23.1.78 Official Journal of the European Communities No C 18/5 
job-creation measures are in operation, these should 
be continued although, as with special investment 
incentives, they should be forward-looking, 
Governments should pay more attention to the need 
for training and re-training facilities in order to 
improve occupational mobility, and to policies to 
improve geographical mobility, e.g. new housing 
schemes. Special attention should also be given to 
the problems of women and young people. 
5.5. The Committee welcomes the in-depth study 
of 'the cost-effectiveness and implications for 
industrial performance of different means of 
work-sharing', suggested by the June 1977 tripartite 
Done at Brussels, 27 October 1977. 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the request made by the Council 
on 18 November 1976, under Article 198 of the 
Treaty establishing the European Economic 
Community, for an opinion on the proposals made 
by the Commission and submitted to the Council 
on 8 November 1976 concerning Community policies 
for the electronic information industries, 
Having regard to the decision made by the Bureau 
of the Economic and Social Committee on 
23 November 1976 instructing the Section for 
Industry, Commerce, Crafts and Services to draw up 
an opinion and a report on the matter, ' conference which should be pursued as a matter of 
urgency. The Committee hopes that it will be 
possible for the Committee to contribute to this 
study, which it believes should take account of 
demographic projections not merely to 1980 but 
beyond. 
5.6. The Committee would stress, however, that 
any measures to encourage investment or job-
creation, or to assist the workings of labour markets, 
will have only limited effect unless general economic 
conditions are improved and a stable and consistent 
policy framework established so as to encourage 
increased activity. 
The Chairman 
of the Economic and Social Committee 
Basil de FERRANTI 
Having regard to the Council resolution of 
15 July 1974 on a Community policy on data 
processing (1), 
Having regard to the opinion adopted by the Section 
for Industry, Commerce, Crafts and Services on 
5 October 1977, 
Having regard to the report submitted by the 
rapporteur, Mr Wylie, 
Having regard to the discussions at its 152nd plenary 
session held on 26 and 27 October 1977 (meeting of 
26 October), 
H OJ No C 86, 20. 7. 1974. Opinion on the communication from the Commission to the Council concerning 
Community policies for the electronic information industries 
The text referred to the Committee has been published in Official Journal of the 
European Communities No C 39 of 16 February 1977, page 2. 
A. LEGAL BASIS FOR THE OPINION 
On 18 November 1976 the Council referred the abovementioned communication 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 
152nd plenary session held in Brussels on 26 and 27 October 1977. 
The full text of the opinion is as follows: 
No C 18/6 Official Journal of the European Communities 23. 1. 78 
Whereas the original plans of 1975 to form a joint 
European company in the medium-to-large computer 
market have not come to fruition, and as a result the 
Commission does not put forward proposals in that 
area; 
Whereas, on the other hand, there are increasing signs 
of the developing importance of distributed 
computing and of the peri-informatic sector as 
foreshadowed in the Economic and Social 
Committee's opinion of 24 April 1975 on the com­
munication from the Commission to the Council 
concerning a Community policy on data-processing (1), 
and thus the Commission makes proposals in these 
areas, 
HAS ADOPTED THE FOLLOWING OPINION 
unanimously with six abstentions: 
The Committee approves the Commission's 
communication subject to the following comments 
and reservations. 
1. General comments 
1.1. The Committee considers it vital that a 
competitive computer industry exists now and in the 
future in Europe. With developments proceeding at 
such a pace, particularly in the increasingly important 
peri-infdrmatics and components sectors, it is 
essential to ensure that an effective European 
capability exists. Such a capability should be 
developed to the full as a means of promoting the 
competitiveness of products produced within Europe, 
both for use within the Community and for export 
from it. 
1.2. The Committee sees the programme outlined 
by the Commission as an ambitious one, having 
regard to the size of the problem and the amount of 
money involved as compared with other Community 
industrial programmes, but one not impossible to 
realize. The fact that the Commission has recognized 
that more effective cooperation by European 
manufacturers is necessary, if foreign capability is to 
be matched, is welcome. Concentration on mini­
computers and distributed processing as the fastest 
developing technology seems appropriate. The 
Committee would stress the importance of 
concentrating the available resources in substantial 
quantities on a small number of specific projects 
rather than using them to finance a larger number 
H OJ No C 255, 7. 11. 1975. of perhaps less worthwhile ones. It is important to 
note that no proposals are made to deal with 
medium to large-scale systems. This is because the 
plans for the formation of a joint European company 
putting together two or three of the present 
European companies in the medium to large 
computer market, have failed to come to fruition. It 
is therefore inappropriate at this time to put forward 
any proposals in this area. 
1.3. In the peri-informatic and electronic com­
ponent fields, the Committee considers that insuffi­
cient guidelines have been drawn up as to the 
particular sectors or industrial applications most 
worthy of attention. While the desire for flexibility 
is recognized, informatics is, or is going to become, 
important in an extremely wide range of industries, 
and it may have been more appropriate for the 
Commission programme to suggest more detailed 
guidelines, as suggested in the Committee's opinion 
of 24 April 1975. 
1.4. A fundamental question is the definition of a 
European based company. In the light of the key 
nature of the informatics industry, the Committee 
accepts that a European controlled capability is 
essential for the long-term economic well-being of 
the Community, and therefore accepts the idea 
followed through from paragraph 3 of the Council 
resolution of 15 July 1974, that a European based 
company is one which is in practice controlled from 
within the Community; the Committee considers 
that the proposed measures must enable European 
companies to improve their competitiveness, vis-a-vis 
companies controlled from outside the Community, 
given that both types of company will be able to 
prosper in an expanding market. 
1.5. A further consideration is the size of the 
budget proposed for the four-year Commission 
programme, bearing in mind the very considerable 
spending by some non-European governments in 
this field. While the budget proposed by the 
Commission is small in relation to the size of the 
task, the sums involved represent a significant part 
of Community support given to specific industrial 
sectors and should be sufficient if the suggestions 
made in this opinion are taken into consideration. 
The Commission thinks that the existence of its 
programme will improve the coordination of the 
various national support programmes. It can have 
a major catalytic effect on these and an industrial 
activity, leading to significant benefits to the 
Community, provided that the • available funds are 
not allocated in insufficient quantity to too large 
a number of projects. 
23. 1. 78 Official Journal of the European Communities No C 18/7 
1.6. The Committee is pleased to learn of the 
Commission's determination to review the progress 
of its programme at the end of two years, in the 
light of the rapid changes likely in both technology 
and the market place, and in the light of experience 
as to whether the methods of encouraging collabora­
tion are proving effective. 
1.7. The Committee would express two major 
criticisms. The first is with respect to a lack of 
consultation and involvement in the preparation of 
the programme with parties who were bound to 
be interested in its consequences. While consultation 
with manufacturers of hardware and software should 
be improved, closer contact with industrial, commer­
cial and public users is vital, although it is 
appreciated that the weakness of effective user 
organizations on a European scale makes this task 
difficult. The problem of consultation is of wider 
application than the present proposals; it could well 
be that all Community programmes of support to 
industry may suffer from it. 
1.8. The Committee's second area of criticism 
relates to the general lack of proposals in the 
programme for increasing education in the use of 
informatics. While the economic effect of the 
computer industry is large enough in itself, the 
results which would come from an increasing 
awareness of the opportunities, limitations and 
possible dangers of these new techniques could have 
an even greater impact on the efficiency of trade and 
services throughout the Community over the next 
20 to 50 years. Since it will be the use of informatics 
which will be of the greatest importance to industry 
and to the economy as a whole, expenditure on user 
education would be more than justified. The 
Committee would draw a comparison once again 
with the very considerable spending by other non-
European governments in this field. 
1.9. The Committee, lastly would briefly refer to 
the problem of nomenclature. At various points the 
subject of its study is referred to as 'informatics', 
'data-processing' and 'electronic information indus­
tries'. The Committee is clear that on the one hand 
'data-processing' is perhaps too limited and, on the 
other, 'informatics' or 'electronic information industry' 
are both too wide a definition of the topic covered. 
On the one hand 'components' is not strictly within 
'data-processing' and, on the other, 'informatics' and 
'electronic information' industries clearly include 
many things not covered in this programme. The 
Committee would ask the Commission to look into 
this question of nomenclature so as to encourage 
common and clear understanding. 2. Standardization and its support (Volume I (2.1)) 
2.1. The Committee believes that insufficient 
attention has been paid to the voice of the user in 
the past (except in the Federal Republic of Germany 
where user consultation is a mandatory part of the 
standardization process) and wholeheartedly wel­
comes the 'collaborative studies carried out by users' 
referred to in paragraph 2.2.2 of programme annex 
to Annex I to Volume I. The Committee considers it 
essential that users do have the fullest possible 
opportunity to participate in the development of 
standards, not merely in making collaborative studies, 
but in being involved in discussions. To this end, a 
greater integration of research centres with the 
support given to the users of informatics would assist. 
The Committee understands that the Working Group 
on Standards (described in Annex A (1) to Volume II) 
is already proving useful as an informal forum for 
discussions and would hope that its effectiveness in 
this area will improve as user representative bodies 
become more organized. 
2.2. The Committee endorses the importance of 
ensuring a strong European voice in the development 
of international standards. Together with the 
Commission it would not agree to the existence or 
promotion of European standards as such, except 
where no international standards exist and are 
unlikely to be capable of production. 
3. Portability (Volume I (2.2)) 
3.1. Languages which can be compiled for a 
variety of machines without conversion costs are a 
particular need; the problems were discussed in depth 
in Doc. COM(75) 467 and in paragraph 3.2 of the 
Committee's opinion of 25 February 1976 (*). It is 
probable for reasons of competition that not all 
manufactures will be interested in the portability of 
their software. The Committee therefore urges the 
Commission to provide greater assistance to projects 
likely to increase portability. It is also emphasized 
that users must play an important role when 
portability issues are decided. The question of legal 
protection for programmes (see paragraph 9) is of 
special significance too in this connection, since 
unless the creator of software has his investment 
protected by some type of intellectual property right, 
he may have no recourse when his software is used 
on other manufacturers' machines. 
3.2. The Committee welcomes the decision of 
the Council to proceed with the study phase of the 
t1) OJ No C 131, 12. 6. 1976. 
No C 18/8 Official Journal of the European Communities 23.1. 78 
portability proposals and would hope that there will 
be further proposals to advance this work, coordi­
nating the needs of users of informatics and choosing 
those areas which have the greatest possibility of 
success. For the ultimate success of portability, it 
must be recognized that standardization and 
conversion ability for documentation, operating 
software and data transmission protocols, etc., must 
be dealt with urgently. 
4. Procurement coordination (Volume I (2.3)) 
4.1. As noted in paragraph 2.3.1 of the 
Commission proposals, procurement by public bodies 
represents an important proportion of the computer, 
market. In essence, individual large public bodies 
are able to exert the greatest amount of effective 
user influence. The Committee notes that the 
Directive coordinating procedures for the award of 
public supply contracts (*) envisages the liberalization 
of public procurement in the data processing field 
at the end of 1980; much of the Commission's 
programme on standardization and portability may 
remain incomplete by then, but it remains important 
that public procurement be liberalized on target. In 
order to enable the Community industry to cope 
with competition from non-member countries, it is 
essential, as the Committee stressed in its opinion 
of 26 May 1976, that consultations be held at 
Community level with the interested parties with an 
eye to coordinating future policy, since 'each side 
has a vital contribution to make in working out 
plans and agreements for its sector'. 
4.2. Given the relative importance of nationalized 
and public corporations as purchasers of hardware 
and software, the Committee urges the application 
of the principles of the Directive mentioned above 
to these bodies. The Community should make use 
of the relevant Treaty provisions to this end with 
due regard to the special features of the data-
processing sector. 
4.3. It is desirable that the Community should 
have the political will to ensure that this public 
procurement policy Directive is carried through so 
as to improve the return on investment and create 
a more homogenous market for the Community 
electronic-information industry. 
5. Collaboration between research and support 
centres (Volume I (2.4.1)) 
5.1. The Committee endorses the need to develop 
a much-improved atmosphere of collaboration as 
(») OJ No L 13, 13. 1. 1977 (Directive 77/62/EEC). soon as possible. To this extent, these proposals 
extend and elaborate on the proposals contained in 
Doc. COM(75) 467 and commented on in the 
Committee's opinion of 25 February 1976. 
6. Medium and long-term studies (Volume I (2.4.2)) 
6.1. The Committee considers that it would be 
useful to have a more specific interpretation of the 
type of 'continuous and systematic' effort envisaged 
as providing the necessary statistical back-up. It is 
questionable whether the machinery exists to enforce 
the production of the relevant figures from all of 
the companies concerned; undoubtedly there are 
problems in this area. 
7. Effects on employment 
7.1. The Committee notes that the question of 
employment associated with data-processing and 
electronics must be considered in the light of the 
number, quality and status of the jobs involved, 
whether directly or indirectly related to technologi­
cal change. It must be realized that the bulk of 
newly created posts created by data-processing are 
for skilled or highly skilled personnel. The job 
opportunities lost will be largely for unskilled or 
semi-skilled workers, and will raise severe problems 
of training and reorientation. 
7.2. The Committee believes that the importance 
of the numbers of highly qualified technical jobs 
which non-European subsidiaries create and continue 
to provide within the Community must be considered. 
The effect on the number employed and on the 
development of non-European companies as a result 
of the Commission's policy should be taken into 
account, always considering the resolution of the 
Council of Ministers. 
7.3. The Committee strongly feels the need for 
major studies in the whole field of employment in 
relation to data-processing and computer technology. 
The requirements of retraining; the effects of 
rationalization programmes because of data-process­
ing capabilities; the replacement of jobs in manu­
facturing because of the use of electronic components 
and microprocessors — all of these demand 
examination if the best use is to be made of the 
industrial benefits of informatics without social 
harm to the individual in the short- to medium-term 
and specifically in sectors using these techniques. The 
Committee would wish to see the Commission 
attempt to quantify the degree and size of the 
problem and to come forward with specific proposals 
for study and action. The Committee urges the 
Commission to arrange for detailed research into 
the impact of development of informatics on the 
23.1. 78 Official Journal of the European Communities No C 18/9 
volume and structure of employment. The European 
Centre for Vocational Training could be asked to 
contribute to such research. 
8. The protection of privacy (Volume I (2.4.4)) 
8.1. The Committee wholeheartedly endorses the 
views expressed in the Commission document. It 
is most important to ensure a proper Community 
consensus on the issue and parallel legislation in 
each of the Member States. Adequate liaison will 
be necessary with the Council of Europe, which has 
established a Committee of Experts to examine 
proposals in this field. Already, some countries have 
moved far ahead of others in legislative safeguards 
for the protection of the individual. 
8.2. The programme proposing further studies in 
the light of Doc. COM(75) 467 is supported, 
although it should be emphasized that there are two 
separate issues involved — first, the security and 
confidentiality of personal information about citizens 
and secondly, technical protection for commercially 
important data and systems. The Commission should 
continue its efforts in these fields and submit 
relevant proposals as soon as possible. 
9. Legal protection for computer programs 
(Volume II (6)) 
9.1. The Committee accepts the problems associ­
ated with property rights in software, and appreciates 
the importance of the Community making a positive 
contribution to their international solution. The 
Committee does not notice any proposal, general 
or detailed, from the Commission, and would hope 
that a detailed statement of proposed action will 
be possible in due course. 
10. Community support programme (Volume I (3)) 
10.1. The Committee considers that the Commu­
nity proposals must be viewed in the light of the 
national support programmes to which the 
Commission programme should be seen as comple­
mentary. There will be cases where national 
programmes will provide resources vital to the 
maintenance of employment in individual Member 
States' data-processing industries and to the creation 
and development of the vitally important techno­logical sectors, and the Commission should be trying 
to coordinate these programmes. Moreover, in 
relation to the amount of funds available for 
national programmes, the Community proposals are 
relatively insignificant (10 °/o — Volume I (5.1)). 
But it is vital to ensure at least some support to 
the European-controlled industry at the Community 
level. 
11. Application and general software 
(Volume I (3.2 and 3.3)) 
11.1. The Committee notes that these areas can 
well be important not only as a means of encouraging 
collaboration by companies across Member States' 
boundaries, but also because it is in this area that 
the influence of users and their real needs can 
surface. Despite the difficulties of encouraging 
participation, this is the area where most might be 
done relative to the education problem detailed in 
paragraph 1.8. above. The effect of encouraging 
portable software packages could have a great 
influence on increasing the use of the more economic 
hardware coming through from the new technology. 
12. Leasing (Volume I (3.4.2)) 
12.1 The Committee recognizes that there is a 
need for the Community to take some action in the 
field of leasing and looks forward to having its 
proposals in due course. The rental and leasing 
agreements which are of growing importance, have 
advantages and disadvantages for the user; studies 
might well be made on the effects on users of these 
options. Thus, while users are given rental lease 
or buy options the terms of leasing or rental 
agreements from some suppliers may narrow the 
range of choice open to them. Any proposals by the 
Commission should seek both to enhance the ability 
of the European industry to give competitive rental 
terms and also to widen the range of choice (or 
market transparency) open to the user. 
13. Redressing the balance (Volume I (3.4.3)) 
13.1. The Committee appreciates the difficulties 
which have been involved in the past in persuading 
European companies producing large computers to 
cooperate (viz. the proposed Siemens/CII/Philips 
merger). This shows that the possibility of similar 
difficulties arising with producers of small to 
medium-sized computers should not be treated 
lightly. 
No C 18/10 Official Journal of the European Communities 23.1.78 
14. Peri-informatics (Volume I (3.4.4)) 
14.1. The lack of recognition of the difficulties 
involved in getting firms to cooperate seems also 
apparent in this paragraph. Why is it thought 
necessary for proposals being considered for the 
Community premium scheme, as outlined in 
Volume I (4), to come from ready-formed asso­
ciations of firms based in two countries? The 
Committee suggests that firms acting alone could 
come forward with proposals, and the Commission 
could also take the initiative in establishing suitable 
partnerships; if cooperation failed, the Commission 
would still be able to ensure as a condition of 
support to a single firm that products developed are 
in line with overall harmonization and international 
standardization requirements. Moreover, such a 
procedure would be more compatible with the need 
to take rapid decisions in a fast-moving technology 
(see Volume I (4.3)). 
14.2. Insufficient attention seems to have been paid 
to the requirements of different user industries. Peri-
informatics has a very wide application: different 
industries will have different needs. The Commission 
is therefore called upon to arrange for consultation 
procedures in order to appreciate the user industries' 
needs. 
15. Support for electronic component developments 
(Volume I (3.4.5)) 
15.1. Similar comments apply to component 
development support. In addition, it is conceivable that insufficient funds are being allocated to the 
development of electronic components — 12 million 
units of account over the four-year programme 
compares unfavourably with the 32 million units of 
account allocated each to software, applications and 
standardization and to peri-informatics. Given this 
problem, it would seem desirable for the Commission 
to identify as soon as possible which particular 
components justify most support, and to give the 
development of these components a greater level of 
support than is at present envisaged. 
The Committee would also draw attention to the 
question of the commercial policy to be pursued by 
the Community once the development projects in 
question move into the production stage. 
16. The proposals for Decisions and a proposal for 
a Regulation (Volume I, Annexes I, II and III) 
16.1. The Committee would ask that the com­
position of the Management and Coordination 
Committee for Data Processing Programmes 
(Annex II) be revised so as to include representatives 
of the various parties concerned (manufacturers, 
users, unions, etc.). 
16.2. With regard to the proposal for a Council 
Regulation on the Community premium scheme for 
the data processing sector (Annex III) and the 
question of whether the premia granted to European-
controlled companies are compatible with the Treaty 
of Rome, the Committee would refer to its comments 
in paragraph 1.4 above, but accept that the question 
is one of legal interpretation and decision. 
Done at Brussels, 26 October 1977. 
The Chairman 
of the Economic and Social Committee 
Basil de FERRANTI 
ANNEX 
to the opinion of the Economic and Social Committee 
The following amendments were rejected during the discussions: 
Paragraph 1.4 
Add the following: 
'Grants should be granted to firms which submit projects of Community interest for the 
development or use of data processing and, in particular, projects which boost the 
competitivity of the Community's data-processing industry. Ownership or control should 
not be the sole criterion. Cooperation with firms controlled from outside the Community 
may be very useful in many instances.' 
23. 1. 78 Official Journal of the European Communities No C 18/11 
Voting 
For: 20, against: 46, abstentions: 9. 
Paragraph 16.2 
Delete the whole paragraph. 
Voting 
For: 18, against: 38, abstentions: 7. 
The following item was amended as the result of the adoption of an amendment during the 
Committee's discussion: 
Paragraph 2.2 
Deletion of last sentence of this paragraph reading as follows: 
'Specifically, the Section would not accept "the creation of Community-wide standards" as 
seems to be envisaged in paragraph 2.1.1 of Volume I of the Commission document, except 
under the above conditions.' 
Voting 
Adopted unanimously with two abstentions. 
Opinion on the proposal for a Council Directive amending Directive 75/319/EEC of 
20 May 1975 on the approximation of provisions laid down by law, regulation or 
administrative action relating to proprietary medicinal products 
The text referred to the Committee has been published in Official Journal of the 
European Communities No C 194 of 13 August 1977, page 6. 
A. LEGAL BASIS FOR THE OPINION 
On 10 August 1977 the Council referred the abovementioned proposal to the Economic 
and Social Committee in accordance with Article 100 of the Treaty establishing the 
European Economic Community. 
B. OriNION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
152nd plenary session held in Brussels on 26 and 27 October 1977. 
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 100 thereof, 
Having regard to the request for an opinion made 
by the Council on 10 August 1977, 
Having regard to the decision taken by its chairman 
on 29 August 1977 instructing the Section for Industry, Commerce, Crafts and Services to draw 
up an opinion on the matter, 
Having regard to the opinion issued by the Section 
for Industry, Commerce, Crafts and Services at its 
meeting on 5 October 1977, 
Having regard to the oral report made by the 
rapporteur, Mr Chabrol,