No C 120/14 Official Journal of the European Communities 6. 5. 91 
Opinion on the proposal for a Council Decision concerning the conclusion of the amendment 
to the Montreal Protocol on substances that deplete the ozone layer as adopted in June 1990 
in London y the Parties to the Protocol (1) 
(91/C 120/04) 
On 15 January 1991 the Council decided to consult the Economic and Social Committee, 
under Article 130S of the Treaty establishing the European Economic Community, on the 
abovementioned proposal. 
The Section for Protection of the Environment, Public Health and Consumer Affairs, which 
was responsible for preparing the Committee's work on the subject, adopted its Opinion on 
5 March. The Rapporteur was Mr Proumens. 
At its 285th plenary session (meeting on 20 March 1991), the Economic and Social Committee 
adopted the following Opinion unanimously. 
The Committee approves the Council Decision and 
welcomes the provisions contained therein. 
Some points of detail are, however, raised in the com­
ments below. 
1. General comments 
1.1. The present Decision concerns an amendment 
to the 1987 Montreal Protocol following the universal 
adoption of this amendment at the London Conference 
in June 1990. 
1.2. For this amendment to enter into force it has to 
be ratified by the Commission and by each of the 12 
Member States. 
1.3. The substances covered by the Montreal Proto­
col, viz. the chlorofluorocarbons (CFC) 11, 12,113,114 
and 115 and the halons 1211, 1301 and 2402, are to be 
phased out by 1997 (CFC) and 1990 (halons) respect­
ively. This is sooner than initially planned. 
1.4. In addition, two substances have been added to 
those covered by the Montreal Protocol, namely 1,1,1-
trichloroethane (methyl chloroform) and carbon tetra­
chloride. 
These two substances are to be phased out: taking the 
level of consumption in 1989 as a base, a 30 % reduction 
must be achieved by the end of 1995, 70% by the 
end of 1989 and 100% by the end of 2004 for 1,1,1-
trichloroethane, and an 85 % reduction by the end 
of 1994 and 100% by the end of 1999 for carbon 
tetrachloride. 
1.5. Annex C of the Protocol lists transitional sub­
stances. 
The purpose is to enable firms to continue operating. 
These transitional substances will, however, be 
(!) OJ No C 11,17. 1. 1991, p. 19. monitored; this means that it will be up to firms to 
provide production and consumption statistics for these 
substances so that if necessary they can be controlled 
or even banned. 
2. Specific comments 
2.1. In line with its Opinion of September 1990, the 
Committee urges the Commission to examine with the 
Member States the possibility of helping certain firms, 
small and medium-sized enterprises (SME) in particu­
lar, whose operation could be affected by the new 
provisions contained in the proposed Council Decision. 
2.2. The Committee calls on the Commission to 
study the problem of the use of certain CFC in medi­
cines. 
The substitution of CFC raises the problems of public 
health, particularly in the case of medicines which have 
to be inhaled. As new compositions have to be estab­
lished by the pharmaceutical companies, the Member 
States authorities responsible for authorizing placing 
on the market should adopt an accelerated review pro­
cedure for medicines whose propellant has been substi­
tuted. 
This accelerated procedure will enable the firms con­
cerned to comply with the new deadlines for the elimin­
ation of CFC. 
2.3. The Committee notes that the procedures which 
are mandatory for the Member States, among others, 
under the Montreal Protocol and its amendments 
include much less stringent transitional provisions for 
the developing countries. 
Clearly this was a decision taken at international level, 
but the Committee is concerned that the Commission 
should stress to the appropriate Member State authori-
6. 5. 91 Official Journal of the European Communities No C 120/15 
ties that imports—either of the substances or of prod­
ucts containing them—must not be allowed to jeopard-
Done at Brussels, 20 March 1991. 
Preliminary comment 
The Committee notes that the proposal falls within the 
framework of the Commission communication to the 
Parliament and the Council, dated 20 April 1990 (doc. 
SEC(90) 601 final). 
The Committee would like to be kept informed of the 
conclusions of the study carried out by the Commission 
on the company taxation problems caused by more 
advanced economic integration. 
In the meantime, the Committee reserves the right to 
draw up an additional Opinion on the Communication 
of 20 April 1990. 
Introduction 
The Committee welcomes the Commission proposal as 
a step towards the abolition of tax frontiers, which 
unfairly penalize financial flows between companies 
f1) OJ No C 53, 28. 2. 1991, p. 26. ize the application of the measures taken within the 
EC. 
The Chairman 
of the Economic and Social Committee 
Francois STAEDELIN 
operating in different Member States. In the run up to 
the Single Market, it is essential that such flows should 
not be treated less favourably than those between com­
panies in a single country. 
Nevertheless, the abolition of withholding taxes on 
interest and royalties payments between parent com­
panies and subsidiaries established in different Member 
States is only a first step. All interest and royalty pay­
ments within the Community should be exempt from 
withholding taxes, irrespective of any connection 
between the companies concerned. 
1. General comments 
1.1. The Commission defines parent companies and 
subsidiaries on the same basis as the Directive on parent 
companies and subsidiaries of 23 July 1990 (minimum 
holding of 25 % in the subsidiary). Opinion on the proposal for a Council Directive on a common system of taxation applicable 
to interest and royalty payments made between parent companies and subsidiaries in different 
Member States (x) 
(91/C 120/05) 
On 5 February 1991 the Council decided to consult the Economic and Social Committee, 
under Article 100 of the Treaty establishing the European Economic Community, on the 
abovementioned proposal. 
The Section for Economic, Financial and Monetary Questions, which was responsible for 
preparing the Committee's work on the subject, adopted its Opinion on 12 March 1991. The 
Rapporteur was Mr R. Pelletier. 
At its 285th plenary session (meeting of 20 March 1991) the Economic and Social Committee 
adopted the following Opinion unanimously.