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 on the Information Society: from Corfu to Dublin - The new emerging priorities`, and - the 'Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the Implications of the Information Society for European Union policies - Preparing the next steps` (97/C 66/18)

On 2 August 1996 the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned communications.

The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 6 November 1996. The Rapporteur was Mr Ramaekers.

At its 340th Plenary Session of 27 and 28 November 1996 (meeting of 27 November), the Economic and Social Committee adopted the following opinion by 79 votes to 30, with 15 abstentions.

1. Introduction

1.1. The Committee welcomes the Commission's intention to update its Action Plan for the Information Society, set out in a Commission Communication: From Corfu to Dublin - The new emerging priorities.

1.2. The Committee is well aware of the substantial work programme which the action plan entails.

1.3. The Committee welcomes the Commission's determination to address the social issues connected with the transition to the Information Society and would reiterate its view, stated in its Opinion on the Commission action plan entitled 'Europe's Way towards the Information Society` (), that the social, societal and cultural aspects have not been taken sufficiently into account.

1.4. The Committee has delivered numerous opinions on various aspects relating to full liberalization of the telecommunications market since the Commission presented its action plan; the Committee sees the present Opinion as consonant with its earlier Opinions on the subject, including the following:

- Europe's way to the information society: Action plan - Section for Industry, Commerce, Crafts and Services - rapporteur: Mr Ramaekers;

- Green Paper on the liberalization of telecommunications infrastructure - Section for Transport and Communications - rapporteur: Mr von Schwerin ();

- Info 2000 - Section for Industry, Commerce, Crafts and Services - rapporteur: Mr Pellarini ();

- ONP - Section for Transport and Communications - rapporteur: Mr Green ();

- ONP - Section for Transport and Communications - rapporteur: Mr Hernandez Bataller ();

- The universal service - Section for Transport and Communications - rapporteur: Mr von Schwerin ();

- Green Paper on pluralism and media concentration - Section for Industry, Commerce, Crafts and Services - rapporteur: Mr Decaillon ().

2. The Commission communication

2.1. The Commission considers that most of the measures set out in the action plan have been implemented over the last two years, though some, for example, on information security, have taken more time than expected.

2.2. The Commission now has a more comprehensive picture of the measures necessary and therefore considers it time to review the action plan. Four main policy lines have been identified as priorities:

- improving the business environment;

- investing in the future;

- people first;

- meeting the global challenge.

2.3. The Commission points out that, subject to certain exemptions, full telecommunications liberalization has to be effectively implemented throughout the Union by 1 January 1998; this will require increased consistency of national legislation governing information society services. Particular attention needs to be given, also, to SMEs.

2.4. Know-how will play a key role in the information society. The 5th R& D programme will attach special importance to Europe's knowledge base. The Commission undertakes rapidly to draw up an action plan on the initiative 'Learning in the information society`, which is intended to be a practical follow-up to the White Paper 'Teaching and learning - towards a learning society`.

2.5. The Commission intends to secure closer integration of Structural Funds so as to be able to better address social issues, protect consumer interests and improve the quality of public sector services.

2.6. The Commission recognizes the need to step up cooperation with the EU's neighbours and help integrate the developing world into the information society on a global level.

2.7. The Commission will begin responding to the new priorities through:

- its Communication on 'The implications of information society on European Union policies - preparing the next steps` - COM(96) 395 final;

- a Green Paper on 'Living and working in the information society: people first` - COM(96) 389 final;

- a Communication on 'Standardization and the global information society: the European approach` - COM(96) 359 final;

- a draft Directive on 'Regulatory transparency in the internal market for information society services` - COM(96) 392 final.

3. General comments

3.1. The Committee welcomes the Commission's moves to review its action plan. It notes that many of the issues raised in its Opinion on the Commission Communication on 'Europe's way to the information society` - action plan have been addressed in this communication.

3.2. However, the Committee is surprised that the Commission has stuck to a strict implementation of its schedule, whereas it considers a clear-cut, stable legislative framework to be essential for the development of the information society. Although the Commission considers preparatory work on this legislative framework to be well advanced, the Committee, whilst recognizing the genuine progress made on many aspects, believes that certain areas still require clearer definition, notably questions relating to the convergence of the audiovisual and telecommunications sectors and in particular certain new services, only some of which are covered by the draft directive referred to above (COM(96) 392 final).

3.3. The Committee would draw attention to its Opinion on the Commission's action plan entitled 'Europe's way to the information society` and in particular its conclusions on the issues it considers of priority importance.

The Committee would draw particular attention to point 4.1 of the opinion which states that: 'Given the convergence of the telecommunications, audiovisual and publishing sectors, the question of media concentration should be regulated before there is any further move in the direction of liberalization`, and to point 4.2 which states that: 'Adoption of the Commission's proposal for a programme to liberalize services and infrastructure must depend on certain preconditions first being fulfilled in such fields as:

- the establishment of a stable and legal regulatory framework, ...;

- the harmonization and development of EURO-ISDN (1), an integrated broadband network, and IDA (2), so as not to compromise the development of public-interest and other applications.(1) ISDN = Integrated service digital network.

(2) IDA = Trans-European data communication networks between administrations.`

The Committee would reaffirm the relevance of the concerns expressed above.

3.4. On a general note, the Committee considers that all the conclusions of its Opinion on the Commission action plan 'Europe's Way Towards the Information Society` are still valid; the Committee also notes that some of these conclusions are also examined in the Commission communication, in particular those on social and societal aspects.

3.5. The Committee notes that the intermediate report of the high-level group of experts draws attention to the need to go beyond conventional ideas on the universal service.

The group of experts also takes the view that the Commission has not paid sufficient attention to social policy.

3.6. The Committee is aware of the scale of the challenge in those areas affected by the advent of the information society. It recognizes, along with the Commission, the importance of social and societal questions and other such priority issues as employment, training, education and access to services. It awaits the results of specific studies initiated by the Commission, notably on employment, and would emphasize, in particular, the need for continuing training and retraining programmes geared to market and technological developments.

3.7. The Committee is concerned that the measures undertaken by the Commission, notwithstanding their momentum, will be unable to satisfy the various market needs of the parties involved, within the timetable prescribed for telecommunications liberalization.

3.8. The Committee feels that, apart from the rules currently adopted concerning, for example, mobile and satellite communications, and infrastructure, it may not be possible to clarify important questions within the time limits specified. By way of example, it emphasizes the crucial importance of the concept of universal service and notes the special attention devoted to this by the Commission. However, in spite of joint efforts and considerable work undertaken by the Commission, the Committee would draw attention to the following comment in its Opinion on the Universal service for telecommunications in the perspective of a fully liberalized environment: (point 4.6) ...'Priority must be given to the Commission presenting guidelines for the financing of the universal service without delay, so that the costs associated with the provision of the universal service can be divided up by all market players.` The Committee would point out that, notwithstanding the considerable work already carried out on the universal service, urgent answers are still awaited on very precise questions such as its financing.

3.9. The Committee is concerned therefore at the time limits set for the full liberalization of telecommunications at a time when full information has yet to be received on questions such as the universal service, with only a little over a year remaining before the deadline for liberalization.

3.10. Although the Committee believes that the Commission can provide answers to these specific questions, it is less confident of receiving satisfaction on key social questions such as employment and education.

3.11. In this context, the Committee welcomes the consultation process organized by the Commission via the Green Paper on 'Living and working in the information society: people first` (COM(96) 389 final).

The Committee will examine this green paper in a separate opinion. It would stress, however, that the issues raised therein are fundamental for the cohesion of society. In view of the time required to draft effective measures and rules, in particular on security, convergence and privacy and universal service, in spite of and notwithstanding the considerable efforts put into this task, the Committee is not confident that the consultation procedure on social issues can be concluded in time to produce the necessary responses by 1 January 1998.

3.12. The Committee considers that in order to abide by the liberalization schedule, the EU must give central priority to the matters raised in the aforementioned green paper, in the Committee's opinions on the same subject, by the high-level group of experts and in the information society forum; otherwise polarization of society will become increasingly difficult to avoid.

4. Specific comments

4.1. Improving the business environment

4.1.1. The Committee affirms the need to establish a clear, stable legislative framework and to ensure its effective implementation in order to free capital - private, public, private-public or cooperative - for the creation of high-performance telecommunications infrastructure.

4.1.2. Liberalization of certain sectors of the telecommunications market has already been achieved (mobile and satellite communications, and alternative infrastructure), but future developments require that the national regulatory authorities (NRA) are properly coordinated and have sufficient resources and the requisite independence to fulfil their role. The Committee therefore welcomes the need felt by the Commission to establish a regulatory authority for telecommunications at European Union level which would limit the powers of the national regulatory authorities.

4.1.3. The Committee notes that the Commission does not consider itself at present to predict which services will find a market and that it is analyzing potential barriers to the development of new services, particularly electronic commerce.

4.1.4. In order to ensure the integrity of the internal market, the Commission (see point 2.7) is proposing a directive on regulatory transparency for information society services. The Committee is dealing with this proposal in another opinion.

4.1.5. The Committee notes that the Commission is currently analyzing the lack of consistency with respect to the existing legal frameworks in the light of the challenge posed by the emerging technological convergence. The Committee is surprised that the Commission speaks of 'a new challenge` with reference to the convergence between telecommunications and the audiovisual sector; this was from the outset one of the key questions which the Committee raised in its Opinion on the Commission action plan 'Europe's Way Towards the Information Society`.

4.1.6. The Committee notes that the Commission is drafting proposals with a view to ensuring privacy, confidentiality and electronic authentication.

The Committee would encourage the Commission to lose no time in proposing the means to achieve this target, otherwise the transition due on 1 January 1998 could, the Committee fears, take place in an atmosphere of doubt caused by the general legislative uncertainty.

4.1.7. The Committee notes that the Commission considers that SMEs are vital to the development of the new multimedia content market. In this context, it would reiterate its reservations about various shortcomings expressed in point 4.3.4 of its Opinion on the INFO 2000 plan: 'If the Commission wishes, first of all, to foster SMEs, it will also have to provide them with data. It is inconceivable that SMEs which do not possess the means to carry out research of this kind, should launch costly initiatives without knowing if they are market-viable.`.

The Committee notes the importance attached by the Commission to the INFO 2000 plan in the context of the development of the multimedia content industry and the Committee would reiterate the conclusions of its Opinion on the INFO 2000 plan of December 1995 in which it commented on the weakness of the overall financing arrangements, albeit endorsing fully the objectives set out in the INFO 2000 programme. Point 5.3 of the opinion states that: 'The Committee finds some weaknesses in the programme proposal; its overall direction is sometimes vague and its scope is not fully defined`. The Committee is also surprised that the INFO 2000 plan is discussed in connection with the audiovisual sector in the Commission's communication, whereas it principally concerns the publishing sector.

4.1.8. The Committee notes the importance attached by the Commission to standardization, a more detailed opinion on this question is currently in preparation.

4.2. Investing in the future

4.2.1. The Committee notes and welcomes the importance which the Commission communication attaches (a) to life-long learning in the context of improving education and training and (b) to sustainable development.

4.2.2. The Committee notes the Commission's desire to respond more effectively to the increasing demands of industry and society, focusing R& D efforts on themes of general interest in line with specific user needs. The Committee finds, to its satisfaction, that this mirrors a number of its priority concerns.

4.2.3. The Committee welcomes the Commission's initiative in issuing the White Paper on 'Teaching and learning - towards the learning society`; the Committee is devoting a separate opinion to the Green Paper 'Living and working in the information society: people first`. The Committee notes the Commission's general observation that there is a need to counter skills obsolescence in the adult workforce, but would point out that it has drawn ample attention to the importance of training programmes in previous Opinions.

4.2.4. The Committee notes the conclusions of the information society forum concerning the need to develop education and training and the forum's observations on the consequent financial implications, emphasized by the Commission in point 2.2.b, second paragraph, of its communication.

The Committee welcomes the action plan on 'Learning on the information society`, put forward by the Commission, and notes that the Commission supports the need to set up private and public partnerships, with a major contribution from the private sector.

The Committee is aware of the importance of introducing new information and communication technologies in all types of schools and hopes that decisive Community action will be taken to ensure that young people are suitably prepared to meet the new challenges of the future.

4.2.5. The Committee notes the Commission's comment on the positive impact which information and communication technologies (ICT) can have on resource utilization, on traffic management, and indirectly, through professional applications, on sustainable development. However, the Committee notes the risk of a 'rebound` effect, highlighted by the IS forum, as pointed out in point 2.2.c, third paragraph, of the Commission communication.

4.3. People at the centre

4.3.1. The Committee welcomes the Commission's wish to see new technology benefit all citizens throughout the Union, taking account of the need for consumer protection.

The Committee is pleased that the Commission intends to encourage the use of services to combat social exclusion, which has already affected or is now affecting certain identified social categories, in particular: people who for various reasons no longer work (e.g. the unemployed or people who have taken early retirement), people on low incomes, the handicapped, the elderly, to mention but some.

4.3.2. Access to information services is becoming an increasingly important aspect of the information society.

The Committee notes the need to develop infrastructure in order to ensure such access.

4.3.3. On the subject of access, the Committee notes the obligation to provide a universal service, which already includes access to on-line services. The Committee is concerned, however, that the necessary investment will be introduced at different speeds in the Community.

4.3.4. The Committee notes the Commission's concern to involve consumer representatives in the standardization and consultation process, in particular with a view to developing more user-friendly technology and encouraging consumer education and training.

4.3.5. The Committee sees the need for more efficient public service networks in order to ensure seamless communication between all levels of public administration throughout the Union. It urges the Commission to devote special attention to this question.

4.3.6. Maintaining cultural diversity and pluralism of the media is of central importance to the Union. In this context, the audiovisual industry and the question of copyright are particularly important. The necessary measures must therefore be taken to preserve these valuable assets.

4.4. Meeting the global challenge

4.4.1. The Committee is aware of the need to closely involve the countries of central and eastern Europe and to help the European Union's Mediterranean neighbours to meet the challenge of the information society. The Committee considers that a satisfactory balance will require, as a matter of priority, the establishment of a basic set of international rules. It will accordingly be monitoring closely the WTO negotiations on the liberalization of basic telecommunications.

4.4.2. The Committee would stress that the need to associate other countries more closely in information society activities is not confined to the European Union's neighbours, but applies also to other countries which have been unable to keep up with information society developments, the prime objective being to enable the most disadvantaged countries to participate in the information society, in order to prevent a widening of the gap between rich and poor.

5. Conclusions

5.1. The Committee would reiterate its concern over employment developments in the information society. It will address this fundamental question in greater detail in its Opinion on the Green Paper on 'Living and working in the information society: people first`. The Committee feels, however, that the studies carried out to date do not offer reassurance with regard to future employment or the development of industrial relations; at present there is no reason to presume that jobs will be fairly distributed in the future.

5.2. If the Union wishes to achieve an equitable distribution of its assets, of access to information, know-how, services and culture, it will have to respond to the enormous challenges currently identified by the Commission.

The Committee believes that these are urgent challenges which cannot be satisfied through a mere consultation exercise. We are dealing with a dynamic process which requires ongoing evaluation. The Committee fears that if the EU introduces a liberalized market at different speeds, this may create numerous disequilibria, particularly at social level.

5.3. In the Committee's view, it is essential that the information society be geared to the needs of individuals rather than vice versa. Particular account must be taken of social groups which currently have no opportunity of contact with ICTs and are in danger of finding themselves in future at an even greater remove; people who for various reasons no longer work, people who have taken early retirement, people on career breaks in order to bring up children, the unemployed, the elderly and people on low incomes, without forgetting those who should currently be in training. In short, although these are people in different situations which cannot be compared, they comprise some very sizeable groups which must at all costs be catered for in the interests of preventing social fragmentation and education. Training programmes must likewise be provided for certain groups of workers, such as the self-employed and 'teleworkers`; the financing of training programmes for SME employees also needs to be addressed.

5.4. The Committee welcomes the Commission's proposal to update its action plan before the end of 1996, but considers that, in order to abide by the liberalization schedule, the EU must give central priority to the matters raised (i) by the Green Paper on 'Living and working in the information society: people first`, (ii) by the Committee's opinions on the same subject, (iii) by the high-level group of experts and (iv) by the information society forum; otherwise, polarization of society will become increasingly difficult to avoid.

The Committee would encourage the Commission to undertake the necessary studies and measures to enable all citizens to become fully integrated within a people-centred information society rather that the reverse.

5.5. The Committee believes that urgent action must be taken to respond to concerns regarding the necessary legislative framework for full telecommunications liberalization; the Committee would emphasize in particular the problems arising from convergence of the telecommunications and audio-visual sectors and the need to ensure information transmission security and the protection of privacy. It would also stress the prime importance of the coverage of the universal service's coverage, its financing and its extension to ensure access to information society networks.

Given the convergence of the telecommunications, audiovisual and publishing sectors, the question of media concentration should be regulated before there is any further move in the direction of liberalization.

Without prior clarification of these questions, the Committee considers that a transition to full telecommunications liberalization would merely jeopardize the successful integration of all citizens into the information society.

5.6. The Committee would therefore encourage the Commission to accord priority to social and societal concerns and to assess practical measures to be taken to avoid exacerbating social differences between the citizens of the European Union.

The Committee wishes to see the legislative framework determined before full liberalization of the telecommunications market and applauds the Commission's intention to prepare an appropriate, updated action plan before the end of the year.

Brussels, 27 November 1996.

The President of the Economic and Social Committee

Tom JENKINS

() OJ No C 110, 2. 5. 1995, p. 37.

() OJ No C 301, 13. 11. 1995.

() OJ No C 82, 19. 3. 1996.

() OJ No C 236, 11. 9. 1995.

() OJ No C 153, 28. 5. 1996.

() CES 1075/96.

() OJ No C 110, 2. 5. 1995, p. 53.