21. 5. 79 Official Journal of the European Communities No C 128/1 
II 
(Preparatory Acts) 
ECONOMIC AND SOCIAL COMMITTEE 
Opinion on the proposal for a Council Regulation on Community aid for industrial 
restructuring and conversion operations 
The text referred to the Committee has been published in Official Journal of the European 
Communities No C 272 of 16 November 1978, page 3. 
A. LEGAL BASIS FOR THE OPINION 
On 13 November 1978 the Council 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 164th 
plenary session held in Brussels on 19 and 20 December 1978. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to Article 198 of the EEC Treaty, 
Having regard to the request made by the Council of 
the European Communities on 13 November 1978 for 
an opinion, 
Having regard to the decision taken by its chairman on 
20 November 1978, instructing the Section for Industry, 
Commerce, Crafts and Services to draw up an opinion 
on this matter, 
Having regard to the opinion issued by that Section at 
its meeting on 6 December 1978, Having regard to oral report made by the rapporteur, 
Mr Evain, 
Having regard to the discussions at its 164th plenary 
session held on 19 and 20 December 1978 (meeting of 
20 December), 
HAS ADOPTED THE FOLLOWING OPINION 
by 82 votes to two, with two abstentions: 
1. The Committee approves the Commission's 
proposal that a framework be created to facilitate the 
restructuring and conversion of sectors in difficulty. 
This decision is in line with the stand taken repeatedly 
by the Committee, for example, in its opinion on the 
reorganization of the Community shipbuilding 
No C 128/2 Official Journal of the European Communities 21. 5. 79 
industry (a) — one of the first sectors to which the new 
mechanism will apply. 
2. The draft Regulation has a much broader scope, 
since it could in future be extended to all industrial 
sectors faced with restructuring and conversion 
problems. It also extends the Community's field of 
action since it is based on Article 235 of the Treaty. 
3. In view of this, the Committee considers that special 
attention will have to be paid to the danger of creating 
distortions in competition between Community firms or 
of aggravating such distortions, through the various 
facilities and subsidies made available to these firms. 
Subject to this reservation, the Committee thinks that 
national measures should be backed up by Community 
measures in order to cope with a new situation. It 
therefore approves the Regulation in principle. 
4. In the Committee's view priority should be given to 
proper harmonization of national aid and Community 
aid. This should not, however, force all the Member 
States to set up their own aid schemes, nor tie 
Community aid too closely to the possibility of 
equivalent national aid. It should be possible, at least in 
exceptional cases, to waive this latter requirement. At 
all events the Committee considers that national 
operations should not receive Community aid unless 
they conform to the spirit and the letter of the Treaty. 
5. The Committee considers that attention must be 
paid on the difficulties which will inevitably attend any 
move to solve the problems posed by sectors 
experiencing difficulties : 
— the various sectors differ greatly from one another 
and they cannot all be dealt with in the same way; 
likewise, there are considerable disparities in the 
situations of different firms in one and the same 
sector; 
— the aid provided must take account of both general 
social requirements (employment, also in the longer 
term, living and working conditions, environmental 
protection, regional balance, etc.) and the need to 
maintain the competitiveness of Community 
industry, as this is the only way of safeguarding jobs 
in the medium and long term. 
C1) OJ No C 269, 13. 11. 1978, p. 53 et seq. 6. According to the draft Regulation, the aid should in 
principle complement national provisions and facilitate 
access to loans from the EIB and the proposed new 
Community instrument. The Committee approves these 
procedures as a whole. The Committee also considers it 
vital that this new instrument should be properly 
integrated in the Community's financial instruments 
(Regional Fund, Social Fund and European Investment 
Bank), the general coordination of which needs 
improvement. The Committee also takes note of the fact 
that the credit facilities will not be confined to 
EIB-assisted operations. 
7. Under the draft Regulation the Commission is to 
have a high degree of autonomy in considering 
applications and defining the procedure for granting 
financial aid. Its power is, however, limited by the fact 
that it is the Council which decides which sectors are to 
be helped. The Commission is to exercise its power 
under the supervision of a Consultative Committee, 
composed of representatives of the Member States. The 
Committee approves the provisions of the draft 
Regulation on this point as they should ensure that the 
procedure for examining and dealing with the dossiers 
is effective and has a genuine Community character. 
The Committee does, however, consider it essential that 
consultations be held with the trade circles concerned 
prior to the selection of the sectors which are to receive 
aid; it would like to be consulted itself on this Selection. 
The Committee would in addition like the Commission 
to seek the views of the employers and workers 
concerned on all the aid measures. 
8. The main aim of the draft Regulation is to assist 
restructuring operations. The Committee welcomes the 
fact that the Commission has set such a well-defined 
objective. It would however, point out that it is not 
always easy to distinguish between what constitutes 
'restructuring' and what constitutes 'conversion'. In 
view of the fact that conversion operations generally 
call for a major effort, the Committee would urge that 
the abovementioned distinction should not be applied 
too strictly. There is a need to facilitate conversion by 
the creation — in all sectors, including the tertiary — of 
new types of activity, capable of creating jobs in areas 
affected by sectoral crises. 
In this respect the Committee is pleased that the draft 
Regulation gives priority to aid for small and 
medium-sized enterprises: such enterprises can in fact 
play a decisive role in the campaign to safeguard and 
expand employment. But it wonders whether provision 
should not also be made for the possibility of 
restructuring or conversion aid for subcontracting firms 
in sectors subject to Community intervention, the future 
21. 5. 79 Official Journal of the European Communities No C 128/3 
of which is directly — and often solely — dependent on 
the situation of their clients. the initial results, a decision could be taken as to 
whether or not to increase the appropriation. 
9. The Committee notes that, under the procedure laid 
down in the draft Regulation, the Credits for promoting 
restructuring and conversion operations in sectors in 
difficulties are limited to 20 MEUA for the current year. 
This sum, although relatively small, will help to solve 
certain urgent problems and show whether the 
proposed machinery functions properly. In the light of 10. The Committee would like the provisions of 
Article 1 (4) to be made for flexible so that projects 
submitted upon publication of the Regulation will be 
able to qualify for Community aid, even if work has 
already started. This would eliminate any risk of delay 
in the execution of operations worthy of 
encouragement. 
Done at Brussels, 20 December 1978. 
The Chairman 
of the Economic and Social Committee 
Fabrizia BADUEL GLORIOSO 
ANNEX 
to the opinion of the Economic and Social Committee 
The following amendments were rejected during the debate. 
Point 4 
Delete the words 'too closely' in the fourth line. 
Delete also in the fifth and sixth lines the sentence reading: 
'It should be possible, at least in exceptional cases, to waive this latter requirement.' 
Voting 
For: 19; against: 58; abstentions: 2. 
Point 7 
Insert the following after 'deletion of the sectors which are to receive aid': 
'the Section also thinks that workers' and employers' organizations should set up joint — or 
possibly tripartite — committees, in which policy for the sector can be discussed and agreements 
can be reached on policy and the use to which the aid is to be put'. 
Voting 
For: 45; against: 45; abstentions: 6. 
No C 128/4 Official Journal of the European Communities 21. 5. 79 
Point 7 
Amend the second-last sentence as follows: 
'The Section does, however, consider it essential. .., it would also like to see the Economic and 
Social Committee and the European Parliament consulted on this selection.' 
Reasons (J) 
It is necessary, particularly on the eve of direct elections, to recognize the European Parliament's right to 
be consulted on any declaration of crisis of an entire productive sector. The ESC must act consistently 
with its repeated defense of the prerogatives of the European Parliament. 
Voting 
For: 16; against: 53; abstentions: 1Q. 
(J) The reasons why members turned down this amendment was because they did not wish to express views on the sphere of competence 
of the European Parliament. This was a task for the European Parliament itself. 
Opinion on the proposal for a Council Decision adopting a research and development 
programme for the European Economic Community in the field of reference materials and 
methods (Community Bureau of Reference — BCR) and applied metrology (non-nuclear 
indirect action) (1979 to 1982) 
The text referred to the Committee has been published in Official Journal of the European 
Communities No C 176 of 25 July 1978, page 5. 
A. LEGAL BASIS FOR THE OPINION 
On 17 July 1978 the Council referred the abovementioned proposal to the Economic and 
Social Committee in accordance with Article 235 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 164th 
plenary session held in Brussels on 19 and 20 December 1978. 
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 Article 235 
thereof, 
Having regard to the request made by the Council of 
the European Communities of 17 July 1978 for an 
opinion, 
Having regard to the decision taken by its Bureau on 
18 October 1978, instructing the Section for Energy and 
Nuclear Questions to prepare an opinion on the matter, Having regard to the opinion issued by the Section for 
Energy and Nuclear Questions at its 44th meeting held 
on 8 December 1978, 
Having regard to the oral report made at that meeting 
by the rapporteur, Mr von der Decken, 
Having regard to the discussions at its 164th plenary 
session held on 19 and 20 December 1978 (meeting of 
19 December),