No C 23/32 Official Journal of the European Communities 30. 1. 84 
B. Following an amendment to the text of the Section opinion the following sentence has 
been deleted 
Point 3.1, third paragraph: 
'A genuine clean air policy must make use of both instruments, without priority being 
given to one or the other.' 
Opinion on the Commission's annual economic report 1983/84 
(84/C 23/13) 
The text referred to the Committee has not been published in the Official Journal of 
the European Communities. 
A. LEGAL BASIS FOR THE OPINION 
On 24 October 1983 the Council referred the abovementioned report to the Economic 
and Social Comittee in accordance with Article 198 of the Treaty establishing the 
European Economic Community. 
Procedure 
The preparation of this opinion was entrusted to the Section for Economic and Finan­
cial Questions, which appointed Mr Pfeiffer as rapporteur. 
The Section adopted its opinion unanimously on 15 November 1983. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Committee adopted its opinion at its 212th plenary session on 23 and 24 Novem­
ber 1983 by the majority, with one vote against and two abstentions. 
The full text of the opinion is as follows: 
1. Analysis of the economic situation 1983/84 
1.1. The Commission's forecast 
An analysis of the key data in the Commission's 
annual economic report (setting aside the reviews of 
the economies of the individual Member States) 
leads to the following conclusions: 
As with its forecasts in previous years, the Commis­
sion has had to revise downwards its GDP growth 
forecast for 1983 (1,1 %) made in its 1982/83 annual 
economic report and now expects in increase of 
0,5 % in GDP in 1983. It anticipates 1,5 % growth in 
1984. Whereas private consumption, stockbuilding and house construction were growth factors in some 
countries in 1983, the growth forecast by the Com­
mission for 1984 lies above all in exports ( + 3,6%) 
and investment (+1,8 %), with private and public 
consumption and stockbuilding being expected to 
rise only slightly or stagnate. 
This economic growth in 1984 is expected to go 
hand in hand with a lower inflation rate (5,1 %, as 
compared with 6,3 % in 1983), and a further decline 
in interest rates is also anticipated. The rate of 
increase in the money supply is also to fall off 
(8,7%, as against 10,5% in 1983), as well as the 
increase in compensation per employed person 
(1984: +6,1 %; 1983: +7,2%). The balance of pay­
ments could improve somewhat in 1984 (0,0% of 
30. 1.84 Official Journal of the European Communities No C 23/33 
GDP, as compared with -0,2 % in 1983). The gen­
eral government deficit is expected to drop from 
5,4 % of GDP in 1983 to 4,7 % in 1984. 
Almost as forecast in the 1982/83 annual economic 
report, the unemployment rate in 1983 will be 
10,4%, and the Commission anticipates a rise to 
10,9% in 1984. 
In its overall assessment of the economic situation, 
the Commission sees 1983 as the first year of a slow 
upswing. The further trend in 1984 is, however, sub­
ject to a question mark because of factors making 
for uncertainty at national and international level, 
such as interest rate trends, budget problems, 
exchange rate fluctuations and the indebtedness and 
trade problems of many countries in the Third 
World. 
1.2. Appraisal 
1.2.1. Against the positive background of a lower 
inflation rate in the Community and a vigorous 
upswing in the USA. The Committee agrees with the 
Commission's analysis as regards: 
— the sluggish and fragile nature of the upturn 
(with variations from one Member State to 
another) and the need for a dynamic growth 
strategy, and 
— the continuing high unemployment, although 
the rate of increase in 1984 is expected to be less 
than in 1983. 
1.2.2. The Commission expects the upswing in the 
Community to be predominantly export-led, but the 
factors making for global economic uncertainty 
mentioned by the Commission and by the ESC in 
its opinion of 6 July 1983 (exchange rate fluctua­
tions, oil price trend, US interest rates, indebted­
ness) exert considerable influence on the develop­
ment of world trade. This means that there can be 
no certainty about the stability of the growth trend 
indicated. In the Committee's view, the forecasts 
submitted by the Commission do not therefore 
allow any definite pronouncement at the present 
time as to whether the slight upturn will be self-sus­
taining next year. 
1.2.3. The Committee reiterates its view that opti­
mum economic growth must be a fundamental aim 
of any economic policy, for without growth the fight 
against unemployment would be doomed to failure from the outset; but at present it is impossible to 
discern any growth strategies which could by them­
selves bring about a high level of employment in the 
Community. Growth policy must take more account 
of structural changes and be backed up by specific 
employment measures. 
The long-term economic data given in Table I of the 
annual economic report and the figures given in 
Tables I and la appended to the ESC's report on the 
economic situation in mid-1983 point to such a con­
clusion. The Committee would therefore like assess­
ments to be made of growth and employment trends 
in the medium term. This could indicate ways of 
counteracting the employment trends described by 
the OECD in its report of September 1983. (The 
OECD assumes that by the end of 1984 there will be 
35 million unemployed in the 24 OECD countries, 
i.e. 5 million more than at the end of 1982. On the 
basis of the demographic trend and the divergence 
between growth and productivity, the OECD does 
not expect any improvement for the European 
OECD countries in particular in the second half of 
the eighties and moreover anticipates that the pro­
portion of long-term unemployed will rise to well 
above 30 % of the total number of unemployed.) 
The Committee would also like to see regular fore­
casts for certain particularly dynamic growth indus­
tries and sectors. 
2. The Commission's economic and employment 
strategies 
2.1. Financial policy and interest rate trend 
The Committee agrees with the Commission that: 
— the interest rate trend in Europe depends also 
on US interest rates, 
— priority should be given to expenditure on 
infrastructure that will help to expand produc­
tive potential, 
— structural budget deficits cannot be allowed to 
continue indefinitely. 
The Committee considers, however, that the reduc­
tion of structural budget deficits is an operation that 
must be carried out in such a way as to avoid caus-
No C 23/34 Official Journal of the European Communities 30. 1.84 
ing a drop in demand, which would slow down the 
recovery. This view is borne out by the Commis­
sion's statement that the US recovery springs to a 
considerable extent from a budgetary policy with 
expansionary effects. 
2.2. Supply-side measures to raise productivity and 
improve international competitiveness 
In its opinion on the economic situation in 1983 the 
ESC dealt at length with measures to improve con­
ditions on the supply side. The measures proposed 
range from selective promotion of private-sector 
investment to the creation of a viable internal mar­
ket, support for growth sectors and encouragement 
of SMEs. Measures to boost venture capital also 
form part of this package. These measures will be all 
the more successful the greater the reduction that is 
achieved in real interest rates. Here there is com­
plete agreement between the Committee and the 
Commission. 
The reduction in the tax burden on business recom­
mended by the Commission must be seen against 
the background of the difficult budget situation in 
the EEC Member States. 
The Committee considers that the use of tax receipts 
(which are barely adequate) for the selective promo­
tion of growth sectors and SMEs must have priority 
among assistance measures in the fiscal sphere. 
Here account must be taken of the fact that: 
— in some countries the tax burden on medium 
income groups is rising very steeply, 
— the use of available financial resources to 
improve conditions on both the demand and the 
supply side could appreciably reinforce the 
economic recovery. 
2.3. Incomes policy 
The Commission's proposal that wages policy 
should be geared exclusively to improving profita­
bility views wages solely from the cost angle and 
neglects the demand aspect. The Committee on the 
other hand considers that the two sides of industry should pursue strategies on factor incomes that (a) 
leave sufficient profits to make provision for and 
finance investments with all their risks, and (b) 
ensure sales (and hence better utilization of produc­
tion capacity with a corresponding reduction in 
costs) through stabilization of purchasing power. 
The attempt to increase competitiveness in the 
Community through the distribution of income must 
not lead to competition between the Member States 
in income reductions, which would result in a defla­
tionary trend at international level. 
2.4. Demand policy to consolidate growth and 
investment 
The Committee supports the Commission in point­
ing to the need for public investment to reinforce a 
sustained upswing. 
The policy proposed by the ESC in its opinion of 
6 July 1983, namely a policy aimed at stabilizing 
investment demand in the medium term, on which 
the budget policies of the Member States should be 
aligned, should also back up the improvement in 
conditions on the supply side with government 
investment initiatives in major areas of collective 
need ('). 
2.5. Coordination of economic policies in the 
Community and international cooperation 
The Committee agrees with the Commission that 
strenghtening the EMS and devloping a viable inter­
nal Community market — in particular the disman­
tling of existing barriers and the alignment of 
national subsidization policies — are important 
components of a Community strategy to promote 
growth and employment. In addition, the Com­
mittee has already pointed to the need to coordinate 
and jointly step up government investment initia­
tives. The Committee therefore fully endorses the 
Commission's call for a more vigorous effort by the 
Community to develop its potential in advanced 
technology growth sectors (e.g. information technol­
ogies, telecommunications, biotechnology). 
(') See the ESC's opinion on the economic situation in 
the Community (mid-1983) (OJ No C 286, 24.10. 
1983). 
30. 1.84 Official Journal of the European Communities No C 23/35 
in view of the factors making for global economic 
uncertainty — repeatedly mentioned by the Com­
mission, too — the Committee once again calls on 
the Community to press for international economic 
initiatives within the OECD (above all with the 
USA and Japan) to reduce the excessively high real 
interest rates, stabilize exchange rates, prevent the 
collapse of the international credit networks, regu­
late and stabilize world commodity prices and fight 
protectionism. 
A properly functioning international monetary sys­
tem is extremely important for a satisfactory econo­
mic trend. In this connection, the positive experi­
ence with the European Monetary System should 
encourage the Community monetary authorities to 
strengthen the role of the ECU, instead of sitting 
back and complaining about the effects of fluctua­
tions in the exchange rate of the dollar. 
2.6. Labour-market measures to ease the unemploy­
ment problem 
The Committee agrees with the Commission's con­
cluding remarks to the effect that extensive efforts will have to be made in the coming years to reduce 
unemployment and its social and economic costs. 
The Committee refers in this connection to the mea­
sures called for — and the conditions stipulated for 
their implementation — in its opinion on the econo­
mic situation in the Community (mid-1983) (')• 
Finally, with the Athens Summit in December in 
view, the Committee would point out that a revival 
of European dynamism in the economic, industrial 
and social spheres is essential. 
Given the challenges posed by the new technolo­
gies, Europe should — by active coordination of the 
initiatives of the Member States and by direct Com­
munity action — help to promote economic growth 
that will make it possible to cope effectively with 
the radical structural changes that are going to trans­
form the face of the eighties, particularly in the 
industrial sphere. 
(') See the ESC's opinion on the economic situation in 
the Community (mid-1983) (OJ No C 286, 24.10. 
1983). 
Done at Brussels, 23 November 1983. 
The Chairman 
of the Economic and Social Committee 
Francois CEYRAC 
APPENDIX 
to the opinion of the Economic and Social Committee 
Rejected amendments 
The following proposals for amendments to the Section opinion submitted in accordance with 
the Rules of Procedure were rejected by the Committee in the course of the discussions: 
Point 1.2.1: 
Add the following to the second indent: 
'It must be borne in mind, however, that not all of the unknowns make for pessimism.' 
Reasons 
The Commission's analysis is more comprehensive than the Committee's opinion suggests. 
No C 23/36 Official Journal of the European Communities 30. 1.84 
Voting 
For: 45, against: 46, abstentions: 18. 
Point 2.6: 
1. Replace the title and the first paragraph by the following: 
'2.6. Conclusions 
The Section endorses the conclusions of the Commission's annual economic report as sum­
marized at the end of the report in a list of proposed economic policy measures, subject to 
the conditions for their implementation stipulated in the present opinion and in the ESC's 
opinion on the economic situation in the Community (mid-1983) (2). 
O OJ No C 286, 24. 10. 1983.' 
2. Insert the following between the second and third paragraphs: 
'Enormous efforts will have to be made to reduce unemployment and its economic and 
social costs.' 
Reasons 
The Committee's opinion on the Commission's annual economic report should deal with the 
Commission's conclusions as summarized at the end of the report. The present text of the opi­
nion does not do this. 
Result of the vote 
The proposal was rejected by a large majority, with four votes in favour and 13 abstentions. 
Opinion on the proposal for a Council Directive on the protection of workers from the 
risks related to exposure to chemical, physical and biological agents at work: noise 
(84/C 23/14) 
The text referred to the Committee has been published in Official Journal of the Euro­
pean Communities No C 289 of 5 November 1982, page 1. 
A. LEGAL BASIS FOR THE OPINION 
On 28 October 1982 the Council referred the abovementioned proposal to the Econo­
mic and Social Committee in accordance with Article 100 of the Treaty establishing 
the European Economic Community. 
Procedure 
Having been asked to draw up the opinion, the Section appointed Mr Etty rapporteur. 
The Section opinion was adopted by 20 votes to 16 at its meeting held on 13 October 
1983.