4. 7. 88 Official Journal of the European Communities No C 175/33 
Opinion on the Commission proposals on the prices for agricultural products and on related 
measures, 1988/1989 
(88/C 175/12) 
On 6 April 1988 the Council decided to consult the Economic and Social Committee, 
under Article 198 of the Treaty establishing the European Economic Community, on the 
abovementioned Commission proposals. 
The Section for Agriculture and Fisheries, which was responsible for preparing the Commit­
tee's work on the subject, adopted its Opinion on 13 April 1988. The rapporteur was 
Mr Schnieders. 
At its 255th plenary session held on 27 and 28 April 1988, the Economic and Social Committee 
adopted the following Opinion by a large majority with no votes against and 3 abstentions. 
1. Preliminary comments 
1.1. The Committee's Opinions of 19 November 
1987 and 27 January 1988 i1) supported the adoption 
of effective and appropriate measures for controlling 
and curbing surplus production and agricultural spend­
ing. The principles underlying 'stabilizers' were 
approved at the 11/12 February 1988 Summit and Farm 
Ministers have since adopted the relevant Regulations. 
1.2. The funding arrangements for agricultural mar­
ket and structural policy measures have thus been fixed 
for a five-year period. In order to maintain budgetary 
discipline and restore balance to the market, the prices 
for market regime products will fall sharply if the 
thresholds now applicable to all products are exceeded. 
These price cuts will affect all producers equally, 
regardless of whether they have increased or reduced 
production. 
1.3. The Council has given producers the chance to 
participate in set-aside programmes on a modest scale 
to help ensure that the thresholds for cereals, rape and 
leguminous vegetables are not reached. The implement­
ing provisions are to be adopted by the Commission by 
30 April 1988. The Committee delivered an Opinion on 
the Commission proposal on 24 February 1988 (2). 
2. General comments 
2.1. This is the background to the Commission's 
proposals for the 1988/1989 farm prices and the related 
measures. The Committee accepts in principle the 
efforts of the Commission and the Council to maintain 
budgetary discipline and restore balance to the market. 
Hence it approves in principle the freezing of inter­
vention prices. It has, however, considerable reser­
vations about the proposed related measures. These are 
set out in detail below. The Committee would also reiterate its previous demand that any loss of income 
caused by the restrictive price policy be cushioned by 
structural, regional and income measures. 
2.2. The Committee notes that the Commission pro­
poses to reduce intervention prices in the case of durum 
wheat only. This gives the impression that the Com­
mission has not proposed any changes in farm prices. 
In reality, however, many of the related measures pro­
posed by the Commission will result in a further fall in 
market prices. 
2.3. The following cuts have already been fixed on 
the basis of the current forecasts for the 1988/1989 
harvest: cereals approximately 3 %, rape, soya and pro­
tein plants 5-8%, sunflowers about 10%. Moreover 
the related measures that have been proposed will 
exacerbate the price cuts which are likely to result from 
the 'stabilizers decision'. 
2.3.1. Since the tillage and planting for the 1988 
harvest has already taken place and the implementing 
regulations for the set-aside programme are still only 
at the preparatory stage, it is now too late for farmers 
to be able to act. The Committee has already pointed 
this out in its Opinion of 27 January 1988 (3). 
2.4. Several Committee Opinions in the past have 
already drawn attention to the fact that efforts to 
stabilize agricultural markets can be frustrated by 
imports from non-Community countries which have 
not taken similar measures to curb production. This is 
particularly true of imports of cereal substitutes, which 
increased from 15 to 17 million tonnes last year. This 
increases the expenditure on the storage and export of 
EC cereals. The Committee would therefore urge the 
Commission to heed the European Council's request 
'to ensure, in the context of the Uruguay Round and 
having regard to the provisions of the General Agree­
ment on Tariffs and Trade (GATT), that the Com­
munity's measures with respect to prices and quantities 
are given due consideration, and to press for an appro-
(') OJ No C 356, 31. 12. 1987 and OJ No C 80, 28. 3. 1988. 
(2) OJNoC95, 11.4. 1988. (3) January 1988: OJ No C 80, 23. 3. 1988. 
No C 175/34 Official Journal of the European Communities 4. 7. 88 
priate solution to the problems arising in connection 
with imports of cereal substitutes, oilseeds and protein 
plants into the Community^1)' 
2.5. A number of Committee Opinions have already 
called for effective and appropriate measures to curb 
overproduction and agricultural spending—up by 
106 % since 1980. The Council has heeded this request, 
laying down a 28 600 million ECU guideline for spend­
ing by the European Agricultural Guidance and 
Guarantee Fund (EAGGF). The Committee approves 
this guideline. 
2.6. This guideline and the implementation of the 
stabilizers instrument mark the beginning of a policy 
which requires big sacrifices from farmers and particu­
larly family farms and all those who farm in the disad­
vantaged regions where the exodus from the land is 
more pronounced. EC statistics show that since the 
beginning of the seventies the net incomes of farmers 
have fallen in all the Member States, although EAGGF 
spending has risen sharply and farm incomes rose in 
some years. Incomes fell by 5 % in 1987. In its Opinion 
of 19 November 1987 (2) the Committee has already 
noted that 'the social situation of the majority of those 
gainfully employed in agriculture has deteriorated'. 
2.7. Discussing the prerequisites for reform in its 
Opinion of 19 November 1987 (2), the Committee said 
that 'the process of adjustment must be carried out in 
a socially acceptable manner'. The Committee therefore 
calls upon the Council to do everything in its power, 
when fixing the farm prices for 1988/1989, to ensure 
that the related measures—especially those which 
according to Part II of doc. COM(88) 120 final (finan­
cial implications) will have no impact on the budget— 
do not result in a loss of income for farmers. Instead, 
all avenues should be explored which are compatible 
with the principles laid down by the Committee (Opin­
ion of 19 November 1987) (2) but remain within the 
budget guideline. 
2.8. The Committee therefore calls for the pro­
motion of all measures that will help to improve the 
quality of foodstuffs, as already recommended by the 
Committee in its Opinion of 19 November 1987 (2). This 
means first of all making sure that quality standards for 
agricultural products, e.g. fruit and vegetables, wine, 
livestock and meat are maintained and improved in all 
EC countries. It also means maintaining and where 
possible improving the high nutritional value of basic 
foodstuffs during processing. 
(!) Declarations of the European Council concerning agricultural 
policy, Annex II to the overall compromise of the European 
Council of 11 and 12 February 1988. 
(2) OJ No C 356, 31. 12. 1987. 2.9. The Committee would point out to the Council 
that the stabilizers instrument lacks flexibility. Farmers 
are able—insofar as alternative solutions exist—to have 
some influence over acreage and the size of cattle herds. 
Harvests, on the other hand, also depend on what the 
weather has been like—something which lies outside 
the control of human beings. The Committee therefore 
asks the Commission to come forward with proposals 
on ways of balancing out surplus and shortfall pro­
duction over a number of years to take into account 
the biological cycles of certain crops (e.g. olives), 
without exceeding the budget guideline. Such measures 
are already in force, albeit in rudimentary form, in the 
sugar beet and wine sectors. 
2.10. The Committee believes that regulations on 
small producers should all be tailored in practice to the 
particular structures and production patterns of the 
farms themselves. By carefully combining acreage with 
output it should be possible to exempt small producers 
from the restrictions placed on the quantities of agricul­
tural products offered for sale. 
2.11. The Committee would re-emphasize the great 
importance it attaches to structural policy. Greater 
efforts should therefore be made to improve marketing 
and processing structures, transportation and infra­
structure, agricultural credit, support for projects by 
individual farms, job opportunities outside agriculture, 
the purposeful utilization for other ends (e.g. fibre 
plants, ornamental plants, wood, etc.) of agricultural 
resources no longer needed for food production. 
2.12. The Committee is strongly in favour of the 
adoption of appropriate measures (in particular closer 
cooperation on economic and monetary policy) where­
by Member States' currencies are so closely tied together 
by 1992 that upward or downward realignments of 
exchange rates will no longer undermine common farm 
prices. All Member States should therefore commit 
themselves to operating within a common band of 
permissible currency fluctuations. This should ensure 
that the monetary compensatory amounts (MCA) can 
be abolished by 1992. Therefore the Committee pro­
poses that visible action be taken to remove existing 
MCA, taking into account the Council's decisions when 
adopting the farm prices and related measures for 
1987/1988. 
3. The Economic and Social Committee has the fol­
lowing comments to make on individual products 
3.1. Cereals 
The halving of the monthly increases means a further 
indirect price cut of 2% on average and will further 
destabilize the markets at harvest time. The Committee 
calls for the increases to remain as they are. The only 
4. 7. 88 Official Journal of the European Communities No C 175/35 
changes which should be made are those necessitated 
by the changes in interest costs. 
The sharp fall in the intervention price for durum wheat 
should be further cushioned by an increase in aid. 
The use of certified seed should be encouraged in the 
traditional durum wheat areas. 
The Committee believes that the Community should 
return to the 16% moisture content level required for 
processing. 
The Committee considers that suitable administrative 
means should be found to avoid the advance payment 
of the supplementary levy. 
The Committee welcomes the Commission's plan to 
introduce aid to boost the use of cereals for animal feed. 
This measure should be tailored to practical realities. 
Regions and farms where up until now there has been 
a high percentage of cereals in compound feedingstuffs 
must not find themselves at a disadvantage. Not only 
funds from co-responsibility levies but also savings from 
export refunds should be made available under the aid 
schemes. 
3.2. Peas and field beans 
The Committee thinks that when the aid is calculated, 
allowance should be made for other raw materials 
which compete with grain legumes in compound 
feedingstuffs. 
3.3. Dried fodder 
The Committee is opposed to the increase in the mini­
mum protein content from 14 to 16%. This will not 
save any money. All it will achieve is to exclude from 
the aid schemes plants which in the past have been 
eligible, e.g. grasses. The effect on existing infrastruc­
ture will be considerable. 
3.4. Tobacco 
The Committee welcomes the Commission's intention 
to divide up the guaranteed quantity not only according 
to groups of varieties but also according to varieties. 
Consideration should be given to the possibility of 
exempting group I varieties from the restriction. The 
Committee reiterates its proposal of 27 January 1988 (*) 
that socio-structural measures be adopted in the less-
developed regions to help eliminate gradually the imbal­
ance on the tobacco market. 
3.5. Fruit and vegetables 
3.5.1. Fresh fruit and vegetables 
The Committee would point out that prices have fallen 
by more than 40% in real terms as a result of the 
(!) January 1988: OJ No C 80, 28. 3. 1988. conversion factors applied by the Commission to buy-
ing-in prices. 
The Committee cannot understand why the Com­
mission has still not submitted a report on the situation 
in the citrus fruit sector, yet puts forward proposals for 
the coming marketing year. A system of processing aid 
to increase the value of Community production would 
be more rational and economical for the Community. 
The difficulties of the fruit and vegetables sector could 
best be solved by reinforcing the principle of Com­
munity preference. 
The Committee is of the view that encouragement 
should be given to the initiatives already undertaken in 
the southern European countries to expand the pro­
duction of semi-tropical and exotic fruits (avocados, 
kiwis, pineapples, bananas, etc.). Some of these crops 
—which are still imported in large quantities from third 
countries—are traditionally grown in certain island 
regions of the Community (bananas in the Canaries, 
Martinique, Guadeloupe, Madeira, pineapples from the 
Azores, etc.). The Commission should look into these 
problems more closely to ensure that preference is given 
to Community produce and that fresh and processed 
products compete on equal terms. 
3.5.2. Processed fruit and vegetables 
The Committee cannot approve such a restriction on 
peaches in syrup at a time when imports from third 
countries are rising sharply and the Commission is not 
proposing any stabilizing mechanism. 
3.6. Cotton 
In view of the deficit in cotton and the alternative which 
this offers to other products in surplus, the Committee 
regard the guarantee threshold of 752 000 t as too low. 
3.7. Soya, sunflowers and oilseeds 
The Committee considers that the guarantee thresholds 
for these crops are too low in view of the fact that there 
is a considerable production shortfall. The Committee 
calls on the Commission to submit proposals on how 
the opportunities for disposal can be better exploited 
without breaching the budget guidelines. 
3.8. Beef 
The Committee thinks that the proposed changes in the 
intervention system go too far. Since the Commission 
has announced that it will be proposing changes to the 
beef market regime in autumn, and since it is expecting 
an easing of the situation on the beef market and does 
not expect the proposed measures to lead to EC budget 
savings, the Committee would recommend that no 
changes be made in this sector. 
No C 175/36 Official Journal of the European Communities 4. 7. 88 
The Committee is also opposed to the tendering system 
which has been announced for beef. Differences in the 
quality of beef make this measure unsuitable. Small and 
medium-sized processing plants would also be discrimi­
nated against. In the Committee's view the quotas for 
beef imports from third countries far exceed domestic 
demand. The Committee would like to see the Com­
mission draw up proposals on how the supply of live 
calves for fattening could be improved in certain deficit < 
regions (e.g. Greece). 
Done at Brussels, 28 April 1988. 
1. The Committee records its satisfaction at having 
been asked for an Opinion by the Commission on this 
communication, which is designed to facilitate consider­
ation of the Green Paper and future EC telecommuni­
cations policy. The communication sets out a pro­
gramme of action both as regards measures to be unter-
taken by the Commission under Community compe­
tition rules and its general mandate, and as regards 
future proposals to the Council, in order to achieve 
progressive opening of the telecommunications market 
in the Community to competition. 3.9. Milk 
In view of the situation on the Community and world 
milk market, the Committee suggests that the Com­
mission draw up a proposal cancelling the temporary 
1,5% quota suspension due for the 1988/1989 market­
ing year. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT 
1.1. The communication is therefore a follow-up to 
the Green Paper. It draws attention to the wide-ranging 
debate prompted by the Green Paper and does not 
diverge from it in any substantial way. The communi­
cation does, however, provide a number of important 
clarifications in respect of the Commission's priorities 
for action. The communication comprises three parts, 
namely: 
a) areas where the development of concrete policy 
actions is possible now; 
b) areas where comprehensive policy consensus still 
has to be worked out; Opinion on the Communication from the Commission: 'Towards a competitive community-
wide telecommunications market in 1992 - Implementing the Green Paper on the development 
of the Common Market for telecommunications services and equipment - State of discussions 
and proposals by the Commission.' 
(88/C 175/13) 
Acting in accordance with the provisions of Article 198 of the Treaty, the EC Commission 
asked the Committee, on 26 February 1988, for an Opinion on the abovementioned communi­
cation. 
The Committee's Section for Transport and Communications, which was instructed to 
prepare the work on the matter, issued its Opinion on 13 April 1988 (rapporteur: 
Mr Rouzier). 
At its 255th plenary session on 27 and 28 April 1988 (meeting of 27 April 1988), the Economic 
and Social Committee adopted the following Opinion by 85 votes to 8, with 25 abstentions.