26. 4. 78 Official  Journal  of the European  Communities No C 101/23 
Transport  and  Communications  to draw  up  an 
opinion  on the matter, HAS  ADOPTED  THE  FOLLOWING  OPINION 
Having  regard  to the opinion  issued  by the Section 
for Transport  and  Communications  at its 118th 
meeting  on 18 January  1978, 
Having  regard  to the  oral  report  submitted  by the 
rapporteur,  Mr  Renaud  (Article  29 of the  Rules  of 
Procedure), unanimously: 
The Committee  endorses  the  Commission  proposal 
but it does  so in the interests  of preventing  any  abuse 
of the Regulation.  It therefore  proposes  that  Article 
13 (2) should  be amended  to read: 
Having  regard  to the discussions  at its 156th  plenary 
session  held  on 1 and  2 March  1978  (meeting  of 
1 March  1978), 
Whereas  the draft  Directive  under  review  stipulates 
that applications  for  authorization  to introduce 
inclusive  shuttle  services  need  no longer  be forwarded 
to the  Member  States  whose  territory  is crossed  in 
transit, '2. In  the case  of services  covered  by Article  5, 
the Member  State  referred  to in Article  12 (2) 
shall,  before  its decision  takes  effect,  inform  any 
Member  States  whose  territory  is to be crossed  in 
transit  of such  decision.  In order  to prevent  any 
abuse  of the Regulation,  it shall  give  the transit 
States  sufficient  time,  between  the date  of issue  of 
the authorization  and  the  date  of its entry  into 
force,  to check  that  the  services  covered  by the 
authorization  do in fact  comply  with  Article  5.' 
Done  at Brussels,  1 March  1978. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the second  report  on the achievement  of Community  energy  policy  objectives 
for 1985 
The text  referred  to the  Committee  has  not  been  published  in the  Official  Journal 
of the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 16 August  1977,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
No C 101/24 Official  Journal  of the European  Communities 26. 4. 78 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
156th  plenary  session  held  in Brussels  on 1 and 2 March  1978. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 16 August  1977  for an 
opinion, 
Having  regard  to the decision  taken  by its Bureau  on 
27 September  1977  instructing  the Section  for Energy 
and Nuclear  Questions  to draw  up an opinion  and  a 
report  on the matter, 
Having  regard  to the opinion  issued  by the Section  for 
Energy  and  Nuclear  Questions  at its 37th  meeting  on 
10 February  1978, 
Having  regard  to the  report  submitted  by  the 
rapporteur,  Mr Bonomi, 
Having  regard  to the discussions  at its 156th  plenary 
session  held  on 1 and  2 March  1978  (meeting  of 
1 March  1978), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 48 votes  to six with  three  abstentions: 
The Committee  is gratified  that  the Council  has seen 
fit to consult  the Economic  and  Social  Committee  on 
this second  report  in  which  the  Commission 
describes  the  revision,  carried  out  by the  Member 
States  in 1977,  on the 1974  objectives.  On the basis  of 
this revision  the  Commission  confirms  the  general 
lines  of the  policy  adopted  in 1974  and  indicates 
what  action  needs  to be taken  to implement  it. 
In view  of the fact  that  the report  is not seeking  to 
introduce  anything  new,  the present  opinion  consists 
of general  comments  and  does  not explore  in detail  all 
aspects  of the Community's  energy  policy.  Nor  does 
it discuss  specific  measures  in any  depth. 1. Forecasts  for 1985 
1.1. It  is not  the  Committee's  task  to pass 
judgment  on the  Member  States'  forecasts  of the 
energy  situation  in 1985,  as summarized  by  the 
Commission  in its second  report.  The  Committee 
cannot  help  noticing,  however,  that  these  forecasts 
differ  substantially  from  the 1974  'objectives',  both  in 
respect  of total  energy  requirements  and  the relative 
importance  of  individual  energy  courses.  The 
Committee  is also  aware  that  there  is a great  deal  of 
uncertainty  about  the  extent  to which  domestic 
production,  and  oil  production  in particular,  will 
satisfy  overall  needs. 
1.2. Two  factors  are  chiefly  responsible  for  the 
downward  adjustment  (by at least  170  million  tonnes 
of oil equivalent)  of forecast  total  consumption:  (a) 
the impact  of the economic  recession  which  continues 
to bedevil  the Community;  (b) expectations  that  GDP 
growth  will  be lower  than  originally  predicted;  (c) 
the revised  estimate  of GDP/energy  consumption 
elasticity  is a further  contributory  factor. 
1.2.1.  The  Committee  is not in a position  to assess 
the various  GDP  growth  forecasts  made  over  the past 
three  years,  viz.  a 4-5 % annual  rate  forecast  in 1974 
for 1973  to 1985,  a 3-2 to 3 5 % annual  rate  forecast 
in 1975  for the same  period,  and  a 4 2 % annual  rate 
forecast  in 1977  for 1976  to 1985.  The  4 2 % growth 
rate for  1976  to 1985  is taken  from  the  fourth 
medium-term  economic  policy  programme;  that  for 
1981  to 1985  is taken  from  Member  States'  estimates. 
For the  sake  of consistency,  the  Commission  still 
predicts  a 4-2 % growth  rate  but  it will  be no easy 
matter  to achieve  this  rate  in the next  few  years. 
The Committee  recognizes  that  such  forecasts  are 
greatly  influenced  by the situation  prevailing  at the 
time  they  are  drawn  up  and  that  during  major 
economic  upheavals  they  are  likely  to be revised 
either  upwards  or downwards.  This  of course  does 
much  to undermine  their  significance  and  reliability, 
especially  if they  are to be used  to identify  the future 
patterns  of specific  phenomena  such  as, in our  case, 
energy  consumption. 
26.4.  78 Official  Journal  of the  European  Communities No C 101/25 
1.2.2.  Forecasts  of total  energy  consumption  are 
also influenced  by the sharp  fall  in the GDP  elasticity 
of energy  consumption  which  is predicted  by the 
Member  States.  The  Commission  Report  gives  no 
indication  of the  criteria  used  by the  Member  States 
in making  their  forecasts  of the  elasticity  ratio. 
Because  of these  gaps  it is hard  to assess  the 
effectiveness  of the  energy  conservation  policy,  and 
hence  the  reliability  of the  forecasts  of total  energy 
consumption.  Like  the  Commission,  the  Committee 
deplores  the fact  that  'the  majority  of Member  States 
were  unable  to supply  forecasts  ... on the  expected 
effect  of energy  conservation  policies'  and  that  'an 
extra  effort  must  be made  in order  to gauge  more 
accurately  the  real  impact  of the  measures  taken  or 
contemplated  in this  field'.  The  Committee  also  feels 
that all Member  States  need  to draw  up objectives  on 
the rational  use of energy. 
1.3. The  Committee  is well  aware  that  forecasts  of 
overall  economic  trends  are  necessary  and  serve  a 
useful  purpose  as benchmarks  for economic  policy. 
Without  wishing  to underestimate  the importance  of 
certain  macro-economic  forecasts  for  the 
determination  and  implementation  of  sectoral 
policies,  the  Committee  would  point  out  that  in 
certain  cases  the  course  of these  sectoral  policies  is 
largely  determined  by  specific,  objective  circum-
stances  at home  and  abroad. 
1.3.1.  As  far  as energy  policy  is concerned,  the 
situation  and  the  needs  of the  Community  can  be 
summed  up as follows:  (a)  there  is a discrepancy 
between  domestic  resources  and  energy  needs;  (b) we 
must  secure  optimum  utilization  of available  energy, 
in order  to reduce  overall  consumption  as far  as 
possible  without  jeopardizing  the  fulfilment  of 
requirements;  (c)  domestic  resources  need  to be 
developed  to the  full  in order  to curb  dependence 
on imports;  (d)  Community  imports  must  be 
organized  so  as  to  obtain  maximum  economic 
security  and  to this  end  sources,  origin  and  suppliers 
must  be diversified  in so far  as such  diversification 
allows  the  desired  objective  to be achieved  without 
exerting  an upward  pressure  on prices  which  would 
be contrary  to the general  interest. 
1.3,2.  Under  the  impact  of the  1973  oil crisis  the 
Community  has  reaffirmed  even  more  vigorously  than 
in the past  its determination  to steer  its energy  policy 
along  the  lines  dictated  by the  situation  and  needs 
described  above. Of the  two  Council  resolutions  laying  down  such 
energy  guidelines,  the one  adopted  on 17 September 
1974  and  entitled  'Towards  a new  energy  strategy  for 
the European  Community'  is considered  by  the 
Section  to be of lasting  value.  The  one  adopted  on 
17 December  1974  and  containing  projected  figures 
for 1985  has  lost  its value,  as is clearly  shown  by 
forecasts  made  subsequently  in 1975  and  1977. 
2. Energy  policy  indications 
2.1. In  the  light  of the  Member  States'  forecasts 
made  in mid-1977,  the Commission  now  affirms  that 
there  are three  main  objectives: 
— oil imports  should  not  exceed  500  million  tonnes 
in 1985, 
— the  share  of oil  in gross  energy  consumption 
should  be significantly  reduced, 
— the  Community's  dependence  on imported  energy 
should  be limited  to 50 %. 
These  ultimate  objectives  subsume  a number  of 
intermediate  objectives  relating  to  domestic 
production  and  imports  of the  various  traditional 
energy  sources.  If these  intermediate  objectives  are 
attained  it should  be possible  to:  (a)  achieve  the 
desired  supply  pattern;  (b)  halt  the  seemingly 
irreversible  downward  slide  of nuclear  energy  from 
the figure  forecast  in 1974. 
The Committee  approves  the  Commission's  line  of 
approach,  though  it does  not  intend  to comment  on 
the figures  given. 
The Committee  does,  however,  note  that  the  figures 
and ranges  contained  in the  Member  States'  1977 
forecasts  for  coal,  oil  and  natural  gas  reveal  the 
existence  of  production,  supply  and  marketing 
difficulties  that  jeopardize  attainment  of  the 
objectives.  Were  it not  for  these  difficulties  the 
objectives  would  be reached  and  even  surpassed  by 
the combined  effects  of: (a)  a reduction  in overall 
demand;  (b)  implementation  of initial  sectoral  pro-
grammes. 
2.2. The  Committee  is convinced  that  a rational 
energy-use  policy  is an essential  part  of any  solution 
which  among  other  things  would  enable  the 
No C 101/26 Official  Journal  of the European  Communities 26. 4. 78 
Commission's  guidelines  to be implemented.  Such  a 
policy  must  be designed  to obtain  the  maximum 
useful  effect  and  thus  reduce  or minimize  the energy 
needed  to achieve  a given  objective. 
A policy  for  the  rational  use  of available  energy 
implies: 
— a review  of the structures  of our  economies,  with 
pride  of place  being  given  to low-energy-con-
sumption  activities, 
— the  introduction  in  all  economic  sectors  of 
production  processes  which  use  energy  more 
efficiently, 
— a review  of the way  in which  energy  is used,  and 
of the  need  to convert  it from  one  form  to 
another  for final  use;  the purpose  of this  review  is 
' to eliminate,  curtail  or recuperate  the energy  loss 
resulting  from  conversion, 
— steps  to ensure  as far as possible  that  the  waste 
heat from  new  electric  power  stations  is used  for 
district  heating  or other  purposes, 
— the  promotion  of other  more  efficient  uses  of 
hard  coal,  e.g.  via gasification, 
— steps  to ensure  that  the  various  types  of energy 
are put  to the  use  for  which  they  are  inherently 
most  suitable, 
— the  introduction  of  prices  which  encourage 
rational  use  of energy;  this  is the  only  effective 
weapon  which  the  Community  and  the  Member 
States  can wield  independently  in order  to: 
— reduce  or soften  the  impact  of energy  price 
hikes  on industrial  production  costs  and  on 
balance  of payments, 
— increase  and  reinforce  their  economic 
independence. 
The Community  should  survey  the  situation  in the 
individual  Member  States.  This  survey  should  not  be 
confined  to the  forecasts  drawn  up but  should  show 
to what  extent  the Member  States  have  followed  the 
Council's  recommendations,  with  particular  emphasis 
on: (i) the  measures  taken  and  their  impact;  (ii) 
the measures  in hand  and  the prospects  they  open  up. 
2.3. The  Commission  emphasizes  the need  to bring 
about  specific  conditions  in order  to overcome  these 
difficulties.  To this  end  a whole  series  of measures  is 
proposed,  some  of which  have  already  been  finalized and submitted  to the  Council,  others  being  still  on 
the drawing  board. 
The Economic  and  Social  Committee  has  already 
taken  a stand  on some  of these  measures  (siting  of 
power  stations,  encouragement  of the  use  of coal  in 
power  stations,  etc.).  On  the  other  proposals,  the 
Committee  intends  to express  its views  as and  when 
it is asked  to deliver  opinions. 
This  is why  the  Committee  is confining  itself  in this 
present  opinion  to a few  general  remarks  on  the 
recommendations  contained  in the  conclusions  and 
the draft  Council  resolution. 
2.3.1.  The  Committee  stresses  the  need  to take 
measures  to optimize  rational  energy  use  in all areas 
(industry  and  transport),  and  to  intensify  the 
measures  already  taken.  The  Committee  also 
emphasizes  the  importance  of increased  efforts  to 
alert  the  general  public  to the  seriousness  of the 
present  and  future  energy  situation.  It is hoped  that  if 
this is done,  more  and  more  people  will  come  to 
appreciate  the need  to conserve  energy. 
2.3.2.  The  Commission  states  that  'the  restrictions 
on the  use  of heavy  fuel  in conventional  power 
stations  must  be  tightened'  (conclusion  (b)).  The 
Committee  feels  that  success  in this  field  will  hinge 
on the  implementation  of a whole  series  of measures 
affecting  all energy  sectors.  Some  of these  measures 
are listed  in conclusion  (b).  Though  not  wishing  to 
go into  details,  the  Committee  would  refer  to the 
comments  on nuclear  energy  (point  2.3.3)  and  coal 
(point  2.3.4).  With  regard,  in particular,  to the 
restructuring  of  the  oil  refining  industry,  the 
Committee  is unable  to express  any  views  since  the 
Committee  has  not  been  consulted  on the  relevant 
proposals  presented  some  time  ago  by  the 
Commission.  So far,  the  Council  has  not  taken  a 
stand  on them  either.  The  Committee  does,  however, 
consider  that  reorganizing  and  re-orienting  the  oil 
refining  industry  raises  complex  problems  that  affect 
not only  the  oil industry  but  also  the  Community's 
externa]  relations. 
2.3.3.  The  Commission  says  thet  the  nuclear 
programmes  should  be  pressed  ahead  (conclusion 
(c)). The  Committee  observes  that  some  recourse  to 
nuclear  energy  is  generally  considered  to  be 
necessary.  It considers  that  an  expansion  of the 
nuclear  programme  must  provide  at a reasonable  cost 
some  of the  energy  needed  to attain  the  economic 
and social  objectives  without  however  jeopardizing 
the health  of nuclear  industry  workers  or the  general 
public. 
26. 4. 78 Official  Journal  of the European  Communities No C 101/27 
2.3A.  On  the  question  of the role  of coal  in future 
energy  supplies  (1985  and  beyond),  the  Commission 
maintains  that  a 'carefully  balanced  choice'  must  be 
made  between  two  alternatives:  either  making  the 
best possible  use  of Community  resources,  or else 
giving  pre-eminence  to imports  and  accepting  that 
Community  coal  plays  second  fiddle  (conclusion  (d)). 
For its own  part,  the Committee  considers  that  there 
is no  such  choice  in reality  since  imports  and 
maximum  Community  production  (under  satisfactory 
economic  conditions)  both  play  a vitally  important 
role in the energy  strategy.  It is obvious  that  we need 
a 'judicious  combination'  of both  options  even  if it 
still remains  to determine  just  what  the  mix  should 
be, under  what  conditions  it would  be feasible  and 
whether  it is to have  a national  or a Community 
policy  framework.  To this  end  it is important  for the 
Community  to state  clearly  what  price  it is ready 
to pay  to reduce  its dependence  on imports.  It is 
likewise  important  for  the Community  energy  policy 
to take  a long-term  view  of the  relative  prices  of 
individual  energy  sources.  In this  context  the possibi-
lity of oil prices  increasing  more  than  the  Commis-
sion would  expect  as a result  of general  price 
movements  should  not be ruled  out a priori. 
On the  question  of direct  action  to boost  coal 
consumption,  the Committee  would  refer  back  to the 
Committee's  opinion  of 30 March  1977  endorsing  the 
objective  pursued  in the Commission's  proposal  for a 
Council  Regulation  on  Community  financial 
measures  to promote  the  use  of coal  for  electricty 
generation  (*).  The  opinion  in question  in fact 
contains  a passage  stating  that  'the  increased  use  of 
coal for  electricity  generation  ...  is an important 
element  in achieving  the  overall  energy  targets  for 
1985'.  The  draft  Regulation  has  not  yet been  approv-
ed by the  Council  so it is not  known  what  contribu-
tion it can  make  to ensuring  that  more  coal  is used  — 
especially  Community  coal. 
2.3.5.  The  Committee  agrees  with  the Commission 
that minimum  targets  should  be set  for  domestic 
production  of coal,  oil and  natural  gas.  At the  same 
time,  however,  the  Committee  feels  that  the  recent 
forecasts  of Member  States  betray  uncertainty  (for 
reasons  which  are  not  spelled  out)  as to whether 
these  targets  can  in fact  be attained.  The  appeal  to 
Member  States,  energy  producers  and  consumers  to 
'work  within'  the  basic  framework  laid  down  by the 
Commission  (third  paragraph  of  the  resolution) 
would  therefore  seem  to  be  inadequate.  The 
H OJ  No C 114,  11. 5. 1977,  p. 24. Committee  also  feels  that  new  sources  of energy  need 
to be developed  and  research  to this  end  stepped  up. 
2.3.6.  In  conclusion  (f) the Commission  states  that 
an increase  in energy  trade  within  the  Community 
would  increase  overall  security  of  supply,  and 
improve  the conditions  under  which  certain  resources 
are exploited. 
The Committee  would  point  out  first  of all  that 
improved  security  of supplies  is not dependent  on the 
allocation  of a given  fuel  between  Member  States,  but 
on the  increase  in the  production  thereof.  Increased 
production  is in turn  dependent  on marketing  outlets. 
An increase  in trade  presupposes  that  the appropriate 
legal  and  economic  conditions  obtain,  legal 
conditions  being  such  things  as freedom  of access  to 
fuels  and  guaranteed  supplies;  economic  conditions 
basically  being  acceptable  prices  to  consumers 
ensured  through  the  natural  competitiveness  of fuels 
or price-support  policies.  In  this  respect  the 
Committee  attaches  considerable  importance  to the 
promotion  and  protection  of  investments.  The 
Commission  has  already  put  forward  outline 
proposals  (loans  and  loan  guarantees,  long-term 
contracts,  msp)  on this  matter  but  the Committee  has 
not yet  been  officially  informed  of them  although.it 
would  welcome  the opportunity  to express  its views. 
3. Conclusions 
3.1. In  1978  the  Committee  cannot  predict  what 
the general  economic  and  energy  situation  of the 
Community  is going  to be like  in 1985.  The  events  of 
the last  three  years  do not  provide  sufficiently  clear 
data  to enable  one  to conclude  that  the energy  sector 
will contribute  to the  Community's  stability  and 
economic  growth  or whether  it will  be the other  way 
round  and  economic  growth  will  alleviate  some  of 
the energy  problems.  At any  rate  the  question  of 
whether  a priori  objectives,  such  as a maximum  50 % 
dependence  on imports,  are  or are  not  achieved  in 
full is not of crucial  importance  either  way. 
3.2. The  one  vital  lesson  to be drawn  from  this 
uncertainty  is that  the  Community  must  do all in its 
power  to ease  the difficulties  it is faced  with  and  this 
No C 101/28 Official  Journal  of the European  Communities 26. 4. 78 
can be done  by preparing  and  implementing  all 
appropriate  measures  both  in the energy  sector  (which 
includes  a rational  energy  (use  policy)  and  elsewhere. 
Such  measures,  however,  should  not  be confined  to 
purely  national  measures,  to what  lies  in the power 
of each  Member  State  acting  autonomously.  All that 
these  measures  achieve  is to make  the Community's 
energy  statistics  look  rosier.  No  energy  policy  can 
claim  to be a genuine  common  policy  unless  it helps 
to further  the Community's  fundamental  objectives 
both  within  the Nine  and  vis-a-vis  the outside  world; 
and these  objectives  go further  than  the mere  attain-
ment  of certain  production  levels  or energy  conser-
vation  targets  whose  importance  is largely  confined  to 
individual  national  economies.  To become  a fully-fledged  Community  policy,  the energy  strategy  must 
be planned  and  executed  in an atmosphere  of genuine 
solidarity  and  play  its part  in bringing  about  econo-
mic integration  and  political  unity. 
3.3. These  are  the  views  expressed  by  the 
Commission  in its second  report  (page  4: 'Main 
features').  In future  progress  reports  and  other 
documents,  however,  the  Commission  should 
concentrate  less  on  fluctuating  medium-term 
forecasts  and  more  on giving  an up-date  of the 
energy  policy  emphasizing  to what  extent  the 
Member  States  have  adhered  to  Community 
guidelines. 
Done  at Brussels,  1 March  1978. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the proposal  for a Council  Directive  amending  the Directive  of 26 July  1971 
concerning  the coordination  of procedures  for  the  award  of public  works  contracts 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of the 
European  Communities  No  C 25 of 31 January  1978,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 25 January  1978,  the Council  referred  the abovementioned  proposal  to the Economic 
and Social  Committee  in accordance  with  Article  100  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
156th  plenary  session  held  in Brussels  on 1 and 2 March  1978. 
The full text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the Euro-
pean  Economic  Community,  and  in  particular 
Article  100  thereof, Having  regard  to the  request  made  by the  Council 
of the  European  Communities  on 25 January  1978 
for an opinion, 
Having  regard  to the  decision  taken  by its Bureau 
on 31  January  1978  instructing  the  Section  for