NoC169/34 OfficialJournaloftheEuropeanCommunities 6.7.92
OpinionontheCommissiondocumententitled'FromtheSingleActtoMaastrichtand
beyond—Themeanstomatchourambitions'
(92/C169/12)
On11February1992theCommissiondecidedtoconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity ,onthe
abovementioned communication .
TheSub-Committee ontheDelorsIIPackage,whichwassetupunderArticle17oftheRules
ofProcedureinordertopreparetheCommittee'sworkonthesubject,adoptedadraft
CommitteeOpinionon24April1992,by18votesto0with3abstentions .TheRapporteur
wasMrVascoCal,withMrMeyer-HornactingasCo-Rapporteur .
Atits296thPlenarySession(meetingof30April1992),theEconomicandSocialCommittee
adoptedthefollowingOpinionbyamajorityvoteinfavour,with1voteagainstand
12abstentions .
trystemsfromthecompletionoftheinternalmarket
andwiderworldeconomicdevelopments .
1.2.5.TheCommunity'sgrowingpoliticalroleon
theEuropeanandworldstagealsoobligeittoadjust
thewaysandmeansallocatedtoexternalaction.
1.3.TheapplicationoftheCommunity'spowersto
thefull,thedevelopmentofitscommonmeasuresand
policies,andthetranslationofitsobjectivesintoregu­
lationsandpracticalmeasures,willallcontinuetobe
importantinstrumentsfortheconductofCommunity
activity.
1.4.Iftheambitiousandgalvanizingobjectives
agreedatMaastrichtaretobeachieved,theremust
alsobeafairsharingoftheworkload,theaimbeingto
consolidatetheinternalmarketandallowallMember
Statestoachievetheeconomicconvergenceneededto
embarkonthethirdstageofEconomicandMonetary
Union.I.INTRODUCTION
1.1.TheimportantdecisionstakenbytheHeadsof
StateandGovernment inMaastrichtmarkthestartof
anewanddecisivestageontheroadtowardsEuropean
Union.
1.2.OverthenextfewyearstheEuropeanCouncil
willfocusonthecompletionofthesinglemarketand
thecreationofanEconomicandMonetaryUnion;the
strengtheningofcohesionasasinequanonforironing
outthedisparitiesindevelopment ;thereinforcement
ofindustrialcompetitiveness andtheestablishmentof
trans-European networks;externalactionstofoster
peaceandcooperation .
1.2.1.Theconvergenceconditionssetoutinthe
MaastrichtTreatyonEconomicandMonetaryUnion
willrestrictinthefutureboththeredistributive andthe
stabilisingrolestraditionallyplayedbynationalbudgets
throughthemanipulationofdomesticfiscalandmonet­
arypolicies.Againstthisbackgrounditislikelythata
greaterrolewillbeexpectedoftheCommunitybudget,
especiallybytheweakereconomies.Thepresentsetof
proposalsmarksthefirststepsonwhatislikelyto
beagradualprogresswherebyamuchstrengthened
budgetaryresponsibilitywillbeexpectedoftheCom­
munity.
1.2.2.TheMemberStateshaveirrevocablycommit­
tedthemselvestoEconomicandMonetaryUnionasa
naturalandnecessarysequencetothesinglemarket.
1.2.3.BystipulatingthatallCommunitypoliciesare
totakeaccountofthecohesionobjective,theMaas­
trichtTreatyhasthemeritofprovidingadefinition
ofeconomicandsocialcohesionthatextendsbeyond
structuralfundsupport.
1.2.4.Theneedtocreateamorefavourableclimate
forreinforcingthecompetitiveness ofEuropeanindus­1.5.Becausetheunderlyingeconomicclimatewill
belessfavourablethaninthelastfewyears,greater
budgetarydisciplinewillbeneeded,savingswillhave
tobemadeinthepresentbudgetforcounteringfraud,
andthesubsidiarityprinciplewillhavetobeproperly
applied(thecoordinationofmeasuresatCommunity
levelshouldpermitsavingsinnationalbudgets).
1.6.TheEuropeanCommunity isnot—norcanit
be—amerejuxtapositionofStateswhoonlyconsider
theinterestsoftheothersinsofarasthissuitstheirown.
ThefirstArticle(ArticleA)oftheTreatyonEuropean
UnionstatesthatthetaskoftheCommunity'shallbe
toorganize,inamannerdemonstrating consistencyand
solidarity,relationsbetweentheMemberStatesand
betweentheirpeoples'.

6.7.92 OfficialJournaloftheEuropeanCommunities NoC169/35
II.SUMMARY OFTHECOMMISSION
PROPOSALS
3.Asfarasthefinancialperspectivefortheperiod
1993-1997isconcerned,thepackagecanbesummarized
asfollows:1.7.Article2statesthat:'TheCommunityshallhave
asitstask,byestablishingacommonmarketandan
economicandmonetaryunionandbyimplementing
thecommonpoliciesoractivitiesreferredtoin
Articles3and3a,topromotethroughouttheCom­
munityaharmoniousandbalanceddevelopmentof
economicactivities,sustainableandnon-inflationary
growthrespectingtheenvironment ,ahighdegreeof
convergenceofeconomicperformance ,ahighlevelof
employmentandofsocialprotection,theraisingofthe
standardoflivingandqualityoflife,andeconomicand
socialcohesionandsolidarityamongMemberStates'.
Theseobjectives,whichformthebackdroptotheCom­
mission'sproposals,havealreadybeenendorsedbythe
Committee .3.1.Appropriations fortheCommonAgricultural
Policyaretorisebyanannual2,9%(againstanannual
riseof1,9%intheinitial1988-1992financialperspec­
tive).
3.2.Tomeettheobligationsoneconomicandsocial
cohesion,structuralfundappropriations aretoriseby
anannual7,9%.Ifthenewcohesionfundsetupat
Maastrichtisincluded,theriseis8,3%.(Underthe
initialfinancialperspectivefor1988-1992,theannual
riseforstructuralmeasureswas14,6%.)1.8.TheMaastrichtEuropeanCouncilconsidered
thattheCommunityshouldconcludeitsnegotiations
onownresourcesandrelatedmattersbytheendof
1992,sothatnegotiationscouldthenbeginonEuropean
UnionmembershiponthebasisofthenewTreaty.
3.3.Anew'internalpolicies'headingcoversresearch
anddevelopmentpolicy,trans-European networks,the
environment ,andmeasurestoaccompanythesingle
market(apartfromthoseforstrengtheningcohesion).
Thisheadingistohaveanannualincreaseof11,3%.1.9.Backin1988,theBrusselsEuropeanCouncil
approvedmeasuresdesignedtorevitalizeprogress
towardsEuropeanunion.Itdecidedtoreviewthe
resultsin1992andthenadoptanymeasuresthatmight
beneededtofurthertheintegrationprocess.
3.4.Externalpoliciesnowcomeunderaseparate
headinginthefinancialperspective .Theyaretohave
anannualincreaseof11,5%.Thisdoesnotincludethe
EuropeanDevelopmentFund,whichwillnotbeentered
inthebudgetuntilitcomesupforrenewal. 2.On11February1992theCommissionpresented
aCommunication [doc.COM(92)2000final]onthe
SingleAct,theprioritieslaiddownatMaastricht,and
theresourcesneededfortheperiod1993-1997.3.5.Administrative expenditure ,whichistoreceive
aspecificheading,issettorisebyanannual4,8%.
3.6.Exceptionalexpenditureonhumanitarianor
foodaid,ortoactivatebudgetguaranteesonloan
operations,istobemetbyaspecialreservewhichwill
risefromECU500millionin1993toECU900million
in1997(anannualincreaseof15,8%).2.1.TheCommunication wasaccompaniedbyfour
others.Thefirst[doc.COM(92)2001final]concerns
theCommunity'sfinances,andcontainsproposalsfor
thenewfinancialframework .Thesecond[doc.
COM(92)81final]looksatthesystemofownresources.
Thethird[doc.COM(92)82final]considerstheappli­
cationoftheInter-institutional Agreementandits
renewal.Thefourth[doc.COM(92)84final]assesses
theCommunitystructuralpoliciesandtheiroutlook.
TheseCommunications willalsobetheobjectofindi­
vidualESCOpinions.3.7.Underthissameheading,theagriculturalmon­
etaryreserveistoremainatECU1000millionperyear
until1994,fallingtoECU500millionperyearfrom
1995.
4.Totalcommitmentappropriations aretorisefrom
ECU69990millionin1993toECU87500millionin
1997—anaverageannualriseof5,7%.2.2.ThisESCOpinionwasconfinedtotheCOM(92)
2000document,andtheESCwasunabletoassessthe
basicdataandestimatescontainedintheCommission
document.Thiswasparticularlythecaseforthe
assumedannualaverageeconomicgrowthrateandthe
calculationoftheincreaseintheown-resources ceiling
from1,2%to1,37%.4.1.Theincreaseinresourcesneededtomeetthe
Community'sresponsibilities ,andinparticulartoboost
economicandsocialcohesion,competitiveness and

NoC169/36 OfficialJournaloftheEuropeanCommunities 6.7.92
externalaction,isestimatedat5,7%peryear.Since
CommunityGrossNationalProduct(GNP)isexpected
torisebyaround2,5%peryear,thepresentceilingon
ownresourcesneedstoberaisedfromthepresent1,2%
to1,37%ofCommunityGNP,keepinga0,03%margin
forrevisions.6.3.AlthoughECbudgetarycontributionstothe
structuralfundsarelimited(sincebytheendofthe
periodunderdiscussiontheywillstillonlyaccountfor
around33%ofthebudget,orapproximately 0,47%
ofCommunityGNP),theycouldnonethelesshavea
significantimpactonthepriorityregions,helpingthem
tomodernizeoradapt,andtoovercometheirbudgetary
orfinanciallimitations .
4.2.Atthesametime,theCommissionproposesto
increasetherelativecontribution ofGNPandreduce
theresourcebasedonValueAddedTax(VAT).The
aimistotakegreateraccountof'thecontributive
capacityofindividualMemberStatesinthesystemof
ownresources',inlinewiththeguidelinesapprovedat
MaastrichtintheProtocolonEconomicandSocial
Cohesion .6.3.1.TheincreasewhichtheCommissionispropos­
ingfortheStructuralFunds,includingthecohesion
fund,overthenextfiveyearsamountstolessthanone
thousandth (0,1%)ofCommunityGNP.
III.GENERALCOMMENTS6.4.Althoughthetypeofmeasuresfinancedhasa
lowimportcomponent,asignificantproportionof
transferstobeneficiaryregionsreturntotheirpartner
regionsintheformofimports.Moreover,greater
accessibilitywillincreasethepenetrationofproducts
fromtherestoftheEuropeanmarket.5.1.Theeconomicclimateoverthenextfiveyears
willnotbethesameasitwasaftertheapprovalofthe
1988-1992financialperspective .ECeconomicgrowth
willbeslower,anditisdifficulttopredicttheoutcome
ofthenegotiationsanddecisionsoftheGeneralAgree­
mentonTariffsandTrade(GATT)onapplicationsfor
ECmembership ,aswellasthebudgetaryconsequences
ofthedemilitarization processwhichisboundtofollow
thechangesinCentralandEasternEurope.7.1.Theinfrastructure levelofobjective1regionsis
currentlyonlyabout50to60%oftheCommunity
average,andtheyareevenfurtherbehindinresearch
anddevelopment ,vocationaltraining,telecommuni­
cationsandcomputerization .
5.2.TheCommitteestressesthatthe1993-1997
financialperspectiveshouldbethelastinthecurrent
institutionalframework,sinceEconomicandMonetary
Unionisexpectedtoenterintoforcein1997.7.2.ForpercapitaGrossDomesticProduct(GDP)
(inPurchasingPowerStandard)torisefrom50%to
70%oftheECaverageintheseregions,theirgrowth
rateoverthenext20yearswouldhavetobe1,75
percentagepointabovetheECaverage.Yetevenwith
thedoublingofresourcesbetween1988and1993,the
annualgrowthinGDPbroughtaboutbythestructural
fundsinobjective1regionsvariesbetweenjust0,3and
0,7percentagepoint.5.3.Evenifthefinancialperspectivehastobe
revised,theexistenceofacoherentmultiannualframe­
workisanimportantfactorforconsolidatingEuropean
integrationandformakingCommunitymeasuresmore
soundlybasedandeasiertoplan.
ECONOMIC ANDSOCIALCOHESION7.3.TheCommitteerecognizesthatthefinancial
measuresproposedforboostingeconomicandsocial
cohesionaretheminimumneededtohelptheCom­
munity'slessdevelopedMemberStatesandregionsface
theimpactoftheinternalmarketandEconomicand
MonetaryUnion.TheCommitteeconsidersthatthe
conclusionsdrawnfrom,andanalysisof,experience
withreformshouldcontributetomoreeffectiveStruc­
turalFundintervention .6.1.Regionaldevelopmentdiscrepancies arean
obstacletosustainedgrowthintheCommunityas
awhole.Theyalsomakeitmoredifficultforthe
Communitytostrengthenitsroleontheworldstage
andtocoordinateMemberStates'economicpolicies.
6.2.Strengtheningeconomicandsocialcohesionhas
becomeavitalpartoftheintegrationprocess.The
MaastrichtTreatyhasthemeritofprovidingadefi­
nitionofcohesionthatextendsbeyondstructuralfund
support.UnderArticle130B,allCommunitypolicies
aretotakeaccountoftheobjectiveofcohesionfrom
theirformulationthroughtotheirimplementation .7.4.Thecloselinksbetweengrowth,cohesionand
convergencealsobringaneedforeffectivestructural
measureswhichcanhelptoadjustsupplybyimproving
productioncapacity,workers'skills,competitiveness
andproductivity .Theseobjectiveswouldbemoreeasily

6.7.92 OfficialJournaloftheEuropeanCommunities NoC169/37
attainableifMemberStatesimplementedeconomic
policiesinlinewiththeaimsoftheCommunityasa
whole.Itwillbedifficulttomaintainabalancebetween
cohesionandconvergence ,sincetheexistenceofbudget
deficitscouldmeanfewerresourcesbeingchannelled
topublicinvestmentincertainMemberStates.regions.Moreover,theCommunity'spolicieswith
regardtoEasternEuropeandthefurtherliberalization
ofworldtradewiththeconclusionoftheGATTtrade
roundwillfurtherincreasethevulnerabilityofindustry
inobjective2regions.Itisalsoworthnothingthat
theindustrialstructureinobjective2regionsmakesit
unlikelythattheywillsharesignificantlyinanysus­
tainedimprovement intheaveragerateofeconomic
growthintheCommunityasawhole.7.5.TheCommitteesupportstheconcentrationof
structuralassistanceandthepriorityaccordedtoobjec­
tive1regions(whichthenewGermanLanderareto
join).TworecentCommitteeOpinionshavepointedoutthat
thereisnoevidenceofanyrelativeimprovementinthe
economicandsocialsituationinobjective2regions.
Accordingly ,theCommitteeconsidersthatthestructur­
alfundsallocatedtoobjective2regionsshouldbe
increasedbytwothirds,asisproposedbytheCom­
missionforobjective1regions.8.1.TheCommitteeseestheCohesionFundasa
newinstrumenttosupporttheeconomicandbudgetary
policiesofthefourleast-developed MemberStatesand
helpthemadjustmoreeasilytotherequirementsof
Communitytrans-European networkandenvironmen­
talpolicy.WithCommunityassistancereaching85%
to90%ofthetotalcost,thefundwillhelpthese
countriestomeettheinvestmentcostsoftrans-Euro­
peannetworksandoftheenvironmental protection
measuresneededtocomplywithCommunitystandards.10.1.Objectives3and4(coveringthelong-term
unemployedandemploymentofyoungpeoplerespect­
ively)haveprovedthemostproblematic .Whileitis
truethatthelevelofunemployment isafunctionof
economicgrowthandproductivity ,thefactremains
thatalthoughunemployment withintheCommunity
improvedduringtheperiodofgrowthinthe1980s,it
didnotfallasmuchaswashoped.Indeed,nowthat
growthhasslackened,thesituationisworseningstill
further,despiteunemployment alreadybeingtoohigh
tobeginwith.8.2.Thecohesionfundisnotamechanismfortrans­
ferringresourcesbutshouldbeseenasaninvestment
bytheCommunityasawhole,designedtomakethe
strengtheningofcohesioncompatiblewithgreaterecon­
omicconvergence ,thusallowingtheCommunityand
itsMemberStatestobecomeaself-sufficient centreof
growth.
9.1.Inthecaseofobjective2regions,theCommittee
regretSjthefactthattheunnecessarilycumbersomepro­
cedures(consideringthesumsinvolved)adoptedin1988hav&iedtosignificantdelaysintheimplementation of
therespectiveoperationalprogrammes .Thismakesit
impossibletogiveamoredetailedassessmentofstruc­
turalassistanceintheseregions.10.2.TheCommitteeendorsestheSocialFund'snew
taskofhelpingworkersadapttoindustrialchangesand
tochangesinproductionsystems,theaimbeingto
forestalltheeffectsofsuchchangesonemployment .
Thesituationwarrantscarefulanalysisinorderto
ascertaintheeffectivenessofthedifferenttypesofCom­
munitysupportwithregardtoregionalemployment .
9.2.Highunemployment ,povertyandsocialdepri­
vationstillexistinobjective2regionsonascalewhich
providesachallengetothesocialcohesionoftheCom­
munity.Achievingthedegreeofadjustmentinthese
regionsthatisnecessaryinthepresenteconomiccir­
cumstanceswillbeadifficulttaskandonethatwill
requireconsiderableresources,particularlyinthose
regionswhichsufferfromthehightransportandcom­
municationcostsassociatedwithaperipherallocation.11.Measurestoimprovefarmstructuresandpro­
moteruraldevelopment (objectives5aand5b)should
bereviewedinthelightoftheguidelinesemergingfrom
thereformofthecommonagriculturalpolicy(CAP).
TheCAP'saccompanying measuresshouldencompass
thoseforimprovingfarmstructures,whilethemeasures
coveringruraldevelopmentshouldbeextendedand
bolstered.Atallevents,itisalsonecessarytoconcen­
tratemeasuresonthemarginalproducerswhowillbe
mostaffectedbythereforms.
TheCommissionrecognizesthisbyproposinga50%
increaseinthestructuralfundsavailabletoobjective2
regions.However,thisincreasehastobeseeninthe
contextoftheeconomiccircumstances likelytopertain
intheobjective2regionsoverthenextfiveyears.Both
thecompletionoftheinternalmarketandthetransition
toasinglecurrencywilladdtothedifficultiesofachiev­
ingeconomictransformation inmanyobjective212.TheCommitteehasalreadyrecommended the
creationofaspecificobjectivetocoverstructuraloper­
ationsinthefisheriessector,anditispleasedtoseethe
Commissionproposingthis.

NoC169/38 OfficialJournaloftheEuropeanCommunities 6.7.92
COMMON AGRICULTURAL POLICY INTERNAL POLICIES
13.TheCAPwillcontinuetobethemostimportant
itemoftheECbudgetinthenextfewyears,untilthe
reformachievesitsobjectives.Theuncertaintysur­
roundingtheGATTnegotiationsalsohasimplications
forthefinancingoftheCAP.14.Allinternalpoliciesapplyinghorizontally
throughouttheCommunityaretobegroupedundera
singleheading.Thisisaresponsetotheprogramme
forcompletingtheinternalmarketandarecognition
ofitsimplications .TheCommitteeendorsestheimport­
ancetheCommissionattachestoboostingEuropean
competitiveness .
13.1.UndertheCAPreformsproposedbytheCom­
mission,Communitypricesaretobegraduallyaligned
onworldprices,withdirectincomesupportbeingintro­
ducedtooffsetthedropinproducerprices.14.1.Asregardsthenewapproachtoresearchand
development ,theundertakingtostrengthentheoverall
competitiveness ofCommunityindustryimpliesthat
ECsupportmustbeusedtoavoiddistortionsincompe­
titionandtocreateconditionsconducivetothedevelop­
mentofcompanyactivity,innovationandtheintroduc­
tionandindustry-wide dissemination ofnewtechnol­
ogies;suchsupportmustnotfocusonfinancing
researchanddevelopment(R&D)inlargecompanies,
oronthecommercialapplicationoftheirproducts.
Communityfundingshouldbetiedtobettercoordi­
nationofeffortsatEClevelandgreatercooperation
betweenR&Dcentres.13.2.Agriculturalspendingissettorisefrom
ECU35340millionin1993toaroundECU39600
millionin1997.Thisrepresentsanannualincreaseof
2,9%—higherthanthegrowthrateforGNPoverthe
sameperiod.
13.3.Theincreaseislargelyduetotheexceptional
ECU1500millionincreaseintheagriculturalguideline,
neededinordertopayfortheCAPreform.The
increase,whichistoapplyuntil1997,wasinitially
expectedtobeabsorbedwithintwoyears.14.2.Twootheritemscomingunderthisheading
aretheblueprintsfortrans-European networks(tobe
drawnupfollowingwide-rangingconsultationofinter­
estedparties),andinterestsubsidiesorloanguarantees
forprojectsofCommunityinterest.TheCommission
shouldalsotakeurgentstepstofurthertheinter-opera­
bilityandinter-connection ofthenetworks,sincethey
wereoriginallydesignedfromanationalviewpoint.
[SeetheCommittee'sOpiniononTrans-European net­
works,adoptedon30October1991.f1)]13.4.ThevariousCommission documentsdonot
indicatehowthesumsintheagriculturalguidelineare
tobedividedbetweenmarketsupportandthenew
accompanying measuresanddirectaidforproducers.
14.3.HorizontalmeasuresconcerningCommunity
environmentpolicywillalsobefinancedunderthis
heading,inadditiontoplannedstructuralmeasures.13.5.IntheCommittee'sview,theoverallsumis
onlyacceptableifitincludesasharpcutinthepro­
portionallocatedtopricesupport,ascompensationfor
thereformmeasures,andiftheincreaseisforalimited
periodonly,withaguaranteethatfarmspendingwill
fallinthelongerterm.AreductionintheGuarantee
SectionshareandanincreaseintheGuidanceSection
shareoftheEuropeanAgriculturalGuidanceand
GuaranteeFund(EAGGF)couldtherebybeachieved.14.3.1.TheCommitteeconsidersthatthevarious
measuresalreadybeingimplemented ,plusanyothers
thatmightprovenecessary,shouldbeincludedunder
thisheadingsincetheycovertheECasawholeand
cannotbelimitedashithertototheregionstargetedby
thestructuralfunds.
13.6.Budgetarytrendsoverthelastfewyearsshow
thatthereisplentyofscopeforeconomizingonCAP
expenditure .Theproposedfinancialperspectivedoes
nottakesufficientaccountofthis.14.3.2.Legislative,regulatoryorfiscalmeasurescon­
cerningenvironmentpolicyshouldfocusonpreventing
andrectifyingdamagetotheenvironment ,takinginto
accountthepositiveeffectsoftheCommunity'sexam­
pleandthefactthattheCommunityisthemostappro­
priatelevelforthecoordinationofenvironment-related
fiscalmeasures.AnyCommunitydecisiononenviron­
ment-relatedfiscalmeasurescouldonlybeimplemented
iftheCommunity'sprincipaltradingpartnersacted
similarly.13.7.Althoughagriculturenowformsasmallerpart
ofnationalproduct,ruraldevelopmentcontinuesto
playakeyroleinthefightagainstdecliningemployment
andlivingconditionsinruralareas,andagainstthe
environmental damagecausedbyover-intensive useof
thelandandbydesertification . (i)OJNoC14,20.1.1992.

6.7.92 OfficialJournaloftheEuropeanCommunities NoC169/39
spective.CommitteeOpinionsinthisareaadopta
similarview,demonstratingtheneedforgreaterpriority
tobegiventorelationswiththesecountries.
15.2.1.ItistobehopedthattheMiddleEastpeace
processwillcreatesuitableconditionsforaCommunity
contributiontotechnicalandfinancialassistancepro­
grammes.14.4.MeasurestoaccompanyCommunityinte­
grationshouldbesteppedup,notleastwithregardto
informationforbusinesses(andsmallfirmsinparticu­
lar)andforeconomicoperatorsingeneral.Studieson
employmentproblems,educationandpublichealth,
theintroductionofnewtechnologies ,socialsecurity
arrangementsintandemwithEMU,andsocialdialogue
measures,areafewoftheareastobeincludedinthe
accompanying measures.TheCommitteeviewsthem
asvitalforimprovingthetransparencyoftheinternal
market.
15.3.TheCouncilapprovedamultiannualpro­
grammeforthecountriesofLatinAmericaandAsiain
1990whichisnowbeingincorporatedinthepresent
budgetheading.
EXTERNAL RELATIONS
15.4.Foodaidandhumanitarian aidwillalsobe
financedfromthisheading.TheCommissionrecently
setupaEuropeanOfficetocoordinateaidinallben­
eficiarycountries.Thistypeofaidneedstobemade
moreeffective.15.TheCommunity's1988-1992financialperspec­
tivehasbeenfurthestexceededinthefieldofexternal
relations.EventsinCentralandEasternEurope,and
recentdevelopments intheMediterranean area,justify
thecreationofaseparatebudgetheading,asvarious
ESCOpinionshavestressed.TheCommitteetherefore
supportstheCommission'sproposaltoincreaseallo­
cationsunderthisheading.15.5.TheexternalelementsofcertainCommunity
policies,suchasfisheriesandtheenvironment ,willalso
befinancedfromthisheading.
15.6.Asmentionedabove,theEuropeanDevelop­
mentFundwillremainoutsidethebudgetuntilits
financialprotocolisreviewedin1995.Itsincorporation
inthebudgetwillalterthe1,37%ownresourcesceiling
proposedinthenewfinancialperspective.15.1.TheCommunityhasaspecialresponsibilityto
helpthecountriesofCentralandEasternEurope.The
problemsthatcouldbetriggeredbythebreak-upof
theireconomieswouldcosttheCommunitymorethan
acontributiontosupporttheirreforms.Assistancehas
focusedontrainingandontechnicalsupporttosetup
themachineryneededtoruntheireconomies.STAFFANDADMINISTRATION
16.Administrative expenditureonstaffandbuild­
ingswillcomeunderasinglebudgetheadingwhich
willnotincludeexpenditureonstockdisposaland
reimbursements .15.1.1.However,pastexperiencesinthefieldof
developmentaidshowthatforeignaidislessimportant
thangivingacountrythechancetomakethemost
ofitsowncapabilities,satisfythebasicneedsofits
population,increaseitsexports,andbecomeafair
competitorintheworldeconomy.Respectforsocial
legislationandforthoseworkers'rightswhichare
recognizedinotherEuropeancountriesshouldbepart
ofthethrustofCommunityassistanceandtechnical
support.16.1.Spendingonstaffisforecasttoriseby5%per
year.Thisdoesnotappearunreasonable ,particularly
asthisheadingistoincludeoperationssupportexpendi­
ture(mini-budgets),asrecommended bythebudgetary
authority.TheCommunityalsohastoequipitselffor
thenewdutieslaiddownintheMaastrichtTreaty.
16.2.Expenditureonrentofbuildingsisalready
high,andisexpectedtorisebyalmost10%peryear.
TheCommunitywoulddowelltoreviewthesitingof
itsoffices,andthepolicyadoptedhithertoofmainly
rentingpremises.15.1.2.Coordination ofMemberStates'andEC
assistanceisparticularlyimportanthere,andcouldlead
tosignificantsavingsinnationalbudgets.
RESERVES
15.2.TheCouncilhasalreadyadopteddecisionson
cooperationwithnon-memberMediterranean and
Maghrebnations,andhasestablishedamultiannual
frameworkwhichisincorporatedinthefinancialper­17.TheCommissionproposesanagriculturalmon­
etaryreserveandareserveforexceptionalexpenditure

NoC169/40 OfficialJournaloftheEuropeanCommunities 6.7.92
suchasemergencyaidandloanguarantees .Theagricul­
turalreservealreadyexists,buttheexceptionalreserve
shouldbesubdividedtoallowmoreflexiblebudget
managementandenabletheCommunitytointervene
moreeffectivelywhenurgentactionisrequired.resources'andtoexamine'meansofcorrecting(...)
regressiveelementsexistinginthepresentown
resourcessystem'.Theidealsolutionwouldbeforeach
MemberState'sbudgetcontributiontobeproportion­
atetoitsGNP.
18.3.However,forthemomentsuchasystemisnot
feasible.
18.3.1.Althoughtraditionalownresourceshavefal­
len—andwillcontinuetodoso—theystillrepresent
around25%oftotalresources.ThecurrentVATbase
is55%andevenundertheproposedmeasuresthis
wouldfalltoaround35%oftotalresources .
18.3.2.Theintroductionofprogressiveelementsto
offsettheregressiveonesmentionedabovewouldcreate
evenmoreproblems.
18.3.3.Asthingsstand,thefairestsolutionwould
thereforeseemtobetoincreasetherelativeshareof
theGNP-basedcontribution .IV.GENERALCOMMENTS ONRESOURCES
18.1.Theincreasedresponsibilities attributedbythe
MaastrichtTreatytoCommunityactionwillleadto
spendinginexcessofMemberStatebudgetforecasts.
Thiscanonlybejustifiedifthereisaneffectivetransfer
ofMemberStateexpendituretotheCommunity ,in
accordancewiththesubsidiarityprinciple.
18.2.TheHeadsofStateandGovernmentundertook
intheProtocolonEconomicandSocialCohesionto
take'greateraccountofthecontributivecapacityof
individualMemberStatesinthesystemofown
DoneatBrussels,30April1992.
TheChairman
oftheEconomicandSocialCommittee
MichaelGEUENICH