAssociationCouncil
shouldalsoberegularlyinformedofthefindings.
Institutional,generalandfinalprovisions
2.63.Withintheframeworkofthepoliticaldialogue,
theCommitteehascalleduponthecontractingparties
tosetupatsometimeinthefutureaConsultative
AssociationCommitteeinadditiontotheAssociation
CouncilandtheParliamentary AssociationCommittee .
Itthereforefollowsthattheinstitutionalprovisionsset
outunderTitleIXofthedraftEuropeAgreementswill
havetobeamendedintwoplaces.Firstofallathird
paragraphneedstobeaddedtoArticle108(Bulgaria)/
Article111(Romania)dealingwiththesettingupof

25.1.93 OfficialJournaloftheEuropeanCommunities NoC19/89
AgreementswithPoland,HungaryandtheCSFR
respectively .
2.65.TheEuropeAgreementshavetoberatifiedby
theParliamentsofthestatesconcerned .Thismeans
thattherewillbesomedelaybeforetheirentryinto
force.However,toensurethattraderelationscontinue
todevelopfurtherwithoutinterruption ,theEuropean
CommunityandtheVisegradstateshaveconcluded
InterimAgreementsontradeandtrade-relatedmatters.
Similarinterimagreementswillalsobeconcludedwith
BulgariaandRomaniaandcouldenterintoforceas
earlyasthespringof1993.TheCommitteeconsiders
thatthisapproachisrightandnecessary.Nevertheless ,
theECCommissionshouldtakestepsinfuture—and
alsoputpressureontheECMemberStates—toensure
thattradebetweentheCommunityandtheassociated
statesisnotunnecessarilyhinderedbytechnicalhitches
ashasbeenthecasewiththeInterimAgreementswith
theVisegradstates.Wewouldillustratetheseshort­
comingswiththreeexamples:—TheInterimAgreementswithPoland,Hungaryand
theCSFRcameintodefactoforceon1March1992
buttherelevantlegalprovisionswereonlypublished
intheOfficialJournaloftheEuropeanCommuni­
tieson30April1992.Duringthisintervalmost
importscouldonlybeclearedafterthedepositofa
guarantee .
—WhenthetradesectionsoftheEuropeAgreements
cameintoforce,theratesatwhichcustomsduties
weretobereducedwereknownbutnotthebasis
onwhichthiswastobedone.Eventheembassies
oftheVisegradstateswereunabletocomeupwith
watertightanswers.
—Thesituationwasmadeworsebythefactthatthe
knowledgeofthecustomsofficersresponsiblefor
handlingthegoodswassometimesverypoorsince
therehadbeentoolittletimetotrainthemproperly.
DoneatBrussels,25November1992.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN