Opinion of the Economic and Social Committee on the "Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions 'White Paper on Commerce'"

(1999/C 258/08)

On 4 March 1999 the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 10 June 1999. The rapporteurs were Mr Folias and Mr Regaldo(1).

At its 365th plenary session (meeting of 8 July 1999), the Economic and Social Committee adopted the following opinion by 79 votes to 0, with 3 abstentions.

1. Introduction

1.1. In its communication "White Paper on Commerce" the Commission once again emphasises the role of the commerce and distribution sectors in the EU (especially in relation to job creation) and raises the major issue of commercial competitiveness in a constantly changing global environment.

1.1.1. The ESC welcomes the Council of Ministers' decision on the White Paper and asks it to continue its efforts to assist commerce.

1.2. The "White Paper on Commerce" is the latest in a series of official documents on the role of the commerce and distribution sectors, documents which include:

1. the Commission Green Paper on Commerce (COM(96) 530 - C4-0646/96),

2. Community legislation relating directly to commerce,

3. the European Parliament Resolution of 19 September 1996 on the proposal for a Council decision on a third multiannual programme for small and medium-sized enterprises (SMEs) in the European Union (1997-2000)(2),

4. the Commission Communication "Towards a single market in distribution" (COM(91) 41),

5. the European Parliament Resolution of 24 April 1997 on the coordination of activities in favour of SMEs and the craft sector (COM(95) 362)(3),

6. the European Parliament Resolution of 15 July 1997 on the Commission Green Paper "Commercial Communications in the Internal Market" (COM(96) 192)(4),

7. the European Parliament Resolution of 24 April 1997 on the Commission Communication "The craft industry and small enterprises, keys to growth and employment in Europe" (COM(95) 502)(5);

8. the Report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Regional Policy (A4-0241/99),

9. the Council's conclusions on commerce(6).

1.3. The White Paper also attempts to identify the points of contact between commerce and existing Community policies and to frame new policies where these are required.

1.4. The ESC completely agrees with the European Parliament's view in point 18 of its report on the white paper(7) that it would be better in the Introduction to talk of enterprises' ability to stay competitive in the market rather than of their survival.

1.5. The White Paper is the first document to analyse and investigate the links between commerce and other economic sectors (agriculture, industry, crafts, tourism, services), which will make it easier to extrapolate and solve potential problems.

2. Context and purpose of the Commission communication

2.1. The White Paper on Commerce is a follow-up to the Green Paper on Commerce(8), which was published by the European Commission on 20 November 1996. The white paper once again brings to the fore all the major issues affecting the commerce sector in Europe and presents a general timetable for the introduction of Commission measures.

2.2. The main conclusions from the marathon Europe-wide debate on the issues raised in the Green Paper on Commerce focused on recognising the role of commerce in European economies, integrating new technologies into commerce, reducing state intervention and improving public services provided to commerce, and finally the question of competitiveness and protecting SMEs from the anomalous practices of certain large retailers.

2.3. The ESC feels that the effects of complying with the Maastricht criteria on commercial enterprises, which have borne the brunt of economic convergence, have not been sufficiently assessed, and that commercial enterprises must be given special assistance so that they can survive and grow in the new global environment.

3. Analysis of the sector

3.1. Importance of the sector

3.1.1. Unfortunately, the statistics published by Eurostat once again fail to give an accurate picture of commerce in Europe because the data on which they are based are incomplete, such information being particularly difficult for national authorities to collect owing to the nature of commercial activities. The significance of commerce for Europe's economies is consequently understated owing to the lack of clear and reliable comparative data.

3.1.2. In its opinions on the Green Paper on Commerce(9) and the Commission Communication "A European initiative in electronic commerce"(10) the ESC emphasised that Member States and the Commission must make a special effort to collect reliable and well-founded data.

3.1.3. The ESC thinks that the EU has taken too long to realise the importance of commerce for Europe's economies and to take commerce into account when formulating European policies.

3.2. Trends and structural changes

3.2.1. Economic globalisation is dramatically transforming the traditional context of commerce, which faces increasing pressure both from large retailers and from the changing demands and wants of consumers, whose inclinations and wishes change according to the culture and technology of the times.

3.2.2. The structural changes in recent years have made life particularly difficult for small and medium-sized businesses. The rapid introduction of new technologies, intensifying competition, the shift towards concentration, and increasingly demanding consumers combine to pose challenges which can only be met using suitable measures.

3.2.3. These measures include regular, up-to-date statistical documentation of concentration trends and of all important data on employees working in commerce (a European company register) in addition to - by way of counter-measure and counter-strategy - traders' groups, information networks, effective logistics and better training for owners and employees of SMEs.

3.2.4. Under the new market conditions, specialised companies must be formed with a strong capital base, through mergers of SMEs and the creation of partnerships of purchasing groups, more modern and competitive than those which have existed for decades, to give companies in the sector the necessary dynamism and flexibility to cope with current competitive conditions.

3.2.5. SMEs must become familiar with the new technologies and potential offered by the information society as soon as possible with the help of programmes to improve their technological infrastructure and continuous lifelong-learning schemes that will transform their organisational structure and philosophy.

3.2.6. Those involved in commerce must understand the dramatic changes in the environment, as well as the new demands of consumers in the information society, to which they must adapt without delay.

3.2.7. In view of its role as a major employer, commerce should develop measures to provide more skilled jobs. It should bear in mind its job-creating role while at the same time preparing carefully thought-out strategies - such as improved training, the recruitment of skilled workers and other enduring investments in human resources - in response to changing consumer habits and increased competition at local level.

4. Developing a strategy for commerce: the key issues

4.1. The basic issues raised at the outset provide a theoretical starting-point for discussion and consideration. Identifying problems of competitiveness, as well as ensuring that small and large entities can co-exist on the market with valid rules of operation, is the effective aim of the single market.

5. Major priorities for action

5.1. Improving the use of policy instruments to assist commerce

5.1.1. Better understanding of the sector

5.1.1.1. As pointed out in previous Community papers on commerce in the EU, both statistics and accounts and records of the specific features of commercial activity have significantly misrepresented the actual situation. This is obviously due in part to the particularly complex and multifaceted nature of commerce, but it is also true to say that neither national governments nor the European Commission have developed the necessary systems for gathering and updating information and statistics.

5.1.1.2. The ESC would like to see every effort made to improve methods of collecting and updating statistics on commerce, both at national and at European level. It therefore proposes that, in addition to the measures mentioned in the White Paper on Commerce, the necessary resources should be made available to modernise national systems for collecting statistical data and that a mechanism should be set up at European level for exchanging information and data between public administration.

5.1.1.3. The various national statistics on employment must be comparable and provide breakdowns of employees by sex, age, type of employment (full-time, part-time, seasonal) and occupational status (main occupation, retired, student, secondary activity, etc.).

5.1.1.4. The ESC calls upon DG XXIII to continue to examine the problems of commerce so as to ensure continuous monitoring of developments.

5.1.2. Changes in the structure of commerce: new challenges for policy

5.1.2.1. The major changes that have taken place over the past few years in the commerce sector - especially the existence of millions of companies with different structures, infrastructures, turnover and staff numbers - are creating upheavals, and indeed imbalances, which the Commission is called upon to rectify through its policies, so as to reinforce market rules and promote competitiveness.

5.1.2.2. Documenting the changes represents a first step towards solving the problem, but at the same time developments must as far as possible be forecast, and above all specific practical measures must be promoted to support commercial activities that are undergoing change, where the very survival of businesses is often at stake.

5.2. Improvement of the administrative, legal and financial environment

5.2.1. Simplification of administrative procedures

5.2.1.1. Irrespective of the method used, it is extremely difficult to calculate the total annual cost of the administrative burden on all enterprises in Europe, and the amounts quoted (ECU 150-250 billion, or around 3 % of Community GDP) must therefore be treated with particular caution.

5.2.1.2. The BEST Report should be a useful tool for analysing specific binding measures, especially at national level.

5.2.1.3. The Committee on Commerce and Distribution (CCD) must look extremely carefully at the very acute problem of the administrative burden on the operation of commercial enterprises, and take on the task of launching a Europe-wide dialogue and communicating the need for change to national governments.

5.2.2. Access to finance

5.2.2.1. Relations between commerce and the banking sector remain poor, with commerce still being penalised by divergent forms of treatment when it comes to credit and financing facilities.

5.2.2.2. It is extremely difficult for SMEs to obtain finance because of the cautious nature and the structure of the vast majority of commercial firms (personal, single-person or family), but above all because they lack the fixed assets that would theoretically provide the necessary security for banks. Throughout the EU, commercial businesses, with certain exceptions in the high-technology sector, are unable to finance new activities or to proceed with the necessary updating; this means that they are left on the margins of new developments, a situation which directly jeopardises their survival.

5.2.2.3. The ESC realises that it is difficult to take specific measures promoting access to bank loans for SMEs, but it strongly supports the efforts made to continue and step up dialogue between banks and small businesses.

5.2.2.4. The ESC identifies an urgent need to set up special schemes that provide finance to innovative companies that are advancing research into the use of new technologies in the development of commerce.

5.2.2.5. The ESC thinks that national and Community competition authorities should intervene in cases where the banking sector practises unjustified discrimination, behaves in a monopolistic way or imposes excessive costs on commercial enterprises.

5.2.2.6. The ESC takes the view that specific measures and funding are required for small traditional firms whose structures have remained unchanged(11).

5.2.3. Improving the dialogue between commercial enterprises and their partners (employees, consumers, credit institutions)

5.2.3.1. Social dialogue

5.2.3.1.1. Enhancing social dialogue between the bodies that represent employers and employees is a necessary prerequisite for the smooth functioning of commerce, and indeed for the development of an adequate basis for cooperation.

5.2.3.1.2. The ESC considers the Commission's proposal to reform the Standing Committee on Employment and widen the participation of bodies representing commerce in the social dialogue at European level to be of crucial importance.

5.2.3.2. Consumers

5.2.3.2.1. Dialogue between consumers and traders is the key to modernising commercial enterprises, and provides the basic channel for information on prevailing trends and views.

5.2.3.2.2. It is only through an institutionalised and frank dialogue that the exceptionally rapid changes in consumer behaviour and the new demands that are expected from consumers in the information society will lead to the necessary changes in the rules, structures and infrastructures of the commercial sector.

5.2.3.2.3. The ESC feels that protecting consumers and meeting their needs are key elements of modern commerce.

5.2.3.2.4. The ESC strongly supports dialogue between the Committee on Commerce and Distribution (CCD) and the Consumer Committee, especially on issues relating to electronic commerce, where every day sees the appearance of new rules, standards, conventions and practices.

5.2.3.2.5. The ESC calls on the Commission to take immediate steps to clamp down on producers and distributors of pirated and counterfeit goods, which not only defraud but also impose costs on consumers and bona fide commercial enterprises.

5.2.3.2.6. Commercial enterprises could help to protect consumer health by promoting ecologically sound products and avoiding the use of substances or experimental production methods that can cause serious harm to public health.

5.2.3.2.7. The ESC fully agrees with the view expressed in point T of the European Parliament report that it is crucially important in the Member States' commercial planning to ensure that end consumers are guaranteed access to small-, medium- and large-scale distribution in all its forms, in line with their socio-economic needs, and that they should have freedom of choice.

5.2.3.3. Credit institutions

5.2.3.3.1. The organisation of an efficient system of payment, to include the use of credit cards in particular, is vital in order to boost trade.

- Here care must be taken to achieve a balanced relationship between the institutions that issue cards and the commercial sector so as to respect the legitimate interests of all parties and encourage smooth cooperation between them.

- Contracts must indicate clearly the obligations of the respective parties. Confused or abstruse clauses must be avoided.

- Charges and commission paid by commercial traders for credit card transactions must be reasonable; at the same time card issuers must be able to cover their costs and make an adequate profit.

5.2.3.3.2. The ESC sees a need for greater transparency and a more clearly defined framework for credit card transactions, so that the well-meaning interests of consumers, credit institutions and traders are fully protected.

5.2.3.3.3. The impact on the credit card sector of introducing the euro will have to be assessed as soon as possible so that the necessary measures can be taken to ensure that transactions go through correctly.

5.2.3.3.4. The ESC feels that credit card payment and electronic transactions must become as widespread as possible in order to reduce the risk of crime against businesses and consumers.

5.2.3.3.5. The ESC is particularly concerned about financial crime and fraud which create conditions of unfair competition and of insecurity in transactions.

5.3. Strengthening competitiveness and promoting entrepreneurship

5.3.1. Electronic commerce

5.3.1.1. Electronic commerce is the most modern tool for traders in the information society and may turn out to be the main reason for a radical overhaul of commercial systems and infrastructures.

5.3.1.2. The most serious obstacles to the development of electronic commerce in the EU are inadequate information and training, lack of the necessary infrastructure within commerce, the high cost of telecommunications and absence of the new philosophy that electronic commerce requires.

5.3.1.3. The ESC expressed its views on electronic commerce in a comprehensive opinion(12) which describes in detail the current situation, future prospects and obstacles to the development of electronic commerce.

5.3.1.4. The ESC feels that closer cooperation is required between the relevant Directorates-General of the Commission (III, XIII, XXIII and XXIV) and other institutional bodies on the subject of electronic commerce so that the necessary measures can be put into effect as quickly as possible.

5.3.1.5. The commerce sector must take an active part in the 5th Framework Programme for Research and Technological Development and in all programmes under development to promote new technologies, so that it can reap the benefits of these technologies and use them as a basis for its new activities.

5.3.1.6. In order to adapt to the new environment created by the information society and electronic commerce, the commerce sector needs:

(a) cheap telecommunications,

(b) training programmes for electronic commerce,

(c) support in experimenting with new technologies on the basis of clear and practical measures and guidelines,

(d) programmes to upgrade equipment,

(e) low-cost banking facilities for commercial enterprises involved in electronic commerce.

5.3.2. Cooperation between businesses

5.3.2.1. Cooperation between small commercial businesses and others of a similar kind or larger is the basic prerequisite for survival in the present, extremely competitive environment.

5.3.2.2. The ESC calls on the Commission to do its utmost, within the bounds of healthy competition, to help commercial businesses acquire the necessary critical mass and converge to remain in the market.

5.3.2.3. The ESC does not feel that mergers, restructuring and partnerships between small commercial enterprises and distribution networks pose a particular problem as far as the rules of healthy competition are concerned, since they do not hold a dominant position in the market and are not big enough to constitute harmful monopolies.

5.3.2.4. The ESC has already supported at an earlier stage the Commission's financial approach involving forms of cooperation in commerce (especially as regards vertical cooperation arrangements). On the basis of the Industry Council's recent approval of the new approach to competition policy in this sector, the ESC will study the matter in greater detail, with a view to the Commission adopting specific proposals to replace a number of the current regulations (providing for exceptions). Once again the ESC's proposals are intended to bring about the removal of obstacles to cooperation in commerce, and particularly between commercial SMEs.

5.3.3. Training

5.3.3.1. Training is the only instrument that can be used to address all aspects of the new environment created by the introduction of new technologies and to provide the essential new knowledge and skills required by commerce, in the information society. This means that all players in the commerce and distribution sectors, if they wish to keep up with developments, must start a new cycle of retraining, regardless of their level of expertise, on which there will be no time limit, but which will evolve into a process of lifelong training.

5.3.3.2. Training is needed not just for small companies, but also for firms considered by European standards to be medium-sized or large. The explosion of new technologies and continual introduction of new IT tools create a need for constant learning.

5.3.3.3. The ESC thinks that training policies should be organised on a permanent basis to meet ever-growing needs but above all to keep up with new developments and changes.

5.3.3.4. The ESC believes that the majority of training programmes should be transformed into lifelong training.

5.3.3.5. The ESC thinks that specialised tertiary-level commercial colleges and new research institutes should be set up to promote research and information and facilitate further promotion of new technologies in the sector.

5.3.4. Commerce in rural and less-favoured urban areas

5.3.4.1. The particular social role of small commercial enterprises in rural and less-favoured urban areas is a major reason why all European institutions are concerned about their preservation and survival.

5.3.4.2. The ESC considers that coordinated, specific measures are called for to modernise and to continue to develop small commercial enterprises in rural and less-favoured urban areas.

5.3.4.3. The ESC asks national governments to make a record of local problems faced by small commercial enterprises, which play a key role in creating jobs in regions facing social problems, and to identify their specific needs, which are varied, complex and location-specific.

5.3.4.4. The Commission is asked to work together with the Member States' national governments to support local commercial enterprises and to provide special funding for this purpose, through the Structural Funds.

5.3.4.5. The ESC calls upon the Commission to take special measures to assist disadvantaged urban and rural areas.

5.3.5. Commerce and tourism

5.3.5.1. The co-existence of, and cooperation between, the sectors of commerce and tourism compound the benefits to the economies of Europe.

5.3.5.2. The ESC proposes that DG XXIII, which is responsible for both these sectors, and the corresponding national organisations, should set up joint action, cooperation and information programmes, especially in those countries where tourism plays an important role in the national economy.

5.3.5.3. The interests of commerce would be better served if the sector had closer links with tourism at European level, and it is therefore proposed that a consultative body be set up under the aegis of DG XXIII consisting of representatives from commerce and tourism.

5.3.6. Environment

5.3.6.1. The commerce sector, being among the social partners, is asked to play its part in addressing environmental issues and protecting public health.

5.3.6.2. Commerce, within its capabilities and in cooperation with local authorities, can make a substantial contribution to protecting the environment.

5.3.6.3. Small commercial enterprises are in particular need of information and support in environmental matters, and, in tourist areas, they should cooperate closely and effectively with tourism companies, which usually bear the brunt of environmental problems and their effects.

5.4. Encouraging Europeanisation and internationalisation

5.4.1. The euro

5.4.1.1. The euro and electronic commerce together pose the two major challenges to European commerce and the two most up-to-date instruments for modernising it.

5.4.1.2. Preparing commercial enterprises to start using the euro, first as a banking medium and later as the common European currency, requires very careful planning and comprehensive information so that the problems that will arise can be tackled effectively and promptly.

5.4.1.3. Providing information on the euro in all forms, both to commerce and to the wider consumer public, is the key to successful transition to the single European currency.

5.4.1.4. As part of this effort, commercial enterprises in particular must play a leading role in the process of transition to the euro because their direct, day-to-day contact with consumers is an effective way of "sensitising" and "informing" consumers about the euro, as regards both its benefits and to its use in commercial transactions.

5.4.1.5. It is essential for the following to be determined before our communications policy is formulated:

1. who will be responsible for coordination and implementation,

2. the scope i.e. target groups,

3. the basic content of the "information platform",

4. the media to be used.

5.4.1.6. The following practical measures are proposed as a means of ensuring that the information campaign is really effective:

(a) Setting up a special steering committee, within the national coordinating committees for the euro, comprising representatives of banks, commerce, the national government and specialists in communications and publicity.

(b) Setting up a "euro information office" in the relevant ministries, employers and employees organisations and chambers of commerce.

(c) Setting up a "national euro documentation centre" in each Member State which would be a source of information for public authorities and institutions. The services of this centre would of course also be available to any professional organisation.

(d) Appointing a "euro officer" through specific procedures in the larger commercial, industrial, tourist and insurance businesses, a somebody who would be fully informed about both the problems and advantages of using the euro.

(e) Introducing the euro as a subject of study in programmes at schools of economics, technical colleges, vocational training colleges and secondary schools with economics courses.

5.4.1.7. To be effective, the "euro information campaign" must be directed at specific target groups:

- heads of enterprises and organisations,

- senior and middle managers, especially of commercial, tourist and manufacturing businesses,

- consumers, and particularly socially disadvantaged groups.

5.4.1.8. The ESC considers that an information campaign to generally shape public opinion and make people "euro-minded" first requires a motivation study, the results of which would form the basis for the "information platform". This is also evident from a relatively recent European study which showed that some 51 % of Europeans are "attached" to their national currency, mainly for psychological reasons, and are sceptical about using the new currency.

5.4.1.9. There should be complete transparency with regard to bank charges during transition to the euro.

5.4.1.10. Governments should be required to establish from the outset what policy they will pursue in introducing the euro in their countries and to fix the relevant legal provisions so as to spare commercial enterprises unnecessary costs and wasted investment.

5.4.1.11. Governments should provide financial and tax incentives to help companies make the investments associated with introducing the euro (adapting software systems, etc.).

5.4.2. International commerce

5.4.2.1. It is essential that European commerce internationalise in order to grow and above all to ensure that European products survive in the world economy. The Commission must therefore make every effort to evaluate and address the problems faced by international European companies in development and establishment.

5.4.2.2. The European Union, through DGI and DG XXIII, must play a leading role on matters of commerce in the WTO, the International Labour Office and the UN Conference on Trade and Development, in order to promote the positions and views of European businesses in the global dialogue.

5.4.2.3. The ESC takes the view that international representation of European commerce is a chief priority, and calls upon the relevant Directorates-General (I and XXIII) to work together to that end.

5.4.2.4. The ESC takes a special interest in trade liberalisation.

5.4.3. Enlargement of the European Union

5.4.3.1. The issue of EU enlargement and associated problems must be addressed without delay so as to avoid subsequent disruption and distortions affecting European commerce.

5.4.3.2. The ESC believes that dialogue with the commerce sector in the applicant countries should be stepped up so as to identify structural and legal problems and to start addressing these problems through European channels and European legislation and procedures.

5.4.3.3. The ESC thinks that the Committee for Commerce and Distribution should continue its work of integrating commerce in the applicant countries into the commerce sector in the European Union.

5.4.3.4. The applicant countries will have to make a considerable effort to ensure that commerce survives in their countries and grows in the European environment, which is very different from the environment in which they have been operating for the last few decades.

5.4.3.5. Neighbouring EU countries are called upon to play a key role in helping commerce in the applicant countries adapt to European conditions, and cross-border initiatives must therefore be stepped up.

5.4.3.6. The absence of bodies representing the private sector in the applicant countries is making it extremely difficult to consolidate and expand the necessary dialogue. The ESC proposes financial support for the creation and operation of such bodies.

5.4.3.7. The ESC calls on the Commission and the applicant countries to step up measures to set up and support new, autonomous bodies representing economic sectors (industry, commerce, tourism, etc.)

6. Action plan

6.1. The action plan prepared by the Commission to effectively promote solutions to the problems faced by the commerce sector in Europe is considered to be a move in the right direction. The plan covers a five-year period and can be considered very ambitious in terms of the timescale for implementing actions:

6.2. Even though the action programme is ambitious, it attaches particular importance to campaigns, reports, meetings, studies, etc., whereas the actual measures to support commerce are limited. The ESC welcomes the following specific actions:

6.2.1. Action 3: Training and publicising of measures to simplify administrative procedures

6.2.2. Action 4: Implementing a second seed capital initiative

6.2.3. Action 8: Pilot projects to promote electronic commerce and quality labels

6.2.4. Actions 10 and 14: simulation programmes to promote the euro

6.2.5. Action 11: improving access to Community programmes and Structural Funds for SMEs

6.2.6. Action 16: involvement of operators from the CEECs and Cyprus in Community activities to promote commerce.

6.2.7. As regards all the other measures, the ESC proposes that the emphasis should be shifted from "theory" - which is of course an indispensable basis - to "practice", which will be essential for supporting and developing commerce within the five-year programming period.

6.3. On the assumption that funding will be provided for the action programme, the ESC asks the Commission to ensure as far as possible that it provides staff in those departments responsible for implementing the action programme.

6.4. The ESC asks both national governments and commercial players to fulfil the crucial role they are required to play so that this ambitious action plan will have the expected and necessary outcome to which the white paper aspires.

6.5. The Action Programme should be supplemented with specific practical measures that produce results as soon as possible.

7. Conclusions

7.1. The ESC has reached the following conclusions:

7.1.1. Unfortunately, the statistics published by Eurostat once again fail to give an accurate picture of commerce in Europe because the data on which they are based are incomplete, such information being particularly difficult for national authorities to collect owing to the nature of commercial activities. The significance of commerce for Europe's economies is consequently understated owing to the lack of clear and reliable comparative data.

7.1.2. The White Paper on Commerce is without doubt an important account of the problems faced by the commerce sector.

7.1.3. This is the first European document to highlight the role of commerce at local and European level.

7.1.4. The measures proposed for addressing the chronic problems faced by commerce include many theoretical solutions that do not directly and obviously help SMEs, which are particularly vulnerable.

7.1.5. Specific funding should be earmarked for certain measures.

7.1.6. DG XXIII must be given more funding and its staff and other resources should be reinforced so that it can fulfil its remit.

7.1.7. The measures to reduce bureaucracy advocated in the BEST Report must be implemented.

7.1.8. Special consultations must take place between national governments and the commerce sector during the period when both the euro and national currencies are in circulation.

7.1.9. As regards credit card charges and other banking costs, there must be a Europe-wide initiative to harmonise without compromising free market principles, the costs to commercial enterprises of banking services.

7.1.10. The critical role of commerce in combating unemployment and creating new jobs is not adequately documented.

7.1.11. The ESC thinks that the White Paper does not draw sufficient distinction between commerce as it affects commercial enterprises and commerce as it affects consumers, with a view to the necessary measures being taken for both sides of commerce.

7.1.12. DG XXIII must take an active part in all European policies relating to or affecting commerce.

7.1.13. Once Europe's economies have converged under the Maastricht criteria, national governments are asked to proceed with specific measures to strengthen commerce and boost demand.

7.1.14. European commercial enterprises must become more assertive and take more risks in the current globalised environment.

7.1.15. Whatever happens, there must be adequate harmonisation of provisions and practices relating to commerce at European level. The governments of the Member States are called upon to initiate a serious and frank dialogue to this end.

7.1.16. Small commercial enterprises need assistance in the form of special tax and development measures.

7.1.17. Equal attention must be given to new forms of commercial activity, (e.g. franchising, distance selling), from both a tax and legal point of view.

7.1.18. The main responsibility for supporting commerce must be shouldered by governments, which are asked to initiate a Europe-wide dialogue immediately so that coherent and practical measures can be taken.

7.1.19. After this dialogue on the White Paper has taken place, DG XXIII must gather the opinions of all concerned and continue its efforts to devise clear and practical measures that can be put into effect without delay.

7.1.20. The Commission (DG XXIII) must keep track of the rapid changes taking place in commerce in the context of the information society, and take or propose the necessary measures, avoiding bureaucratic procedures and encouraging national governments to move in the right direction.

Brussels, 8 July 1999.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

(1) Mr Giacomo Regaldo replaced Mr Christos Folias when the latter's term of office ended.

(2) OJ C 320, 28.10.1996, p. 153.

(3) OJ C 150, 19.5.1997, p. 50.

(4) OJ C 286, 22.9.1997, p. 43.

(5) OJ C 150, 19.5.1997, p. 44.

(6) Council conclusions 7166/99.

(7) COM(99) 6-C4-0060/99).

(8) COM(96) 530 final.

(9) COM(96) 530 final.

(10) COM(97) 157 final.

(11) OJ C 157, 25.5.1998, p. 65.

(12) OJ C 19, 21.1.1998, p. 72.

APPENDIX

to the opinion of the Economic and Social Committee

The following point in the Section's opinion was rejected when amendments were voted on at the plenary session, but received at least a quarter of the votes cast:

"Point 4.2. It must be stressed that this is the first time a Community paper has so thoroughly traced and described the role of commerce as an employer and the future prospects of the sector."

Result of the vote

For: 39, against: 30, abstentions: 4.