No C 225/38 Official Journal of the European Communities 10. 9. 90 
Opinion on the economic situation in the Community in mid-1990 
(90/C 225/15) 
On 14 November and 18 December 1989, the Economic and Social Committee decided, acting 
under the fourth paragraph of Article 20 of its Rules of Procedure, to draw up an opinion on the 
economic situation in the Community in mid-1990. 
The Section for Economic, Financial and Monetary Questions, which was responsible for 
preparing the Committee's work on the subject, adopted its opinion on 20 June 1990. The 
rapporteur was Mr Kaaris. 
At its 278th plenary session (meeting of 5 July 1990), the Economic and Social Committee adopted 
the following opinion by a substantial majority, with two votes against and eight abstentions. 
0. Preliminary comments 
This opinion is being prepared at an important stage in the 
Community's development, when crucial strategic deci­
sions must be made. For this reason, the opinion cannot be 
confined to its 'usual' coverage of current economic issues, 
but must first establish the deep-rooted factors underpin­
ning them. 
Strategic issues are, of course, nothing new for an 
institution which spans more than thirty years. During this 
period, the Community has taken great steps forward 
(from the Treaty of Rome to the Treaty of Brussels in 1965; 
from the establishment of the customs union in 1968 to the 
Hague Summit in 1969; from the establishment of the 
European Monetary System in 1979 to the adoption of the 
White Paper on the completion of the single market, and 
from successive enlargements of the Community to the 
Single European Act and the Delors Plan). It has suffered 
more or less open internal conflicts (the 'empty chair 
policy' in 1965, monetary snake crises in 1973 and 1976, 
and the problem of the British contributions to the 
Community budget). It has had to cope with the 
vicissitudes of international politics and economics, from 
the dollar crisis in 1971 to the world energy crisis in 1973, 
and from the second oil crisis to a variety of changes in the 
world economy in the 1980s. If nothing else, all this has 
helped to shape Community strategy and has thus made a 
major contribution to the development of Community 
structures and the consolidation of its position. 
The difference today is that new and much more exciting 
events are impinging on Community strategy. At the very 
moment when the European venture is gathering mo-
metum, a series of unexpected changes have swept across 
Eastern Europe, with inevitable repercussions on the whole 
continent and the world. In other words, a blueprint for 
European integration has been negotiated and a time table 
drawn up, based on premises whose parameters have 
suddenly been radically disrupted by events in Eastern Europe. These events are to be welcomed without reserve, 
but they also place new demands on the Community. 
The need to respond adequately to outside events should 
not slow down the momentum of internal change within 
the Community. This should be avoided at all costs. The 
Community must hold on to its new-found internal 
dynamism and must continue to make the implementation 
of the internal market and the achievement of economic 
and monetary union its top priorities. The acceleration of 
outside changes only adds new urgency to these objectives. 
Without maintaining its own rate of advance the Com­
munity will not have potential strength to play the active 
part to which it aspires in the shaping of the future of the 
European continent. 
1. The world economy 
1.1. The world economy in 1990 and short and medium-
term development prospects 
The world economy in 1990 is heavily influenced by trends 
which began in the last decade, particularly in its closing 
years. 
Although global economic growth is expected to remain 
buoyant if less accelerated — 1990 will be the eighth 
consecutive year of positive growth — recent estimates 
indicate that the growth rate will temporarily drop by a 
significant one percentage point (3,3 % in 1989 and 2,4 % 
in 1990), which is a cause for concern. 
As for the other economic variables, buoyant growth rates 
and various employment schemes have partly reduced 
unemployment in the OECD area. 
The main causes of increased international economic 
instability are, as far as the OECD areas is concerned, 
inflation, public finance and balance of payment problems: 
— the recent stabilization of the consumer price index (at a 
rise of around 4,5 %) has not completely offset the 
10.9 90 Cofficialjournal of the European Communities ^oC^B^9 
complex setoffactorsunderlying the price increases 
recorded at the end of thel9^0s, 
— the widespread budgetbalancing efforts of recent years 
have asyet fallen far shortofachievmgconvergence 
towards comparable levelsmn most countries they have 
not even secured satisfactory budget consolidation, 
— the recent improvement in the balance of payments 
situation ineachofthema^orworldeconomic zones 
should not disguise the constantly widening gap 
between the American external deficit ^ECU 9^ 
thousand million in 19^ and the]apanese surplus 
^CU^thousand million in the same year^nor should 
it conceal the divergent trends within the Community 
^although the Community is in an overall nearD 
equilibrium position,^estC^ermany^ssurplus has been 
increasing since the earlyl9^0s, and reached LCU^ 
thousand million in 19^, 
Broad areas of uncertainty will continue to mark the world 
economy during the next few years, I^he behaviour of the 
abovementioned key economic variables is determined by 
highly unstable factors and only warrants guarded 
optimism, furthermore, uncertainty persists on such 
diverse issues as^ 
— international monetary^foreign exchange arranged 
ments, 
— financial market stability and efficiency which appears 
seriously jeopardized by the most recent forecasts ofthe 
alarming tripling of the U^ budget deficit forl991, 
— I^hird^orlddebtandthedeteriorationoftheeconomic 
performance of the development countries, 
— the futureofthe multilateral trade system faced witha 
resurgence of protectionism, 
— the imponderables which will come into play now that 
Last European countries have begun the move towards 
a market economy, coupled with the additional 
difficulties stemmmgfrom theexpectedmcrease in their 
foreign debt, 
— existing and emerging political obstacles should not be 
forgotten either^ the precarious pohticoDeconomic 
situation in Latin America ^Central and ^outh^, the 
middle Last powder keg, Islamic fundamentalism, 
dangerous instability and ethnic problems in the U^R, 
uncertainties in relations between the Balkan countries, 
the cracks appearing inthe^ugoslavEederation and 
lastly,the great Chinese imponderable. 
In short, despite increasing signs of progress in inters 
national cooperation, the path ahead will undoubtedly be long and fraught withobstacles. Inachmate of serious 
political risks, the outlook for the 1990s therefore suggests 
that coordinated efforts and cooperation are the only sure 
way to secure effective, long-term stability on the macro 
economic front. Phis will mean incontrovertible adD 
vantages for economic operators and countries which are 
able to use the intervening ^breathing spaced to prepare for 
the future, either by redressing inherited imbalances or by 
implementing the structural decisions which they feel will 
best equip them to face the future. 
^, Economic developments in the C^ommun^ty 
Lhe above comments are particularly relevant to the 
Commumty^ssituation,Lhe reasons for this are twofold, 
Mrstly,the Community is entering the newdecade with 
continuousprogressioninitsmameconomic indicators, 
Lhis reflects an increasing awareness among the member 
states of the importance of economic policy for successful 
economic, financial, monetary and social integration, 
secondly, moves to achieve such integration come at a 
crucial period in the Community^ developments such 
integration is the most effective way to help Europe regain 
its pivotal role in the world economy as it moves into the 
twentyDfirst century. 
^,1, ^yrr^^^,^^^or^o^o^^^r^^^^r^o^r^ 
Lhe Commissions 19^9B1990Annual Economic Report 
stated that economic policy in the Community must enable 
ittomeettwo major challenges consolidation of economic 
growth factors and greater convergence of economic and 
budgetary policies between member states to increase 
stability and employment, 
Loachieve these objectives, firm measures are required to 
counter the risk that the unfavourable economic paraD 
meters of the past years might persist or deteriorate even 
further. Action is needed in some Aiember states to bring 
down high unemployment levels and ensure that the 
resurgenceof inflationary expectationsdoes not jeopardize 
currentgrowth, and in other member states to reduce 
substantial divergences in inflation, currentDaccount 
balances and net budgetary positions. 
^, A^^^B^ro^^ror^,^^^^ro^^^^^^^^^ 
Economic forecasts are, of necessity,highly unreliable in 
the present period of unprecedented rapid change in 
Eastern Europe, Lhe long term benefits to the world 
economy of societies withatotal population of ^00 million 
No C 225/40 Official Journal of the European Communities 10. 9. 90 
people determined to participate in international trade and 
the international division of labour according to market 
conditions will be spectacular. But the transition from the 
current near total economic isolation of Eastern Europe to 
full participation in the world economy is fraught with the 
danger of massive unemployment, and with financial 
uncertainties as regards the capacity to adapt to tech­
nological change, financial possibilities and access to 
markets. This means that medium and long-term predic­
tions are extremely hazardous. 
The GDR stands out from the other East European 
countries in that its considerable economic potential seems 
more likely to be exploited in an early future. This will have 
direct and major influence on growth and employment of 
the European Community, comparable in economic terms, 
as it is, to an expansion of the Community with a 13th 
Member State and a 5 % increase in area and population. 
The East German companies will be assured adequate 
access to finance and western markets to safeguard their 
economic prospects in the medium and long term. 
The integration of East Germany into the Community 
presents opportunities to investors from all member 
countries. German investments in the eastern parts of 
Germany and in the countries further to the East are bound 
to alleviate the discrepancy between the positive German 
trade balance and the growth restraining external deficits 
of many other Community countries. 
The State treaty concluded in May leaves no room for 
doubt that the Deutsche Bundesbank will continue to 
ensure a stable value of the Deutschmark and will 
guarantee continued low inflation in the long term. The 
initial inflationary effects of East German consumer 
spending will hardly threaten long term monetary stability; 
but it might well exercise a slight upward trend in German 
prices, which will however have the effect of easing the 
demands on the other Member States in the initial 
convergence of economic policies required for the success­
ful launch of the process towards economic and monetary 
union. 
The very swiftness of FRG/GDR integration, requiring 
barely eight months from the opening of the Berlin wall of 
the entry into effect of monetary union, is a challenge to the 
more sedate time scale which has been set for the 
completion of Community ambitions. When monetary 
union for the Twelve is scheduled to last as many years as 
Germany needs weeks, the credibility of the integration 
process of the Community and the Community's claim to 
provide an adequate European framework for German 
integration is called into question. 2.3. Implementation of the Single Act 
It is because of the Single Act that the Community has been 
able to complete the greater part of the European 
legislation necessary for the completion of the internal 
market by the end of 1992. The transformation into 
national law and the monitoring of national compliance are 
tasks, however, which remain to be resolved. 
The Single Act did not change the requirement of 
unanimity for fiscal decisions and thus did not help to make 
it possible to obtain decisions in the Council on harmoniz­
ation of VAT rates and collection of VAT in the country of 
origin for goods traded inside the Community. The 
Commission has therefore had to lower its ambitions to a 
level corresponding to what is feasible on the basis of 
unanimity. Fortunately this does not jeopardize the 
abolition of frontier controls in so far as VAT checks do not 
necessarily involve breaking the flow of traffic across the 
border. It still remains an open question, however, whether 
it will be possible to abolish frontier controls in view of the 
fact that practically no progress has been achieved in the 
harmonization of visa requirements and rules of immig­
ration. No police cooperation has yet been established 
which can replace the present reliance on border checks, 
less than 1000 days before 1 January 1993. 
Solemn Council declarations on political union are no 
substitute for progress on the resolution of such funda­
mental political issues. 
2.3.1. Economic and social cohesion and implemen­
tation of the February 1988 'package' 
Seen in the framework of current Community objectives, 
this issue has two dimensions: although current measures 
were introduced to bolster the Community's role in the 
world economy, this challenge was defined by the Twelve, 
and thus places specific internal demands on the Com­
munity in terms of complementary measures which, quite 
legitimately, seek to promote cohesion by helping the less 
prosperous regions to catch up in economic developments. 
There is a growing realization that measures already 
proposed are unlikely to achieve this objective. Indeed, 
capital movements from these areas (if not encouraged to 
remain there) may neutralize the effect of the com­
plementary measures so far proposed. 
It should be noted here that, although two problems 
(regional discrepancies and the possibility of more 
pronounced imbalances to come) are immediately obvious, 
the situation is particularly critical in the outlying regions 
of the Community located far from the main economic and 
political centres; consequently, transportation costs are 
higher and resources are allocated wastefully. 
10. 9. 90 Official Journal of the European Communities No C 225/41 
This deplorable situation is certainly not helped by the 
determination of a centrally located Member State 
unilaterally to impose user charges on road transport. This 
issue illustrates the need for an integrated transport policy 
also coping with transit rights inside the Community and 
through neighbouring countries. In this connection, there is 
an urgent need for the harmonization of economic 
framework, particularly at fiscal level, as a prerequisite of 
such a policy. 
At all events, 1990 will be a landmark in the development of 
Community structural policy; this will be seen not only in 
the implementation of Community support frameworks 
and the corresponding operational programmes, but also in 
the first package of 'Community initiative' programmes. At 
the same time, in spite of their more controversal aspects, 
moves to improve and stabilize the agricultural markets 
and the new rural development policy, complement the 
current reform process, and thus augur well for the next 
few years. 
These structural reforms highlight the need for budgetary 
discipline and a review of the financial prospects up to 
1992. Nevertheless, new issues will also provide cause for 
concern, as Community solidarity with the changes in 
Eastern Europe will most certainly require the Community 
to shoulder new responsibilities. In a field where funds 
were always scarce and compromise not always easy, the 
necessary setting of priorities once again calls for careful 
thought and strategic planning. 
2.3.2. The technological dimension 
Notwithstanding the reservations which the Economic and 
Social Committee expressed about the 1990 to 1994 
Framework Programme adopted on 15 December 1989, the 
programme nevertheless provides the best guarantee of 
progress in an area which, although of vital importance, 
has been deprived of adequate funding. 
However, there is still a pressing need to spell out the 
importance of coordinating resources so that they are not 
wasted: a problem caused largely by excessive concern for 
national interests. 
15 proposals were submitted under the three main 
categories (broadcasting technologies, management of 
natural resources and development of intellectual re­
sources). The innovative measures resulting from these 
proposals will add a European dimension to the training of 
researchers, consolidate links with the Eureka project, 
develop information an communication technologies for 
trans-European networks, and promote mobility amongst 
researchers. These, together with commitments in key 
sectors such a aerospace, consumer electronics, and biotechnology, demonstrate that this positive approach has 
unparalleled potential for achieving the Community's goal 
of enhancing its position in the world economy. 
To this end coordination of expenditure is vital to avoid 
dispersion in the pursuit of national prestige. European 
performance in technical innovation does not compare 
favourably to that of Japan even though the total R&D 
expenditure of the Twelve surpasses Japanese investments. 
2.3.3. Environment 
Although Community environmental measures are only in 
their infancy, Community policy in this sphere is 
developing in the right direction. 
It will become even more effective when (a) the European 
Environment Agency and its monitoring network become 
operative, (b) both the alignment of national measures and 
the introduction of Community standards are addressed, 
and (c) environmental protection actions are stepped up. In 
this connection, serious consideration should be given to 
issues such as enforcement of the 'polluter pays' principle 
and compensation in the event of disasters or catastrophes. 
Current and projected action in this sphere demonstrates 
growing consensus on the premises underpinning the Single 
European Act's approach to environment policy. This is 
particularly so with regard to the interdependence between 
(a) progress in the various areas of common policy, and (b) 
the need to ensure a healthy environment and continued 
economic growth; a fully-fledged environmental policy is a 
prerequisite here. This is a clear example of an area where 
the special nature of the Community's approach comes into 
its own and where the various commitments it has made 
cannot be downgraded under any circumstances (e.g. 
limited funding). 
2.4. Progress towards economic and monetary union 
The Committee feels that completion of economic and 
monetary union (EMU) is already one of the keystones of 
the European edifice. With this in mind, the Committee 
urges that the utmost commitment be given to the various 
aspects of the first stage of economic and monetary union, 
soon to enter into force. The multilateral surveillance 
mechanism for economic policies, recently set up by the 
Council, is one initiative which merits special attention, 
No C 225/42 Official Journal of the European Communities 10. 9. 90 
given the need for sustained progress towards convergence 
of Member States' economic performance. 
In the same vein, liberalization of capital movements, 
further steps to strengthen the European Monetary System, 
and development of the ECU, a key issue, are all areas 
requiring well-planned study so that their economic and 
institutional implications can be fully understood. In more 
general terms, considerable thought will have to be put into 
preparation for the second and third stages of EMU, 
particularly the establishment of an independent European 
Central Bank charged with the maintenance of the value of 
money, if significant conclusions are to be reached at the 
inter-governmental conference to be held under the Italian 
Presidency in late 1990. 
2.5. External relations and trade and cooperation policy 
It is clear that the Community's aspiration to have an active 
voice in the new world economic order now slowly taking 
shape is inextricably linked to its stance in external 
relations. To be a credible partner and discharge the 
responsibilities which it feels are its own, the Community 
requires (a) a common trade policy combining the strength 
of accumulated willpower with the solidity of matching 
practices, (b) a coherent cooperation policy to strengthen 
its centuries-old links with other continents and regions 
and (c) a common vision of its role in the multipolar world 
now emerging. 
Here too, there are a number of revealing and encouraging 
signs; first and foremost (and increasingly clear) at 
Community level, is the negotiation of cooperation 
agreements to consolidate relations with EFTA nations, 
and current and future commitments to provide economic 
assistance to Eastern Europe. These are key steps in the 
construction of a new arena in which the Community will 
play a pivotal role: the European economic space. 
Because of their geographical proximity and close contacts 
with the Community, special — and maybe even closer — 
attention should be devoted to Mediterranean countries. 
Moves towards partnership, be it in funding or in 
vocational training, are to be encouraged. This would 
enable these countries to improve their economic growth 
and hence cope decisively with problems such as very high 
emigration, and its serious political implications for many 
Member States. Whilst not disregarding the case for closer cooperation 
with other promising areas such as Latin America, China, 
or Asia as a whole, it is hoped that aid and restructuring in 
ACP States will produce significant medium-term results, 
notably in the wake of the new and more weighty ACP 
Convention which was signed recently. This is yet another 
area which highlights the Community's position on the 
international scene. It is one reason why the Community 
will have to top up the resources required to pursue 
decisively this positive approach to development aid. 
Relations with the main industrialized blocs raise equally 
important (albeit different) questions. The predominance 
of trade negotiations in relations with the United States has 
blurred the importance of increased cooperation; the US 
response to the Community's internal market objective 
(setting up a free trade area with Canada) probably 
foreshadows greater US acceptance of and openness 
towards Europe. 
With Japan, only minor progress has been achieved; the 
size of the Japanese trade surplus, the continuing difficulty 
in penetrating its market and the visible spread in its 
international economic presence, all force us to conclude 
that only repeated pressure has prompted Japan to adapt its 
expansionist strategy. As this indicates vulnerability in its 
room for manoeuvre, the Committee recommends a more 
resolute approach and closer attention to strategy. 
The Committee especially appreciates the success of the G7 
agreement in stopping the slide in the international value of 
the yen, which threatened to jeopardize the harmonious 
development of future trade flows by creating even larger 
Japanese trade surpluses. 
Nevertheless, incipient internal political change, a change 
of monetary and recent financial and stock market setbacks 
should induce this great country to be more flexible and 
abide by the rules of fair competition in the process of 
multilateral trade liberalization. 
The conclusion of the Eighth Round of G ATT negociations 
(Uruguay Round) scheduled for the end of 1990 could 
initiate further quantum leaps in trade policy. The 
Community can be expected to play an active role in such 
issues as the opening of many markets (particularly in 
South East Asia); progress on the agricultural front; global 
strengthening of the multilateral system (safeguard clauses, 
10. 9. 90 Official Journal of the European Communities No C 225/43 
waivers, dispute settlement); and the inclusion of new 
sectors of activity (intellectual property, services). 
Similarly, the tabling of new generalized preference 
schemes, the negotiation of new international agreements 
on certain commodities and involvement in a variety of 
multilateral contacts will all provide opportunities to assert 
key Community principles on matters such as free trade, 
labour relations and specific issues (e.g. anti-drugs 
campaigns). 
2.6. Additional aspects 
The Committee would not wish to close this chapter 
without expressing its support for the package of measures 
designed to help make the Community a practical reality. 
These cover the audiovisual sector, education and youth 
policy, small businesses and the distribution trades, 
tourism, consumer policy, citizens' rights, social solidarity 
and health. The measures involved may appear minor, but 
they are the cornerstones of a better Community. 
The Committee feels that the current economic climate 
calls for a special focus on consumer protection. Indeed at a 
time when market principles are achieving a resounding 
success, it makes considerable sense to highlight the 
decisive role which consumers play in a market economy, 
and particularly the growing interest in defending their 
desire for quality. 
3. Social aspects of the Community situation 
Although this report focuses on the Community economic 
situation, a reference to the social situation would 
undoubtedly be apt. The special role of the Economic and 
Social Committee makes this particularly appropriate, all 
the more so since it is now clear that a balance will have to 
be struck between the economic and the social aspects in 
the internal market. 
3.1. The labour market and unemployment 
The labour market continues to merit the priority concern 
of national and Community authorities. Before tackling 
this issue, one technical point should be highlighted: 
statistics on the number of jobs created in the Community 
still include different types of employment (full-time, part-
time, temporary), and thus do not accurately reflect the 
volume of employment actually created, given that this 
overall figure is used to calculate the growth rate of overall employment (which is structured differently from the 
additional employment created every year). 
Nevertheless, the Community employment rate seems to 
have settled into steady growth (1989 was the third 
consecutive year in which employment rose by 1,5 % on 
average) and this was reflected in the unemployment 
figures (down from 10 % in 1988 to 9 % in 1989). The 
discrepancies vis-a-vis our main partners' unemployment 
figures, however, remain considerable (5,2 % in the United 
States of America, 2,3 % in Japan, and an average of just 
over 2,5 % in the EFTA countries). 
It is a major cause for concern that growth in employment 
has not been matched by a corresponding drop in 
unemployment; moreover, in 1991, unemployment levels 
will fall more slowly than in the previous two years (see the 
Commission document on the budget, 1990 to 1991, p. 1). 
With this in mind, the Committee reiterates its view 
expressed in the past that the employment growth rate 
should also be boosted by using suitable supply policies to 
bring supply into line with demand. Measures to reorganize 
and reduce working hours taking account of productivity 
must also be used to improve the employment situation. 
There are three other main points for concern. 
Firstly, the structural factors responsible in the past for the 
rise in unemployment remain latent, and may re-emerge. 
Secondly, there are still enormous differences within the 
Community [the 8,6 % January average includes signific­
ant levels in Ireland (16,7 %), Spain (15,9 %) and Italy 
(10,9 %)]. This obviously limits progress towards conver­
gence. 
Finally, there appears to be a certain sluggishness in areas 
with scope for remedial action, such as (a) better 
distribution of the benefits of economic growth and (b) 
vocational training and qualifications. Indeed, the sus­
tained growth rates recorded in most Member States, the 
generally high productivity gains and increased investment 
returns must all be reflected in a fairer distribution of the 
benefits of growth between workers (whose need for 
increased purchasing power of net wages is undisputed) 
and businesses. Such sluggishness goes hand-in-hand with a 
disturbing increase in insecure employment, such as 
temporary or part-time work, where there is little or no 
social security cover. 
Furthermore, despite major progress in key areas (health 
and safety at work, work equipment safety and personal 
No C 225/44 Official Journal of the European Communities 10. 9. 90 
protective equipment, education and vocational training), 
there have been serious delays in such areas as the extension 
of freedom of movement and the right of residence within 
the Community, the transfer of social welfare entitlements, 
mutual recognition of qualifications, and the Community 
framework for social integration of third-country mig­
rants, even if such integration could be a source of tension 
in the countries or regions where high unemployment is 
accompanied by a high incidence of immigration. 
3.2. Social Europe 
The Community Charter of Fundamental Social Rights — 
which is to be accompanied by a Social Action Programme 
— has been approved by the Council in the form of a 
declaration. The ESC gave its position on the Charter at an 
early stage, calling for a broader approach embracing wider 
societal and environmental values and covering con-
sumer,self-employed, cooperative and non-profit groups. 
The misgivings expressed by the Committee at that time 
did not elicit the appropriate response from the relevant 
authorities, so these comments still hold true. However, 
without wanting to detract from the welcome efforts 
undertaken on the social front, the Committee stresses that 
action will be needed to halt a certain slackening off in this 
crucial area. Of the many points still pending, the Committee would 
single out the legal basis of the proposals contained in the 
Social Action Programme. 
4. A final comment 
At the end of this opinion, having run through the most 
pressing European and world economic issues, the 
Committee would like to conclude by expressing its hope 
that this historic period will be remembered not so much as 
a watershed, but rather as a period when national and 
Community authorities resisted the temptation to put the 
brakes on the project initially symbolized by 1992, gathered 
mometum towards economic and monetary union and thus 
towards an agreed form of democratic political integration, 
and paved the way for a stronger, more united presence on 
the world stage. 
Done at Brussels, 5 July 1990. 
The Chairman 
of the Economic and Social Committee 
Alberto MASPRONE 
Opinion on social developments in the Community in 1989 
(90/C 225/16) 
On 5 July 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 social developments in the 
Community in 1989. 
The Section for Social, Family, Educational and Cultural Affairs, which was responsible for 
preparing the Committee's work on the subject, adopted its opinion on 17 May 1990. The 
rapporteur was Mr Liverani. 
At its 278th plenary session (meeting of 5 July 1990), the Economic and Social Committee adopted 
the following opinion by a majority vote, with four abstentions.