No C 124/58 Official Journal of the European Communities 21. 5. 90 
7.7. Lastly, the Committee would stress that the 
required action in the field being studied also presup­
poses that more careful attention is given to coordi-
Done at Brussels, 19 March 1990. 
INTRODUCTION 
The present Opinion sets out to provide a general 
response to economic and institutional developments 
in the various countries of Eastern Europe. The import­
ance of these developments is incalculable, both for the 
countries involved and for the rest of the world, and 
they are still in rapid evolution. The process began in 
Hungary and Poland, and gradually spread to Czechos­
lovakia, the Soviet Union, the GDR, Bulgaria and 
Romania. Nor should we forget Yugoslavia, where 
political, ideological and economic reform had already 
been under way for some time. 
The Opinion will be followed by a general information 
report and a series of detailed papers on the individual 
countries of Eastern Europe. 
In the interests of clarity, it should be noted that the 
term « Eastern Europe » covers an extremely large and 
complex geo-political area. 
To asses accurately the economic, social and political 
situation of these countries, a distinction should be nation among related R&DD activities, as well as 
between closly interlinked Community and national 
research programmes. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE 
drawn between the countries of Central and Northern 
Europe (the GDR, Hungary, Czechoslovakia and 
Poland), the Balkans (Yugoslavia, Romania and Bulga­
ria), and the Soviet Union which forms a case apart, 
straddling Europe and Asia, and embracing a host of 
different races, languages and religions. 
The present Opinion has three main objectives: 
1) To assess the present economic and social situation 
in Eastern Europe, while taking account of the 
rapid pace of change and the different situations in 
individual countries. 
2) To assess the steps already taken by the EC a) as 
an emergency response and b) to put relations with 
Eastern Europe on a new footing. 
3) To draw up recommendations on the policies to 
adopt towards Eastern Europe in both the short and 
medium term. Opinion on the EC's economic relations with the countries of Eastern Europe 
(90/C 124/14) 
On 1 February 1990 the Economic and Social Committee, acting under the fourth paragraph 
of Article 20 of its Rules of Procedure, decided to draw up an Opinion on the EC's economic 
relations with the countries of Eastern Europe. 
The Section for External Relations, Trade and Development Policy, which was responsible 
for preparing the Committee's work on the subject, adopted its Opinion on 16 March 1990. 
The Rapporteur was Mr Briganti. 
At its 275th plenary session (meeting of 29 March 1990), the Economic and Social Committee 
adopted the following Opinion with no dissenting votes and seven abstentions. 
21. 5. 90 Official Journal of the European Communities No C 124/59 
1. The economic and social situation in Eastern 
Europe 
1.1. The longstanding crisis facing Eastern Europe 
has now been recognized by the authorities and (wheth­
er on their own initiative or under popular pressure) 
their past triumphalist attitudes have given way to a 
dispassionate and in some ways unexpected analysis of 
ther dramatic economic and social plight. 
1.2. The boldest and most clear-sighted leaders and 
experts in these countries have exposed a welter of 
interlinked problems: economic stagnation; a drop in 
agricultural and industrial production; low pro­
ductivity; bogus full employment; lack of worker 
mobility; camouflaged inflation; large State deficits cau­
sed partly by vast military spending; artificial prices; 
no spirit of enterprise or enterpreneurial freedom; poor 
use of natural resources; pollution; absolete technol­
ogies; growing balance of payments deficits 
accompanied by a high level of foreign debt; misguided 
public investment decisions; unrealistic exchange rates; 
closed frontiers preventing the free movement of people 
and goods; and a costly system for State control of 
the economy which is generally unable to operate the 
economic machinery efficiently. 
1.3. The social situation also appears serious and 
lags behind that of Western Europe, although we must 
avoid oversimplifying matters by overlooking the sig­
nificant differences within the area. 
1.4. Per capita consumption is low, and while wage 
levels should theoretically allow many population 
groups to step up their consumption, goods and services 
are often in short supply. This is a consequence of 
inadequate production levels for many goods; badly 
organized and outdated transport and distribution sys­
tems; and poor product quality. Statistics on living 
standards provide a further indication of the low level 
of prosperity, ranging from private car ownership to 
number of telephones. The public health situation is 
poorer than in the West, and infant mortality rates are 
generally higher. Officially there is full employment, 
but a blind eye has to be turned on a black economy 
which of course also exists in Western countries, found­
ed partly on moonlighting, speculation and black 
marketeering. 
1.5. The emancipation of women has fallen short of 
the projected image of such systems, while frustration, 
anxiety and rebellion are rife among the younger gener­ation. Discontent among workers, technical staff and 
intellectuals has triggered spontaneous strikes, with 
open or clandestine demonstrations of dissent, and mass 
rallies. 
1.6. Although serious, the socio-economic situation 
is also very complex. Account must be taken of the 
differences between countries and regions. Good rented 
accommodation is hard to come by, but once found, 
rents are very low, as is the subsidized cost of basic 
commodities, water, gas, electricity, public transport, 
and other utilities, with all the advantages and disad­
vantages that this system implies from a general econ­
omic viewpoint. 
1.7. Although full employments is a myth, job secur­
ity is good, albeit with low real wages. 
Working hours are generally shorter than in the West, 
not because of laziness, but in order to provide 
maximum employment. 
Primary and secondary education is open to all. While 
higher education is more accessible to the children of 
those in authority as a result of political selection cri­
teria, it is also open to many other gifted young people. 
1.8. In general terms, and leaving aside the privileges 
of the nomenklatura, there is a deep-rooted spirit of 
equality, particularly among the peoples of the Soviet 
Union and Poland, which opposes the spur of compe­
tition and individual incentives. This is an obstacle 
to worker motivation and competition between firms 
(hence the suspicion and resentment which have greeted 
small one-man businesses or cooperatives offering new 
goods and services at free-market prices). However, the 
spirit of equality reflects a sense of solidarity and social 
justice. 
1.9. A balanced assessment will need to take account 
of the progress made in certain countries. 
The GDR of example has achieved better economic 
results than other countries in Eastern Europe, and 
its more advanced technology stems partly from close 
contacts and trade with the Federal Republic. However, 
these links have not prevented a serious economic crisis, 
mass emigration, and a situation which obviously bears 
no comparison with that in West Germany. The Soviet 
No C 124/60 Official Journal of the European Communities 21. 5. 90 
Union's 60 000 factories may in many cases be largely 
obsolescent, but in numerical terms the USSR is still 
one of the world's main industrial powers, it possesses 
sophisticated technologies in such diverse sectors as 
space exploration and medicine, not to mention the 
enormous sums invested in the armaments industry. 
Thousands of patents are filed in the USSR annually, 
even though the lack of enterpreneurial capacity means 
that most of them never reach the production of market­
ing stages. 
1.10. Although the Committee is fully aware of the 
fundamental importance of the political situation in the 
countries of Eastern Europe, it does not consider it the 
Committee's task to engage in political analysis. 
In the face of widely differing situations and uncertain 
prospects, the Committee hopes that the creation of a 
market economy can be accompanied by the establish­
ment of free democratic systems. This is vital for econ­
omic and social pluralism and for an efficient, enduring 
market economy. 
The establishment and growth of free organization 
representing workers and employers, and the develop­
ment of collective bargaining on pay and working con­
ditions, are fundamental here. 
Of equal importance is the emergence and consolidation 
of associations and movements which are independent 
of the public authorities and represent the interests of 
the various categories—ranging from farmers to 
craftsmen, from the cooperative/non-profit sector to 
environmentalists and consumers. 
The political situation in these countries will become 
clearer with the holding of democratic elections. 
1.11. The Committee will first consider the econ­
omic, social and political situation as presented to 
domestic and international public opinion by the poli­
ticians and economists of Eastern Europe. It is import­
ant to recognize the gravity of the situation, and hence 
the urgent need for effective aid from the West and 
from the EC in particular. 
1.12. The wider import of these changing develop­
ments is unfathomable. 
Western Europe could face serious problems in the 
event of an over-hasty and unruly disintegration of the 
former Eastern Block, with further falls in production 
and living standards, and mass emigration when bor­
ders were thrown open. At the same time, the climate of detente brought by arms cuts and the reforms now 
under way has ushered in a new epoch in which we 
can and must frame a large-scale cooperation policy 
embracing not only economic, financial, trade, techno­
logical and environmental matters, but also the social 
and more human side. 
1.13. Closer relations and greater interdependence 
between Eastern and Western Europe are on the hor­
izon. 
Without presuming to be over-prescriptive, the Com­
munity is in a position to offer Eastern Europe an 
example of flexible development, economic structures 
and social balance. This does not mean a monolithic 
economy, but rather a mixed economy in which private, 
public and cooperative businesses all operate according 
to the laws of the market and free competition, based 
on clear rules and with respect for the freedom of 
businesses, workers and citizens. 
The Committee considers that, despite the many prob­
lems involved, this example will ease the transition 
from a closed and bureaucratic centralized economy to 
an open, decentralized market economy in the hands 
of a new class of entrepreneurs, managers, employees, 
and self-employed. 
1.14. While welcoming the prospect of unification 
between the GDR and the FRG, the Committee is 
concerned that the process should not take place too 
hastily, or under conditions which could (at least in the 
short term) harm the Community economy. 
2. Past and present assistance and cooperation meas­
ures 
2.1. It is against the above general background that 
we should consider Community policies towards East­
ern Europe. 
The above considerations are based on the following 
key premise which is worth restating: the historic events 
in Eastern Europe and the policies to be adopted 
towards them must in no way jeopardize or slow down 
the process of Community unification. 
The completion of the Internal Market and the achieve­
ment of Economic and Monetary Union, with all the 
measures and deadlines agreed by the twelve Member 
21. 5. 90 Official Journal of the European Communities No C 124/61 
States, are commitments which must be respected with 
the utmost rigour and conviction. 
German unification and the implications of German 
economic and monetary union must be incorporated 
within the overall blueprint for European integration, 
and must fit in with the rules underpinning this vital 
objective. 
The Committee's terms of reference do not empower 
it to comment on the overall political blueprints mooted 
by various governments. But the Committee cannot 
gloss over the fact that a more united and stronger 
Community with a stronger economic and social per­
formance is a sine qua non for its possible phased 
enlargement. 
2.2. The Committee is well aware that while the 
Community institutions can do much, they are not 
omnipotent. 
Cooperation with Eastern Europe has been and will 
continue to be conducted at three levels, the first being 
relations between individual EC Member States and 
individual Eastern European countries. 
Next come EC-level relations (particularly via the Com­
mission) with individual Eastern European nations; the 
present Opinion will focus on these. 
The Committee sees these relations as playing a loco­
motive role to help launch further development. 
2.3. Thirdly there are multilateral EC-Comecon 
relations. The institutional asymmetry between the two 
bodies has limited the number of fields covered. The 
very recent news of the break-up of Comecon means 
an end to the (albeit limited) prospects for cooperation 
with this body. Agreements should instead be made 
with individual countries or, where possible, with 
groups of neighbouring countries. 
2.4. Finally, even wider cooperation can be gradually 
established in a number of fields as the Eastern Euro­
pean nations join multilateral European and world 
organizations such as the Organization for Economic 
Co-operation and Development (OECD), Council of 
Europe, General Agreement on Tariffs and Trade 
(GATT), International Monetary Fund (IMF), World 
Bank, etc. 
2.5. For the moment, the Committee will just give 
its views on recent Commission activities vis-a-vis indi­
vidual Eastern European countries. 
The following assessment of Commission and Council 
activity takes full account of the situation outlined in 
the first part of this document. 2.6. The Committee stresses the need to ensure that 
Western aid, and in particular aid from EC Member 
States to Eastern European countries, is as far as poss­
ible channelled collectively through the Commission. 
One reason for this is to promote in these countries a 
climate favourable to future moves towards a pattern 
of economic integration radiating from the Community. 
2.7. The Committee welcomes the trade and cooper­
ation agreements with Hungary, Poland and the Soviet 
Union. They provide a footing for wider cooperation 
with these countries which, as Commission President 
Delors has said, should in due course be based on 
broader instruments. The Committee hopes to see nego­
tiations with other countries such as Czechoslovakia 
and Bulgaria conducted with due despatch. However, 
it regrets that it is not officially notified of such nego­
tiations and agreements, and is not asked to issue 
specific Opinions on them. The Committee reserves the 
right to consider these agreements in its information 
report on relations with individual Eastern European 
countries. 
The impact of these agreements will depend on their 
effective implementation and on the smooth operation 
of the cooperation bodies concerned. 
2.8. However, the pace of reform in the different 
countries will be a major factor as regards trade growth, 
private investment and the various cooperation areas. 
These points will be dealt with later. 
2.9. The emergency aid to Poland and Romania was 
timely and may have to be extended to other countries. 
Such aid is needed not just on humanitarian grounds, 
but also for considerations of political responsibility; it 
would be unthinkable to disregard the worsening living 
conditions and popular discontent in these countries 
which could thwart the reform process. Aid must obvi­
ously be focused on the poorest sections of the popu­
lation, and, as far as possible, free formation of farm 
prices should be used to strike a balance between far­
mers' costs and consumer demand. 
Priority must be given to developing and modernizing 
agriculture. However, we must not under-estimate the 
agricultural potential of most of these countries, which 
will become our competitors on European and world 
markets. 
Care must be taken to ensure that the EC's new econ­
omic links with Eastern Europe remain compatible with 
No C 124/62 Official Journal of the European Communities 21. 5. 90 
Community policy objectives and do not create new 
distortions in competition. 
The use made of the proceeds of aid in local currency 
will also have to be agreed and monitored. 
2.10. The Committee approves the Commission's 
intention of encouraging the rapid development of trade 
relations with Eastern Europe and in particular with 
Poland and Hungary. However, it has reservations 
about the decision to use the GSP for this purpose 
(albeit only provisionally). All ESC Opinions on this 
subject in recent years have stated that the generalized 
system of preferences (GSP) needs to be further refined 
and more finely tuned. The Committee would thus 
reiterate its call for rational reform taking account of 
the changes which have occurred over the last year, in 
order to boost trade flows to the Community on terms 
of reciprocity with protection against possible covert 
imports. 
Lastly, while these countries continue to employ prac­
tices detrimental to free competition (e.g. subsidies), 
defence mechanisms must be maintained in order to 
prevent serious damage to whole industries. Any agree­
ments should therefore include safeguard clauses to this 
effect. 
2.11. The Committee approves the general thrust of 
the PHARE programme for Poland and Hungary, with 
its 300 million ECU funding, designed to help these 
countries transform their centralized economy. As 
regards the goals involved, the Committee refers back 
to its earlier comments regarding the need to avoid a 
'monolithic' economy, and to be ready to help these 
countries (if they so wish) to create a market economy 
for efficient large and small businesses with cooperative, 
public or mixed capital. 
2.12. The Committee would like to see the establish­
ment in these countries of consultations on economic 
issues, between the governments and all the economic 
and social organizations. 
2.13. At all events, and although it is up to the 
Commission to estimate the sums demanded, the Com­
mittee stresses that the scheduled figures could prove 
inadequate. 
2.14. The Committee is insistent that this aid should 
not be spread thinly over a plethora of minor projects, 
but should focus on a few firmly agreed priorities. 
The Commission has adopted the correct approach in 
allocating a large portion of PHARE's 300 million ECU budget (200 for Poland and 100 for Hungary) to Polish 
agriculture, which is to receive 100 million ECU to 
help it improve productivity and import the goods and 
equipment necessary for this. 
The Committee considers it right to earmark the bal­
ance for industrial development, the environment, 
training, technical cooperation, and research. 
The Committee hopes that the programmes will also 
help to promote social dialogue. 
2.15. The Committee awaits information from the 
Commission on the allocation criteria for the loans 
over and above the 300 million ECU approved by the 
Council (up to 1 000 million ECU over three years) and 
the types of investment to be supported. 
The Committee hopes in due course to receive details 
of the projects approved in the various sectors and their 
results. 
2.16. One important multilateral initiative is the 
decision to set up a European Bank for Reconstruction 
and Development (EBRD). 
A decision has already been taken in principle, and 
agreement has been reached on important points such 
as the amount of capital to which Western nations will 
subscribe. Nevertheless some problems have yet to be 
solved and the Committee can only give a theoretical 
judgement at present. 
The Committee warmly endorses the setting-up of the 
EBRD. The bank-will supplement the work being plan­
ned by the work being planned by the European Invest­
ment Bank, which has fewer resources available for 
Eastern European countries. 
The Committee considers that the capital contribution 
(relatively low though it will be) is particularly signifi­
cant, as is the presence of the Commission and the 
European Investment Bank (EIB) on the board. 
The Committee trusts that the new bank will give 
priority to productive investment projects, particularly 
in the area of small firms, joint ventures or other types 
of joint initiative, whilst not excluding more practical 
infrastructure or infrastructure urgently needed for 
economic development. 
As the EBRD will unfortunately have limited resources, 
efforts must be made to achieve the maximum multi­
plier effect, for example by organizing investment 
guarantee systems as well as direct loans. 
21. 5. 90 Official Journal of the European Communities No C 124/63 
The Committee reserves the right to give a more detail­
ed opinion on this issue when the bank's characteristics 
have been fully specified. 
2.17. The Committee fully endorses the position of 
the Commission and Council on the importance of 
training for Eastern European countries. Training is 
crucial for the implementation of economic reforms 
and the successful operation of a market economy. 
The Committee thus appreciates the importance of the 
planned European training foundation, designed to help 
expand the vocational training system for young people 
and adults in Eastern Europe, starting with Poland and 
Hungary. The foundation is an essential instrument for 
developing new forms of cooperation in this field. 
The Committee is pleased to see that, in this sector too, 
the EC is helping to coordinate assistance from Member 
State and third country donors. 
The foundation should adopt the tripartite structure 
which was chosen for the European Centre for the 
Development of Vocational Training (Cedefop). 
Employers' and workers' organizations must also have 
the possibility of implementing their own programmes 
through the foundation. 
The Committee stresses the role which the private 
sector (specialist bodies, institutes and businesses in the 
various countries) must play in the foundation. This 
will help to decentralize the foundation's activity and 
tap the technical expertise and facilities of the different 
countries and sectors, such as agriculture, industry, 
banking and financial services. It will also forge links 
between training activities and technical back-up meas­
ures, and ensure effective use of private business initiat­
ives. 
The Committee trusts that the Commission wil keep it 
informed of the foundation's programmes and activi­
ties, so that it too can provide input for the subsequent 
stages of training activities for workers, technicians and 
managerial staff in Eastern Europe. 
2.18. For comments on the TEMPUS programme (*), 
the Committee refers to the Opinion being drawn up 
by the Social Affairs Section. 
3. Prospects for new forms of cooperation with East­
ern Europe 
3.1. The Committee considers that the Community 
will have to bolster its political and financial commit­
ment to Eastern Europe, whilst maintaining its commit-
(*) Trans-European Mobility Scheme for University Studies. ments to its traditional partners. The Committee is 
particularly concerned that EC programmes and pro­
jects aimed at African, Caribbean and Pacific States 
(ACP), Mediterranean and Latin American countries 
are not affected, and perceived to be affected, by its 
initiatives towards Central and Eastern Europe. Com­
munity aid is no substitute for bilateral government 
measures, but the Commission could provide more 
effective coordination. More openhanded consideration 
must be given to aid and investment support in the 
region. 
3.2. The 'association treaties' with the Community 
floated by President Delors, to be negotiated with indi­
vidual Eastern European countries, are undoubtedly a 
vital tool for increasing integration of the two main 
areas of Europe. The content of these treaties should 
vary according to the characteristics of the country 
concerned. Careful thought is needed to ensure that 
the treaties open the way to greater cooperation and 
integration in as many fields as possible, while also 
providing fair protection of the interests of agriculture, 
industry and all other Community activities. The Com­
mittee is most eager to be consulted on these, and to 
put forward its own special viewpoint and recommen­
dations. 
3.3. It should not be forgotten that cooperation with 
Eastern Europe should produce a convergence of 
interests and expansion of opportunities on all sides. 
Cooperation should be encouraged in as many spheres 
as possible, ranging from economic and trade affairs to 
financial, technical, scientific, environmental, social 
and cultural cooperation. 
It is reasonable to anticipate significant reciprocal ben­
efits in the medium and long-term for all concerned. 
The West can provide Eastern Europe with a wealth of 
technology and know-how in a wide variety of fields, 
as well as vocational training and managerial skills. It 
can help instil a salutary spirit of enterprise, readiness 
to take risks, and free initiative. 
For their part, the Eastern European countries can 
become increasingly valuable and equal partners, offer­
ing the industrialized nations a huge market for capital 
goods, consumer goods, services and intellectual prod­
ucts. 
The EC's social objectives mean that the integration 
process should not be seen simply as a business oppor­
tunity for one side, with hand-outs for the other side. 
It should bring advances for both workers and entre-
No C 124/64 Official Journal of the European Communities 21. 5. 90 
preneurs East and West, in terms of employment, living 
standards, and social rights. The frustration which 
would otherwise result could have serious reper­
cussions, and might even block the road to democracy 
and freedom. 
3.4. The Committee regrets that so far the Com­
mission, in its reactions to the reform process in the 
countries of Central and Eastern Europe, seems to be 
unaware of the serious social problems which will be 
caused by economic restructuring. It seems to define 
co-operation and assistance solely in humanitarian, 
economic, financial and technical terms. 
The Committee thinks that this is too limited an 
approach, which might be dangerous in the short term. 
Expectations in these countries seem to be very high. 
However, it has to be accepted that the reforms will 
not, in the short term, yield the improvements which 
have been suggested and that considerable sacrifices 
will have to be made. A dangerous situation may arise 
if the people are asked to make such sacrifices without 
being given a role in the decision-making process 
through free independent and representative interest 
groups. Agreements on cooperation and support 
between the Community and these countries must 
therefore include provisions for setting up such organiz­
ations, a system of labour relations, and, at macro-
economic level, arrangements for socio-economic 
decision-making, in keeping with a mixed market 
economy. 
The Community must make an effort to ensure that 
economic aid, technical assistance, credits, loans, trade 
preferences, guarantees, investments and other forms 
of economic relations promote the free exercise of free­
dom of association and collective bargaining, as well as 
the realization of economic development and material 
benefit for working people in the countries concerned. 
3.5. The Committee does not underestimate the diffi­
culties of cooperation at all levels, and considers that 
the Eastern European nations should frame appropriate 
legislation and regulations to encourage it. Joint ven­
tures are one current problem area: while they are 
encouraged in the legislative texts by the Soviet Union 
and other countries, the true situation is very different, 
as Western businesses who try to launch them are well 
aware. Reforms in some countries have swept away the 
old centralized bureaucracy responsible for negotiations with foreign economic operators, but have not passed 
effective powers on to the companies concerned. In any 
case, other formulas could also be used, such as licens­
ing or compensation agreements, buyback, or leasing. 
Whatever formula is chosen, companies should be able 
to repatriate their profits and investors should be pro­
tected against certain risks. Intellectual property must 
be safeguarded, and a new exchange rate system is 
needed (cf. comments above). 
3.6. The Committee also highlights the important 
role which various European and international organiz­
ations can play in bolstering contacts between the econ­
omic and social groupings of East and West. The Inter­
national Labour Organization (ILO), International Fed­
eration of Agricultural Workers, International Co-oper­
ative Alliance (ICA), European Trade Union Confeder­
ation (ETUC), Union of Industries of the European 
Community (UNICE) and the European Federation of 
Agricultural Workers' Union within the Community 
(EFA) are among those which have already begun to 
act, putting forward suggestions on ways to speed up 
the move to a market economy, while safeguarding the 
interests which they represent. 
3.7. Western companies, whatever their business or 
size, will obviously have a key part to play. Without 
them, any reconversion or development programme or 
production financing would be in vain. As well as the 
necessary legal instruments, a climate of trust must be 
established in order to encourage Community firms to 
step up their interest in and commitment to the econom­
ies of Eastern Europe. 
The Community should promote an investment frame­
work for firms from the industrialized nations investing 
in Eastern Europe. The Community should help frame 
a coordinated approach, based on OECD guidelines for 
multinational companies and appropriate ILO instru­
ments, as well as the Community charter of fundamen­
tal social rights, to ensure that firms operating in East­
ern Europe respect internationally accepted working 
conditions. 
3.8. It will be necessary to examine possible ways of 
resolving the foreign debt of some of the countries 
concerned. The approach of Governments of the indus­
trialized countries, united in the Group of 24 and the 
21. 5. 90 Official Journal of the European Communities No C 124/65 
IMF, should not be to give pre-packaged economic 
theories or narrow austerity prescriptions. 
3.9. The Committee asks the Commission to consult 
the socio-economic groups of the EC and the beneficiary 
countries before drafting all cooperation programmes 
coordinated by the Community. The aim of such con­
sultations would be to guarantee the quality of the 
investment and technology transferred, particularly in 
terms of impact on the environment, working con­
ditions and employment (in both Eastern Europe and 
the Community). 
3.10. Alongside the official action decided by the 
institutions, the Committee considers that relations 
between EC socio-economic organizations and their 
opposite numbers in Eastern Europe (where they exist) 
are in several respects an important channel of com­
munication and assistance. Industrial, agricultural, 
banking, trade union, commercial, cooperative and 
other organizations can offer the benefit of their experi­
ence, assist with vocational training, and in some cases 
even cooperate in joint economic initiatives. These 
organizations are admittedly in a state of flux in some 
parts of Eastern Europe, but we should not underesti­
mate the direct role which the socio-economic groups 
can play in the long term with the help of appropriate 
instruments. 
The Committee attaches great importance to the estab­
lishment of free, independent, democratic organizations 
Done at Brussels, 29 March 1990. representing employers, workers and other interests. 
The Community can offer assistance here, alongside 
such international organizations as the ILO. 
3.11. It would also be useful to establish direct con­
tacts between the ESC and the main representative 
socio-economic bodies in Eastern Europe. This should 
be done, for some countries at least, during the drafting 
of the information report. 
The Committee hopes to see Economic and Social 
Councils set up in Eastern Europe as soon as possible, 
to give a voice and a role to the new groups which will 
emerge from the reform and restructuring process. 
3.12. If time and resources permit, the Committee 
would like to organize hearings with experts, observers 
and operators involved in socio-economic and trade 
relations with Eastern European countries. 
3.13. Finally, we must not forget our starting point: 
the grave socio-economic situation in Eastern Europe. 
The transformation of these systems into market econ­
omies will be neither easy, quick nor painless. The 
Community must do its utmost to implement a suitably 
funded programme of aid, reconstruction, development 
and integration, pursuing the basic aims and strategies 
outlined above. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE