No C 87/14 Official Journal of the European Communities 9. 4. 85 
Opinion on the Commission proposals concerning the implementation of a 
Mediterranean policy for the enlarged Community 
(85/C 87/06) 
On 12 June 1984 the Commission of the European Communities asked the Economic 
and Social Committee for an opinion on Commission proposals concerning the imple­
mentation of a Mediterranean policy for the enlarged Community 
The Section for External Relations, which was responsible for preparing the Committee's 
work on the subject, adopted its opinion on 15 January 1985 in the light of the Report by 
Mr Briganti. 
At its 223rd plenary session, (meeting of 31 January 1985), the Economic and Social 
Committee adopted the following opinion with no votes against and four abstentions.. 
Introduction 
1. The future enlargement of the Community to 
include Spain and Portugal means there is an urgent 
need to examine and redefine the European Commu­
nity's policy towards non-member countries. 
2. Negotiations with Spain and Portugal are causing 
considerable concern amongst the Mediterranean 
countries, who sense that their economic ties with the 
Community are under serious threat, particularly as 
regards trade. 
3. Furthermore, although the Committee considers 
that the bilateral agreements concluded by the 
Community with the non-EEC Mediterranean coun­
tries have had undeniably positive effects, it none the 
less feels that in many areas (commercial, industrial, 
agricultural, financial and social) the agreements have 
not confirmed their promise, have only had a very 
limited impact, or have not been implemented. 
3.1. The Committee therefore feels that acceptable 
conditions which allow normal operation of the bi­
lateral agreements in question should be hammered 
out in agreement with the countries concerned, and 
particularly with the trade organizations in these coun­
tries. The Commission's exploratory talks with Medi­
terranean countries are crucial here. 
4. The non-EEC Mediterranean countries (NMCs) 
taken as a unit are a very important market for the 
Community. If this market is to survive and develop, 
the NMCs must be in a position to be able to continue 
exporting their products to the Community. 
5. The continuity of relations with the NMCs is 
therefore vital for the Community. This is not only 
because of its impact on the level of employment but 
also because of the repercussions on economic, poli­tical and even social aspects, as well as on ecological 
and strategic issues. The citizens of all Member States 
are therefore involved. 
6. A far-sighted Mediterranean policy should aim to 
reduce imbalances not only between the North and 
South but also within the Mediterranean basin. Its 
basic aim should be to utilize local human and 
material resources, including the utilization of such 
resources on the international market. Finally, it 
should contribute to the peace, security and stability of 
the Mediterranean region. 
7. In examining possible repercussions of Spanish 
and Portuguese accession, the Community should take 
account of the different circumstances of NMCs and 
the major changes which its own CAP is currently 
undergoing. 
The importance of trade in the Community's 
Mediterranean policy 
8. The Committee thinks that the agreements 
concluded with the NMCs have not checked their 
growing trade deficit with the Community, which 
overall has roughly trebled in 10 years. 
9. In 1982, EEC imports from its Mediterranean 
partners were worth 22 billion ECU, and exports to 
them totalled 29 billion ECU. If oil products are 
excluded, the Mediterranean trade deficit with the 
EEC totals 19 billion ECU and their imports from the 
EEC are only-33 % covered by exports. 
10. 40 % of NMC purchases from the EEC consist 
of capital goods which are essential to their economic 
and social development. Any sudden fall in these 
imports (such as might be caused by a drop in export 
earnings on the EEC market) would ultimately only 
lead to ever-worsening imbalances. 
9. 4. 85 Official Journal of the European Communities No C 87/15 
11. From the EEC's point of view the Mediterranean 
countries are an important market outlet of benefit to 
all the Member States, though in different ways. The 
Community of Ten is still by far the number one 
supplier of the Mediterranean countries, the latter 
accounting for 10 % of the EEC's trade with the rest 
of the world. 
12. The EEC in turn buys more than half the NMCs' 
exports. 
13. Thus EEC-NMC trade interdependence i is 
important for all concerned. The Economic and Social 
Committee recognizes, with the Commission, that this 
interdependence is/ a fundamental element of the 
Mediterranean policy which the Community must 
redefine in view of its impending enlargement. 
The industrial side 
14. All the agreements concluded under the Mediter­
ranean policy are based on allowing industrial 
products into the EEC duty-free; this has not neces­
sarily been on a basis of even partial reciprocity. Such 
actions have been one of the EEC's major concessions, 
designed to give essential and priority encouragement 
to its partners' efforts to industrialize. The main effect 
of this policy has been to induce several countries to 
concentrate too much on developing their textile 
exports; the textiles sector has been the main, if not 
the only, driving force in a whole host of development 
plans concerning the Mediterranean basin. This move, 
which has been strongly geared to the outlet provided 
by the EEC market, has often been financed by invest­
ments of Community origin, particularly in the form 
of so-called 'inward processing traffic' (!). 
15. Because of the particularly bad employment situ­
ation in the textile industry, the Community has since 
1977 (like most of the world's industrialized countries, 
e.g. USA, Canada, EFTA countries) negotiated 'volun­
tary restraint' agreements with many Mediterranean 
and other low-price suppliers for certain sensitive 
textiles. Seen in the light of the trade objectives of the 
Community's Mediterranean policy, these agreements 
are undoubtedly a backward step and are interpreted 
by the EEC's trading partners as a serious attack on 
the spirit of the agreements which they have 
concluded with the Ten. 
16. In view of this, the Committee approves the 
need, underlined by the Commission : 
— to reaffirm the principle of preferential opening of 
the EEC market to Mediterranean industrial 
(') That is, 'outward processing' from the point of view of the 
Community. products as the essential foundation of agreements 
between the Community and Mediterranean coun­
tries, 
— to re-establish thereby the confidence and trust of 
the partner countries and investors (particularly 
those from the Community) in these agreements, 
especially at the prospect of the EEC's forth­
coming enlargement, 
— to provide as far as possible for a gradual return to 
the normal scheme laid down in the agreements 
covering the textiles sector, provided there is no 
dumping, and 
— to set up in the future effective procedures for 
constant consultation with the partner countries to 
prevent other crises arising in certain sensitive 
sectors. 
17. Beyond trade concerns, the Committee is insis­
tent upon the importance of industrial cooperation 
(see below) as a vehicle for developing the economies 
of NMCs. 
The agricultural side 
18. Community enlargement may drastically upset 
some Mediterranean countries' trade with the Commu­
nity, as Community preference will favour products 
from the new Member States. 
19. The Committee thinks that something must be 
done to avoid in the near future a sudden reduction in 
the exports of the Mediterranean countries, which have 
a crying need for the foreign exchange which such 
exports earn. 
20. The Community should extend the benefits of 
the common agricultural policy gradually to the new 
Member States, and the latter should gradually take on 
the burdens of the CAP. They should also at the same 
time accept the Community's obligations towards 
non-EEC countries, especially the developing coun­
tries and, among them, the Mediterranean countries. 
21. Consequently, as a matter of principle, the 
Committee approves the Commission's proposals to 
guarantee the products concerned a possibility shortly 
of real access to the EEC market. If this makes it 
necessary to change the mechanisms for protecting the 
Community's agricultural market and to fix ceilings, 
this should be done in consultation with the partner 
countries and the interested parties. 
22. However, the EEC should take care not to fulfil 
its obligations towards its ailing partners at the 
expense of farmers in the south of the Community, 
who are also facing serious problems. The Community 
should show its commitment by ensuring that each 
Member State takes its fair share of the responsibility. 
No C 87/16 Official Journal of the European Communities 9. 4. 85 
23. The Committee believes that the Commission 
should draw up specific proposals as soon as possible 
designed to: 
— establish what repercussions imports from NMCs 
would have on the production targets of the 
enlarged Community, 
— evaluate the cost of the operation both to the 
Guarantee Section of the EAGGF and to develop­
ment policy. 
The Committee's approval is qualified by the 
comments which follow. 
24. The Committee has doubts about the effective­
ness1 of the proposed scheme for fruit and vegetables. 
The indexing of the reference price, which has been in 
effect since November 1983, may actually hamper 
access of Mediterranean products to Community 
markets and lead within a short period of time to a 
drop in exports from NMCs. Whatever happens, the 
average level of exports over the previous five years 
will be calculated on this new basis, and will lead to a 
drop in the Community's commitments. 
24.1. The Committee thinks it would be preferable 
to help the sectors and regions affected by introducing 
a production diversification subsidy scheme, by 
seeking greater seasonal complementarity of supply 
between the Mediterranean partner countries in order 
to achieve more disciplined production in the light of 
the internal market's requirements. 
25. The Committee approves the Commission's 
approach to wine, which consists of using its Mediter­
ranean policy to promote higher quality in this sector. 
But it would stress that the measures proposed by the 
Commission (gradual replacement of table wine 
exports in bulk by quality wines in bottles) may not 
provide adequate compensation for NMCs affected by 
enlargement. It therefore proposes considering the 
possibility of helping the wine sector not only with 
bottling but also with marketing in non-EEC countries 
(producers, cooperatives, retailing). In addition, 
measures similar to those proposed above for fruit and 
vegetables may be necessary. 
26. For the Community of Ten, olive oil is already a 
major problem, which will get even worse after en­
largement. It will be very difficult to find Community 
customers for the additional production which will 
result from enlargement, even if the EEC's frontiers 
are closed to non-EEC imports (which is obviously 
incbnceivable), 
26.1. The Committee therefore approves the conces­
sions proposed in this sector by the Commission, 
which is suggesting tapering a guarantee to purchase 
the amounts traditionally exported by Tunisia to the Community, accompanied by aid for Tunisia's 
domestic consumption and consumption in the EEC. 
26.2. The Committee therefore stresses the need for 
industrial cooperation measures to increase real 
incomes in the NMCs and stimulate local consump­
tion of olive oil, which would easily fit in with local 
habits. 
26.3. The Committee feels that eventually olive oil 
should be covered by a genuine production and 
marketing policy (identification of markets, including 
those in non-EEC countries, selling) run by the 
Community and encompassing an agreed proportion 
of non-EEC production. Each of the non-EEC coun­
tries concerned should be given an annual production 
quota subjected to disciplines worked out in joint 
consultations with the Community. 
26.4. The Committee wishes to stress the environ­
mental role played by olive growing in some areas of 
the NMCs, where it is an effective and irreplaceable 
barrier against desertification. 
27. As regards the cost to the enlarged Community 
of the proposed emergency measures to favour tradi­
tional NMC agricultural exports to the EEC, the 
Committee would point out that NMC exports are 
very small compared with total EEC production. But 
the Commission should assess the cost of the 
proposed measures very carefully, and decide how long 
they should be kept in force to achieve maximum effi­
ciency in organizing agricultural production in NMCs 
affected by enlargement, without making them depen­
dent on an artificial defence system. 
The social side 
28. Following the legitimate concerns expressed by 
the partner countries as regards their emigrant citizens 
living and working in the EEC, the Committee wishes 
to stress the importance of the contribution made to 
the development of certain EEC countries by 
non-EEC workers, especially those from the NMCs. 
29. The Committee disapproves of all forms of 
discrimination and racism, and agrees with the 
Commission that the Council itself should condemn 
them. 
30. The Committee regrets that eight years after the 
conclusion of cooperation agreements between the 
EEC and the three Maghreb countries, the chapter on 
cooperation in the field of labour matters has not yet 
been implemented. It calls upon the Council of Minis­
ters to agree as soon as possible to the cooperation 
councils provided for in these agreements adopting 
provisions to ensure the implementation of the texts 
concluded in 1976, particularly those on social secu­
rity. 
9. 4. 85 Official Journal of the European Communities No C 87/17 
31. Referring to its opinion of 25 October 1984 on 
migrant workers ('), and despite obvious difficulties, 
the Committee supports the Commission's proposals 
that bilateral measures which have been planned or 
undertaken should be coordinated at EEC level, so that 
cooperation in this area can be geared towards integra­
ting the immigrant population more fully into the 
economic and social fabric of the host country, in the 
case of those immigrants who wish to remain there, 
and towards helping those workers who wish to go 
home to overcome obstacles connected with their 
return. Any policy of compulsory and systematic repa­
triation must be ruled out. 
31.1. The Committee thinks that the experiments in 
certain Member States on the education and integra­
tion of migrant workers should be continued and 
extended. 
31.2. The Committee would particularly like to stress 
point 3.3 in the opinion of 25 October on the possibi­
lities of reintegration ; it wants such reintegration to be 
carried out in close cooperation with job development 
policies in the countries of origin. 
32. The Community, and more especially the Social 
Fund, should work together with the countries of 
origin and the host countries of the Community to 
provide substantial subsidies for the training 
programmes arranged for the workers in question, 
whether such workers wish to be integrated in the 
Community or are planning to take up productive 
employment in their country of origin. The role of 
smaller firms and cooperatives should be emphasized 
here. 
33. As regards the NMC development aid 
programme, the Committee urges both EEC and 
non-EEC countries to undertake to abide by the 
conventions of the ILO (especially Conventions Nos 
97 and 143). It particularly emphasizes the importance 
of: 
— non-discrimination between workers on the basis 
of origin, nationality, race, religion or political 
convictions, 
— respect for the right to set up union organizations, 
— recognition of the right of union organizations to 
conclude agreements on working conditions, 
— safety at work, security of employment (social secu­
rity, etc.), 
(') OJ No C 343, 24. 12. 1984. — observance of minimum labour laws agreed under 
the auspices of the ILO, and respect for human 
rights, and 
— joint measures to combat illegal employment, clan­
destine migration and manpower trafficking. 
Cooperation with Mediterranean countries 
34. The serious economic and social imbalances 
between the Mediterranean countries as well as 
between regions of the Mediterranean countries indi­
cate the need for cooperation and for policies that will 
make it possible to redress such imbalances or at least 
lessen them and make them tolerable. Such coopera­
tion policies will have to be pursued not only by the 
EEC Member States, but also by those NMCs which 
are the most advanced and have greater material and 
human resources. The EEC will therefore need to 
promote South-South cooperation on a Mediterranean 
scale. 
35. A growing economic complementarity of the 
NMCs — in addition to their economic complementa­
rity with the EEC — is a genuine and effective force 
for peace and stability in the region. 
Scientific and technological cooperation 
36. The Committee fully agrees with the Commis­
sion proposals that the priority areas of scientific and 
technical cooperation should be medicine, energy, the 
environment, information and training. Nevertheless, 
the Committee believes that special attention should 
be focused on the search for 'original' technologies 
specially adapted to the particular conditions prevail­
ing in the Mediterranean regions (climate, natural 
environment, social structure). The Mediterranean 
regions of the enlarged Community (Southern Italy, 
Spain, Greece, etc.) could clearly play an important 
strategic role here by being the 'principal laboratories' 
for creating and trying out such new technologies. 
36.1. Some Mediterranean countries possess tech­
nologies adapted to their own circumstances. The 
Community could help them to find practical applica­
tions. 
Agricultural cooperation 
37. Initiatives designed to achieve a higher level of 
self-sufficiency in food should be encouraged. Such 
initiatives would be helped if agro-food firms, especi­
ally those from the Community, were willing to invest 
in NMCs, supplying technologies geared to local 
needs. 
No G 87/18 Official Journal of the European Communities 9. 4. 85 
Industrial cooperation 
38. The Committee would highlight the importance 
of industrial cooperation for four main reasons : 
(a) it allows minerals and basic agricultural products to 
be used on the spot; 
(b) it compensates for jobs lost in agriculture, subse­
quent to rationalization, by creating new jobs in 
the secondary sector; 
(c) it promotes industrial development geared more to 
the needs of the internal markets of NMCs, 
thereby ensuring that the latter are not over-depen­
dent on export markets, particularly in the EEC ; 
(d) it consolidates the growing complementarity 
between the countries in question and their tradi­
tional suppliers of industrial products. 
38.1. In the field of both production and marketing, 
the Committee insists on the importance of creating 
joint ventures between Community firms and Mediter­
ranean firms, particularly smaller firms and coopera­
tives. NMCs must contribute to this by improving the 
investment climate for EEC firms. 
38.2. The Community Member States could encour­
age the creation of joint ventures by harmonizing their 
rules on the different NMCs and by endeavouring to 
overcome any political barriers. 
Multilateral cooperation 
39. The Committee shares the Commission's view 
that regular concerted action should be taken by the 
economic operators concerned in order to avoid 
surplus production at uncompetitive prices, particu­
larly of 'sensitive' industrial and agricultural products. 
However, if the ultimate objective is the intensive 
utilization of potential natural and human resources in 
the Mediterranean countries, then action should be 
taken on the supply side (by improving the production 
of Mediterranean products) and on demand (by 
Done at Brussels, 31 January 1985. increasing consumption and the number of outlets on 
EEC and non-EEC markets). 
Financial cooperation 
40. The Committee notes that the Commission's 
proposals reflect the EEC's current financial difficul­
ties. EEC company investment in NMCs — especially 
in areas such as the food industry, medical-
pharmaceutical equipment, the utilization of natural 
resources and the exploitation of tourist potential, 
which are all of strategic importance from the point of 
view of development cooperation — could also play a 
highly positive role for the economies and living stan­
dards of the peoples in question. It would also provide 
a bulwark against increasing competition from US and 
Japanese multinationals in NMC markets. 
Conclusion 
41. The Economic and Social Committee feels that 
the interdependence of the EEC and Mediterranean 
economies requires the Community to take a stand 
and to make rapid decisions in order to make both 
Spain and Portugal members and also consolidate 
trade and other forms of cooperation with the Mediter­
ranean countries. It should do this by drawing up 
legislation aimed at guaranteeing the partner countries 
the export outlets needed for their development and 
for the continued purchase of Community goods. The 
cost of such a policy should be borne by the Com­
munity, so that it is not just farmers, and more particu­
larly farmers in Mediterranean regions, who have to 
carry the cost. The relevant legislative framework 
should be framed in consultation with Spain and 
Portugal before the current enlargement negotiations 
are completed. This should in no way hold up the 
negotiations. 
42. Finally, the Committee would like to be able to 
come back to relations with NMCs in conjunction 
with enlargement in order to analyze in detail the 
particular problems which face certain countries, the 
entire Mediterranean region and the European 
Community. 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR 
9. 4. 85 Official Journal of the European Communities No C 87/19 
APPENDIX 
to the opinion of the Economic and Social Committee 
Rejected amendment 
The following proposed amendment to the opinion of the Section for External Relations, which was 
tabled in accordance with the Rules of Procedure, was rejected by the Committee during the 
proceedings. 
Insert a new point 40, worded as follows : 
To avoid awakening false hopes among the Mediterranean countries as to the scope of such legisla­
tion, the Committee insists that the attention of the negotiating parties must immediately be drawn 
to the fact that the Community is bound by a number of constraints in addition to those arising out 
of the impending accession of Spain and Portugal. These constraints are conditioned by the common 
agricultural policy, especially as regards Mediterranean products, as well as by such factors as 
budgetary discipline, limited financial resources and trade obligations to non-member countries.' 
Voting:' 
For : 4, Against: 49, Abstentions : 24. 
Opinion on the proposal for a Sixteenth Council Directive on the harmonization 
of the laws of the Member States relating to turnover taxes — common system 
of value added tax : common scheme for certain goods on which value added tax 
has been finally paid and which are imported by a final consumer in one 
Member State from another Member State 
(85/C 87/07) 
On 7 August 1984 the Council decided to consult the Economic and Social Committee, 
under Article 100 of the Treaty establishing the European Economic Community, on the 
abovementioned proposal. 
The Section for Economic and Financial Questions, which was responsible for preparing 
the Committee's work on the subject, adopted its opinion on 22 January 1985 in the light 
of the report by Mr Delia Croce. 
At its 223rd plenary session (meeting of 30 January 1985) the Economic and Social 
Committee adopted the following opinion with no votes against and one abstention : 
1. General comments 
The Commission's proposal for a Sixteenth VAT 
Directive is part of its programme to harmonize VAT 
systems. 
The proposal is a follow-up to the Sixth VAT Directive 
and the relevant rulings of the Court of Justice. 
By abolishing double taxation the proposal for a 
Sixteenth Directive improves the position of indivi­duals who acquire used goods in another Member 
State or who move house from one Member State to 
another. 
The proposal is welcomed by the Committee. It will 
undoubtedly help to facilitate intra-Community trade 
and the movement of persons between Member States. 
The Committee would ask the Commission to 
continue its work with a view to making subsequent 
improvements in the proposed Directive on the basis 
of the experience acquired.