No C 247/24 Official Journal of the European Communities 1. 10. 79 
Opinion on the applications of Greece, Portugal and Spain for membership of the European 
Economic Community 
The opinion of the Committee is not based on any text. 
A. LEGAL BASIS FOR THE OPINION 
At its 163rd plenary session held on 29 and 30 November 1978 the Committee, acting on a 
proposal from the Bureau, decided to deliver an opinion on the abovementioned subject on its 
own initiative. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 169th 
plenary session held in Brussels on 27 and 28 June 1979. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Articles 198 
and 237 thereof, 
Having regard to the Treaty establishing the European 
Atomic Energy Community, and in particular Articles 
170 and 205 thereof, 
Having regard to the fourth paragraph of Article 20 and 
to Article 17 of the Rules of Procedure, 
Having regard to the applications of Greece, Portugal 
and Spain for membership of the European Community, 
Having regard to the decision taken by the full 
Committee on 30 November 1978 (on a proposal from 
the Bureau) to draw up an opinion on the enlargement of 
the Community from nine to 12 members and to set up a 
sub-Committee on Enlargement under the chairmanship 
of Mr S. Jonker to this end, 
Having regard to the opinion issued by the 
sub-Committee on Enlargement at its meeting held on 
14 June 1979, 
Having regard to the oral report submitted by the 
rapporteur, Mr A. Pfeiffer and by the co-rapporteur, Mr 
U. Emo Capodilista, 
Having regard to the discussions at its plenary session 
held on 28 June 1979, 
Whereas in view of Greek, Portuguese and Spanish 
applications to join the EEC this is an opportune 
moment for the Economic and Social Committee to 
deliver an opinion on all problems connected with enlargement; whereas previous work of the Committee 
should also be taken into consideration; 
Whereas the most relevant Committee documents are as 
follows: 
— study of the Economic and Social Committee on 
relations between the Community and Portugal of 
27 April 1977, 
— study of the Economic and Social Committee on 
relations between the Community and Greece of 
11 July 1978, 
— initial study of the Economic and Social Committee 
on the Community's relations with Spain of 12 July 
1978, 
— data from the aforementioned studies of the 
Economic and Social Committee of 31 October 
1978, 
— opinion of the Economic and Social Committee on 
Greece's application for membership of the 
European Community of 29 November 1978 (1), 
— study of the Economic and Social Committee on the 
Community's relations with Spain of 23 May 1979; 
Whereas the experiences gained from the first 
enlargement of the Community in 1973 must be taken 
into consideration, 
HAS ADOPTED THE FOLLOWING OPINION 
by a large majority, with three votes against and two 
abstentions: 
(]) OJ No C 105, 26. 4. 1979, p. 50. 
1. 10. 79 Official Journal of the European Communities No C 247/25 
INTRODUCTION 
The Economic and Social Committee is mindful of the 
fact that the second enlargement of the European 
Community (from nine to 12 members) is in keeping 
with the preamble of the EEC Treaty in which the 
signatories 'call upon the other peoples of Europe who 
share their ideal to join in their efforts'. The Committee 
is of the opinion that enlargement will help to bring 
about political stability and strengthen democracy in 
southern Europe, thus consolidating the democratic 
system throughout Europe. 
This overriding aim means that appropriate and just 
solutions must be found to the economic and social 
problems arising out of enlargement. This may possibly 
involve sacrifices and burdens; if so these sacrifices and 
burdens will have to be shared out evenly among 
Member States, the acceding countries and the various 
economic and social sectors and groups. 
The ultimate economic aim of enlargement is to increase 
the prosperity of all through 'the constant improvement 
of living and working conditions'. Every opportunity 
must therefore be seized to generate a new dynamism so 
as to achieve a rational and efficient division of labour 
within the new, enlarged Community. One way of doing 
this is to open up new markets in agriculture and 
industry. Everything must also be done to prevent the 
tendency towards stagnation and the weakening of 
Community solidarity from gaining any more ground. 
The European Community must be strengthened, not 
weakened. Resolute efforts must therefore be made to 
secure a more balanced development of the various 
regions of Europe; for the greater the disparities and the 
wider the gap in standards of living, the more the 
cohesion and solidarity of the Community are in 
jeopardy. 
The dynamic opening-up of markets in industry and 
agriculture must go hand in hand with all-embracing 
Community measures designed primarily to help 
backward regions and sectors particularly hard hit by 
enlargement (regional policy, social policy, etc.). 
A critical survey must be made of the Community's 
weaknesses and problems before action can be taken to 
eliminate them; this will also ensure that the Community 
will not be further weakend by enlargement. Such a 
critical survey is vital if efforts to achieve European 
union are still to have any chance of success. The Treaties establishing the Community were drawn up 
with the firm resolve to 'lay the foundations of an ever 
closer union among the peoples of Europe'. The 
Economic and Social Committee considers it essential 
that the acceding countries adopt the Community's basic 
tenets, which are either embodied in the Treaties of 
Rome and Community secondary legislation or else are 
implied in the political objectives that have been set. On 
the other hand, the Community should also be flexible 
enough to take all necessary measures to ensure that the 
acceding countries are integrated into the Community 
without too many difficulties either for themselves or for 
the Member States. 
1. INSTITUTIONAL QUESTIONS - COMMUNITY 
BODIES - PARTICIPATION OF ECONOMIC AND 
SOCIAL GROUPS 
1.1. Decision-making and working procedures 
Community decision-making is at present extensively 
blocked by the practice of requiring unanimity for 
Council decisions in practically all those areas where the 
Treaties provide for majority decisions. This state of 
affairs can only be put right if the Treaties (EEC, 
Euratom, ECSC) are fully implemented, i.e. if there is an 
increasing return to majority decisions where these are 
provided for under the Treaties (see Commission 
document entitled 'Transitional period and institutional 
consequences of enlargement' of 24 April 1978). 
One way of avoiding a great many difficulties would be 
to make it clear to the new members that voting by a 
qualified majority is an integral and indisputable part of 
the acquis communautaire. 
Curtailment of the right of veto would give the 
Commission and Council more room for manoeuvre; it 
would also enable them to take whatever decisions are 
deemed necessary in good time — even in a Community of 
Twelve. 
But if things stay as they are at present, the Community 
of Twelve will find it even more difficult to push through 
a common European policy. 
The Economic and Social Committee considers that the 
Community institutions must make a comprehensive, 
in-depth study of ways in which their internal structures 
and administrative machinery can be adapted to the new 
dimension of the Community. In the enlarged 
Community the aim should be efficient and 
comprehensible European institutions. In other words, 
No C 247/26 Official Journal of the European Communities 1. 10. 79 
the Community must be organized in such a way that it 
can function properly; decision-making practices that 
impede application of the Treaties should be abandoned. 
The enlarged Community must be capable of making its 
activities understandable in the languages of all the 
Member States and it must resist the temptation to use 
technical and practical difficulties as a reason for barring 
representatives of certain Member States from using their 
own language when taking part in the Community's 
decision-making process. 
1.2. Composition of EEC institutions 
The Economic and Social Committee takes the view that 
a formal adjustment of the Treaties without any changes 
of substance should be sufficient to enable the 
Community of Twelve to function properly. 
1.3. After enlargement the Economic and Social 
Committee will continue to play its full role as 
spokesman for economic and social interest groups 
vis-a-vis the Commission, Council and European 
Parliament. The Committee therefore considers that 
Community legislators should take the necessary steps to 
ensure that the ESC can fully assume its role as Europe's 
consultative body. 
1.4. Participation of socio-economic groups from the 
acceding countries in EEC policy formation 
In its capacity as the Community's socio-economic 
consultative assembly, the ESC hopes that the process of 
setting up and developing democratic organizations 
representing economic and social interest groups in the 
acceding countries will soon be completed. 
It is vital for such democratic organizations to exist in the 
acceding countries: 
(a) so that all economic and social interest groups can 
be involved in policy formation in the various bodies 
and institutions of the Community; 
(b) so that measures requiring the participation of such 
groups can be carried out in practice. 2. ADOPTION BY THE ACCEDING COUNTRIES OF THE 
'ACQUIS COMMUNAUTAIRE' 
2.1. Adoption of the 'acquis communautaire' as a basic 
requirement of the Community 
The EEC is not a static creation but a living, continually 
growing body. For more than 20 years now its members 
have built up a network of common interests in the 
economic and social spheres — interests that have taken 
the form of rules and objectives applicable to, and 
adopted by, all Member States. If the acceding countries 
are to become part and parcel of this ever-expanding 
web, then they must accept (a), the basic Treaties of the 
Community and all the political, economic and social 
objectives pursued on the basis thereof, and (b), all the 
various decisions and resolutions taken after the entry 
into force of the Treaties (secondary legislation). In other 
words Greece, Portugal and Spain must accept the acquis 
communautaire, including all Community objectives and 
policies at the particular stage they have reached at the 
time of accession and at the end of the transitional 
period. 
2.2. The acquis communautaire boils down to the 
following: 
On the domestic front 
Adoption of: 
— the customs union and customs law, 
— Community policies in the field of the common 
market and competition, industrial policy, social 
policy, regional and sectoral structural policies, 
energy policy, research policy, transport policy, 
fisheries policy, 
— the first steps in the direction of a European 
consumer policy and an environmental policy, 
— the common agricultural policy, 
— the present state of economic convergence plus all 
existing Community agreements on a European 
monetary system aimed at creating a zone of 
economic and monetary stability, 
— the Community's 'own resources' policy and the 
fund-raising methods applicable thereto. 
In relation to the outside world 
Adoption of: 
— the association and cooperation agreements with 
Mediterranean countries, 
1. 10. 79 Official Journal of the European Communities No C 247/27 
— the development policy, and particularly the 
ACP-EEC Agreements (Lome I and II) (opening up of 
European markets, development aid, stabilization of 
export earnings, industrial and technical 
cooperation), 
— those aspects of European political cooperation that 
are designed to secure peace in the Mediterranean 
area, 
— the common commercial policy, i.e. inter alia: 
— the Trade Agreements with a number of 
European countries, 
— the Trade Agreements concluded with other 
countries (e.g. Canada), 
— the relations between the EEC and its partners 
within the framework of GATT, 
— the generalized system of preferences for 
developing countries. 
2.3. Transitional period 
2.3.1. Essentials 
Unlike the situation when the EEC was enlarged for the 
first time, the entry of Greece, Portugal and Spain will 
pose a large number of difficult transitional problems 
and solutions will have to be found to the problem of 
how to integrate countries which, in socio-economic 
terms, fall well behind the Community average. The 
transitional measures adopted will therefore have to be 
such: 
— that the Community is not slowed down, can be 
consolidated and can make new progress, 
— that sectoral and regional problems currently 
plaguing the Community, and which frequently 
occur in the acceding countries as well (e.g. in 
agriculture as well as the steel, textile, footwear and 
shipbuilding industries), are not aggravated after 
enlargement. 
The question of the nature and scope of adjustments 
should therefore be tackled as soon as entry negotiations 
begin. Solutions to transitional problems will need to be 
sufficiently flexible. 
2.3.2. The pre-accession period 
To smooth out adjustment problems, acceding countries 
should be progressively involved in Community 
procedures and political cooperation during the period 
between the signing of the acts of accession and their 
entry into force. In this respect the Community can draw 
on the positive experiences of the first enlargement. 2.3.3. The post-accession period — duration of the 
transitional period 
The transitional period proper begins after accession. In 
the case of a number of sectors it is bound to be at least 
five years (i.e. the duration of the transitional period 
during the first enlargement) since the adjustments to be 
made now are that much bigger. 
The actual length of the transitional period will no doubt 
depend partly on the starting position and level of 
development of the acceding country in question and 
partly on the development of the economic situation in 
Europe and the world. 
The transitional period will be sufficiently flexible if it is 
based on, or generally compatible with, Article 8 of the 
EEC Treaty (e.g. division into stages and specific 
transitional programmes for individual sectors and 
regions). Interested parties and, if need be, the Economic 
and Social Committee should be consulted in this 
respect. 
The actual transitional measures adopted must also 
ensure the further development of the Community. 
The adjustments which need to be made by acceding 
countries must receive effective assistance from the 
Community's various financial instruments; adequate 
funds must also be released to enable existing Member 
States to make the necessary adjustments. 
Provision will also have to be made to introduce 
protective measures during the transitional period. These 
will be available to both new and existing Member States 
in order to cope with unforeseen difficulties (e.g. when 
adopting the acquis communautaire) and to counteract 
the threat to certain sensitive sectors. Article 135 of the 
existing Act of Accession could be invoked as a legal 
basis. The second paragraph of Article 135 in fact states 
that 'the Commission shall, by emergency procedure, 
determine without delay the protective measures which it 
considers necessary' and the Community institutions 
must be ready to take such measures on the basis of this 
Article. 
2.3.4. It will therefore be necessary to take special 
measures during the transitional period so that all 
Member States can fulfil their obligations afterwards. 
The nature of the measures will depend on the size and 
seriousness of the problems to be overcome. 
2.4. The dynamics of the Community's development 
and the re-shaping of certain policies 
After the accession of Greece, Spain and Portugal the 
Community will take on a new lease of life, increasing its 
share of world trade and improving the economic 
No C 247/28 Official Journal of the European Communities 1. 10. 79 
equilibrium between the major economic areas of the 
world. This new dynamism could lead to a re-shaping of 
certain Community policies. If so, it would also reflect 
the growing responsibilities of the Community. 
The agricultural sector of the EEC will expand as a result 
of enlargement and the Community's fulcrum will move 
further south. The socio-economic composition of the 
new Community will also be different from what it is at 
present and concrete policies will have to be adjusted 
accordingly — though without leading to a 
transformation or dilution of the unique structures of the 
Community in institutional, social and economic fields. 
The European Community was in fact founded to bring 
about lasting peace in Europe, to increase prosperity and 
to forge a living bond of solidarity between the peoples 
of Europe. With a weak and paralyzed Community it 
would be impossible to achieve these aims. 
The Economic and Social Committee therefore 
underlines the need to ensure that the Community 
continues to remain 'operational' and that all its Member 
States, develop harmoniously. 
3. COMMUNITY POLICIES 
3.1. Common market - competition policy 
The establishment of a common market is the most 
important economic task of the Community and 
enlargement must not be allowed to slow things down. 
This means that there must be no slow-down (a), in the 
completion of the customs union (i.e. not only tariffs, but 
also practices and procedures) (b), in the abolition of 
technical barriers to trade and (c), in the opening up of 
public sector purchases. 
If there is to be full-scale participation in the common 
market, acceding countries must be prepared to 
dismantle existing trade barriers and eliminate 
distortions of competition; this includes the withdrawal 
of subsidies that distort competition. The aim is to create 
equal terms of competition. A cornerstone of this policy 
is acceptance by the acceding countries of the 
Community's VAT system. 
3.1.1. The European monetary system — the 
fundamentals of economic policy 
The convergence of the nine Member States' economic 
policies and the move towards economic and monetary 
union have reached a concrete stage in so far as monetary policy is concerned. Nevertheless, differing conceptions 
and aims, not to mention differing relative economic and 
political strengths within the Community, have so far 
proved to be major obstacles to the attainment of this 
goal and have held back economic and monetary policies 
based on the principles of convergence and stability. 
These differences will become even more pronounced 
with enlargement. 
The goal of economic and monetary union has become 
more of a reality so we must at all events prevent it from 
slipping back out of reach again. Closer 
intra-Community coordination of economic policies is 
required in order to attain the objectives of full 
employment, stability, growth and a fair distribution of 
prosperity. If economic and social policy is to be 
effective, it must in the coming years be oriented 
increasingly towards the medium term. This will entail 
setting medium-term Community objectives whose 
implementation can be monitored within a regional and 
sectoral structural policy. 
3.1.2. Greece 
The transitional provisions must include: 
— two-way safeguard clauses to be used when 
abnormal competition threatens to throw certain 
industries out of gear, 
— procedures to prevent competition between Greece 
and the rest of the Community from being distorted 
by transport subsidies, etc., 
— regulations to prevent distortions of competition 
through currency exchange problems. 
3.1.3. Portugal 
In the case of Portugal, the weakest acceding country 
from the socio-economic point of view, everything must 
be done to immediately strengthen her economy so that it 
can be integrated into the Community with as little 
friction as possible. Care must also be taken to ensure 
that measures are not taken that will, in the long run, 
lead to unfair competition. 
The Economic and Social Committee is of the opinion 
that the adaptation of Portuguese production to meet 
EEC demand implies a thorough knowledge of 
Community markets. The Community could be of 
considerable help in this respect (detailed 
recommendations of the Committee, its study on 
relations between the Community and Portugal of 
27 April 1977). 
1. 10. 79 Official Journal of the European Communities No C 247/29 
3.1.4. Spain 
Spain undoubtedly poses the biggest problems when it 
comes to equal terms of competition within the 
framework of a common market. This is because Spain 
has a comprehensive system that promotes her exports to 
the Community whilst putting up barriers against 
imports from the Community. The particular measures 
adopted by Spain include: levying of various customs 
duties; frequent devaluations of the peseta; 
compensatory taxes discriminating against imports 
alongside tax rebates encouraging exports; import price 
controls; evaluation of the value of goods for customs 
purposes; introduction of specific duties; interpretation 
of customs nomenclature; certification requirements; the 
issue of licences. 
With the entry of Spain into the EEC Spanish producers, 
formerly cossetted by a large number of protective 
measures, will have to cope with economic and social 
conditions similar to those obtaining in the common 
market. Adjusting current trading practices to the 
requirements of accession will be particularly difficult 
both for Spain and the Community of Nine. Setting a 
timetable for the introduction of equal terms of 
competition, including adoption of the Community's 
VAT system, is a matter of compelling urgency to Spain. 
Agreement on two-way safeguard clauses is also 
particularly vital in the case of Spain. 
Spain must now show the necessary willingness to 
rapidly make appropriate adjustments to the conditions 
prevailing in the Community - at least as regards a 
number of factors exercising a decisive influence on trade 
flows. It is imperative that concrete progress be made in 
aligning the legal, economic and social conditions that 
form the framework for relations between the Nine and 
Spain. Without such an adjustment, it is to be feared that 
at the beginning of the transitional period Spain would 
be forced to ask for exceptions and extensions of 
deadlines in order to cope with difficulties in certain 
sector of its economy (cf. study of the Committee on the 
Community's relations with Spain of 23 May 1979 for 
the current practical problems). 
To be more precise, the Commission should - after 
engaging in consultations and an exchange of 
information - call upon Spain to immediately make 
'selective' adjustments in order to fall into line with the 
conditions prevailing in the Community; these 
adjustments should then be a key element in entry 
negotiations. 
Spain should accordingly be urged to introduce and 
implement as soon as possible a series of legal measures 
which would ensure the 'neutralizing' effect of taxes on 
imports and exports and which would bring about (a), a reduction of the customs duty on imports from the 
European Community (b), a change in present 
administrative practices and (c), a rapid switch from a 
multi-stage turnover tax to VAT. These measures cannot 
be deferred until after Spain has joined the Community. 
3.2. Social policy 
3.2.1. Freedom of movement 
Freedom of movement for workers is another 
fundamental tenet of the EEC Treaty. After the 
transitional period it must also apply to workers from 
acceding countries without restriction. 
A relatively long transitional period will, however, be 
needed because of structural and cyclical unemployment 
in the Community. The actual length will be decided on 
through agreement with individual acceding countries, 
due account being taken of the necessary adjustment 
measures and their effects. 
The Economic and Social Committee considers that it 
basically makes more sense to bring jobs to the 
unemployed rather than to oblige the unemployed to 
emigrate in order to find work. For this to come about, 
investment will have to be stepped up in the countries 
and regions hardest hit by unemployment — at least in so 
far as this is possible. 
The agreement reached with Greece could be taken as a 
model for the gradual, flexible introduction of the 
principle of freedom of movement, though it should not 
be allowed to determine the actual duration of the 
transitional period. 
One possibility would be to make it impossible to recruit 
workers from any of the new Member States during the 
transitional period without the explicit agreement of the 
host country. 
3.2.1.1. Freedom of movement and 
employment situation 
Figures on unemployment in Greece, Portugal and Spain 
vary a great deal. This is true not only of the figures 
published by the Community on the one hand and the 
three applicant countries on the other; there are also 
wide variations within each acceding country depending 
on which sources are used. 
3.2.1.2. Greece 
Greece would appear to have a comparatively low rate of 
unemployment (1% in 1978) if we disregard 
No C 247/ 30 Official Journal of the European Communities 1. 10. 79 
under-employment in agriculture as well as the fact that 
young people out of work and who have never had a job 
are not included in the unemployment statistics. 
According to more recent OECD estimates (position in 
1978), 4% would appear to be nearer the mark today. 
The special seven-year transitional period already agreed 
with Greece ought to be about right in view of the overall 
situation. 
3.2.1.3. Portugal 
The unemployment rate in Portugal has risen steadily 
over the past few years, reaching 14% in 1977. Nor is 
there anything to suggest that it is going down at the 
present time. Portugal is in special need of massive aid 
during the transitional period so that unemployment can 
be brought down. In view of the high rate of 
unemployment in Portugal the transitional period will 
have to be longer than in the case of Greece. 
3.2.1.4. Spain 
By the end of 1977 the unemployment rate in Spain had 
topped the 6 % mark. There was a further jump in 1978 
and by the middle of that year about 8 % of the working 
population was out of work. With a total of about one 
million out of work, Spain has the biggest unemployment 
problem of the three acceding countries in absolute 
terms. The high level of unemployment, and the fact that 
Spain has the most difficult adjustments to make in order 
for there to be fair competition with other countries, call 
for a relatively long transitional period before complete 
freedom of movement can be established. 
3.2.2. Working conditions 
Workers rights and duties 
The establishment of democratic regimes in all three 
acceding countries has been the most important sine qua 
non for ensuring that the working conditions and rights 
and duties of workers will either be codified in legislation 
enacted by democratically elected parliaments, or else 
freely negotiated between trade unions and employers' 
associations. 
Trade unions worthy of the name have been able to 
resume their activities in all three acceding countries, 
though industrial relations can still not be compared 
with those in the Nine; wage earnings in the acceding 
countries for example are much lower than those 
prevailing in the Community of Nine, as are social 
insurance charges. This applies in the main to Greece (cf. 
study of the Committee of 11 July 1978 on relations 
between the Community and Greece), but it is also true 
of Spain (cf. study of the Committee of 23 May 1979 on relations between the Community and Spain) and 
Portugal (cf. study of the Committee of 27 April 1977 on 
relations between the Community and Portugal). 
In the Economic and Social Committee's view it should 
be emphatically pointed out in the negotiations that free 
collective bargaining coupled with the freedom to take 
industrial action is an essential ingredient of the general 
process of democratization and, at the same time, a 
sound guarantee against distortions of factor price 
relationships which are objectionable from a trade policy 
angle. 
Community legislation which will have to be taken over 
includes the Directives adopted by the Council in recent 
years — or still to be adopted prior to enlargement — in 
application of the social action programme (e.g. the 
principle of equal treatment for men and women 
workers, the length of the working week and paid annual 
leave and the Directives relating to collective 
redundancies and employers' insolvency). For this 
purpose, the Commission will have to present in the 
foreseeable future a comparative survey of (a), social 
legislation in the acceding countries and (b), the 
Community's past achievements and current work in the 
social sector. 
3.2.3. Employment policy 
If it is borne in mind: 
— that the annual net increase in population in the 
acceding countries — taking the average for the years 
1966 to 1976 - is well above the rate of increase in 
the Nine, 
— that the structural changes which will have to be 
made in view of the accession of the three new 
members will most probably have an effect on the 
employment situation in the enlarged Community, 
with a considerable drop in the number of persons 
employed in agriculture due to increased 
productivity, 
then employment prospects, at least from the present-day 
point of view, are not rosy unless further efforts are made 
to improve matters (the number of unemployed in the 
future Community of Twelve is already 7-5 million). 
For this reason and because workers will have to be given 
complete freedom of movement at the end of the 
transitional periods, the mastering of unemployment is 
the most urgent task. The unemployment problem itself 
can only be solved by a more intensive and selective 
employment policy within the framework of a vigorous 
structural policy for industry and the regions and by 
making use of all the funds available. (For details see the 
chapters on regional policy and other important policies.) 
1. 10. 79 Official Journal of the European Communities No C 247/31 
3.2.3.1. Greece 3.2.4.2. Social security in general 
The economic crisis in the western world has induced 
numerous Greek emigrants to return home since 1975. 
This trend poses problems for the Greek economy since 
the labour market finds it difficult to absorb this reflux 
of labour. With the exception of matters concerning migrant 
workers, the harmonization of national social security 
legislation has hardly made any progress at all in the 
Community in recent years (cf. ESC documentation 'The 
stage reached in aligning labour legislation in the 
European Community', page 10). 
3.2.3.2. Portugal 
The general problem of high unemployment has been 
exacerbated in Portugal by three factors: 
— the return or repatriation of roughly 600 000 to 
800 000 Portuguese from Africa, 
— the release from military service of roughly 150 000 
persons, 
— the considerable drop in out-migration since 1973 
(cf. study of the Committee of 27 April 1977 on the 
relations between the Community and Portugal). Thus Member States' laws on social benefits such as 
pensions, child allowances, sickness insurance and 
unemployment benefits have still not been harmonized 
and will have to be dealt with after enlargement. 
Nevertheless, before Spain joins the Community, she will 
have to stop Spanish firms from making lump-sum social 
security contributions at a lower rate rather than paying 
them on an individual basis and in accordance with 
numbers on the payroll. The correct application of social 
security legislation by Spanish firms touches on workers' 
basic rights to social security; moreover, the abolition of 
the practice described above is a vital step in the direction 
of fair competition within the Community. 
3.2.3.3. Spain 
So far (i.e. up to the end of 1978) far too few new jobs 
have been created in industry to cater for the annual 
influx of new job-seekers on the labour market plus all 
those farmworkers who have left the land. This is no 
doubt why Spain seems to attach great importance to 
emigration to countries of the Community; in some 
Member States this will pose considerable problems (cf. 
studies of the Committee of 12 July 1978 and 23 May 
1979 on the relations between the Community and 
Spain). 
3.2.4. Social security 
3.2.4.1. Migrant workers 
The Economic and Social Committee considers that the 
principles of Article 51 of the EEC Treaty and the 
secondary legislation derived therefrom, must be applied 
in full to workers from the acceding countries at the same 
time as the latter are granted freedom of movement. 
These workers should have the same rights as workers 
from the Nine, e.g. with regard to the possibility of 
aggregating periods of insurance when moving to a new 
job in another country of the Community. Until the end 
of the transitional period there must also be some 
guarantee that child allowances are based on the rates 
applicable in the country of employment. 3.2.5. Problems associated with basic and advanced 
vocational training 
A survey of the problems associated with basic and 
advanced vocational training in the acceding countries 
should be used as the basis for developing the 'general 
principles for implementing a common vocational 
training policy' (cf. Article 128 of the EEC Treaty). 
The European Vocational Training Centre should take 
part in this survey, using the instruments it has at its 
disposal. Studies, pilot projects or surveys of specific 
issues are some of the methods that could be used. 
The training of skilled labour and executive staff in 
Portugal poses a particular problem and great efforts will 
have to be made in both industry and agriculture to 
satisfy the heavy demand for these two categories of 
personnel. The European Community should bring such 
people under the umbrella of national and Community 
educational and vocational training schemes wherever 
possible and should bear at least a part of the cost 
(possibly under the Financial Protocol). Such training is 
essential if Portugal is to be able to make effective use of 
the funds provided by the Community's financial 
instruments (Social Fund, Regional Fund, Agricultural 
Guidance Fund, European Investment Bank). 
No C 247/32 Official Journal of the European Communities 1. 10. 79 
3.2.6. Use of financial instruments and in particular the 
European Community's Social Fund 
An active employment policy in the enlarged Community 
calls for the increased and coordinated use of existing 
financial instruments (Social Fund, Regional Fund, 
Agricultural Guidance Fund, etc.). This should be 
reflected in an overall Community programme based on 
a survey of the problems faced by the regions (be they in 
the Nine or the acceding countries) and by structures 
particularly hard hit by enlargement (cf. 4.2 in 
particular). 
3.3. Regional policy 
3.3.1. The Commission rightly points out that 'the 
persistence of regional imbalances (in the Nine) even 
threatens the proper functioning of the common market 
itself (1)'. Enlargement will aggravate the situation even 
more in view of the disparities between a number of 
regions in the applicant countries and the regions of the 
present Community. 
There is a similar situation in Greece, Spain and 
Portugal. In general, per capita income is much higher in 
those regions where the industrial and services sectors 
have expanded and there is a higher concentration of 
population (Biscay, Madrid, Guipuzcoa and Barcelona in 
Spain; Attica and Piraeus in Greece; the northern coastal 
regions of Portugal) than elsewhere. In these more 
prosperous regions the per capita GDP is about 50 % 
higher than in other regions. 
Regional policy ranks high among Community policies. 
The general aims of Community regional policy are 
endorsed by the Committee. 
Regional policy must also make a contribution towards 
an active Community employment policy. This is 
essential if people are to enjoy better living standards in 
general. Regional policy should therefore seek to create 
permanent jobs offering satisfactory working conditions 
and incomes. If the undesirable flows of labour to the 
(') OJ No C 292, 3. 12. 1977, p. 5. congested areas in the acceding countries and, after the 
transitional periods, from the acceding countries to the 
countries of the Nine could be reduced, this could 
already be counted as a success for regional policy. 
Estimating how much money needs to be earmarked for 
the Regional Fund cannot be disassociated from the need 
to monitor the Fund's effectiveness. The more effective 
financial assistance is as a means of achieving the 
Community's regional policy aims, the sooner increased 
funds will be made available to the Regional Fund. This 
will probably entail a shift in the use of the Community's 
financial instruments. In an earlier document the 
Committee worked out the following principles for the 
effective use of funds (principles which are also valid for 
enlargement): 
— It is important that the conditions for the effective 
use of funds and for the independent projects of 
beneficiaries are closely examined and defined; it is 
also important that strict criteria are drawn up and 
applied for implementing projects and monitoring 
results (etg. in the form of regional surveys in the 
areas receiving assistance). 
— The Regional Fund's limited resources must be less 
and less scattered over extensive areas and an 
excessive number of projects. When there is dilution 
only a small proportion of funds reaches the areas in 
greatest need. It is the most backward regions that 
should be given priority. Not only is this highly 
desirable, it is also in the interests of Community 
integration. 
— It is necessary to avoid giving the impression that the 
areas receiving assistance are in fact to be subsidized 
indefinitely. Merely arousing such an expectation 
could have a negative effect on the efforts of these 
regions to help themselves. The Committee feels that 
this is another reason why results should be 
monitored continuously. 
— Where the Regional Fund's resources are made 
available for productive investments, the size of the 
grant should be determined in part by the number of 
jobs created. Thus, when a choice has to be made 
between two productive investments which might 
create the same number of jobs in the short term, 
preference should be given to the less 
capital-intensive investment in the interests of an 
active medium-term employment policy in the 
regions. 
1. 10. 79 Official Journal of the European Communities No C 247/33 
In addition to the effective use of funds, particular 
importance should be attached to the coordination of all 
the Community's structural policies, non-structural 
policies and financial instruments which could have a 
regional impact. 
The purpose of this coordination should be to prevent 
new problems from arising and old problems from being 
exacerbated. A study should, therefore, be made of the 
extent to which transfers of resources from one region to 
another can contribute to balanced growth without 
worsening the situation in regions from which the 
transfers emanate. 
3.3.2. In the Committee's view it goes without saying 
that the regions of the Nine particularly hit by 
enlargement should also be granted aid to enable them to 
adjust. 
Finally, the Committee considers that more funds should 
be made available in future in view of the bigger role 
regional policy will be called upon to play. 
3.4. Other important Community policies 
3.4.1. Industrial policy 
Industry in the Nine: 
— still operates in a climate of considerable 
international economic uncertainty, 
— is undergoing a continuous process of adjustment to 
the new international division of labour, 
— is greatly affected by over-capacity at world level in a 
number of key sectors. 
As a result of enlargement, production capacity in the 
Community industries particularly affected by the above 
factors will increase whilst the existing differences in 
production conditions in other sectors will be intensified. 
This summary analysis of the situation is enough to show 
that the acceding countries must adopt existing 
Community provisions and mechanisms concerning 
structural adjustments, particularly as regards steel, 
shipbuilding, textiles and the leather industry. It is 
essential that the acceding countries should feel obliged — 
even during the negotiation period and not simply after 
agreement has been reached - to abstain from acts 
detrimental to the interests of the Community; this 
would be in keeping with the principles laid down in 
Article 5 of the EEC Treaty. This means in particular that 
it will be necessary to refrain from new national and 
Community assistance measures aimed at expanding 
production capacity in sectors where there is already 
general over-capacity. 
What is needed rather is adaptation of production 
capacities and structures to the pattern of demand in the Twelve and possibly an orderly cutback of production 
capacity in sensitive sectors on the basis of a prior survey 
of capacity and demand. 
In this connection consideration could be given to setting 
up notification departments for all major investments. 
The Community will have to encourage adherence to 
Community strategies by means of specific financial aids. 
In addition, there will have to be greater transfers of 
resources to the weak Community regions affected by 
enlargement, so that they will be able to cope with the 
consequences of the accession of three new Member 
States. 
As part of the adjustment of trade and industry to the 
new market structures of the enlarged Community, 
measures to enhance the competitiveness and efficiency 
of small and medium-sized enterprises and craft 
industries will be particularly expedient from the point of 
view of maintaining and creating jobs, since firms in 
these categories tend to be more labour-intensive than 
large firms. What springs to mind in this connection are 
specific measures in the areas of training and the 
promotion of small-scale business activity, in order to 
improve the quality of these firms' products and services 
and their organizational structure and marketing 
methods. 
The Committee would draw attention here to the need to 
progressively dismantle the restriction on freedom of 
establishment in the Member States for the purpose of 
pursuing one of the activities specified in Article 52 of the 
EEC Treaty. Priority should be given to those activities 
for which freedom of establishment would particularly 
promote the development of production and trade. 
The only sensible way to implement industrial policy, as 
a sectoral policy on specific structures, is to link it as 
closely as possible with regional structural policy. The 
principles developed for regional policy, especially as 
regards coordination and the efficient use of funds, apply 
here. 
The ESC would like to see a harmonization of sectoral 
and regional policies (a), to avoid over-capacity in 
certain sectors (b), to avoid strong competition for 
support measures that produce hardly any extra 
employment and (c), to prevent the dilution of measures 
to stimulate the economies of the very poorest regions in 
the Community. A common policy also needs to be 
developed in this field. 
The policy on sectoral structures must, in the framework 
of a coherent Community industrial policy, be extended 
to all major industries and be closely linked to regional 
policy. It is necessary to gain a better insight into the 
various sectors and to further develop structures and 
instruments which can successfully adjust and 
reorientate production. 
No C 247/34 Official Journal of the European Communities 1. 10. 79 
A detailed description of the problems raised by 
industrial structure and the assistance and adjustment 
measures which have already been partly initiated can be 
found in the comprehensive Committee studies on: 
— Greece: study on the relations between the 
Community and Greece of 11 July 1979, 
— Portugal: study on the relations between the 
Community and Portugal of 27 April 1977, 
— Spain: studies on the relations between the 
Community and Spain of 12 July 1978 and 23 May 
1979. 
In the case of Spain there is a very high and partly 
under-utilized production capacity in particularly 
sensitive sectors such as steel and shipbuilding but also in 
the textile and footwear industries. In fact these sectors 
account for a considerable proportion of Spain's total 
industrial output. 
3.4.2. Energy and research policy 
3.4.2.1. Energy policy 
The Committee notes with regret that the problems far 
outweigh the positive achievements of the Community's 
energy policy. 
Enlargement will further exacerbate these problems since 
the Community's already high degree of dependence on 
energy imports will become even greater. 
The rise in energy prices and the anticipated growth in 
the energy imports of the acceding countries could 
aggravate balance-of-payments difficulties and 
jeopardize economic growth and the convergence of 
economies in the enlarged Community. A fresh political 
impetus must, therefore, be given to Community 
measures to reduce dependence on energy imports. The 
following steps in particular are called for: 
— greater efforts to conserve energy, 
— greater efforts to investigate and exploit new energy 
sources (this could lead to new approaches to the 
exploitation of solar energy in the acceding 
countries, which enjoy abundant sunshine), — a common policy towards third countries in order to 
safeguard supplies on a long-term basis, 
— promotion of the European Community's energy 
resources, 
— steps to ensure that the Community keeps up with 
technical progress while reducing health and 
environmental risks to a minimum. 
The acceding countries must as soon as possible join in 
these Community efforts to diversify energy sources and 
save energy by improving existing technologies in the 
areas of energy production and consumption. It is 
particularly important that Spain should cut down its 
very high energy consumption even before accession. 
Spain also has a State monopoly of the sale of oil, thus 
distorting competition; this situation must be brought to 
an end. 
3.4.2.2. Research policy 
Europe's research and technology policy forms the 
scientific and technological basis for every European 
policy — and thus for all policies that play a role in 
connection with enlargement. 
Community research policy should be concerned with 
the coordination of national research policies and the 
definition and implementation of Community research 
programmes. 
Priority should be given to the following areas of major 
concern: 
— long-term safeguarding of resources (raw materials, 
energy, agriculture, water), 
— steps to enhance the international competitiveness of 
the enlarged Community, 
— improvement of living and working conditions, 
— protection of nature and the environment. 
3.4.3. Transport policy 
In a Community of Twelve the common transport policy 
will still have as its objective the establishment of a 
1. 10. 79 Official Journal of the European Communities No C 247/35 
common transport market free from unfair competition. 
Transport problems arising out of the geographical 
distances in the enlarged Community will therefore have 
to be resolved in accordance with fair competition and 
the principles underlying the Community's structural 
policy. 
3.4.3.1. In the case of road haulage it will be 
necessary to come to an arrangement with Yugoslavia 
concerning transit traffic between Greece and the other 
Member States. Any solution will have to take account of 
the interests both of Yugoslavia and the Community. 
3.4.3.2. Maritime transport 
The fact that Community tonnage will increase by over 
55 % as a result of the accession of Greece, Spain and 
Portugal heightens the need for early implementation of 
Community solutions to maritime safety problems (in 
particular, protection against ecological disasters ensuing 
from accidents involving supertankers). If this can be 
achieved, the new Member States will have to base 
themselves on — and accept any protective legislation 
already in force when they join. 
The fact that the mean annual loss ratio (expressed as a 
percentage of total tonnage) for the Nine is 0 13%, as 
compared with 0-51% for the acceding countries, 
indicates that the vessels of the latter are older than those 
of the Nine and also that greater risks attach to these 
older vessels. 
Nor must one overlook the heavy involvement of Greek 
shipping companies in the ownership and operation 
of flag-of-convenience vessels, i.e. vessels entailing 
above-average risks. 
The mean annual loss ratio of typical flag-of-convenience 
countries such as Liberia, Panama, Singapore and 
Cyprus is 1-25 % and is accounted for mainly by 
supertankers. 
Greece's particularly liberal approach to the right of 
establishment — it allows firms from other countries (and 
especially from Eastern Bloc countries) to form Greek 
companies — is liable to aggravate the Community's 
transport problems with the Comecon countries. 
In its Study on East-West transport the Committee 
recommended a system for controlling foreign capital 
similar to that in Austria (75 % national capital and not 
more than 25 % foreign capital) as a step towards a 
solution. It would reiterate that recommendation here. 3.4.3.3. Rail transport 
The Community authorities are called upon to press, in 
the accession negotiations, for a better link-up between 
the Spanish railway network and the Community's 
goods and passenger transport systems. This means that 
rolling stock will have to be made adaptable to the 
different railway gauges existing in Spain on the one 
hand and EEC countries on the other; this will have to be 
done through measures that are technically sound and 
calculated to expedite the flow of traffic. This could also 
help to ease the congestion on the Spanish road network. 
3.4.4. Common agricultural policy 
3.4.4.1. General problems of enlargement 
for agriculture 
The enlargement of the Community from nine to 12 
members will pose serious problems for the agricultural 
sector. This is particularly true of the present 
Community and especially its Mediterranean areas, but 
it is also true of the agricultural sector of the acceding 
countries. 
This is because, as the analyses of the Commission and 
the Economic and Social Committee (*) show, the 
Mediterranean regions show similarities as to the 
products, climate and the general problems encountered 
there. 
The growth of the Community from nine to 12 Member 
States will increase the number of people employed in 
agriculture by 55%, the agricultural area by 49%, the 
number of farms by 57%, but production only by 24 % 
— proof of low productivity in the acceding countries. 
In 1975, the number of people employed in agriculture as 
a percentage of the total workforce was 8 • 7 % in the 
Community of Nine, (for the Mediterranean countries: 
Italy 15 • 8 %, France 11 • 6 %), 22 % in Spain, 34 • 5 % in 
Greece and 28 • 1 % in Portugal - proof of the 
importance of agriculture for employment, especially in 
the acceding countries. 
Article 39 of the EEC Treaty states that the main 
objectives of the common agricultural policy include: 
— an increase in agricultural productivity, 
— a fair standard of living for the agricultural 
community, by increasing individual earnings. 
(*) Study of the Economic and Social Committee on the 
prospects for the agricultural products of the EEC's 
Mediterranean areas of 27 November 1975. 
No C 247/36 Official Journal of the European Communities 1. 10. 79 
In view of the situation in the acceding countries the 
pursuit of these objectives will give rise to the following 
problems: 
— there will be a significant reduction in the number of 
people employed, or rather under-employed, in 
agriculture who will have to be asborbed in other 
sectors of the economy, 
— owing to the high proportion of small farms with a 
low output and a low income in the acceding 
countries, the problem of such low output-low 
income producers, which already exists in the 
Community of Nine, will become even more acute, 
even allowing for the expected rise in agricultural 
productivity in the acceding countries. 
(This assessment of the situation will remain valid for the 
first few years after enlargement.) 
The problems arising from regional disparities will also 
get worse. There are serious regional disparities within 
the Community, and the Mediterranean areas lag behind 
the others in economic terms. The Community's regional 
policy has not yet succeeded in eliminating these 
discrepancies. Nor has the common structural policy for 
agriculture been implemented yet. 
It will therefore be necessary to reinforce the structural 
policy: 
— by bringing the socio-structural Directives up to date 
so that they can be applied effectively in the regions 
concerned, 
— by a corresponding increase in the financial aid 
available, 
in order to resolve the structural problems in both the 
Community and the acceding countries. In implementing 
the structural policy for agriculture, the principles for the effective use of funds must be respected (see 3.3 
'Regional policy'). 
In this respect, the Committee would reiterate its view (*) 
that all the measures designed to solve the above 
problems must be adopted with a view to maintaining or 
creating jobs in the rural areas of the Mediterranean. 
In particular, the Community must implement integrated 
overall programmes relating to the various sectors of the 
economy of these regions in order to give them scope for 
balanced development within the European Community 
(see 4.2 of this opinion). 
3.4.4.2. Production and marketing 
problems 
The enlargement of the Community will have a major 
impact on production and marketing structures in 
particular. From the strict point of view of production, 
transition to a 12-member Community will double the 
acreage under vines (2 379 000 to 4 383 000 hectares), 
will boost olive production from 2 163 000 to 6 051 000 
tonnes, rice output from 1 000 000 to 1 578 000 tonnes 
and the tomato crop from 4 300 000 to 8 000 000 
tonnes. In view of the resultant changes in the degree 
of Community self-sufficiency in these products, the 
Economic and Social Committee would ask the 
Commission to supplement Table 45 in the Annex to 
Doc. COM(78) 200 final so that the Committee has the 
data needed (e.g. wine) to deliver a final opinion on the 
question of surpluses. 
It is also necessary to take account of the fact that in the 
case of certain important Mediterranean products the 
average yield per hectare, particularly in Spain and 
Portugal, is generally lower than in the Community: 
OJNo C 114, 7. 5. 1979, p. 27. 
Product 
Durum wheat 
Wine Community 
3 810 kg/ha 
(1976) (i) 
6 090 litres/ha 
(1975/76) (^ Greece 
1 865 kg/ha 
(1977) (2) 
5 829 litres/ha 
(1975) (*) Portugal 
1 021 kg/ha 
(1973) P) 
3 086 litres/ha 
(1976) (3) Spam 
1 600 kg/ha 
(1973) n 
1 625 litres/ha 
(1976) («) 
H The agricultural situation in the Community: 1977 report (in conjunction with the eleventh general report on the 
activities of the European Communities, Brussels-Luxembourg, January 1978, pages 262/263 and 316/317). 
(2) FAO yearbook on production, volume 31, 1977 and information from the Commission, Directorate-General for 
Agriculture. 
(3) Commission opinion on Portugal's application for membership (submitted to the Council), Brussels, 23 May 1978, 
Tables 8 and 9, and information from the Commission, Directorate-General for Agriculture. 
(4) Commission opinion on the accession of Spain (submitted to the Council) (Annex), Brussels, 1 December 1978, 
Tables 11 and 14, and information from the Commission, Directorate-General for Agriculture. 
1. 10. 79 Official Journal of the European Communities No C 247/37 
The degree of mechanism and use of fertilizers is also 
considerably lower than in the Community. 
There is thus enormous scope for these countries to 
increase agricultural output, in particular by improving 
production methods and making more use of irrigation. 
Developments in recent years show that the latter is 
already well underway. 
This growth potential must be viewed in conjunction 
with another fact. Current prices in the three applicant 
countries for most Mediterranean agricultural products 
(olive oil, wine, fruit, etc.) are much lower than 
Community prices. 
Accession to the EEC and the resulting price increases in 
the three countries can act as a considerable stimulus to 
the production of fruit, vegetables, wine and olive oil. 
There is a risk of creating large surpluses of certain 
Mediterranean products, while there may be a drop in 
the present structural surpluses of such continental 
Community products as sugar and milk products; the 
present imbalance is so great however, that accession is 
unlikely to redress it in full. 
If these trends materialize, as seems likely, there could be 
a major change in the problems of the common 
agricultural policy. The problem of structural surpluses 
in the most important Mediterranean farm products 
could be added to that of the structural surpluses in 
certain continental farm products. This trend could have 
undesirable economic and financial consequences for 
agricultural producers in the Mediterranean region and 
for the enlarged Community as a whole. 
This would have serious economic repercussions for the 
Community's Mediterranean producers and financial 
repercussions for the enlarged Community itself. 
A further element of uncertainty which should not be 
neglected is the low income inelasticity of demand for 
most Mediterranean products. Gradual changes with 
possible consequences for demand are, however, 
conceivable in the case of certain products. 
Moreover, once the acceding countries join the EEC, 
they will not be able to obtain supplies of meat and dairy 
products on the world market at prices lower than the 
Community's. As members of the Community, they will 
have to buy these products in central and northern 
Europe and forego the present duties which will have to 
be transferred to the Community in the form of levies. 
They will also lose the opportunity for trade with non-Member States since they will no longer be able to 
buy meat and dairy products from those markets. This 
will present the acceding countries with additional 
problems of adjustment. 
As a result of their aligning customs duties on the 
common external tariff and acceding to EEC 
commitments under GATT and the various other 
Agreements and Conventions (with the Mediterranean 
countries, Lome, etc.), even Greece, Portugal and Spain 
might find that certain of their agricultural sectors (and 
the vegetable fats and oils sector in particular) are in a 
critical situation. 
To sum up, therefore, the accession of the three new 
Member States will have two consequences in the 
agricultural sector. First, there will be a drop in 
structural surpluses, e.g. in sugar and milk products, and 
in the level of self-sufficiency for products in which the 
Community is already deficient, such as vegetable 
proteins. Secondly, there will be a higher degree of 
self-sufficiency in Mediterranean farm products. The 
Community could soon show surpluses in some of these 
products, such as wine, olive oil and some fresh and 
processed fruits and vegetables; in the case of some 
products which hitherto have been imported from third 
countries, the acceding States could become practically 
sole suppliers to the Community. 
All of this will also have a major impact on non-EEC 
countries, particularly those Mediterranean countries 
with whom the Community has preferential Agreements. 
Any increase in the Community's level of self-sufficiency 
in Mediterranean farm products will make it very 
difficult for them to export their products; this is made 
all the more significant by the fact that in the case of the 
Maghreb and Mashrak States and Israel, these exports 
account for a large part of their trade with the 
Community, i.e. about 70% of their total exports of 
farm products. 
These considerations would seem to call for a general 
policy which takes account of: 
— the demands of the Community's common 
agricultural policy, 
— the need to bring the various preferential Agreements 
into line with each other and with the new situation 
created by enlargement. 
It follows that implementation of a strategy for 
Mediterranean agriculture in accord with our new 
partners is becoming more necessary and more urgent. 
No C 247/38 Official Journal of the European Communities 1. 10. 79 
The growth potential of the countries which have applied 
for membership should be used for products other than 
the traditional Mediterranean crops and especially for 
high-protein products. 
In this connection the other objectives of Article 39 of 
the EEC Treaty could be important, i.e.: 
— stabilizing markets, 
— assuring the availability of supplies, 
— ensuring that supplies reach consumers at reasonable 
prices. 
Here account must be taken of the export possibilities 
which would be opened up by a dynamic job-creation 
policy in the enlarged Community's Mediterranean 
regions (see also ESC study, progress report on the CAP, 
published in February 1975, Section VI C (a) and (d)). 
The acceding countries must apply mutatis mutandis the 
principles of Article 5 of the EEC Treaty and prepare 
themselves as of now to implement Community 
provisions immediately upon commencement of the 
transitional period; this applies to the organization of the 
markets, the structural policy provisions and the specific 
rules for production surveillance and switches already in 
force in the Community (wine, beet and milk). It also 
applies to provisions enacted between now and 
enlargement and to regulations concerning competition 
(market-dominating enterprises), quality standards and 
the protection of the environment and the consumer 
(especially where food is concerned). 
The ad hoc supervisory instruments must ensure that 
commitments are not evaded by one means or another. 
3.4.4.3. Proposed measures 
From the foregoing it is clear that if serious agricultural 
problems are to be avoided when the Community is 
enlarged, in-depth and long-term measures will be 
needed. 
Accordingly, there should be a transitional period with a 
fixed cut-off date. This general transitional period must, 
however, be long enough to allow a realistic possibility 
of aligning economic conditions in the EEC and the 
acceding countries. The ESC considers that, within this 
general transitional period, specific transitional periods 
of appropriate length should be agreed for specially 
sensitive problems and products (see also 2.3 of this opinion). The ESC thinks that, if a flood of competing 
products from the acceding countries is not to have the 
adverse effects feared by Community farmers, the 
Community must, in this period with respect to 
Mediterranean agriculture: 
provide for the possibility of implementing specific 
safeguard clauses for the most sensitive branches of 
production and products (see also 2.3 of this 
opinion), 
adopt, in the short term, measures designed to: 
improve the socio-structural Directives by 
introducing a better criterion for comparison, 
bring about Community programmes for 
particular areas and/or particular production 
sectors aimed at eliminating structural and 
natural disparities between the various 
agricultural regions and reducing, if not 
eliminating, the permanent imbalances on the 
markets for certain agricultural products, 
bring about integrated regional development 
operations using a combination of several 
financial instruments (ERDF, EIB, Social Fund, 
EAGGF) in geographically limited areas, 
coordinate financial measures in such a way as 
not to disturb the normal management of the 
CAP, 
revise and adapt various market organizations in 
order to tackle the new production-consumption 
relationships for Mediterranean products and 
enable all the producers affected (fruit and 
vegetables, wine, olive oil, durum wheat) to 
enjoy better security of income, 
define overall market rules for processed 
products (fruit and vegetables) and new market 
organizations for certain Mediterranean crops in 
so far as this is necessary, 
promote the consumption of Mediterranean 
agricultural products, in particular by abolishing 
the consumption taxes levied in some Member 
States, or by improving the market development 
premium system, 
implement aid and investment programmes for 
initiatives which partake of both agriculture and 
tourism (including integrated activities). 
1. 10. 79 Official Journal of the European Communities No C 247/39 
Furthermore, given that the accession of the three 
countries could impose constraints on Mediterranean 
agriculture whilst continental farming could be 
advantaged in the short and medium term, the 
Committee considers that the burdens of enlargement 
should not fall exclusively on one socio-economic group 
and that the Community as a whole should assume the 
responsibility for its own decisions. 
3.4.5. Fisheries policy 
The doubling of the Community's fishing fleet/and 
fishing population as a result of the accession of Greece, 
Portugal and Spain will give rise to problems of 
adaptation and necessitate major changes to elements of 
the common fisheries policy. 
In this case too, the basic rule is that the acceding 
countries should take over the existing Community 
provisions. 
The following things will have to be done as a direct 
result of the accession of Greece, Portugal and Spain: 
— redistribution of catch quotas in the Community's 
pond in accordance with the Commission proposals 
currently before the Council and which to some 
extent have already been implemented by the 
majority of Member States, 
— recasting of fisheries agreements which the acceding 
countries and the Community have concluded, or are 
in the process of concluding, with non-EEC 
countries. 
As regards catch quotas, use can be made of the outline 
fisheries agreement of 23 September 1978 between Spain 
and the Community which, although not yet ratified, has 
been applied in practice, and which already contains 
unilaterally determined catch quotas for Spanish 
fishermen in the Community pond and for fishermen 
from the Nine in the Spanish 200 nautical mile fishing 
zone. 
As the three acceding States gradually conform with the 
Community's fisheries policy, they must also fall in with 
its basic tenet, namely conservation and rebuilding of the 
fish stocks in the Community pond. 
At the same time, Spain, which has the third-largest 
modern fishing fleet in the world (as big as the French, 
Italian and West German fleets put together), should get 
down to reducing Spanish fishing capacity to a level 
commensurate with the new limited catch possibilities of 
Community fishermen in the Community pond and in 
non-member countries' waters. In this connection too, 
legislation should be passed in Spain to make sure that the Spanish fishing industry starts to apply, during the 
transitional period, the provisions which are in force in 
the other Member States concerning fishing methods, 
conservation of fish stocks and mesh sizes. 
3.5. Community consumer policy 
The consumer protection measures taken so far in the 
Community represents the first steps towards an effective 
consumer policy. The accession of Spain, Greece and 
Portugal must not jeopardize the progress achieved or 
impede further development. 
3.6. Community environmental policy 
It goes without saying that the efforts to achieve an 
effective environmental policy must not be endangered as 
a result of enlargement. The development of protective 
and minimum standards in respect of pollutants gains 
new significance through the Community's increased 
responsibility for controlling pollution in the 
Mediterranean. Enlargement means in fact that the 
highly indented northern coast of the Mediterranean will 
come almost completely under Community jurisdiction. 
It is therefore necessary for the Community as such to 
accede to the Convention on the control of pollution in 
the Mediterranean and develop an active policy in this 
sphere. 
3.7. Areas of Community external relations specially 
affected by enlargement 
3.7.1. Mediterranean policy 
One of the main consequences of enlargement will be a 
stronger Community presence in the Mediterranean 
area. The Twelve will thus have greater responsibility in 
all matters connected with the safeguarding of peace and 
economic development in this area, and this will have to 
be reflected in a concrete overall Community policy. 
Existing Treaties and Agreements must be activated and 
further developed. 
The Association Agreement with Turkey, one of the 
Community's oldest 'allies' in the Mediterranean area, 
must not be jeopardized by the accession of Greece. 
Greece must accept the terms and objectives of the 
Association Agreement in full and actively support the 
Community's friendly relations with Turkey. This 
implies that every effort will have to be made to settle the 
outstanding disputes with Turkey in the near future, if 
possible before Greek accession (continental shelf in the 
Aegean, Cyprus). The Community's greater interest in 
No C 247/40 Official Journal of the European Communities 1. 10. 79 
securing peace in this new peripheral region of the 
enlarged Community must find expression in sustained 
and patient efforts to induce these two countries linked 
with the Community to find a just and balanced solution 
to the disputes mentioned. 
This aim of securing peace must also be pursued in 
relations with the North African States and the coastal 
States of the southern and eastern Mediterranean. 
In this connection the Committee supports the Council's 
endeavours to establish a sustained and constructive 
dialogue between the Community, the Arab world and 
the countries of Africa. This will be conducive to the 
economic and social development of all regions 
bordering on the Mediterranean and to the safeguarding 
of the Community's raw materials supplies. It will also 
help to solve urgent problems in the North-South 
Dialogue. The acceding countries will have to accept the 
economic commitments that the Community has entered 
into (or will enter into before accession) as part of its 
overall policy vis-a-vis the Maghreb and Mashreq 
countries and Israel (1). 
3.7.2. Trade relations with the Comecon countries 
The Member States' trade links with Comecon are 
governed by Community legislation dating from 
31 December 1974. Industrial cooperation is dealt with 
separately. 
On accession the new Member States will have to fall in 
line with Community arrangements complying with the 
legal provisions in force at that time. 
3.7.3. Relationship between the Community and 
GATT 
The Community speaks for the Member States in GATT 
matters. 
3.7.3.1. On accession the new Member States will 
have to accept the Community's commitments in GATT 
and vis-a-vis the various contracting parties (including 
those arising from the Tokyo round). Similarly they will 
be eligible for concessions made to the Community by 
the other contracting parties of GATT. 
i1) Study of the Economic and Social Committee on 
Community policy towards southern and eastern 
Mediterranean countries of 26 October 1977. 3.7.3.2. When the accession talks have been wound 
up, the Community will, in accordance with Article 
XXIV, paragraph 6 (establishment of a customs union or 
free-trade area), have to submit its dossier. The 
Economic and Social Committee believes that the 
Community will be entitled to compensation from the 
other contracting parties in view of the fact that the 
acceding countries currently apply higher customs tariffs 
than those of the Community Common Customs Tariff. 
(After the first enlargement, the Community had to grant 
compensations because alignment on the Common 
Customs Tariff meant that, on average, the new Member 
States had to increase customs duties on imports from 
outside the Community.) 
3.7.4. The Agreements with the EFTA countries 
The large free-trade area for industrial products that the 
Community and the EFTA countries have formed since 
1 July 1977 will be further expanded by the accession of 
Greece and Spain, so that duty-free exchange of goods 
will be possible in practically the whole of western 
Europe. 
3.7.5. Community development aid policy 
Entry into the EEC of three less economically developed 
countries must not mean that the Community's trade 
policy towards developing countries will be more 
protectionist or that the financing of enlargement 
through regional and sectoral policies will be at the 
expense of the Community's development aid. 
3.7.5.1. System of generalized preferences 
The concessions which the Community currently grants 
to approximately 100 developing countries (excluding all 
the Eastern European State-trading countries except 
Romania) are renewed annually under an autonomous 
10-year agreement which expires on 31 December 1980. 
Like the rest of the developed world, and in the light of 
the last Unctad conference, the Community will 
probably decide to renew the generalized scheme of 
preferences (GSP), possibly for a further 10 years. The 
scheme will however probably be made more selective, 
so as to ensure that it mainly benefits the developing 
nations. 
Needless to say, the future Member States will have to 
accept the Community GSP lock, stock and barrel as part 
of the Community patrimony. They must expect to face 
1. 10. 79 Official Journal of the European Communities No C 247/41 
stiffer competition in certain areas from countries, even 
developing countries, from whom they are heavily 
protected at the moment. 
When debating the new 10-year agreement, the 
Community should therefore take account of the 
interests of the countries which have applied to join the 
Community. 
3.7.5.2. The Lome Convention 
Enlargement of the Community will not, in the cases of 
Greece and Spain, lead automatically to a change in the 
geographical scope of the Lome Convention. Of the 
former Portuguese colonies, Cape Verde Islands and 
Guinea Bissau are already signatories. And it is not out 
of the question that Mozambique and Angola will also 
accede. 
3.7.5.3. Relations with Latin America 
Because of the historical ties between Spain and the 
countries of Latin America the enlarged Community may 
be able to forge new political and economic links with 
this part of the world. The Community should not, 
however, make available to these countries the 
preferential and 'non-reciprocity' agreements that have 
been concluded with the ACP countries. 
4. FINANCIAL ASPECTS 
4.1. Community budget and value added tax 
4.1.1. Budget 
The Economic and Social Committee would stress the 
fact that the acceding countries must accept budgetary 
provisions, including the Regulation on 'own resources', 
just as the new Member States had to do on the occasion 
of the last enlargement of the Community. The acceding 
countries will have to accept the administrative rules 
with regard to adoption of the budget, the decision on 
the introduction of 'own resources' and the 
implementing provisions. 
4.1.2. Value added tax 
This obligation to accept all the budgetary provisions 
further implies - and the Committee is in full agreement 
with the Commission on this matter (see Commission 
Document on the accession of Spain of 1 December 
1978) — that the acceding countries will have to 
incorporate into their national laws in the near future the 
provisions on the introduction of VAT throughout the EEC and the related Directives to enable the EEC share 
of national VAT revenue to be calculated and collected 
satisfactorily. 
4.1.3. Financial planning 
The estimates of the overall cost of the enlargement of 
the Community which have been made so far have 
generally been limited to an extrapolation of the 1978 
EEC budget by applying the current methods and levels 
of intervention by the financial instruments to the three 
prospective member countries, without taking account of 
the problems arising with regard to integration both in 
respect of particular areas and sectors of the existing 
Community and the acceding countries. It is therefore 
urgently necessary for the Commission to draw up a plan 
of action dealing with all the issues involved in the 
enlargement of the Community. An analysis of the costs 
involved would have to be appended to the plan. The 
increase in the EEC budget consequential upon 
enlargement should be determined and implemented as 
part of a medium-term financial plan for the 
Community. 
Any action which might need to be taken in the light of 
this medium-term financial plan with regard to a possible 
increase in the Community's 'own resources' and the 
diversification and strengthening of the revenue side of 
the EEC budget would also have to be planned on a 
medium-term basis. 
4.2. Financial instruments (a) 
The Economic and Social Committee does not consider 
that it is advisable to endeavour to solve the structural 
problems linked to the enlargement of the Community 
by setting up an ad hoc enlargement fund. This could 
give potential new member countries expectations which 
the Community would in practice be unable to satisfy. 
There would, however, seem to be a need to draw up an 
action plan on enlargement with a view to solving all the 
problems affecting both particular regions and sectors of 
the existing Community and of the acceding countries as 
a result of the enlargement. This action plan should 
provide the framework for coordinating measures taken 
with financial aid from the Community. An essential aim 
in this respect is to coordinate the use of the existing 
financial instruments. This coordination should prevent 
EEC funds from being spread too finely and prevent the 
effect of grants from EEC funds being cancelled out 
because of a lack of coordination. 
(*) For further information on this section see the Committee's 
publication entitled 'Action of the European Community 
through its financial instruments' 1979, pages 275 ff. (esp. 
299 and 300). 
No C 247/42 Official Journal of the European Communities 1. 10. 79 
Although the problem that will be created by the regional 
and sectoral imbalances in an enlarged Community will 
not differ fundamentally from the problem in the present 
Community, enlargement will nevertheless place further 
strain on the Community's economic and social 
cohesion, which is already not too solid. In order, 
therefore, to enable the entire enlargement operation to 
be carried out successfully, the transfer of financial 
resources from richer to poorer regions will be required 
in addition to what is provided under the existing 
programme. The way the financial resources are used 
should be geared directly to the desired social and 
economic development in the Member States. 
Such an aid programme should form an accompaniment 
and a basis for predetermined transitional rules designed 
to enable the acceding countries to reach a reasonable 
level of economic development and thereby ensure that 
the transitional period is completed satisfactorily. 
In this connection enlargement could give rise to a 
critical examination of the procedures for making 
allocations from EEC funds. The following points should 
be noted in this respect: 
Regional Fund 
In the case of the Regional Fund one of the aims should 
be to set aside a particular percentage of the sums 
available for Community measures which are not linked 
to quotas (see 3.2.6). The funds made available for such 
measures would have to be increased to make them 
adequate for the tasks involved. 
Social Fund 
There will be a very considerable increase in the number 
of priority areas eligible for aid from the Social Fund. 
Almost the whole of Portugal and Greece and a large 
number of Spanish regions will be added to the current 
priority areas, namely, the Irish Republic, Northern 
Ireland, Greenland, the south of Italy and the French 
overseas territories. 
There will therefore be a tremendous extension of the 
'Regional Fund areas' which also receive top priority 
when it comes to aid from the Social Fund for projects of 
a regional nature. In this connection the question arises 
as to whether these top-priority measures are detrimental 
to or even absorb the funds for a large part of the other 
Social Fund measures (to aid people or sectors) which 
have a lower priority rating. 
The Economic and Social Committee would stress its 
view that a large part of the sums available from the 
Social Fund should be allocated for vocational training 
and the retraining of workers in the least developed 
areas. There should, however, not be any reduction in 
the measures taken hitherto in these areas to help young people, people leaving agriculture, handicapped persons 
and women workers. 
An overall plan 
An overall plan with regard to the use of EEC financial 
instruments for overcoming the problems arising in 
connection with enlargement should therefore include 
provision for the following: 
— training and retraining facilities in less developed 
areas (Social Fund and Regional Fund), 
— retraining facilities for people leaving farming 
(Regional Fund and the Guidance Section of the 
Agricultural Guidance and Guarantee Fund) and the 
related questions of improvements in production and 
market structures (Guidance Section of the EAGGF), 
— investment to improve infrastructures and the 
structure of industrial production and services in the 
less developed areas (Regional Fund and European 
Investment Bank). 
Account must be taken of the following concrete 
requirements: 
— Regional Fund: the non-quota section used for 
Community measures must have sufficient funds at 
its disposal, 
— Social Fund: updating of the distribution of 
allocations referred to in Articles 4 and 5 of Decision 
71/66/EEC, as amended by Decision 
77/801/EEC (!), 
— Guidance Section of the EAGGF: increases in the 
funds available which have not been increased for 
many years; redefinition of the specific measures on 
the occasion of the enlargement. 
The use of EEC financial instruments should, therefore, 
form part of an outline plan for tackling the problems 
arising in connection with enlargement; this plan must, 
of course, be based on the national and where available, 
Community programmes and policies served by the 
financial instruments. To this end there is a need to: 
— provide a definition, which would apply to all the 
financial instruments of the following: 
— priority sectors, 
— priority beneficiaries (workers), 
— priority regions, all regions of the Community 
being divided into groups according to their 
development and redevelopment needs, 
(*) OJ No L 337, 27. 12. 1977. 
1. 10. 79 Official Journal of the European Communities No C 247/43 
— create a system providing for the 'integrated' use of a 
number of Community instruments at the same time 
in order to tackle problems which could not be 
solved satisfactorily by the use of a single EEC 
financial instrument, 
— set out different levels of EEC financial participation 
for the various regions, these levels being geared to 
the level of development of the region concerned, 
— determine the level of participation of EEC financial 
instruments solely on the basis of the costs of the 
proposed projects. 
This overall plan for tackling the problems of 
enlargement should be worked out as the negotiations 
with the acceding countries progress and should come 
into effect gradually as Greece, Portugal and Spain join 
the Community. 
This overall plan would provide the Community with a 
set of instruments which would match up to the special 
'enlargement fund', which the Committee does not 
support; such a plan would be sufficiently flexible and 
effective to enable the adjustment problems 
consequential on enlargement to be tackled, whether these problems affect areas and sectors of the existing 
Community or the acceding countries. 
One of the logical consequences of drawing up this 
overall plan of action to deal with the issues arising from 
enlargement should be an increase in the funds available 
to the EEC financial instruments to enable them to meet 
the new circumstances. The Economic and Social 
Committee considers it very important in this respect to 
make a detailed calculation of the appropriations needed 
so that the general public in the Community of Twelve 
knows what price has to be paid for the political and 
economic benefits to be derived from enlargement. 
The Economic and Social Committee realizes that any 
further quantification of the effects of enlargement, 
particularly with regard to employment, production as 
well as the size and structure of the Community budget, 
is problematic and can at best be only approximate. The 
Economic and Social Committee would nevertheless 
welcome Commission attempts to make a rough 
assessment of the effects of enlargement as soon as entry 
conditions have been negotiated in detail and are clear to 
all. This could form the basis for possible corrective 
measures (e.g. in the agricultural sector), and provide 
guidelines for medium-term action. 
Done at Brussels, 28 June 1979. 
The Chairman 
of the Economic and Social Committee 
Raffaele VANNI 
Opinion on the development of the social situation in the Community in 1978 
The text referred to the Committee has not yet been published in the Official Journal of the 
European Communities. 
A. LEGAL BASIS FOR THE OPINION 
On 27 April 1979 the Commission referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Article 198 of the Treaty establishing the European 
Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 169th 
plenary session held in Brussels on 27 and 28 June 1979. 
The full text of the opinion is as follows: