ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)641
Vol.1982/0200

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82 )641final
Brussels .14October 1982
COMMISSION COMMUNICATION TOTHE COUNCIL
ONINITIATIVES FOR PROMOTING INVESTMENT
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1* '0* r■-•-tr--^ ..«* /rfv /•''V.^/-./;
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COM(82 )641final

1.Introduction
1.1Inresponsetotheconclusions reachedbytheEuropeanCouncilon
28-29Juneandsubsequently bytheCouncil(EconomicandFinancial
Affairs)on12July,theCommissionpresentsbelowasetofproposals
orguidelines,takingaccountofworkbytheEconomicPolicyCommittee.
Someofthemeasuresdiscussedbelowareessentiallynationalmeasures,
butexplicitjointrecognitionthattheyareafirstpriorityis
important.
OthersareCommunitymeasures :theCommissionproposesnotonlysome
initialtangiblestepsbutalsoasetofguidelines whichwouldhave.
tobefleshedoutinsubsequentdeliberations withintheCouncil.
1.2Thesedifferentproposalsneedtobelookedatintheirpropercontext.
Theycannotbythemselvesgenerateafasterrateofinvestment,notably
productiveinvestment .Yet,theywouldbesuchastoimprovesigni­
ficantly,ortocreate,someofthegeneralorspecificconditions
underwhichproductiveactivity,andconsequently investment,is
carriedon.
1.3Beforesettingoutthedetailsofanyguidelinesforaction,theCom­
missionhastwoobservations tomake:
(a)Atatimewhenunemployment intheCommunityisapproaching the
11millionmark,theCouncilshouldbringcLearlytolightthe
majorcontribution apolicyofinvestment-based wealthcreation
canmaketoresolvingemploymentproblems.
Thepressingneedforactioninthisfieldstemsfromthefact
that:
-ultimately,thegrowthofinvestment,thatistosaythecreation
ofproductiveactivitythatisrobust,modernandcompetitive,
determines-directlyorindirectly-thegrowthofemployment,
particularly amongyoungpeople.Theexistenceofthislinkis
wellillustrated inthesectorswithfuturepotentialandalso
inindustries whereinvestmentinproductivity wouldrestore
thelevelofcompetitiveness withoutwhich,ultimately,the
maintenance ofatleastsomeoftheexistingjobscannotbe
guaranteed .
-intheimmediatefuture,whenthetrendsofinternational demand,
ofincomesandofbudgetarypolicieshavearestrictiveeffect
ondemand,investmentdirectlyconstitutes apowerfulfactorof
growth.

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b)Theideasexpoundedbelowhavetobeseenagainstthewidersetting
describedinthepreviousCommunication .Improvedinvestment pei–
formancedependstoaveryLargeextentonastableandpredictable
economicenvironment thatisinkeepingwithfundamental economic
realities.Thisdemonstrates theimportanceofmovestoconsoli­
datetheEMSatCommunitylevelandofeconomicandmonetarycoope­
rationatinternational level,inthesuccessofmeasurestounder­
pininvestment .
2.Actionatnationallevel
WithoutgoingoverindetailonceagaininthisCommunication the
ideasputforwardinthedocumentthattheCommissiontransmitted
totheCouncillastJune,itneedstobeemphasizedthatnational
measureswouldbemoreeffectiveiftheyweremutuallyconsistent
andifacommonapproachcouldbeagreedatCommunitylevel.The
advantageofsuchanapproachwouldbe:
-tobringtolighttheobjectivesthatshouldbepursuedbyall
andtounderscoretheneedforjointlyacknowledging thehigh
priorityofthoseobjectives ;
-bywayofcriticalassessmentandasynthesisofexperiences,to
determinethemostappropriate measuresand,wherenecessary,to
assesshowaCommunityapproachcancontributetotheirsuccess.
Theapproachshouldaimat:
-expandingtheresourcesavailabletofirmsforinvestment;
-improvingtheeffectiveness ofinvestmentincentivemechanisms;
-restructuring publicexpenditure .
Moreover,itisimportanttopressaheadbothatnationalleveland
atCommunitylevelwitheffortstoremovetheobstaclesofallkinds
thatarehamperingproductiveactivity,whethertheystemfromexces­
siveformalities,fromtheconstraints onuseofplantandmachinery
orfromtheexistenceofrulesandregulationsill-suitedtothe
objectivepursued.Anyprogressonthisfrontwillmakeagenuine
contribution topromotinginvestment,inparticularinvestmentby
smallandmedium-sized enterprises (SMEs).

-3-
2.1Ex£anding_the_resources_ayaHab^e_to_f irmsforinvestment
Eveniftherewereasustainedfallininterestrates,thepresentLevel
ofself-financing wouldbeinsufficient toenablefirmstoachievea
satisfactory balancebetweenownfundsandloancapital.Thisis
becausethedegreeofself-financing hasdeclinedsteadilyinrecent
years(1978-81),sometimesbyupto20%.Whenthegeneralclimate
isuncertain,suchadevelopment inevitablyleadstoaslowdownin
investment .
Theaim,therefore,mustbetoendeavourtoraisetheleveloffirms'
self-financing ,expressedasaproportionofvalueadded,whileat
thesametimemaintaining costpricecompetitiveness .
(a)Thefirstconditionforsuchadevelopment isthatthegeneral
trendofproductioncosts,includingwagesandtaxationinthe
broadsense,shouldpermitthisincreaseinself-financing .
(b)Furthermore,itisuptotheauthorities :
-toseetoitthatthetaxandregulatory mechanismsnecessary
forfirmstoachievethehighestpossiblelevelsofself-finan-
cingandhenceofdevelopment aresetinplaceandtochannel
theseextraresourcesintoinvestment ;thisrequires :
.amodification ofthesystemoftaxingprofitsandofthe
rulesgoverningthe"ploughingback"ofprofits;
.theintroduction oftaxrulesondepreciation thataresuchas
toencourageinvestment ;
-topursuethetwo-foldobjectiveof:
.devisingappropriate mechanismsthathelptochannelsavings
intothefinancingofindustrialinvestment ;
.toreducethecrowding-out effectofundulylargepublic
deficitsontheloancapitalavailableforinvestment,which
generateshighinterestrates.

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MemberStateshaveeachintroduced asetofmechanismsintheseareas.
TheCommissionproposesthattheireffectiveness andresultsbe
assessedjointly,witheachMemberStateprovidingthenecessary
information andtheCommissionsummarizingthefindingsandpre­
sentinganyconclusions totheCouncilfordiscussion inthefirst
halfof1983.
2.2In]Eroying_the_effect2yeness_of_the _incentivemechanisms
Theconcerncausedbythedeepeningrecessionexplainswhythere
hasbeenaverymarkedtendencyinrecentyearsforaidstopro­
liferateandtoincrease,whethertheyinvolvetaxexemptionsor
directaids.Thishasexacerbatedtheproblemofaidtransparency,
ledtoagrowingfragmentation ofmechanisms andtheincreasingly
apparentriskthatmeasurestakenhaphazardly andnotbasedonan
overallstrategywillultimately nolongerbereallyeffective.
Consequently,bothforreasonstodowithgeneralbudgetarycon­
straintsandforreasonsofsimpleeffectiveness ,athoroughcritical
analysisofthevariousaidandincentivemechanisms inforcemust
beundertaken .
Thisreviewshouldproduceasystembasedoncertainguiding
principles :thereisaneedtoestablishgeneralmechanisms which
aresimpletoapplyandsufficiently permanentforfirmstoknow
howfartheycanrelyonthemintheireconomiccalculations .
Thepurposeofsuchanexercisewouldbetwo-fold :
-toassesstheextenttowhichchangesinthepresentarrangements
wouldmakethemmoreeffectivewhileatthesametimeensuring
theirconsistency withthesmoothoperationofthecommonmarket,
inparticulartheTreaty'sprovisions onaidsandcompetition,
wheretheCommission hasspecialresponsibility ;
-totheextentthatsomeoftheaidsareseentobeoflimitedor
indeeddoubtfuleffectiveness ,todecideeithertousethefinan­
cialresourcesreleasedforstrengthening othermechanismsor,
giventhegeneralneedtotrimbudgets,withdrawthemaltogether .

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TheCommissionexpectstheCounciltoadopttheprincipleofsuchan
exerciseandtodrawupaprecisetimetableforthwith.
2.3Restructuring publicexpenditure
Thegeneralprinciplesofthepolicytobepursuedintheareaofpublic
financewereoutlinedbytheCommissioninitsCommunication onbudget
discipline andeconomicconvergence .
TheEconomicPolicyCommittee'srecentworkontheroleofthepublic
sectorinpromotinginvestmentisbasedonsimilarprinciples .
Arealeffortmustbemadeasamatterofurgencytoincreaseinvest­
mentthroughshiftsinpublicexpenditure,whoseshareofGDProse
1from327.in1960tomorethan50%in1982.,whilepublicinvestment
asaproportion oftotalpublicexpenditure declinedfrom10%to6%
duringthesameperiod.
Withinpublicinvestmentitself,greateremphasismustbeplacedon
investment whichdirectlyaffectsthegrbwthoftheproductive economy.
Theobjectivetobepursuedmustthereforebetwo-fold :
-toincreasetheshareofpublicexpenditure goingoninvestment,
-and,withinthislargershare,toshiftinvestmenteffortstowards
expenditure thatwillimprovetheframeworkwithinwhichproductive
activityiscarriedon.
Theobjectiveofachievingalastingincreaseintheshareofpublic
expenditure providingsupportforgrowthmustbereflectedinnational
budgetsstartingin1983.
TheCommissionthereforerequeststhat:
-betweennowandtheendof1982,anassessmentshouldbemadeofthe
wayinwhichthispolicyisbeginningtobeputintoeffectineach
ofthenationalbudgetsfor1983.
■••/•■■
(1)Initscommunication onconvergence andbudgetarypolicy,theCommission
recommended thatthistrendshouldbechecked.

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-assoonaspossibleduring1983,MemberStatesshouldstartstudying
waysinwhichpublicfinancecanberestructured inthemediumterm
infavourofinvestmentexpenditure ;thisreallocation callsfora
reviewofcurrentexpenditure,whichisparticularly inflexible-a
reviewwhichwillinevitablyleadtoadjustments inlawsorregulations
3.ActionatCommunitylevel
ActionatCommunitylevelmustconsistfirstinestablishingjointly
guidelinesatnationallevel,whichwhilereflectinginterestswhich
havepriorityrankingforeachMemberState,willbeofthesametype
andinvolvesimilarmeasures.Inthisrespect,theessentialvalueof
Communityactionisthatofjointrecognition,demonstration and
stimulus.
Overandabovethis,theCommunitycanmakeitsownmorespecificcon­
tributioninthefollowingthreeareas:
-achievingrealdevelopment ofthesinglemarketsoastoallowfor
additionaleconomiesofscale,andstrengthening theeffectsofan
areainwhichthereiscompetition betweenformsbelongingtoone
andthesameeconomicentityandlargelygovernedbysimilarrules;
-providingtheextraeffectiveness whichcanbeobtainedthrougha
jointefforteithertoorganize (e.g.aids)ortounderpin(e.g.
throughincentives )certainstrategicactivities (R&D,innovation,
energy,improvedvocationaltraining)whicharebothjob-creating
andkeytargetsforinvestment ;
-developingtheCommunity'sfinancialinstruments andadaptingthemto
theneedforimprovedperformance intheareaofindustrialinvestment.
3.1The_sin2le_market
Despitetheprogressachievedoveraperiodofalmost25years,acommon
marketbetweentheCommunitycountrieshasnotyetbeenfullyestablished
GivingEuropeanfirmsthesureknowledgethattheywillbeableto
developtheiractivitiesinaneconomicentitycomparableinsizetothe
Americanmarket,andsignificantly LargerthantheJapanesemarket,
couldplayakayroleinboostinginvestment :asufficiently broad
basefortechnological development,financingandsalesisessential
formanagementstobeabletomeetthechallengeofworldcompetition .

-7-
Itisamatterofurgencythatrapid,decisiveprogressbemadein
developingthesinglemarketandmeasuresintroducedthatwillhelp
tospeeduprealization ofthepotentialforprogressthatwillflow
fromthesinglemarket.TheCommissionthereforetostepupgenerally
itseffortstoensurethatfirmscanincreasingly enjoytheadvantages
ofequalaccesstothecommonmarketandthattheobligations deriving
fromtheTreaty,particularly whereStateAidsareconcerned,areob­
served.Also,theCommissionwilldoallitcantopromotethedevelop­
mentofthecommonmarketinservicesandeffectivefreedomofcapital
movement .
TheCommissionhasputforwardspecificproposalsalongtheselines,on
whichdecisionsmustbetakenrapidly.Theproposalsthathavebeenmade
andthosewhichwillfollowthemmaybedevidedintotwogroups:
-someareintendedtoensurethatthesinglemarketbecomesafull
reality:thesearetheproposalsdesignedtoremoveobstacleswhich
stillexistortointroduceappropriate prevention mechanisms (for
example,theproposaltoimproveinformation onstandardsandtechnical
regulations soastopreventtheemergenceofnewobstaclestointra-
Communitytrade),andtoensurecompliancewiththerulesontheopening
upofpubliccontractsincertainsectorssoastocreatesufficient
developmentpotentialforadvancedtechnologies (forexample,inthe
areaoftelecommunications ),etc.;
-othersaredesignedtoprovidefirmswithaCommunityframeworkwhich
isbothsimpleandsufficiently homogeneous :theseproposalscover
thesubstitution ofEuropeanstandardsfornationalstandards,the
simplification ofcustomsformalities,anappropriate legalstatus
forfirmsoperatingatEuropeanlevel,thegradualestablishment of
taxneutrality inrespectofintra-Community investmentetc.
Inviewofitsgeneralresponsibility foreconomicdevelopment andthe
establishment ofthebasicconditionsforanyacceleration inproduc­
tiveinvestment,theEconomicandFinancialAffairsCouncilshoulddraw
theattentionofmorespecialized Councilmeetingstotheimportance
whichrealprogressinunifyingthemarkethasfortheinvestment
decisionsoffirms.
TheMinistersforEconomicandFinancialAffairsshouldalsomakearrange
mentsforaregularassessmentofprogressinunifyingthemarket.

-8-
3.2.Sgecjf2£_stjmijLat_ionmeasures
ThereareareasofactivitywherespecificactionbytheCommunitywithin
widerpoliciescanstimulateproductiveinvestment.
3.2.1.TheCommissionintendsfirstofalltotakehorizontal
measurestopromoteindustrialinnovationandR+Dingeneral.
Industnal innovation
Inthefieldofinnovation,theCommissionconsidersthat
priorityshouldbegivenatthisstagetoidentifythespecific
financingproblemsencountered byinnovative SME;itiscurrently
studyingthepossiblechoiceswithaviewtoproposingwaysin
whichtheCommunityinstruments couldbeusedmoreeffectivelyto
coverthespecificrisksofinnovativeinvestment.Theresults
willbepresentedtotheCouncilbytheendof1982,andspecific
proposalswillfollowinthespringof1983
b)R&Dingeneral
R&Disoneofthemainpillarsofinnovativeinvestment,which,
byincorporating newtechnologies intoproductionprocessesand
newproducts,inturnensuresmoreefficientstructures and,
ultimately,morecompetitive economies.Inthisfield,action
takestheformofpolicieswhichevolveovertimeandtheeffective­
nessofwhichdeterminestheveryfutureofEuropeanindustry.The
Commissionwillsubmitattheendof1982anoutlineprogrammefor
theperiod1984-87whichwillhavetoensure,inparticular,the
coherenceofCommunityandnationalmeasuresformodernizing
traditionaltechnologies (steel,basictechnologies),fostering
advancedtechnologies (information technology,biotechnology ,new
materials),promotinganddevelopingrenewablesourcesofenergy,
andintroducing standardsandreferences.
3.2.2ThereareotherareasofactivitywherespecificactionbytheCom­
munitywithinwiderpoliciescanstimulateproductiveinvestment .

-9-
a)Informatjon_techno],02^_and_g20-techno
Althougheverysector,eventhetraditional sectors,havepotentialfor
development,andtheCommissionwillnotconcentrate onsectorsthatare
regardedasmorepromising,thereisnodoubtthatcertainproductsand
servicesarecharacterized byrapidlyexpandingdemandandbytheirstra­
tegicimpactontheeconomyasawhole:thisappliesespeciallytoinfor­
mationtechnology andbio-technology .
ThesesectorsprovidetheCommunitywithconsiderable potentialfordevelop
mentbecausetheyrequirelittleinthewayofrawmaterialsandenergy,
andenableEuropetoexploititsoutstanding advantages :anadvancedtech­
nology,aqualifiedlabourforce,abundantcapital,andamarketonacon­
tinentalscale.Moreover,therearenumerousverydynamicsmallandmedium
sizedfirmsworkinginthesesectors.
Todate,however,theeffortsofEuropeancompaniesandanumberofMember
StateshavenotmanagedtoexpandproductioninEuropeinlinewiththe
growthoftheEuropeanmarket,andevenmorethegrowthoftheworldmarket
mainlybecausethesizeoftheEuropeanmarkethasnotbeenexploited.Thi
istrueinparticularofinformation technology,althoughithasabsorbeda
considerable amountinpublicexpenditure onR&Dandpublicprocurement .
Bydeveloping anoverallstrategywithcompaniesandgovernments,torein­
forcethestrongpointsofthenewinformation technology inEuropeand
catchupwiththeUSAandJapanbothonthetechnological andonthecom­
mercialfront,theCommunitycanmakeauniquecontribution totherede­
ploymentofindustryandservices.
Thisstrategymustnecessarily involveallavailableindustrialpolicy
instruments :cooperation inR&D,publiccontracts,thepromotionof
commonstandardsandspecifications ,Communityfinancialinstruments
andpossiblytradepolicy.

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TheCommissionhasputbeforetheCouncil,underthe1983budgetprocedure,
asetofpilotR&Dprojectstopreparethevast"pre-competitive "R&D
programmetobelaunchedin1984,whichincludesamajorCommunityeffort
tosupplementtheprogrammesofMemberStatesandfirms.
Thisinitiativesupplementsearlierproposalsandmeasuresconcerning
telecommunications (thegradualopeningupofmarkets,deregulation,inte­
grateddigitalnetwork(INSIS),micro-electronics ,data-processing appli­
cationsanddata-banks (Euronet).
TheCommissionisalsocurrentlystudyingthepossibility oflaunchinga
majorbiotechnology programmein1983,takingaccountofthespecial
featuresofthatsector.
b)Energy
TheCommunity'sstrategyinthefieldofenergyistoreducedependence
ontherestofthewoKdbydiversifying thesourcesofsupplyandby
energyconservation .
Thisrequiresbothtechnicalprogressandconsiderable investment.Action
onthetechnicalfrontinvolvesbothresearchandthedemonstration ofnew
techniques.Actionontheinvestmentfrontinvolvesmainlyfinancingcon­
ditions:thelendingpossibilities fortheCommunity'sfinancialinstru­
mentshavebeenbroadenedandwillhavetobefurtherextended;moreover,
theCommission hasrecentlyproposedinterestsubsidiesonloanstofinance
certaincategoriesofinvestmentintherationaluseofenergy,whichcan
beprofitableoverarelatively longperiod.
c)ThesteelÎD^ustr^_and_steel_areas
i)Byreasonofitsobligations undertheECSCTreaty,theCommunity
participates,intheframeworkofsteelpolicy,infinancingthevery
considerable investmentsthatmakeuptherestructuration programmes
submittedbyfirmsandgovernments .

-11-
Itshouldbestressedthat,besidestheimmediateimpactofthese
streamlining investments onsuppliers upstream,theyconsolidate
employment inthesteelsectorbyreinforcing international competiveness
aftertheelimination ofexcesscapacity.Itisestimatedthatthese
investments,whichtotalledabout2.500millionEcusin1981,couldaccount
for2.900millionEcuin1982,about10%ofwhichwouldbefinancedby
ECSCloans.
ii)Intheareasaffectedbytheclosing-down ofsteelplants,thecreation
ofalternative jobscouldbehelpedifECSCandERDFsubsidized loanswere
grantedforinvestments inmanufacturing industryandservices.TheCom­
missionwillbesendingtheCouncilaproposalalongtheselinesbefore
theendofOctober.
d)Akeyelementinanyrevivalofinvestmentis'horizontal actiontoensurean
adequatesupplyoflabourandmanagerialskills,whichfrequently presentsan
appreciable obstacletotheintroduction ofnewtechnologies .Thepromotion
ofinvestment musttherefore beaccompanied byasustainedefforttoimprove
thetrainingoftheyoungandtheretraining ofworkersandmanagement .
ThenewSocialFundguidelineswillhavetotakeaccountoftheneedto
contribute moretothetrainingofthelabourforceanditsadaptation to
thenewtechnologies .

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3.3Thedevelopment oftheCommunity'sfinancialinstruments
VariousCommunityfinancialinstruments helptopromoteinvestment.
a)Withregardtothelendingmechanisms,thestructuralloansgrantedby
theCommunityandbytheEIBamountedtomorethan4000millionECUin
1981,47%beingallocatedtotheenergysector,33%tothedevelopment
ofinfrastructures and19%totheproductivesector.
Thesteadydevelopment oftheCommunity'slendingcapacityhasbeen
helpedbythesettingupoftheNCI,thesecondtrancheofwhich,approved
inApril1982,shouldhavebeenfullycommittedbythebeginningof1983.
TheCommissionrequeststhatthispolicybeconfirmedanddeveloped.The
Community'ssupportingroleinthisfieldisthree-fold :
-firstly,withintheframeworkofestablishedpriorities,toensurethe
financingofsuitableprojectswhich,forfinancialreasons,wouldnot
havebeencarriedoutorwouldnothavebeencarriedoutasrapidly
withouttheadditionalsupporttheCommunityprovides;
-secondly,tomobilizeadditionalresourcesforinvestment byexploiting
theCommunity'scredit-rating ;
-finally,toprovideapracticaldemonstration oftheCommunity'scommit­
menttoapolicyofpromotinginvestment (andthesymbolicvalueofsuch
actioncannotbeunderestimated )andtogivetangibleexpressiontothe
prioritygiventocertainsectorsofactivity.
ItisinthiscontextthattheCommission haspresentedtotheCouncila
newproposalconcerningtheNCI(NCIIII)whichwouldmakeitpossible
toborrowanadditional 3000millionECU.Thefollowingwouldbegiven
priority :
-renovationormodernization investmentinindustry,withspecialatten­
tionbeinggiventodevelopmentopportunities forSMEs;
-thespreadofnewtechnology andinnovation;
-energyinvestment,particularly investmentencouragingtheefficient
useofenergy;
-infrastructure investment Linkedtothedevelopment oftheproductive
economy.
TheCommissionalsoreservestherighttoconsider,alongwiththeMember
States,thepossibility ofpromotingmajorprojectsofEuropeaninterest
ifagreaterjointeffortisjustified.

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ThisLendingpolicyhasbeendevelopedandwillcontinuetobedeveloped
soastoensuremaximumeffectiveness withoutputtingtoogreatastrain
onthefinancialmarketsorenteringintocompetition withdomestic
borrowers.TheCommissionisguidedbytwoobjectiveshere:
-todevelopitsborrowingpolicyinamannercompatiblewithtrendson
thefinancialmarkets;
-tomanageitslendingfacilitiesinsuchawayastoensurethegreatest
possibleconsistency intheuseofthevariousCommunityinstruments .
TheagreementswiththeEIBhavebeenconcludedwiththisinmind.
ThisisthebackgroundtotheCommunity'slendingpolicy.Itisimportant
thatthevalueofthispolicyberecognized anditscapacityexpanded.
b)AmongthebudgetaryinstrumentsavailabletotheCommunity,someare
specifically designedtopromoteandguideinvestment andCommunity
loans,particularly subsidiesforpriorityactivities (research,energy,
industryetc.)ortomakeinvestmentpossibleinspiteofstructural
handicapsinparticularofaregionalorsocialnature.
TheCommissiononcemorecallsattentiontothefactthatitrecommends,
withthesupportofParliament,aregularincreaseintheresources
allocatedtothestructural Funds,andthatithassubmittedtothe
Council,ashadbeendecidedfollowingthediscussion ontheMandate
of30May1980,proposalsforamendingthemechanismstotake
accountofexperience andensureoptimumuseoftheavailableresources.
χ χ

-14-
4.Conclusions
Theguidelines andproposalsadvocatedheresupplyaframeworkforthe
requireddevelopment ofinvestment,i.e.toimprovecompetitiveness and
tomodernizetheEuropeaneconomies,callahalttoindustrialdecline
andtherebyrestoretheemploymentsituation.
TheCommissionaskstheCounciltoapprovetheseguidelinesandproposals,
whichwillformtheessentialpartofareporttobepresentedtothe
EuropeanCouncilnextDecember.
TheCommissionthereforeaskstheCouncil:
1.todecidethattheinvestmentsupportmeasuresatnationallevelshould
beimplemented inajointframeworkonthebasisofthreeprinciples :
-theestablishment ofconditionsforalastingincreaseinfirms'
self-financing capacityandowncapital,whereappropriate by
makingchangesintaxationandregulations ;
-makingtheinvestmentincentivemechanisms moretransparent,more
simpleandmoreeffective;
-undertaking,asof1983,areorganization ofpublicfinancesin
ordertopromotethemodernization oftheeconomy.
Onthebasisoftheconclusions oftheEuropeanCouncil,theCommission
willorganizemeetingswiththeMemberStatestodefineprecisearrage-
mentsforthemeasuresadvocated;itwilldrawtogethertheresults
obtainedandlaydraftconclusions beforetheCouncilbythemiddle
of1983;
2.toreacharapiddecisionontherecentproposalconcerningthedevelop­
mentoftheNewCommunityInstrument ;
3.tocallonthespecialized Councilstoadoptwithoutdelaytheproposals
beforetheminthefollowingfields:
-thecompletionofthesinglemarket,essentialtoexploitfurther
economiesofscale,supplytheEuropeaneconomywithabasisfor
technological development,financingandsalescomparabletothat
ofitscompetitors andthusfacilitatethedevelopment offirmson
aEuropeanscale,
-Communitysupportmeasuresincertainprioritysectors:innovation,
researchanddevelopment,technology,energy,vocationaltraining.